Novartis AGFRA:NOT +2.14%83 FCF Margin % is 21.21% as of Mar. 2026, which is 16% below its 10-year median of 25.16. GuruFocus rates FRA:NOT with a GF Score™ of 83/100 and a GF Value™ of €109.77 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 958 Drug Manufacturers companies, Novartis AG ranks better than 95.3% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. Novartis AG's Free Cash Flow for the
three
months ended in Mar. 2026 was €2,482 Mil. Novartis AG's Revenue for the
three
months ended in Mar. 2026 was €11,698 Mil. Therefore, Novartis AG's FCF Margin % for the quarter that ended in Mar. 2026 was 21.21%.
The historical rank and industry rank for Novartis AG's FCF Margin % or its related term are showing as below:
FRA:NOT'
s FCF Margin % Range Over the Past 10 Years
Min: 17.39 Med: 25.16 Max: 28.46
Current: 28.24
During the past 13 years, the highest FCF Margin % of Novartis AG was 28.46%. The lowest was 17.39%. And the median was 25.16%.
FRA:NOT's FCF Margin % is ranked better than 95.3% of 958
companies
in the Drug Manufacturers industry
Industry Median: 2.51
vs FRA:NOT: 28.24
Novartis AG FCF Margin % Related Terms
Novartis AG FCF Margin % Historical Data
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The historical data trend for Novartis AG's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:NOT vs LLY, JNJ, ABBV: FCF Margin % Comparison
For the Drug Manufacturers - General subindustry, Novartis AG's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Novartis AG FCF Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Novartis AG's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Novartis AG (FRA:NOT) has a FCF Margin % of 21.21% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Novartis AG and its competitors. This is 16% below median its historical median of 25.16. Over the past decade, Novartis AG's FCF Margin % has ranged from 17.39 to 28.46. According to the industry distribution chart, Novartis AG ranks #45 out of 958 companies in the Drug Manufacturers industry, placing it in the top 4.7%.
Is Novartis AG's FCF Margin % too high?
Novartis AG's current FCF Margin % of 21.21% is 16% below median its 10-year median of 25.16. Over the past 10 years, this metric has ranged from a low of 17.39 to a high of 28.46. The Drug Manufacturers industry median FCF Margin % is 2.51. Novartis AG's value of 21.21% is 745% above this industry median. Based on the distribution chart, Novartis AG ranks #45 out of 958 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Novartis AG has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis AG's FCF Margin % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #45 out of 958 companies for FCF Margin %. This places Novartis AG in the top 5% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 2.51. Novartis AG's value of 21.21% is 745% above this benchmark. Historically, Novartis AG's own FCF Margin % has ranged from 17.39 to 28.46 over the past decade. While the company's 10-year median is 25.16 vs. the industry median of 2.51, Novartis AG has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Drug Manufacturers company?
The median FCF Margin % among Drug Manufacturers companies is 2.51, based on 958 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current FCF Margin % of 21.21% is 745% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median FCF Margin % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current FCF Margin % is 21.21%, which is 16% below median its own 10-year median of 25.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novartis AG stock overvalued right now?
Based on GuruFocus' analysis, Novartis AG (FRA:NOT) is currently considered Modestly Overvalued. The stock's GF Value™ is €109.77, compared to a current price of €131.52 — trading 19.8% above its estimated fair value. The current FCF Margin % is 21.21%, which is 16% below median its 10-year median of 25.16 and 745% above the Drug Manufacturers industry median of 2.51. Novartis AG's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Novartis AG (FRA:NOT), the current FCF Margin % is 21.21% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Novartis AG (FRA:NOT) Overvalued in 2026?
Based on GuruFocus' analysis, Novartis AG stock appears to be overvalued.
The current stock price of €131.52 is trading 19.8% above its estimated GF Value™ of €109.77.
GuruFocus considers Novartis AG to be Modestly Overvalued.
Key valuation signals for FRA:NOT:
FCF Margin %: 21.21% (16% below median its 10-year median of 25.16)
GF Value™: €109.77 vs. price of €131.52 (19.8% above fair value)
Industry Position: 745% above the Drug Manufacturers median (#45 of 958)
No single metric tells the full story. See the FRA:NOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Novartis develops and manufactures innovative drugs. Key areas of drug development are oncology, immunology, neuroscience, respiratory, and cardiovascular, renal, and metabolic. It also has an established medicines business, which includes off-patent franchises. The company sells its products globally, with the United States constituting close to one-third of total revenue.
83GF Score
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FCF Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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