Is Novartis Stock a Good Investment?
Novartis Investment Advice | NVS |
- Examine Novartis' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Novartis' leadership team and their track record. Good management can help Novartis navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Pharmaceuticals space and any emerging trends that could impact Novartis' business and its evolving consumer preferences.
- Compare Novartis' performance and market position to its competitors. Analyze how Novartis is positioned in terms of product offerings, innovation, and market share.
- Check if Novartis pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Novartis' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Novartis AG ADR stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Novartis AG ADR is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Novartis Stock
Researching Novartis' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The book value of the company was now reported as 21.67. The company recorded earning per share (EPS) of 5.73. Novartis AG ADR last dividend was issued on the 7th of March 2024. The entity had 1116:1000 split on the 9th of April 2019.
To determine if Novartis is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Novartis' research are outlined below:
| Novartis AG ADR generated a negative expected return over the last 90 days | |
| Novartis AG ADR has a strong financial position based on the latest SEC filings | |
| Latest headline from zacks.com: Pharma Stock Roundup RHHBY to Buy PSTX, MRK, AZN See Pipeline Success |
Novartis Quarterly Good Will |
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Novartis uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Novartis AG ADR. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Novartis' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 31st of January 2024 Upcoming Quarterly Report | View | |
| 23rd of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 31st of January 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Novartis' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Novartis' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1997-04-22 | 1997-03-31 | 0.45 | 0.52 | 0.07 | 15 | ||
2007-10-18 | 2007-09-30 | 0.76 | 0.68 | -0.08 | 10 | ||
2007-01-18 | 2006-12-31 | 0.78 | 0.7 | -0.08 | 10 | ||
2006-04-24 | 2006-03-31 | 0.71 | 0.83 | 0.12 | 16 | ||
2009-01-28 | 2008-12-31 | 0.79 | 0.66 | -0.13 | 16 | ||
2008-04-21 | 2008-03-31 | 0.89 | 1.02 | 0.13 | 14 | ||
2006-01-19 | 2005-12-31 | 0.71 | 0.58 | -0.13 | 18 | ||
2023-04-25 | 2023-03-31 | 1.55 | 1.71 | 0.16 | 10 |
Know Novartis' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Novartis is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Novartis AG ADR backward and forwards among themselves. Novartis' institutional investor refers to the entity that pools money to purchase Novartis' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Renaissance Technologies Corp | 2024-09-30 | 2.3 M | Cullen Capital Management, Llc | 2024-09-30 | 2.3 M | Wells Fargo & Co | 2024-06-30 | 2.1 M | Envestnet Asset Management Inc | 2024-09-30 | 2 M | Bank Of New York Mellon Corp | 2024-06-30 | 1.9 M | Blackrock Inc | 2024-06-30 | 1.9 M | State Street Corp | 2024-06-30 | 1.8 M | Northern Trust Corp | 2024-09-30 | 1.7 M | Fisher Asset Management, Llc | 2024-09-30 | 1.7 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 14.8 M | Dodge & Cox | 2024-09-30 | 12.2 M |
Novartis' market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 211.46 B.Market Cap |
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Novartis' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.27 | 0.28 | |
| Return On Capital Employed | 0.13 | 0.14 | |
| Return On Assets | 0.15 | 0.11 | |
| Return On Equity | 0.32 | 0.33 |
Determining Novartis' profitability involves analyzing its financial statements and using various financial metrics to determine if Novartis is a good buy. For example, gross profit margin measures Novartis' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Novartis' profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Novartis' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Novartis AG ADR. Check Novartis' Beneish M Score to see the likelihood of Novartis' management manipulating its earnings.
Evaluate Novartis' management efficiency
Novartis AG ADR has Return on Asset of 0.1059 % which means that on every $100 spent on assets, it made $0.1059 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.2879 %, implying that it generated $0.2879 on every 100 dollars invested. Novartis' management efficiency ratios could be used to measure how well Novartis manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Novartis' Return On Tangible Assets are comparatively stable compared to the past year. Return On Capital Employed is likely to gain to 0.14 in 2024, whereas Return On Assets are likely to drop 0.11 in 2024. At this time, Novartis' Total Assets are comparatively stable compared to the past year. Non Current Assets Total is likely to gain to about 73.2 B in 2024, whereas Total Current Assets are likely to drop slightly above 29.9 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 22.37 | 17.84 | |
| Tangible Book Value Per Share | 0.89 | 0.85 | |
| Enterprise Value Over EBITDA | 12.26 | 13.75 | |
| Price Book Value Ratio | 4.52 | 3.23 | |
| Enterprise Value Multiple | 12.26 | 13.75 | |
| Price Fair Value | 4.52 | 3.23 | |
| Enterprise Value | 223.9 B | 116 B |
The leadership approach at Novartis' fosters a culture of excellence and accountability. Our analysis examines how this culture influences financial outcomes and stock valuation.
Dividend Yield 0.0357 | Forward Dividend Yield 0.0357 | Forward Dividend Rate 3.78 | Beta 0.505 |
Basic technical analysis of Novartis Stock
As of the 30th of November, Novartis secures the Risk Adjusted Performance of (0.14), mean deviation of 0.6963, and Standard Deviation of 0.9821. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Novartis AG ADR, as well as the relationship between them. Please verify Novartis AG ADR market risk adjusted performance and treynor ratio to decide if Novartis AG ADR is priced some-what accurately, providing market reflects its recent price of 105.77 per share. Given that Novartis AG ADR has information ratio of (0.33), we recommend you to check Novartis's last-minute market performance to make sure the company can sustain itself at a future point.Novartis' Outstanding Corporate Bonds
Novartis issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Novartis AG ADR uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Novartis bonds can be classified according to their maturity, which is the date when Novartis AG ADR has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| NOVARTIS CAPITAL P Corp BondUS66989HAS76 | View | |
| NOVARTIS CAPITAL P Corp BondUS66989HAQ11 | View | |
| NOVARTIS CAPITAL P Corp BondUS66989HAR93 | View | |
| NOVARTIS CAPITAL P Corp BondUS66989HAP38 | View | |
| NOVARTIS CAP P Corp BondUS66989HAN89 | View | |
| NOVARTIS CAP P Corp BondUS66989HAK41 | View | |
| NOVARTIS CAP P Corp BondUS66989HAJ77 | View | |
| US66981QAA40 Corp BondUS66981QAA40 | View |
Understand Novartis' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Novartis' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.14) | |||
| Market Risk Adjusted Performance | (1.06) | |||
| Mean Deviation | 0.6963 | |||
| Coefficient Of Variation | (527.97) | |||
| Standard Deviation | 0.9821 | |||
| Variance | 0.9645 | |||
| Information Ratio | (0.33) | |||
| Jensen Alpha | (0.22) | |||
| Total Risk Alpha | (0.36) | |||
| Treynor Ratio | (1.07) | |||
| Maximum Drawdown | 6.05 | |||
| Value At Risk | (1.98) | |||
| Potential Upside | 1.12 | |||
| Skewness | (1.41) | |||
| Kurtosis | 4.54 |
| Risk Adjusted Performance | (0.14) | |||
| Market Risk Adjusted Performance | (1.06) | |||
| Mean Deviation | 0.6963 | |||
| Coefficient Of Variation | (527.97) | |||
| Standard Deviation | 0.9821 | |||
| Variance | 0.9645 | |||
| Information Ratio | (0.33) | |||
| Jensen Alpha | (0.22) | |||
| Total Risk Alpha | (0.36) | |||
| Treynor Ratio | (1.07) | |||
| Maximum Drawdown | 6.05 | |||
| Value At Risk | (1.98) | |||
| Potential Upside | 1.12 | |||
| Skewness | (1.41) | |||
| Kurtosis | 4.54 |
Consider Novartis' intraday indicators
Novartis intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Novartis stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Novartis Corporate Filings
6K | 25th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
F3 | 17th of October 2024 An amendment to the original Schedule 13D filing | ViewVerify |
| 16th of September 2024 Other Reports | ViewVerify | |
| 13th of August 2024 Other Reports | ViewVerify |
Novartis Stock media impact
Far too much social signal, news, headlines, and media speculation about Novartis that are available to investors today. That information is available publicly through Novartis media outlets and privately through word of mouth or via Novartis internal channels. However, regardless of the origin, that massive amount of Novartis data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Novartis news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Novartis relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Novartis' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Novartis alpha.
Novartis Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Novartis can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Novartis AG ADR Historical Investor Sentiment
Investor biases related to Novartis' public news can be used to forecast risks associated with an investment in Novartis. The trend in average sentiment can be used to explain how an investor holding Novartis can time the market purely based on public headlines and social activities around Novartis AG ADR. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Novartis' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Novartis and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Novartis news discussions. The higher the estimate score, the more favorable the investor's outlook on Novartis.
Novartis Corporate Directors
| Ton Buechner | Non-Executive Independent Director | Profile | |
| Frans Houten | Non-Executive Independent Director | Profile | |
| Nancy Andrews | Non-Executive Independent Director | Profile | |
| Elizabeth Doherty | Non-Executive Independent Director | Profile |
Additional Tools for Novartis Stock Analysis
When running Novartis' price analysis, check to measure Novartis' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Novartis is operating at the current time. Most of Novartis' value examination focuses on studying past and present price action to predict the probability of Novartis' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Novartis' price. Additionally, you may evaluate how the addition of Novartis to your portfolios can decrease your overall portfolio volatility.