Novartis AG ADR is a drug manufacturers - general business with stocks listed in the US. Novartis shares (NVS) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$97.28 – an increase of 4.51% over the previous week. Here's how to invest if you're based in Australia.
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Novartis's shares were split on a 1116:1000 basis on 8 April 2019. So if you had owned 1000 shares the day before the split, the next day you would own 1116 shares. This wouldn't directly have changed the overall worth of your Novartis shares – just the quantity. However, indirectly, the new 10.4% lower share price could have impacted the market appetite for Novartis shares which in turn could have impacted Novartis's share price.
| 52-week range | US$85.594 - US$104.7768 |
|---|---|
| 50-day moving average | US$98.8144 |
| 200-day moving average | US$99.8474 |
| Target price | US$113.76 |
| PE ratio | 22.7317 |
| Dividend yield | US$3.919 (4.05%) |
| Earnings per share (TTM) | US$4.1 |
Use the fields above to explore the returns from a historical investment. Please refer to the charts further up this page to see performance over 5 years, or other periods. Past performance doesn't indicate future results. Capital is at risk.
Historical closes compared with the last close of $97.28
| 1 week (2024-04-17) | 4.51% |
|---|---|
| 1 month (2024-03-22) | 1.09% |
| 3 months (2024-01-24) | -9.55% |
| 6 months (2023-10-24) | 2.50% |
| 1 year (2023-04-24) | 2.20% |
|---|---|
| 2 years (2022-04-22) | 15.24% |
| 3 years (2021-04-23) | 10.21% |
| 5 years (2019-04-24) | 25.01% |
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Valuing Novartis stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Novartis's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Novartis's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 23x. In other words, Novartis shares trade at around 23x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Novartis's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 5.0912. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Novartis's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Novartis's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$17.5 billion (£14.1 billion).
The EBITDA is a measure of a Novartis's overall financial performance and is widely used to measure stock profitability.
Over the last 12 months, Novartis's shares have ranged in value from as little as US$85.594 up to US$104.7768. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Novartis's is 0.475. This would suggest that Novartis's shares are less volatile than average (for this exchange).
| Revenue TTM | US$46.7 billion |
|---|---|
| Operating margin TTM | 25.37% |
| Gross profit TTM | US$36.7 billion |
| Return on assets TTM | 7.27% |
| Return on equity TTM | 16.15% |
| Profit margin | 31.83% |
| Book value | 22.831 |
| Market capitalisation | US$190.5 billion |
TTM: trailing 12 months
Dividend payout ratio: 54.74% of net profits
Recently Novartis has paid out, on average, around 54.74% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4.05% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Novartis shareholders could enjoy a 4.05% return on their shares, in the form of dividend payments. In Novartis's case, that would currently equate to about $3.919 per share.
Novartis's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Novartis's most recent dividend payout was on 19 March 2023. The latest dividend was paid out to all shareholders who bought their shares by 6 March 2024 (the "ex-dividend date").
Novartis AG engages in the research, development, manufacture, and marketing of healthcare products in Switzerland and internationally. The company offers prescription medicines for patients and physicians. It focuses on therapeutic areas, such as cardiovascular, renal and metabolic, immunology, neuroscience, and oncology, as well as ophthalmology and hematology. Novartis AG has a license and collaboration agreement with Alnylam Pharmaceuticals to develop, manufacture, and commercialize inclisiran, a therapy to reduce LDL cholesterol; and Dawn Health for the development and commercialization of Ekiva, a digital solution designed for people living with Paroxysmal Nocturnal Hemoglobinuria. The company was incorporated in 1996 and is headquartered in Basel, Switzerland.
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