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Novartis AG 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$87.03 – a decrease of 3.89% over the previous week. Here's how to invest if you're based in Australia.
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| 52-week range | US$79.34 - US$95.17 |
|---|---|
| 50-day moving average | US$84.6352 |
| 200-day moving average | US$87.4711 |
| Target price | US$101.4 |
| PE ratio | 20.104 |
| Dividend yield | US$3.4 (3.68%) |
| Earnings per share (TTM) | US$4.329 |
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. 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.
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 $87.03
| 1 week (2022-01-14) | -3.89% |
|---|---|
| 1 month (2021-12-23) | 0.43% |
| 6 months (2021-07-23) | -4.96% |
| 1 year (2021-01-22) | -10.19% |
|---|---|
| 2 years (2020-01-24) | -7.29% |
| 3 years (2019-01-24) | 13.93% |
| 5 years (2017-01-24) | 40.56% |
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 20x. In other words, Novartis shares trade at around 20x 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 2.1087. 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$20.2 billion (£15 billion).
The EBITDA is a measure of a Novartis's overall financial performance and is widely used to measure a its profitability.
| Revenue TTM | US$52.4 billion |
|---|---|
| Operating margin TTM | 27.94% |
| Gross profit TTM | US$35.5 billion |
| Return on assets TTM | 7.29% |
| Return on equity TTM | 17.6% |
| Profit margin | 18.72% |
| Book value | 25.377 |
| Market capitalisation | US$194.8 billion |
TTM: trailing 12 months
Dividend payout ratio: 54.22% of net profits
Recently Novartis has paid out, on average, around 54.22% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.68% 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 3.68% return on their shares, in the form of dividend payments. In Novartis's case, that would currently equate to about $3.4 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 14 March 2021. The latest dividend was paid out to all shareholders who bought their shares by 3 March 2021 (the "ex-dividend date").
Novartis's shares were split on a 1116:1000 basis on 8 April 2019. So if you had owned 1000 shares the day before before the split, the next day you'd have owned 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.
Over the last 12 months, Novartis's shares have ranged in value from as little as US$79.34 up to US$95.17. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Novartis's is 0.556. This would suggest that Novartis's shares are less volatile than average (for this exchange).
Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. The company operates through two segments, Innovative Medicines and Sandoz. The Innovative Medicines segment offers prescription medicines for patients and healthcare providers. It also provides ophthalmology, neuroscience, immunology, hepatology and dermatology, respiratory, established, and cardiovascular, renal and metabolism medicine products. The Sandoz segment provides active ingredients and finished dosage forms of small molecule pharmaceuticals to third parties across a range of therapeutic areas, as well as finished dosage form anti-infectives. It also provides active pharmaceutical ingredients and intermediates primarily antibiotics; protein- or other biotechnology-based products, including biosimilars; and biotechnology manufacturing services. Novartis AG has a license and collaboration agreement with Alnylam Pharmaceuticals to develop, manufacture, and commercialize inclisiran; an agreement with CureVac to manufacture COVID-19 vaccine candidate CVnCoV; a collaboration with Artios Pharma Limited to create next generation DDR cancer therapies; and a clinical collaboration with Kura Oncology, Inc. to evaluate the combination of Tipifarnib and Alpelisib in patients with head and neck squamous cell carcinoma. The company was incorporated in 1996 and is headquartered in Basel, Switzerland.
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