Novartis AG Common Stock (NVS)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable competitive advantages and conservative balance sheets, and Novartis partly fits. It sells branded medicines such as Entresto, Cosentyx, and Kisqali, which suggests an intangible-asset moat, and in 2026-Q2 it reported $15.0B revenue and $3.3B net income—a 21.83% margin. FairStock's ROE calculation of 30.35% is impressive, though its ROCE of 10.25% and D/E of 1.17 tell me leverage helps returns and capital efficiency is less exceptional. Cash generation is real: $15.0B trailing free cash flow gives a FairStock FCF yield of 5.3%. FairStock's Piotroski F-Score of 8/9 signals good accounting momentum, and its Altman Z-Score of 2.79 is not distressed. Valuation is the rub. At the 2026-10-13 close of $142.41, FairStock's P/E is 21.48 and P/B is 6.51. The Graham Number is only $57.10, implying a -149.40% margin of safety—meaning the price is far above what Graham's formula would call intrinsic value. FairStock's EV/EBITDA is 14.49. Growth is also uneven: latest quarter profit was solid, but the supplied growth data show very little revenue growth and a double-digit profit decline. The dividend yield of 3.38% and low beta of 0.49 add defensive appeal. I would call this a quality pharmaceutical business with a narrow moat, but the price leaves little room for error.

In plain English: Novartis makes prescription medicines, including treatments for heart failure and psoriasis. It is solidly profitable and generates a lot of cash, but recent profit growth has been weak and the stock price looks high compared with the value of its assets and earnings as calculated by FairStock. Overall, this looks like a strong business trading at a rich price.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer