The company's fundamentals are relatively healthy. Its valuation is considered fairly valued,and institutional recognition is very high. Over the past 30 days, multiple analysts have rated the company as a Hold. Despite a weak stock market performance, the company shows strong fundamentals and technicals. The stock price is trading sideways between the support and resistance levels, making it suitable for range-bound swing trading.
Novartis AG is a Swiss multinational pharmaceutical corporation headquartered in Basel, Switzerland. It stands as one of the largest pharmaceutical companies globally and ranked eighth by revenue in 2024.
The company manufactures various medications, including clozapine, diclofenac, carbamazepine, valsartan, imatinib mesylate, cyclosporine, letrozole, methylphenidate, terbinafine, deferasirox, among others.
Founded in 1996 through the merger of Ciba-Geigy and Sandoz, it was regarded as the largest corporate merger at that time. The pharmaceutical and agrochemical divisions from both companies combined to create Novartis as an independent entity. The name "Novartis" is derived from the Latin words translating to "new arts."
Following the merger, several businesses from Ciba-Geigy and Sandoz were sold or spun off as independent entities, like Ciba Specialty Chemicals. Although the Sandoz brand vanished for three years, it was reintroduced in 2003 when Novartis merged its generic drug divisions into a single subsidiary named Sandoz. In 2000, Novartis divested its agrochemical and genetically modified crops sector by spinning out Syngenta in collaboration with AstraZeneca, which also shed its agrochemical division. The company has since pursued multiple acquisitions to bolster its core businesses.
Novartis is a full member of various notable organizations, including the European Federation of Pharmaceutical Industries and Associations, the Biotechnology Innovation Organization, the International Federation of Pharmaceutical Manufacturers and Associations, and the Pharmaceutical Research and Manufacturers of America. Presently, Novartis ranks as the third most valuable pharmaceutical company in Europe, following Novo Nordisk and Roche.
The company's current financial score is 9.02, which is higher than the Pharmaceuticals industry's average of 7.76. Its financial status is stable, and its operating efficiency is high. Its latest quarterly revenue reached 14.53B, representing a year-over-year increase of 12.86%, while its net profit experienced a year-over-year increase of 24.49%.
Key Metrics
The company’s current valuation score is 7.95, which is higher than the Pharmaceuticals industry's average of 7.22. Its current P/E ratio is 16.54, which is 83.21% below the recent high of 30.29 and 31.88% above the recent low of 11.26.
The company’s current earnings forecast score is 5.14, which is lower than the Pharmaceuticals industry's average of 7.79. The average price target for Novartis AG is 120.00, with a high of 142.00 and a low of 100.00.
Data disclaimer: Analyst ratings and target prices are provided by LSEG for informational purposes only and do not constitute investment advice.
The company’s current price momentum score is 6.59, which is lower than the Pharmaceuticals industry's average of 6.80. Sideways: Currently, the stock price is trading between the resistance level at 129.71 and the support level at 117.73, making it suitable for range-bound swing trading.
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The company’s current institutional recognition score is 3.00, which is lower than the Pharmaceuticals industry's average of 5.79. The latest institutional shareholding proportion is 7.03%, representing a quarter-over-quarter decrease of 3.23%. The largest institutional shareholder is Van Duyn Dodge & E. Morris Cox, holding a total of 10.65M shares, representing 0.55% of shares outstanding, with 10.27% decrease in holdings.
The company’s current risk assessment score is 9.89, which is higher than the Pharmaceuticals industry's average of 5.13. The company's beta value is 0.60. This indicates that the stock tends to underperform the index during upward trending markets but experiences smaller declines during downward trending markets.
