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Novartis AG is a drug manufacturers—general business based in the US. Novartis shares (NVS) are listed on the NYSE and all prices are listed in US Dollars. Novartis employs 110,000 staff and has a trailing 12-month revenue of around USD$49.6 billion.
Since the stock market crash in March caused by coronavirus, Novartis's share price has had significant negative movement.
Its last market close was USD$84.41, which is 12.76% down on its pre-crash value of USD$96.76 and 22.01% up on the lowest point reached during the March crash when the shares fell as low as USD$69.1801.
If you had bought USD$1,000 worth of Novartis shares at the start of February 2020, those shares would have been worth USD$749.81 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$895.59.
|Latest market close||USD$84.41|
|52-week range||USD$69.1801 - USD$96.2945|
|50-day moving average||USD$84.875|
|200-day moving average||USD$86.196|
|Wall St. target price||USD$104.5|
|Dividend yield||USD$3.09 (3.5%)|
|Earnings per share (TTM)||USD$3.087|
The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
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.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
|1 week (2020-11-23)||-3.32%|
|1 month (2020-10-30)||8.11%|
|3 months (2020-08-28)||-2.53%|
|6 months (2020-05-29)||-3.45%|
|1 year (2019-11-29)||-8.55%|
|2 years (2018-11-30)||-7.78%|
|3 years (2017-11-30)||-1.62%|
|5 years (2015-11-30)||-0.97%|
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 28x. In other words, Novartis shares trade at around 28x recent earnings.
That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).
Novartis's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.7242. 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 USD$18 billion.
The EBITDA is a measure of a Novartis's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||USD$49.6 billion|
|Operating margin TTM||26.75%|
|Gross profit TTM||USD$34.7 billion|
|Return on assets TTM||6.75%|
|Return on equity TTM||13.25%|
|Market capitalisation||USD$201.8 billion|
TTM: trailing 12 months
There are currently 3.2 million Novartis shares held short by investors – that's known as Novartis's "short interest". This figure is 0.2% up from 3.2 million last month.
There are a few different ways that this level of interest in shorting Novartis shares can be evaluated.
Novartis's "short interest ratio" (SIR) is the quantity of Novartis shares currently shorted divided by the average quantity of Novartis shares traded daily (recently around 1.8 million). Novartis's SIR currently stands at 1.83. In other words for every 100,000 Novartis shares traded daily on the market, roughly 1830 shares are currently held short.
However Novartis's short interest can also be evaluated against the total number of Novartis shares, or, against the total number of tradable Novartis shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Novartis's short interest could be expressed as 0% of the outstanding shares (for every 100,000 Novartis shares in existence, roughly 0 shares are currently held short) or 0% of the tradable shares (for every 100,000 tradable Novartis shares, roughly 0 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Novartis.
Find out more about how you can short Novartis stock.
Dividend payout ratio: 52.81% of net profits
Recently Novartis has paid out, on average, around 52.81% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.5% 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 3.5% return on their shares, in the form of dividend payments. In Novartis's case, that would currently equate to about $3.09 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 12 March 2020. The latest dividend was paid out to all shareholders who bought their shares by 3 March 2020 (the "ex-dividend date").
Novartis's shares were split on a 1116:1000 basis on 9 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 $69.1801 up to $96.2945. 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 0.4291. 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. Its Innovative Medicines segment offers prescription medicines for patients and healthcare providers. It also provides ophthalmology, neuroscience, immunology, hepatology and dermatology, respiratory, cardio-metabolic, established, and cardiovascular, renal and metabolism medicine products. The company's 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 collaboration agreements with Pear Therapeutics; Wyss Institute for Biologically Inspired Engineering at Harvard University and the Dana-Farber Cancer Institute; Science 37; Bill & Melinda Gates Foundation; Amgen; University of California, Berkeley; Bristol-Myers Squibb; Drugs for Neglected Diseases initiative (DNDi); TScan Therapeutics; Dyno Therapeutics Inc.; and Olema Oncology. The company was founded in 1895 and is headquartered in Basel, Switzerland.
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