About NOVARTIS AG
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, dermatology, respiratory, cardiovascular, renal, and metabolism medicine products. The Sandoz segment develops, manufactures, and markets finished dosage form medicines; active ingredients and finished dosage forms of small molecule pharmaceuticals to third parties; and retail generics and 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; 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.
NVS operates in the Manufacturing | Pharmaceutical Products | approximately 101,700 employees | led by CEO Vasant Narasimhan.
Updated February 16, 2026
NOVARTIS AG earns a Buy rating from our quantitative model with a composite score of 74/100, ranking #24 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is stability at 97/100, which places NVS in the top 3 percent of all stocks on this measure. value at 90/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Manufacturing sector, NVS ranks 12th out of 50 peers, placing it in the 76th percentile. At $198.9 billion, the company is a well-established large cap.
Six-Factor Scorecard
Our model evaluates every U.S. stock across six independently measured dimensions. Each score represents a percentile rank — a score of 80 means the stock ranks higher than 80 percent of all companies on that factor.
Key Financial Metrics
Quality Analysis
NOVARTIS AG's quality score of 83/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 26.3% exceeds the sector median of -2.0%. Gross margins of 75.2% reflect strong pricing power and competitive moats. Operating margins of 28.1% sit above the 3.0% sector average.
Net margins of 23.1% demonstrate that the company efficiently converts revenue into bottom-line profit.
Valuation Assessment
A value score of 90/100 puts NVS in the top 10 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 16.7x, an EV/EBITDA of 14.8x, a price-to-book of 4.5x, a price-to-sales of 3.9x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 69/100 shows NVS is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of 10.8% provides a moderate fundamental underpinning. A beta of 0.37 means NOVARTIS AG moves with less volatility than the market, which can be attractive for risk-conscious investors.
Our entry timing model currently signals Favorable, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support NOVARTIS AG's rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
NOVARTIS AG earns a Buy rating with a composite score of 74/100 and 4 out of 5 stars, ranking #24 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position NVS above the majority of the market.
Explore the full NVS analysis page for interactive factor breakdowns, or view the complete stock rankings.
Disclaimer: This article is generated by Blank Capital Research's quantitative model and is provided for informational purposes only. It does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security. Past performance is not indicative of future results. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
