Novartis Financials

NVSN Stock  MXN 1,606  118.00  6.84%   
We recommend to make use of Novartis AG fundamental analysis to see if markets are presently undervaluing or overvaluing the entity. Strictly speaking, this technique allows you to check out available financial ratios of Novartis AG as well as the relationship between them. We were able to interpolate thirty-two available fundamentals for Novartis, which can be compared to its peers in the industry. To ensure the equity is not overpriced, please verify all Novartis AG financials, including its revenue, ebitda, cash and equivalents, as well as the relationship between the gross profit and net income . The stock experiences a very speculative upward sentiment. Check odds of Novartis to be traded at 1525.7 in 90 days.
With this module, you can analyze Novartis financials for your investing period. You should be able to track the changes in Novartis individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
  
Understanding current and past Novartis Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Novartis' financial statements are interrelated, with each one affecting the others. For example, an increase in Novartis' assets may result in an increase in income on the income statement.
Evaluating Novartis' financials involves analyzing a range of financial metrics and ratios to gain insights into the company's financial health and performance. However, considering all of Novartis' profitability, liquidity ratios, and efficiency indicators at the same time could be an enormous task, and our Financial Distress score can provide you with a snapshot of the Novartis' relative financial performance

Chance Of Distress

Less than 10

 
100  
 
Zero
Low
Novartis AG has less than 10 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for Novartis stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity.
Please note, Novartis' odds of distress score SHOULD NOT be confused with the real chance of Novartis AG filing for bankruptcy protection for chapters 7, 11, 12, or 13. We define Financial Distress as an operational condition where an entity such as Novartis is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from public financial statements and analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors considered include Novartis' liquidity analysis, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
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The data published in Novartis' official financial statements usually reflect Novartis' business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Novartis AG. For example, before you start analyzing numbers published by Novartis accountants, it's critical to develop an understanding of what Novartis' liquidity, profitability, and earnings quality are in the context of the Healthcare space in which it operates.
Please note, the presentation of Novartis' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Novartis' management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Novartis' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Novartis AG. Please utilize our Beneish M Score to check the likelihood of Novartis' management manipulating its earnings.

Novartis Company Summary

Novartis competes with FibraHotel, GMxico Transportes, Burlington Stores, Costco Wholesale, and United States. Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. The company was incorporated in 1996 and is headquartered in Basel, Switzerland. NOVARTIS operates under Drug ManufacturersGeneral classification in Mexico and is traded on Mexico Stock Exchange. It employs 105794 people.
InstrumentMexico Stock View All
ExchangeMexican Exchange
ISINUS66987V1098
Business AddressLichtstrasse 35, Basel,
SectorHealthcare
IndustryDrug Manufacturers—General
BenchmarkNYSE Composite
Websitewww.novartis.com
Phone41 61 324 1111
CurrencyMXN - Mexican Peso
You should never invest in Novartis without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of Novartis Stock, because this is throwing your money away. Analyzing the key information contained in Novartis' financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

Novartis Key Financial Ratios

Generally speaking, Novartis' financial ratios allow both analysts and investors to convert raw data from Novartis' financial statements into concise, actionable information that can be used to evaluate the performance of Novartis over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that Novartis AG reports annually and quarterly.

Novartis Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Novartis's current stock value. Our valuation model uses many indicators to compare Novartis value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Novartis competition to find correlations between indicators driving Novartis's intrinsic value. More Info.
Novartis AG is considered to be number one stock in price to book category among related companies. It is considered to be number one stock in book value per share category among related companies creating about  9.93  of Book Value Per Share per Price To Book. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Novartis by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Novartis' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Novartis' earnings, one of the primary drivers of an investment's value.

Novartis AG Systematic Risk

Novartis' systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Novartis volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was three with a total number of output elements of fifty-eight. The Beta measures systematic risk based on how returns on Novartis AG correlated with the market. If Beta is less than 0 Novartis generally moves in the opposite direction as compared to the market. If Novartis Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Novartis AG is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Novartis is generally in the same direction as the market. If Beta > 1 Novartis moves generally in the same direction as, but more than the movement of the benchmark.

About Novartis Financials

What exactly are Novartis Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include Novartis' income statement, its balance sheet, and the statement of cash flows. Potential Novartis investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Novartis investors may use each financial statement separately, they are all related. The changes in Novartis's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Novartis's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

Steps to analyze Novartis Financials for Investing

There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Novartis is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Novartis has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.
In summary, you can determine if Novartis' financials are consistent with your investment objective using the following steps:
  • Review Novartis' balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
  • Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
  • Study the cash flow inflows and outflows to understand Novartis' liquidity and solvency.
  • Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
  • Compare Novartis' financials to those of its peers to see how it stacks up and identify any potential red flags.
  • Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Novartis' stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.

Novartis March 28, 2024 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of Novartis help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Novartis AG. We use our internally-developed statistical techniques to arrive at the intrinsic value of Novartis AG based on widely used predictive technical indicators. In general, we focus on analyzing Novartis Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Novartis's daily price indicators and compare them against related drivers.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Novartis AG. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.
You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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When running Novartis' price analysis, check to measure Novartis' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Novartis is operating at the current time. Most of Novartis' value examination focuses on studying past and present price action to predict the probability of Novartis' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Novartis' price. Additionally, you may evaluate how the addition of Novartis to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Novartis' value and its price as these two are different measures arrived at by different means. Investors typically determine if Novartis is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Novartis' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.