Novartis AG cash flow to debt ratio of 51.96% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Novartis AG's free cash flow has increased 28.11% from $13.80G last year to $17.69G, signaling increasing performance

Novartis AG's debt to equity ratio is 1.22, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

Novartis AG's debt has increased relative to shareholder equity from 0.71 last year to 1.22 today, signaling weakened financials

Novartis AG has a net debt to EBITDA ratio of 1.11x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Novartis AG's interest coverage ratio of 13.57 indicates that earnings with good margin can cover interest payments on company debt

Novartis AG's profit margin has increased (5.31%) in the last year from 23.09% to 24.31%, signaling increasing performance

Novartis AG's short-term assets of $30.46G exceed its short-term liabilities of $27.28G

Novartis AG's return on assets of 11.34% is higher than the 5.00% threshold, indicating efficient asset utilization

Novartis AG's return on equity of 31.54%, is higher than 15.00%, indicating good performance

Novartis AG's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Novartis AG had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Novartis AG has positive free cash flow, indicating the company generates cash after capital expenditures

Novartis AG has a free cash flow yield of 5.96%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Novartis AG's yearly earnings has increased 17.71% since last year from $11.94G to $14.06G, signaling increasing performance

Novartis AG's yearly revenue has increased 5.97% since last year from $51.72G to $54.81G, signaling increasing performance

ROIC 14.89% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Novartis AG's 3-year revenue CAGR of 8.04% is positive, indicating growing revenue over the past 3 years

Novartis AG had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance

Novartis AG had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Novartis AG is overvalued relative to its fair value price of 148.29 based on Discounted Cash Flow model

Novartis AG has an earnings yield of 4.55%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Novartis AG is overvalued relative to its fair value price of 70.11 based on EBITDA multiple model

Novartis AG has an EV/EBITDA ratio of 15.16x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Novartis AG is overvalued relative to its fair value price of 67.74 based on Earnings Fair Value model

Novartis AG has a PEG-ratio over 1 which is considered overvalued

Novartis AG has a price-to-book ratio of 7.71x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Novartis AG has a price-to-sales ratio of 5.37x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue