Novartis Stock Performance

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NVS -- USA Stock  

Report: 21st of July 2020  

Novartis has performance score of 3 on a scale of 0 to 100. The company secures a Beta (Market Risk) of -0.1501, which conveys not very significant fluctuations relative to the market. Let's try to break down what Novartis's beta means in this case. As returns on the market increase, returns on owning Novartis are expected to decrease at a much lower rate. During the bear market, Novartis is likely to outperform the market. Although it is extremely important to respect Novartis AG price patterns, it is better to be realistic regarding the information on equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Novartis AG technical indicators, you can presently evaluate if the expected return of 0.0605% will be sustainable into the future. Novartis AG right now secures a risk of 1.36%. Please verify Novartis AG sortino ratio, semi variance, as well as the relationship between the Semi Variance and rate of daily change to decide if Novartis AG will be following its current price movements.

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Novartis Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Novartis AG are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively invariable forward-looking signals, Novartis is not utilizing all of its potentials. The latest stock price agitation, may contribute to short term losses for the retail investors.
Quick Ratio0.43
Fifty Two Week Low69.18
Target High Price105.00
Payout Ratio95.58%
Fifty Two Week High99.84
Target Low Price103.00
Trailing Annual Dividend Yield3.45%

Novartis Relative Risk vs. Return Landscape

If you would invest  8,420  in Novartis AG on June 11, 2020 and sell it today you would earn a total of  281.00  from holding Novartis AG or generate 3.34% return on investment over 30 days. Novartis AG is generating 0.0605% of daily returns assuming volatility of 1.3649% on return distribution over 30 days investment horizon. In other words, 11% of equities are less volatile than the company and above 99% of equities are expected to generate higher returns over the next 30 days.
 Daily Expected Return (%) 
      Risk (%) 
Considering the 30-days investment horizon, Novartis is expected to generate 3.08 times less return on investment than the market. But when comparing it to its historical volatility, the company is 1.33 times less risky than the market. It trades about 0.04 of its potential returns per unit of risk. The DOW is currently generating roughly 0.1 of returns per unit of risk over similar time horizon.

Novartis Market Risk Analysis

Sharpe Ratio = 0.0443
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Novartis Stock Performance Indicators

Estimated Market Risk
 1.36
  actual daily
 
 11 %
of total potential
 
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Expected Return
 0.06
  actual daily
 
 1 %
of total potential
 
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Risk-Adjusted Return
 0.04
  actual daily
 
 3 %
of total potential
 
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Based on monthly moving average Novartis is performing at about 3% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Novartis by adding it to a well-diversified portfolio.

About Novartis Performance

To evaluate Novartis AG Stock as a possible investment, you need to clearly understand its upside, downside potential, and overall future performance outlook. You may be satisfied when Novartis generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Novartis's stock performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Novartis AG stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents Novartis's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section. Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2020
Effect of Exchange Rate Changes on Cash-257.4 M-264.2 M
Return on Average Assets 0.09  0.08 
Return on Average Equity 0.17  0.18 
Return on Invested Capital 0.25  0.26 
Return on Sales 0.29  0.30 
Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. The company was founded in 1895 and is headquartered in Basel, Switzerland. Novartis operates under Drug ManufacturersGeneral classification in the United States and is traded on BATS Exchange. It employs 109000 people.

Novartis Alerts

Equity Alerts and Improvement Suggestions

The company has 36.69 B in debt with debt to equity (D/E) ratio of 0.72, which is OK given its current industry classification. Novartis AG has a current ratio of 0.73, suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
Latest headline from apsters.com: Cholinergic Drugs Market 2020 to 2027 Allergan, Novartis AG, Eisai Co, H Lundbeck AS. - Apsters News

Novartis Dividends

Novartis AG Dividends Analysis

Check Novartis AG dividend payout schedule and payment analysis over time. Analyze past dividends calendar and estimate annual dividend income
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Additionally, see Stocks Correlation. Please also try Piotroski F Score module to get piotroski f score based on binary analysis strategy of nine different fundamentals.
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page