NOVANTA INC (NOVT) Fundamental Analysis & Valuation
NASDAQ:NOVT • CA67000B1040
140.64 USD
+2.46 (+1.78%)
At close: Mar 4, 2026
140.64 USD
0 (0%)
After Hours: 3/4/2026, 8:00:01 PM
This NOVT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
NOVT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. While NOVT has a great health rating, its profitability is only average at the moment. While showing a medium growth rate, NOVT is valued expensive at the moment.
1. NOVT Profitability Analysis
1.1 Basic Checks
- NOVT had positive earnings in the past year.
- In the past year NOVT had a positive cash flow from operations.
- Each year in the past 5 years NOVT has been profitable.
- In the past 5 years NOVT always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 2.98%, NOVT is doing good in the industry, outperforming 64.52% of the companies in the same industry.
- NOVT has a Return On Equity of 4.10%. This is comparable to the rest of the industry: NOVT outperforms 58.06% of its industry peers.
- NOVT has a Return On Invested Capital (5.79%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for NOVT is in line with the industry average of 8.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 4.1% | ||
| ROIC | 5.79% |
ROA(3y)4.51%
ROA(5y)4.72%
ROE(3y)7.84%
ROE(5y)9.2%
ROIC(3y)7.61%
ROIC(5y)7.39%
1.3 Margins
- Looking at the Profit Margin, with a value of 5.49%, NOVT is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
- In the last couple of years the Profit Margin of NOVT has declined.
- With a decent Operating Margin value of 11.90%, NOVT is doing good in the industry, outperforming 79.03% of the companies in the same industry.
- NOVT's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 44.39%, NOVT is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
- NOVT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.9% | ||
| PM (TTM) | 5.49% | ||
| GM | 44.39% |
OM growth 3Y-1.6%
OM growth 5Y3.31%
PM growth 3Y-13.92%
PM growth 5Y-6.14%
GM growth 3Y0.32%
GM growth 5Y1.4%
2. NOVT Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NOVT is destroying value.
- The number of shares outstanding for NOVT has been reduced compared to 1 year ago.
- The number of shares outstanding for NOVT has been increased compared to 5 years ago.
- NOVT has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.39 indicates that NOVT is not in any danger for bankruptcy at the moment.
- NOVT's Altman-Z score of 7.39 is amongst the best of the industry. NOVT outperforms 83.06% of its industry peers.
- NOVT has a debt to FCF ratio of 5.24. This is a neutral value as NOVT would need 5.24 years to pay back of all of its debts.
- NOVT has a Debt to FCF ratio of 5.24. This is in the better half of the industry: NOVT outperforms 61.29% of its industry peers.
- NOVT has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
- NOVT has a Debt to Equity ratio (0.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 7.39 |
ROIC/WACC0.65
WACC8.96%
2.3 Liquidity
- NOVT has a Current Ratio of 3.69. This indicates that NOVT is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of NOVT (3.69) is better than 71.77% of its industry peers.
- A Quick Ratio of 2.80 indicates that NOVT has no problem at all paying its short term obligations.
- NOVT has a better Quick ratio (2.80) than 70.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.69 | ||
| Quick Ratio | 2.8 |
3. NOVT Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 6.49% over the past year.
- Measured over the past years, NOVT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.07% on average per year.
- Looking at the last year, NOVT shows a small growth in Revenue. The Revenue has grown by 3.30% in the last year.
- Measured over the past years, NOVT shows a quite strong growth in Revenue. The Revenue has been growing by 10.67% on average per year.
EPS 1Y (TTM)6.49%
EPS 3Y2.23%
EPS 5Y11.07%
EPS Q2Q%19.74%
Revenue 1Y (TTM)3.3%
Revenue growth 3Y4.44%
Revenue growth 5Y10.67%
Sales Q2Q%8.5%
3.2 Future
- Based on estimates for the next years, NOVT will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.50% on average per year.
- NOVT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.67% yearly.
EPS Next Y10.81%
EPS Next 2Y12.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.88%
Revenue Next 2Y6.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. NOVT Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 42.88, which means the current valuation is very expensive for NOVT.
- Compared to the rest of the industry, the Price/Earnings ratio of NOVT is on the same level as its industry peers.
- NOVT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.03.
- Based on the Price/Forward Earnings ratio of 38.69, the valuation of NOVT can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as NOVT.
- NOVT is valuated expensively when we compare the Price/Forward Earnings ratio to 25.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.88 | ||
| Fwd PE | 38.69 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as NOVT.
- The rest of the industry has a similar Price/Free Cash Flow ratio as NOVT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.62 | ||
| EV/EBITDA | 26.9 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- NOVT has a very decent profitability rating, which may justify a higher PE ratio.
- NOVT's earnings are expected to grow with 12.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.97
PEG (5Y)3.87
EPS Next 2Y12.5%
EPS Next 3YN/A
5. NOVT Dividend Analysis
5.1 Amount
- No dividends for NOVT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NOVT Fundamentals: All Metrics, Ratios and Statistics
140.64
+2.46 (+1.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-23 2026-02-23/amc
Earnings (Next)05-04 2026-05-04
Inst Owners102.56%
Inst Owner Change12.75%
Ins Owners1.01%
Ins Owner Change3.19%
Market Cap5.02B
Revenue(TTM)980.60M
Net Income(TTM)53.83M
Analysts80
Price Target158.61 (12.78%)
Short Float %9.86%
Short Ratio7.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.91%
Min EPS beat(2)1.38%
Max EPS beat(2)4.44%
EPS beat(4)4
Avg EPS beat(4)3.79%
Min EPS beat(4)1.38%
Max EPS beat(4)7.75%
EPS beat(8)7
Avg EPS beat(8)5.79%
EPS beat(12)10
Avg EPS beat(12)6.43%
EPS beat(16)14
Avg EPS beat(16)6.63%
Revenue beat(2)0
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)-0.91%
Revenue beat(4)0
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)-0.72%
Revenue beat(8)0
Avg Revenue beat(8)-1.3%
Revenue beat(12)1
Avg Revenue beat(12)-1.1%
Revenue beat(16)4
Avg Revenue beat(16)-0.6%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.12%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.88 | ||
| Fwd PE | 38.69 | ||
| P/S | 5.12 | ||
| P/FCF | 103.62 | ||
| P/OCF | 78.34 | ||
| P/B | 3.82 | ||
| P/tB | 10.32 | ||
| EV/EBITDA | 26.9 |
EPS(TTM)3.28
EY2.33%
EPS(NY)3.63
Fwd EY2.58%
FCF(TTM)1.36
FCFY0.97%
OCF(TTM)1.8
OCFY1.28%
SpS27.48
BVpS36.84
TBVpS13.63
PEG (NY)3.97
PEG (5Y)3.87
Graham Number52.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 4.1% | ||
| ROCE | 7.32% | ||
| ROIC | 5.79% | ||
| ROICexc | 7.61% | ||
| ROICexgc | 23.95% | ||
| OM | 11.9% | ||
| PM (TTM) | 5.49% | ||
| GM | 44.39% | ||
| FCFM | 4.94% |
ROA(3y)4.51%
ROA(5y)4.72%
ROE(3y)7.84%
ROE(5y)9.2%
ROIC(3y)7.61%
ROIC(5y)7.39%
ROICexc(3y)8.81%
ROICexc(5y)8.44%
ROICexgc(3y)26.96%
ROICexgc(5y)27.21%
ROCE(3y)9.61%
ROCE(5y)9.34%
ROICexgc growth 3Y-3.25%
ROICexgc growth 5Y-0.61%
ROICexc growth 3Y-4.42%
ROICexc growth 5Y0.15%
OM growth 3Y-1.6%
OM growth 5Y3.31%
PM growth 3Y-13.92%
PM growth 5Y-6.14%
GM growth 3Y0.32%
GM growth 5Y1.4%
F-Score5
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 5.24 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 25.23% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 5.17 | ||
| Cash Conversion | 35.87% | ||
| Profit Quality | 89.97% | ||
| Current Ratio | 3.69 | ||
| Quick Ratio | 2.8 | ||
| Altman-Z | 7.39 |
F-Score5
WACC8.96%
ROIC/WACC0.65
Cap/Depr(3y)32.98%
Cap/Depr(5y)36.37%
Cap/Sales(3y)1.89%
Cap/Sales(5y)2.15%
Profit Quality(3y)149.3%
Profit Quality(5y)138.46%
High Growth Momentum
Growth
EPS 1Y (TTM)6.49%
EPS 3Y2.23%
EPS 5Y11.07%
EPS Q2Q%19.74%
EPS Next Y10.81%
EPS Next 2Y12.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.3%
Revenue growth 3Y4.44%
Revenue growth 5Y10.67%
Sales Q2Q%8.5%
Revenue Next Year6.88%
Revenue Next 2Y6.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.14%
EBIT growth 3Y2.76%
EBIT growth 5Y14.34%
EBIT Next Year44.88%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-65.74%
FCF growth 3Y-12.06%
FCF growth 5Y-17.88%
OCF growth 1Y-59.59%
OCF growth 3Y-10.98%
OCF growth 5Y-14.5%
NOVANTA INC / NOVT FAQ
What is the fundamental rating for NOVT stock?
ChartMill assigns a fundamental rating of 5 / 10 to NOVT.
What is the valuation status of NOVANTA INC (NOVT) stock?
ChartMill assigns a valuation rating of 2 / 10 to NOVANTA INC (NOVT). This can be considered as Overvalued.
Can you provide the profitability details for NOVANTA INC?
NOVANTA INC (NOVT) has a profitability rating of 6 / 10.
What are the PE and PB ratios of NOVANTA INC (NOVT) stock?
The Price/Earnings (PE) ratio for NOVANTA INC (NOVT) is 42.88 and the Price/Book (PB) ratio is 3.82.
What is the earnings growth outlook for NOVANTA INC?
The Earnings per Share (EPS) of NOVANTA INC (NOVT) is expected to grow by 10.81% in the next year.