NOVANTA INC (NOVT) Fundamental Analysis & Valuation
NASDAQ:NOVT • CA67000B1040
Current stock price
122.44 USD
+7.16 (+6.21%)
At close:
122.44 USD
0 (0%)
After Hours:
This NOVT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- In the past 5 years NOVT has always been profitable.
- In the past 5 years NOVT always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.98%, NOVT is in the better half of the industry, outperforming 62.90% 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 56.45% of its industry peers.
- NOVT has a better Return On Invested Capital (5.79%) than 60.48% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NOVT is in line with the industry average of 8.20%.
| 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 70.16% of the companies in the same industry.
- In the last couple of years the Profit Margin of NOVT has declined.
- Looking at the Operating Margin, with a value of 11.90%, NOVT is in the better half of the industry, outperforming 79.84% of the companies in the same industry.
- In the last couple of years the Operating Margin of NOVT has grown nicely.
- With a decent Gross Margin value of 44.39%, NOVT is doing good in the industry, outperforming 76.61% of the companies in the same industry.
- In the last couple of years the Gross Margin of NOVT has remained more or less at the same level.
| 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.
- Compared to 1 year ago, NOVT has less shares outstanding
- NOVT has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for NOVT has been reduced compared to a year ago.
2.2 Solvency
- NOVT has an Altman-Z score of 6.39. This indicates that NOVT is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.39, NOVT is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
- 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 (5.24) which is in line with its industry peers.
- A Debt/Equity ratio of 0.16 indicates that NOVT is not too dependend on debt financing.
- 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 | 6.39 |
ROIC/WACC0.61
WACC9.57%
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.
- NOVT has a Current ratio of 3.69. This is in the better half of the industry: NOVT outperforms 66.94% of its industry peers.
- A Quick Ratio of 2.80 indicates that NOVT has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.80, NOVT is in the better half of the industry, outperforming 68.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.69 | ||
| Quick Ratio | 2.8 |
3. NOVT Growth Analysis
3.1 Past
- NOVT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.49%.
- NOVT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.07% yearly.
- NOVT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.30%.
- The Revenue has been growing by 10.67% on average over the past years. This is quite good.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- With a Price/Earnings ratio of 37.33, NOVT can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, NOVT is valued a bit cheaper than the industry average as 63.71% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 26.21. NOVT is valued slightly more expensive when compared to this.
- A Price/Forward Earnings ratio of 33.69 indicates a quite expensive valuation of NOVT.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NOVT is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 23.10. NOVT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.33 | ||
| Fwd PE | 33.69 |
4.2 Price Multiples
- NOVT's Enterprise Value to EBITDA is on the same level as the industry average.
- NOVT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 90.21 | ||
| EV/EBITDA | 22.32 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of NOVT 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)3.45
PEG (5Y)3.37
EPS Next 2Y12.5%
EPS Next 3YN/A
5. NOVT Dividend Analysis
5.1 Amount
- NOVT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NOVT Fundamentals: All Metrics, Ratios and Statistics
122.44
+7.16 (+6.21%)
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 Owners113.42%
Inst Owner Change0%
Ins Owners1.02%
Ins Owner Change-0.19%
Market Cap4.37B
Revenue(TTM)980.60M
Net Income(TTM)53.83M
Analysts84
Price Target162.69 (32.87%)
Short Float %11.27%
Short Ratio9.33
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)2.57%
PT rev (3m)2.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-60.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.33 | ||
| Fwd PE | 33.69 | ||
| P/S | 4.46 | ||
| P/FCF | 90.21 | ||
| P/OCF | 68.2 | ||
| P/B | 3.32 | ||
| P/tB | 8.99 | ||
| EV/EBITDA | 22.32 |
EPS(TTM)3.28
EY2.68%
EPS(NY)3.63
Fwd EY2.97%
FCF(TTM)1.36
FCFY1.11%
OCF(TTM)1.8
OCFY1.47%
SpS27.48
BVpS36.84
TBVpS13.63
PEG (NY)3.45
PEG (5Y)3.37
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 | 6.39 |
F-Score5
WACC9.57%
ROIC/WACC0.61
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 Fundamental Analysis FAQ
What is the fundamental rating for NOVT stock?
ChartMill assigns a fundamental rating of 5 / 10 to NOVT.
What is the valuation status for NOVT stock?
ChartMill assigns a valuation rating of 2 / 10 to NOVANTA INC (NOVT). This can be considered as Overvalued.
What is the profitability of NOVT stock?
NOVANTA INC (NOVT) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for NOVT stock?
The Price/Earnings (PE) ratio for NOVANTA INC (NOVT) is 37.33 and the Price/Book (PB) ratio is 3.32.