Taking everything into account, NOVT scores 5 out of 10 in our fundamental rating. NOVT was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. While NOVT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NOVT is quite expensive at the moment. It does show a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

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

NOVT has a Return On Assets of 3.51%. This is in the better half of the industry: NOVT outperforms 64.23% of its industry peers.
With a decent Return On Equity value of 6.59%, NOVT is doing good in the industry, outperforming 61.79% of the companies in the same industry.
NOVT has a Return On Invested Capital of 7.59%. This is in the better half of the industry: NOVT outperforms 74.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOVT is in line with the industry average of 8.85%.

		Industry Rank	Sector Rank
ROA	3.51%
ROE	6.59%
ROIC	7.59%

ROA(3y)5.51%

ROA(5y)5.15%

ROE(3y)10.75%

ROE(5y)10.25%

ROIC(3y)8.83%

ROIC(5y)7.95%

1.3 Margins

NOVT has a better Profit Margin (5.50%) than 70.73% of its industry peers.
NOVT's Profit Margin has been stable in the last couple of years.
NOVT's Operating Margin of 12.40% is fine compared to the rest of the industry. NOVT outperforms 79.67% of its industry peers.
NOVT's Operating Margin has improved in the last couple of years.
The Gross Margin of NOVT (44.80%) is better than 77.24% of its industry peers.
NOVT's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	12.4%
PM (TTM)	5.5%
GM	44.8%

OM growth 3Y4.07%

OM growth 5Y2.66%

PM growth 3Y-1.74%

PM growth 5Y0.71%

GM growth 3Y1.49%

GM growth 5Y1.19%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NOVT is creating some value.
The number of shares outstanding for NOVT has been increased compared to 1 year ago.
The number of shares outstanding for NOVT has been increased compared to 5 years ago.
Compared to 1 year ago, NOVT has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 5.51 indicates that NOVT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.51, NOVT is doing good in the industry, outperforming 76.42% of the companies in the same industry.
NOVT has a debt to FCF ratio of 4.43. This is a neutral value as NOVT would need 4.43 years to pay back of all of its debts.
NOVT's Debt to FCF ratio of 4.43 is fine compared to the rest of the industry. NOVT outperforms 65.04% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that NOVT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, NOVT is doing worse than 73.98% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.56
Debt/FCF	4.43
Altman-Z	5.51

ROIC/WACC0.87

WACC8.76%

2.3 Liquidity

NOVT has a Current Ratio of 2.51. This indicates that NOVT is financially healthy and has no problem in meeting its short term obligations.
NOVT's Current ratio of 2.51 is in line compared to the rest of the industry. NOVT outperforms 52.03% of its industry peers.
A Quick Ratio of 1.54 indicates that NOVT should not have too much problems paying its short term obligations.
NOVT has a Quick ratio of 1.54. This is comparable to the rest of the industry: NOVT outperforms 45.53% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.51
Quick Ratio	1.54

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

NOVT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.10%.
The Earnings Per Share has been growing slightly by 7.45% on average over the past years.
The Revenue has been growing slightly by 4.07% in the past year.
The Revenue has been growing by 8.68% on average over the past years. This is quite good.

EPS 1Y (TTM)6.1%

EPS 3Y5.54%

EPS 5Y7.45%

EPS Q2Q%2.35%

Revenue 1Y (TTM)4.07%

Revenue growth 3Y10.33%

Revenue growth 5Y8.68%

Sales Q2Q%1.4%

3.2 Future

NOVT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.73% yearly.
Based on estimates for the next years, NOVT will show a small growth in Revenue. The Revenue will grow by 5.48% on average per year.

EPS Next Y8.07%

EPS Next 2Y9.99%

EPS Next 3Y10.73%

EPS Next 5YN/A

Revenue Next Year2.77%

Revenue Next 2Y4.71%

Revenue Next 3Y5.48%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better 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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 42.98 indicates a quite expensive valuation of NOVT.
NOVT's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of NOVT to the average of the S&P500 Index (28.32), we can say NOVT is valued expensively.
The Price/Forward Earnings ratio is 36.10, which means the current valuation is very expensive for NOVT.
NOVT's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 25.57. NOVT is valued slightly more expensive when compared to this.

		Industry Rank	Sector Rank
PE	42.98
Fwd PE	36.1

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as NOVT.
NOVT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NOVT is cheaper than 61.79% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	46.91
EV/EBITDA	29.05

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.