Overall NOVT gets a fundamental rating of 5 out of 10. We evaluated NOVT against 123 industry peers in the Electronic Equipment, Instruments & Components industry. NOVT scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, NOVT is valued expensive at the moment.

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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.
NOVT had positive earnings in each of the past 5 years.
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 3.51%, NOVT is doing good in the industry, outperforming 63.41% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.59%, NOVT is in the better half of the industry, outperforming 61.79% of the companies in the same industry.
The Return On Invested Capital of NOVT (7.59%) is better than 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 8.87%.

		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's Profit Margin of 5.50% is fine compared to the rest of the industry. NOVT outperforms 70.73% of its industry peers.
NOVT's Profit Margin has been stable in the last couple of years.
The Operating Margin of NOVT (12.40%) is better than 79.67% of its industry peers.
NOVT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.80%, NOVT is in the better half of the industry, outperforming 77.24% 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	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.
NOVT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NOVT has a worse debt to assets ratio.

2.2 Solvency

NOVT has an Altman-Z score of 5.60. This indicates that NOVT is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.60, NOVT is doing good in the industry, outperforming 75.61% of the companies in the same industry.
The Debt to FCF ratio of NOVT is 4.43, which is a neutral value as it means it would take NOVT, 4.43 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NOVT (4.43) is better than 65.04% of its industry peers.
NOVT has a Debt/Equity ratio of 0.56. This is a neutral value indicating NOVT is somewhat dependend on debt financing.
The Debt to Equity ratio of NOVT (0.56) is worse than 74.80% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.56
Debt/FCF	4.43
Altman-Z	5.6

ROIC/WACC0.87

WACC8.73%

2.3 Liquidity

A Current Ratio of 2.51 indicates that NOVT has no problem at all paying its short term obligations.
The Current ratio of NOVT (2.51) is comparable to the rest of the industry.
A Quick Ratio of 1.54 indicates that NOVT should not have too much problems paying its short term obligations.
The Quick ratio of NOVT (1.54) is comparable to the rest of the industry.

		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.
Looking at the last year, NOVT shows a small growth in Revenue. The Revenue has grown by 4.07% in the last year.
Measured over the past years, NOVT shows a quite strong growth in Revenue. The Revenue has been growing by 8.68% on average per year.

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

The Earnings Per Share is expected to grow by 10.73% on average over the next years. This is quite good.
NOVT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.48% yearly.

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 44.37 indicates a quite expensive valuation of NOVT.
NOVT's Price/Earnings ratio is in line with the industry average.
NOVT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.87.
The Price/Forward Earnings ratio is 37.27, which means the current valuation is very expensive for NOVT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOVT is on the same level as its industry peers.
NOVT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	44.37
Fwd PE	37.27

4.2 Price Multiples

NOVT's Enterprise Value to EBITDA ratio is in line with the industry average.
63.41% of the companies in the same industry are more expensive than NOVT, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	48.43
EV/EBITDA	29.65

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.