NOVANTA INC (NOVT) Stock Fundamental Analysis
USA - NASDAQ:NOVT - CA67000B1040 - Common Stock
102.88 USD
-0.91 (-0.88%)
102.88 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to NOVT. 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.
1. Profitability
1.1 Basic Checks
In the past year NOVT was profitable.
NOVT had a positive operating cash flow in the past year.
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 3.51%, NOVT is doing good in the industry, outperforming 62.60% of the companies in the same industry.
NOVT has a Return On Equity of 6.59%. This is in the better half of the industry: NOVT outperforms 61.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.59%, NOVT is in the better half of the industry, outperforming 74.80% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NOVT is in line with the industry average of 8.98%.
| 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
The Profit Margin of NOVT (5.50%) is better than 69.92% of its industry peers.
NOVT's Profit Margin has been stable in the last couple of years.
NOVT has a better Operating Margin (12.40%) than 79.67% of its industry peers.
In the last couple of years the Operating Margin of NOVT has grown nicely.
NOVT's Gross Margin of 44.80% is fine compared to the rest of the industry. NOVT outperforms 76.42% 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%
2. Health
2.1 Basic Checks
NOVT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NOVT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NOVT has more shares outstanding
NOVT has a worse debt/assets ratio than last year.
2.2 Solvency
NOVT has an Altman-Z score of 4.56. This indicates that NOVT is financially healthy and has little risk of bankruptcy at the moment.
NOVT's Altman-Z score of 4.56 is fine compared to the rest of the industry. NOVT outperforms 70.73% of its industry peers.
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.
With a decent Debt to FCF ratio value of 4.43, NOVT is doing good in the industry, outperforming 65.04% of the companies in the same industry.
NOVT has a Debt/Equity ratio of 0.56. This is a neutral value indicating NOVT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, NOVT is not doing good in the industry: 74.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.43 | ||
| Altman-Z | 4.56 |
ROIC/WACC0.81
WACC9.38%
2.3 Liquidity
A Current Ratio of 2.51 indicates that NOVT has no problem at all paying its short term obligations.
NOVT's Current ratio of 2.51 is in line compared to the rest of the industry. NOVT outperforms 54.47% 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's Quick ratio of 1.54 is in line compared to the rest of the industry. NOVT outperforms 44.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.54 |
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.
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
Based on estimates for the next years, NOVT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.84% on average per year.
Based on estimates for the next years, NOVT will show a small growth in Revenue. The Revenue will grow by 6.52% on average per year.
EPS Next Y7.96%
EPS Next 2Y11.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.76%
Revenue Next 2Y4.8%
Revenue Next 3Y6.52%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 32.87, which means the current valuation is very expensive for NOVT.
60.16% of the companies in the same industry are more expensive than NOVT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.56. NOVT is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 26.71 indicates a quite expensive valuation of NOVT.
NOVT's Price/Forward Earnings is on the same level as the industry average.
NOVT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.87 | ||
| Fwd PE | 26.71 |
4.2 Price Multiples
NOVT's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, NOVT is valued a bit cheaper than the industry average as 65.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.06 | ||
| EV/EBITDA | 22.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NOVT does not grow enough to justify the current Price/Earnings ratio.
NOVT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.13
PEG (5Y)4.41
EPS Next 2Y11.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NOVT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
102.88
-0.91 (-0.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102.42%
Inst Owner Change3.77%
Ins Owners0.96%
Ins Owner Change16.3%
Market Cap3.70B
Revenue(TTM)960.31M
Net Income(TTM)52.82M
Analysts80
Price Target150.11 (45.91%)
Short Float %5%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)3.02%
Min EPS beat(2)1.6%
Max EPS beat(2)4.44%
EPS beat(4)4
Avg EPS beat(4)4.56%
Min EPS beat(4)1.6%
Max EPS beat(4)7.75%
EPS beat(8)6
Avg EPS beat(8)5.44%
EPS beat(12)10
Avg EPS beat(12)6.49%
EPS beat(16)14
Avg EPS beat(16)6.68%
Revenue beat(2)0
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)-0.72%
Revenue beat(4)0
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-2.87%
Max Revenue beat(4)-0.72%
Revenue beat(8)0
Avg Revenue beat(8)-1.38%
Revenue beat(12)1
Avg Revenue beat(12)-1.08%
Revenue beat(16)5
Avg Revenue beat(16)-0.43%
PT rev (1m)0%
PT rev (3m)-3.5%
EPS NQ rev (1m)-3.55%
EPS NQ rev (3m)-3.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.26%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.87 | ||
| Fwd PE | 26.71 | ||
| P/S | 3.85 | ||
| P/FCF | 36.06 | ||
| P/OCF | 31.68 | ||
| P/B | 4.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.81 |
EPS(TTM)3.13
EY3.04%
EPS(NY)3.85
Fwd EY3.74%
FCF(TTM)2.85
FCFY2.77%
OCF(TTM)3.25
OCFY3.16%
SpS26.7
BVpS22.28
TBVpS-1.09
PEG (NY)4.13
PEG (5Y)4.41
Graham Number39.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 6.59% | ||
| ROCE | 9.03% | ||
| ROIC | 7.59% | ||
| ROICexc | 8.14% | ||
| ROICexgc | 25.72% | ||
| OM | 12.4% | ||
| PM (TTM) | 5.5% | ||
| GM | 44.8% | ||
| FCFM | 10.69% |
ROA(3y)5.51%
ROA(5y)5.15%
ROE(3y)10.75%
ROE(5y)10.25%
ROIC(3y)8.83%
ROIC(5y)7.95%
ROICexc(3y)9.75%
ROICexc(5y)8.94%
ROICexgc(3y)29.5%
ROICexgc(5y)29.04%
ROCE(3y)10.5%
ROCE(5y)9.46%
ROICexgc growth 3Y0.54%
ROICexgc growth 5Y2%
ROICexc growth 3Y8.22%
ROICexc growth 5Y0.49%
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%
F-Score5
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.43 | ||
| Debt/EBITDA | 2.51 | ||
| Cap/Depr | 23.99% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 4.73 | ||
| Cash Conversion | 65.52% | ||
| Profit Quality | 194.25% | ||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 4.56 |
F-Score5
WACC9.38%
ROIC/WACC0.81
Cap/Depr(3y)36.85%
Cap/Depr(5y)36.81%
Cap/Sales(3y)2.12%
Cap/Sales(5y)2.19%
Profit Quality(3y)151.34%
Profit Quality(5y)178.76%
High Growth Momentum
Growth
EPS 1Y (TTM)6.1%
EPS 3Y5.54%
EPS 5Y7.45%
EPS Q2Q%2.35%
EPS Next Y7.96%
EPS Next 2Y11.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.07%
Revenue growth 3Y10.33%
Revenue growth 5Y8.68%
Sales Q2Q%1.4%
Revenue Next Year2.76%
Revenue Next 2Y4.8%
Revenue Next 3Y6.52%
Revenue Next 5YN/A
EBIT growth 1Y1.33%
EBIT growth 3Y14.82%
EBIT growth 5Y11.57%
EBIT Next Year33.89%
EBIT Next 3Y19.86%
EBIT Next 5YN/A
FCF growth 1Y-1.15%
FCF growth 3Y23.74%
FCF growth 5Y21.91%
OCF growth 1Y-4.02%
OCF growth 3Y18.77%
OCF growth 5Y20.19%
NOVANTA INC / NOVT FAQ
What is the fundamental rating for NOVT stock?
ChartMill assigns a fundamental rating of 5 / 10 to NOVT.
Can you provide the valuation status for NOVANTA INC?
ChartMill assigns a valuation rating of 3 / 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 7 / 10.
How financially healthy is NOVANTA INC?
The financial health rating of NOVANTA INC (NOVT) is 5 / 10.