138.99 USD
0 (0%)
NOVT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 123 industry peers in the Electronic Equipment, Instruments & Components industry. NOVT has an excellent profitability rating, but there are some minor concerns on its financial health. NOVT is valied quite expensively at the moment, while 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.
- In the past 5 years NOVT has always been profitable.
- Each year in the past 5 years NOVT had a positive operating cash flow.
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.
- NOVT has a better Return On Equity (6.59%) than 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 75.61% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- The Profit Margin of NOVT (5.50%) is better than 70.73% of its industry peers.
- In the last couple of years the Profit Margin of NOVT has remained more or less at the same level.
- NOVT has a Operating Margin of 12.40%. This is in the better half of the industry: NOVT outperforms 79.67% of its industry peers.
- NOVT's Operating Margin has improved in the last couple of years.
- NOVT has a better Gross Margin (44.80%) 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NOVT is still creating some value.
- Compared to 1 year ago, NOVT has more shares outstanding
- Compared to 5 years ago, NOVT has more shares outstanding
- Compared to 1 year ago, NOVT has a worse debt to assets ratio.
2.2 Solvency
- NOVT has an Altman-Z score of 5.64. This indicates that NOVT is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of NOVT (5.64) is better than 74.80% 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.
- NOVT's Debt to Equity ratio of 0.56 is on the low side compared to the rest of the industry. NOVT is outperformed by 73.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.43 | ||
| Altman-Z | 5.64 |
ROIC/WACC0.87
WACC8.75%
2.3 Liquidity
- A Current Ratio of 2.51 indicates that NOVT has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.51, NOVT is in line with its industry, outperforming 52.85% of the companies in the same industry.
- NOVT has a Quick Ratio of 1.54. This is a normal value and indicates that NOVT is financially healthy and should not expect problems in meeting its short term obligations.
- NOVT has a Quick ratio of 1.54. This is comparable to the rest of the industry: NOVT outperforms 46.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.10% over the past year.
- 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.
- NOVT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.68% yearly.
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 44.41, the valuation of NOVT can be described as expensive.
- 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 (28.60), we can say NOVT is valued expensively.
- A Price/Forward Earnings ratio of 37.30 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, NOVT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.41 | ||
| Fwd PE | 37.3 |
4.2 Price Multiples
- NOVT's Enterprise Value to EBITDA ratio is in line with the industry average.
- NOVT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NOVT is cheaper than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.47 | ||
| EV/EBITDA | 29.94 |
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.
- The decent profitability rating of NOVT may justify a higher PE ratio.
PEG (NY)5.5
PEG (5Y)5.96
EPS Next 2Y9.99%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
- No dividends for NOVT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 7 / 10.
What are the PE and PB ratios of NOVANTA INC (NOVT) stock?
The Price/Earnings (PE) ratio for NOVANTA INC (NOVT) is 44.41 and the Price/Book (PB) ratio is 6.2.
What is the earnings growth outlook for NOVANTA INC?
The Earnings per Share (EPS) of NOVANTA INC (NOVT) is expected to grow by 8.07% in the next year.