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NOVANTA INC (NOVT) Stock Fundamental Analysis

NASDAQ:NOVT - Nasdaq - CA67000B1040 - Common Stock - Currency: USD

128.8  -4.53 (-3.4%)

After market: 128.8 0 (0%)

Fundamental Rating

5

NOVT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. While NOVT has a great profitability rating, there are some minor concerns on its financial health. NOVT is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

NOVT had positive earnings in the past year.
NOVT had a positive operating cash flow in the past year.
NOVT had positive earnings in each of the past 5 years.
Each year in the past 5 years NOVT had a positive operating cash flow.
NOVT Yearly Net Income VS EBIT VS OCF VS FCFNOVT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

1.2 Ratios

NOVT's Return On Assets of 5.10% is fine compared to the rest of the industry. NOVT outperforms 73.60% of its industry peers.
Looking at the Return On Equity, with a value of 9.17%, NOVT is in the better half of the industry, outperforming 74.40% of the companies in the same industry.
NOVT's Return On Invested Capital of 8.73% is fine compared to the rest of the industry. NOVT outperforms 80.00% of its industry peers.
NOVT had an Average Return On Invested Capital over the past 3 years of 8.83%. This is in line with the industry average of 9.16%.
Industry RankSector Rank
ROA 5.1%
ROE 9.17%
ROIC 8.73%
ROA(3y)5.51%
ROA(5y)5.15%
ROE(3y)10.75%
ROE(5y)10.25%
ROIC(3y)8.83%
ROIC(5y)7.95%
NOVT Yearly ROA, ROE, ROICNOVT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

Looking at the Profit Margin, with a value of 7.42%, NOVT is in the better half of the industry, outperforming 76.80% of the companies in the same industry.
In the last couple of years the Profit Margin of NOVT has remained more or less at the same level.
Looking at the Operating Margin, with a value of 13.28%, NOVT belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
NOVT's Operating Margin has improved in the last couple of years.
The Gross Margin of NOVT (44.71%) is better than 78.40% of its industry peers.
NOVT's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 13.28%
PM (TTM) 7.42%
GM 44.71%
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%
NOVT Yearly Profit, Operating, Gross MarginsNOVT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NOVT is destroying 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.
NOVT Yearly Shares OutstandingNOVT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
NOVT Yearly Total Debt VS Total AssetsNOVT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

NOVT has an Altman-Z score of 6.02. This indicates that NOVT is financially healthy and has little risk of bankruptcy at the moment.
NOVT has a better Altman-Z score (6.02) than 80.80% of its industry peers.
The Debt to FCF ratio of NOVT is 2.77, which is a good value as it means it would take NOVT, 2.77 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.77, NOVT is doing good in the industry, outperforming 72.00% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that NOVT is somewhat dependend on debt financing.
The Debt to Equity ratio of NOVT (0.50) is worse than 73.60% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 2.77
Altman-Z 6.02
ROIC/WACC0.92
WACC9.52%
NOVT Yearly LT Debt VS Equity VS FCFNOVT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.3 Liquidity

NOVT has a Current Ratio of 2.56. This indicates that NOVT is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.56, NOVT perfoms like the industry average, outperforming 53.60% of the companies in the same industry.
A Quick Ratio of 1.70 indicates that NOVT should not have too much problems paying its short term obligations.
The Quick ratio of NOVT (1.70) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.56
Quick Ratio 1.7
NOVT Yearly Current Assets VS Current LiabilitesNOVT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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5

3. Growth

3.1 Past

NOVT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.99%.
NOVT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.45% yearly.
NOVT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.51%.
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)1.99%
EPS 3Y5.54%
EPS 5Y7.45%
EPS Q2Q%0%
Revenue 1Y (TTM)6.51%
Revenue growth 3Y10.33%
Revenue growth 5Y8.68%
Sales Q2Q%1.06%

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 15.86% yearly.
The Revenue is expected to grow by 6.52% on average over the next years.
EPS Next Y11.6%
EPS Next 2Y15.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.35%
Revenue Next 2Y5.44%
Revenue Next 3Y6.52%
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.
NOVT Yearly Revenue VS EstimatesNOVT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M 1B
NOVT Yearly EPS VS EstimatesNOVT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 41.82 indicates a quite expensive valuation of NOVT.
NOVT's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.29. NOVT is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 31.15, which means the current valuation is very expensive for NOVT.
NOVT's Price/Forward Earnings is on the same level as the industry average.
NOVT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.74.
Industry RankSector Rank
PE 41.82
Fwd PE 31.15
NOVT Price Earnings VS Forward Price EarningsNOVT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as NOVT.
Based on the Price/Free Cash Flow ratio, NOVT is valued a bit cheaper than 67.20% of the companies in the same industry.
Industry RankSector Rank
P/FCF 32.55
EV/EBITDA 26.95
NOVT Per share dataNOVT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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.
A more expensive valuation may be justified as NOVT's earnings are expected to grow with 15.86% in the coming years.
PEG (NY)3.6
PEG (5Y)5.61
EPS Next 2Y15.86%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

NOVT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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NOVANTA INC

NASDAQ:NOVT (7/7/2025, 8:00:02 PM)

After market: 128.8 0 (0%)

128.8

-4.53 (-3.4%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)05-06 2025-05-06/bmo
Earnings (Next)08-04 2025-08-04
Inst Owners101.98%
Inst Owner Change0%
Ins Owners0.85%
Ins Owner Change1.57%
Market Cap4.63B
Analysts82
Price Target150.26 (16.66%)
Short Float %4.4%
Short Ratio6.01
Dividend
Industry RankSector 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)6.1%
Min EPS beat(2)4.45%
Max EPS beat(2)7.75%
EPS beat(4)3
Avg EPS beat(4)3.27%
Min EPS beat(4)-2.34%
Max EPS beat(4)7.75%
EPS beat(8)6
Avg EPS beat(8)7.12%
EPS beat(12)10
Avg EPS beat(12)7.09%
EPS beat(16)14
Avg EPS beat(16)8.92%
Revenue beat(2)0
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-2.87%
Max Revenue beat(2)-1.95%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-2.87%
Max Revenue beat(4)-1%
Revenue beat(8)0
Avg Revenue beat(8)-1.51%
Revenue beat(12)3
Avg Revenue beat(12)-0.74%
Revenue beat(16)6
Avg Revenue beat(16)-0.23%
PT rev (1m)-9.43%
PT rev (3m)-14.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.79%
EPS NY rev (1m)-1.46%
EPS NY rev (3m)-2.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.47%
Valuation
Industry RankSector Rank
PE 41.82
Fwd PE 31.15
P/S 4.87
P/FCF 32.55
P/OCF 29.44
P/B 6.02
P/tB 1556.24
EV/EBITDA 26.95
EPS(TTM)3.08
EY2.39%
EPS(NY)4.13
Fwd EY3.21%
FCF(TTM)3.96
FCFY3.07%
OCF(TTM)4.37
OCFY3.4%
SpS26.46
BVpS21.4
TBVpS0.08
PEG (NY)3.6
PEG (5Y)5.61
Profitability
Industry RankSector Rank
ROA 5.1%
ROE 9.17%
ROCE 10.39%
ROIC 8.73%
ROICexc 9.57%
ROICexgc 30.96%
OM 13.28%
PM (TTM) 7.42%
GM 44.71%
FCFM 14.96%
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%
ROICexcg growth 3Y0.54%
ROICexcg 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-Score6
Asset Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 2.77
Debt/EBITDA 2.13
Cap/Depr 26.75%
Cap/Sales 1.58%
Interest Coverage 4.15
Cash Conversion 86.2%
Profit Quality 201.56%
Current Ratio 2.56
Quick Ratio 1.7
Altman-Z 6.02
F-Score6
WACC9.52%
ROIC/WACC0.92
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)1.99%
EPS 3Y5.54%
EPS 5Y7.45%
EPS Q2Q%0%
EPS Next Y11.6%
EPS Next 2Y15.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.51%
Revenue growth 3Y10.33%
Revenue growth 5Y8.68%
Sales Q2Q%1.06%
Revenue Next Year3.35%
Revenue Next 2Y5.44%
Revenue Next 3Y6.52%
Revenue Next 5YN/A
EBIT growth 1Y3.25%
EBIT growth 3Y14.82%
EBIT growth 5Y11.57%
EBIT Next Year36.15%
EBIT Next 3Y19.86%
EBIT Next 5YN/A
FCF growth 1Y95.52%
FCF growth 3Y23.74%
FCF growth 5Y21.91%
OCF growth 1Y75.44%
OCF growth 3Y18.77%
OCF growth 5Y20.19%