NOVANTA INC (NOVT) Stock Fundamental Analysis
NASDAQ:NOVT - Nasdaq - CA67000B1040 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to NOVT. NOVT was compared to 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. While showing a medium growth rate, NOVT is valued expensive at the moment.
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.
NOVT had a positive operating cash flow in each of the past 5 years.
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.
NOVT has a better Return On Equity (9.17%) than 74.40% of its industry peers.
The Return On Invested Capital of NOVT (8.73%) is better than 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 9.30%.
| Industry Rank | Sector 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%
1.3 Margins
NOVT has a better Profit Margin (7.42%) than 76.80% of its industry peers.
NOVT's Profit Margin has been stable in the last couple of years.
NOVT has a better Operating Margin (13.28%) than 88.00% of its industry peers.
NOVT's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 44.71%, NOVT is doing good in the industry, outperforming 78.40% 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 | 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOVT is destroying 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.
NOVT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.18 indicates that NOVT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.18, NOVT belongs to the best of the industry, outperforming 80.80% of the companies in the same industry.
NOVT has a debt to FCF ratio of 2.77. This is a good value and a sign of high solvency as NOVT would need 2.77 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.77, NOVT is in the better half of 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 6.18 |
ROIC/WACC0.93
WACC9.39%
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.
NOVT has a Current ratio (2.56) which is in line with its industry peers.
A Quick Ratio of 1.70 indicates that NOVT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.70, NOVT perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.99% over the past year.
Measured over the past 5 years, NOVT shows a small growth in Earnings Per Share. The EPS has been growing by 7.45% on average per year.
The Revenue has been growing slightly by 6.51% in the past 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)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
Based on estimates for the next years, NOVT will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.86% 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 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
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
NOVT is valuated quite expensively with a Price/Earnings ratio of 43.29.
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 (27.45), we can say NOVT is valued expensively.
With a Price/Forward Earnings ratio of 32.25, NOVT can be considered very expensive at the moment.
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 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.29 | ||
| Fwd PE | 32.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOVT is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOVT indicates a somewhat cheap valuation: NOVT is cheaper than 65.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.69 | ||
| EV/EBITDA | 27.85 |
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.
A more expensive valuation may be justified as NOVT's earnings are expected to grow with 15.86% in the coming years.
PEG (NY)3.73
PEG (5Y)5.81
EPS Next 2Y15.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NOVT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
133.33
+0.48 (+0.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners101.98%
Inst Owner Change-50.48%
Ins Owners0.85%
Ins Owner Change1.57%
Market Cap4.80B
Analysts82
Price Target150.26 (12.7%)
Short Float %4.4%
Short Ratio6.01
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)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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.29 | ||
| Fwd PE | 32.25 | ||
| P/S | 5.04 | ||
| P/FCF | 33.69 | ||
| P/OCF | 30.48 | ||
| P/B | 6.23 | ||
| P/tB | 1610.98 | ||
| EV/EBITDA | 27.85 |
EPS(TTM)3.08
EY2.31%
EPS(NY)4.13
Fwd EY3.1%
FCF(TTM)3.96
FCFY2.97%
OCF(TTM)4.37
OCFY3.28%
SpS26.46
BVpS21.4
TBVpS0.08
PEG (NY)3.73
PEG (5Y)5.81
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 6.18 |
F-Score6
WACC9.39%
ROIC/WACC0.93
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%