NOVANTA INC (NOVT) Stock Fundamental Analysis
USA - NASDAQ:NOVT - CA67000B1040 - Common Stock
114.69 USD
-2.53 (-2.16%)
114.69 USD
0 (0%)
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.
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.
In the past 5 years NOVT always reported a positive cash flow from operatings.
1.2 Ratios
NOVT has a Return On Assets of 4.06%. This is in the better half of the industry: NOVT outperforms 69.60% of its industry peers.
NOVT's Return On Equity of 7.66% is fine compared to the rest of the industry. NOVT outperforms 66.40% of its industry peers.
NOVT has a Return On Invested Capital of 7.94%. This is in the better half of the industry: NOVT outperforms 77.60% 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 9.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 7.66% | ||
| ROIC | 7.94% |
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
Looking at the Profit Margin, with a value of 6.41%, NOVT is in the better half of the industry, outperforming 73.60% of the companies in the same industry.
NOVT's Profit Margin has been stable in the last couple of years.
NOVT has a better Operating Margin (13.13%) than 84.00% of its industry peers.
In the last couple of years the Operating Margin of NOVT has grown nicely.
With a decent Gross Margin value of 44.79%, NOVT is doing good in the industry, outperforming 76.80% 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 | 13.13% | ||
| PM (TTM) | 6.41% | ||
| GM | 44.79% |
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 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.
NOVT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.97 indicates that NOVT is not in any danger for bankruptcy at the moment.
NOVT has a Altman-Z score of 4.97. This is in the better half of the industry: NOVT outperforms 71.20% of its industry peers.
The Debt to FCF ratio of NOVT is 3.93, which is a good value as it means it would take NOVT, 3.93 years of fcf income to pay off all of its debts.
NOVT's Debt to FCF ratio of 3.93 is fine compared to the rest of the industry. NOVT outperforms 67.20% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that NOVT is somewhat dependend on debt financing.
NOVT has a Debt to Equity ratio of 0.57. This is in the lower half of the industry: NOVT underperforms 73.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | 4.97 |
ROIC/WACC0.83
WACC9.55%
2.3 Liquidity
NOVT has a Current Ratio of 2.54. This indicates that NOVT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.54, NOVT is in line with its industry, outperforming 56.00% of the companies in the same industry.
A Quick Ratio of 1.62 indicates that NOVT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.62, NOVT is in line with its industry, outperforming 47.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.42% 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.
NOVT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.34%.
The Revenue has been growing by 8.68% on average over the past years. This is quite good.
EPS 1Y (TTM)5.42%
EPS 3Y5.54%
EPS 5Y7.45%
EPS Q2Q%4.11%
Revenue 1Y (TTM)6.34%
Revenue growth 3Y10.33%
Revenue growth 5Y8.68%
Sales Q2Q%2.16%
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.
NOVT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.52% yearly.
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
A Price/Earnings ratio of 36.88 indicates a quite expensive valuation of NOVT.
NOVT's Price/Earnings is on the same level as the industry average.
NOVT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.38.
NOVT is valuated quite expensively with a Price/Forward Earnings ratio of 29.77.
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 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.88 | ||
| Fwd PE | 29.77 |
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.
Based on the Price/Free Cash Flow ratio, NOVT is valued a bit cheaper than 68.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35 | ||
| EV/EBITDA | 24.93 |
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)4.63
PEG (5Y)4.95
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 |
114.69
-2.53 (-2.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners103.39%
Inst Owner Change-6.34%
Ins Owners0.85%
Ins Owner Change3.49%
Market Cap4.13B
Analysts80
Price Target150.11 (30.88%)
Short Float %5.35%
Short Ratio5.55
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)4.68%
Min EPS beat(2)1.6%
Max EPS beat(2)7.75%
EPS beat(4)3
Avg EPS beat(4)2.87%
Min EPS beat(4)-2.34%
Max EPS beat(4)7.75%
EPS beat(8)6
Avg EPS beat(8)6.4%
EPS beat(12)10
Avg EPS beat(12)6.7%
EPS beat(16)14
Avg EPS beat(16)7.78%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)-0.72%
Revenue beat(4)0
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-2.87%
Max Revenue beat(4)-0.72%
Revenue beat(8)0
Avg Revenue beat(8)-1.57%
Revenue beat(12)2
Avg Revenue beat(12)-0.85%
Revenue beat(16)6
Avg Revenue beat(16)-0.27%
PT rev (1m)-3.5%
PT rev (3m)-0.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.19%
EPS NY rev (1m)-3.26%
EPS NY rev (3m)-4.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.38%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.88 | ||
| Fwd PE | 29.77 | ||
| P/S | 4.31 | ||
| P/FCF | 35 | ||
| P/OCF | 31.41 | ||
| P/B | 5.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.93 |
EPS(TTM)3.11
EY2.71%
EPS(NY)3.85
Fwd EY3.36%
FCF(TTM)3.28
FCFY2.86%
OCF(TTM)3.65
OCFY3.18%
SpS26.6
BVpS22.28
TBVpS-1.43
PEG (NY)4.63
PEG (5Y)4.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 7.66% | ||
| ROCE | 9.45% | ||
| ROIC | 7.94% | ||
| ROICexc | 8.66% | ||
| ROICexgc | 28.8% | ||
| OM | 13.13% | ||
| PM (TTM) | 6.41% | ||
| GM | 44.79% | ||
| FCFM | 12.32% |
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-Score5
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 3.93 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 23.38% | ||
| Cap/Sales | 1.41% | ||
| Interest Coverage | 4.44 | ||
| Cash Conversion | 71.67% | ||
| Profit Quality | 192.08% | ||
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 4.97 |
F-Score5
WACC9.55%
ROIC/WACC0.83
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)5.42%
EPS 3Y5.54%
EPS 5Y7.45%
EPS Q2Q%4.11%
EPS Next Y7.96%
EPS Next 2Y11.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.34%
Revenue growth 3Y10.33%
Revenue growth 5Y8.68%
Sales Q2Q%2.16%
Revenue Next Year2.76%
Revenue Next 2Y4.8%
Revenue Next 3Y6.52%
Revenue Next 5YN/A
EBIT growth 1Y7.12%
EBIT growth 3Y14.82%
EBIT growth 5Y11.57%
EBIT Next Year36.12%
EBIT Next 3Y19.86%
EBIT Next 5YN/A
FCF growth 1Y52.28%
FCF growth 3Y23.74%
FCF growth 5Y21.91%
OCF growth 1Y43.08%
OCF growth 3Y18.77%
OCF growth 5Y20.19%