NOVANTA INC (NOVT) Stock Fundamental Analysis
USA - NASDAQ:NOVT - CA67000B1040 - Common Stock
129.5 USD
+2.49 (+1.96%)
Taking everything into account, NOVT scores 5 out of 10 in our fundamental rating. NOVT was compared to 124 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
In the past year NOVT was profitable.
In the past year NOVT had a positive cash flow from operations.
Each year in the past 5 years NOVT has been profitable.
Each year in the past 5 years NOVT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.06%, NOVT is in the better half of the industry, outperforming 66.94% of the companies in the same industry.
NOVT has a better Return On Equity (7.66%) than 66.13% of its industry peers.
NOVT has a better Return On Invested Capital (7.94%) than 75.00% 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 9.38%.
| 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
NOVT's Profit Margin of 6.41% is fine compared to the rest of the industry. NOVT outperforms 72.58% of its industry peers.
In the last couple of years the Profit Margin of NOVT has remained more or less at the same level.
With an excellent Operating Margin value of 13.13%, NOVT belongs to the best of the industry, outperforming 81.45% of the companies in the same industry.
NOVT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.79%, NOVT is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
NOVT's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOVT is destroying value.
NOVT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NOVT has been increased compared to 5 years ago.
Compared to 1 year ago, NOVT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.26 indicates that NOVT is not in any danger for bankruptcy at the moment.
NOVT's Altman-Z score of 5.26 is fine compared to the rest of the industry. NOVT outperforms 68.55% 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 has a Debt to FCF ratio of 3.93. This is in the better half of the industry: NOVT outperforms 66.13% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that NOVT is somewhat dependend on debt financing.
The Debt to Equity ratio of NOVT (0.57) is worse than 75.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | 5.26 |
ROIC/WACC0.85
WACC9.35%
2.3 Liquidity
A Current Ratio of 2.54 indicates that NOVT has no problem at all paying its short term obligations.
NOVT's Current ratio of 2.54 is in line compared to the rest of the industry. NOVT outperforms 54.84% of its industry peers.
A Quick Ratio of 1.62 indicates that NOVT should not have too much problems paying its short term obligations.
NOVT has a Quick ratio (1.62) which is comparable to the rest of the 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.
NOVT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.45% yearly.
The Revenue has been growing slightly by 6.34% in the past year.
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.
The Revenue is expected to grow by 6.52% on average over the next years.
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.
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 41.64, the valuation of NOVT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NOVT is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.11. NOVT is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 33.62, which means the current valuation is very expensive for NOVT.
The rest of the industry has a similar Price/Forward Earnings ratio as NOVT.
When comparing the Price/Forward Earnings ratio of NOVT to the average of the S&P500 Index (22.55), we can say NOVT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.64 | ||
| Fwd PE | 33.62 |
4.2 Price Multiples
NOVT's Enterprise Value to EBITDA is on the same level as the industry average.
67.74% of the companies in the same industry are more expensive than NOVT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.52 | ||
| EV/EBITDA | 26.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NOVT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.23
PEG (5Y)5.59
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 |
NASDAQ:NOVT (11/3/2025, 10:54:54 AM)
129.5
+2.49 (+1.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102.42%
Inst Owner Change-0.86%
Ins Owners0.96%
Ins Owner Change3.06%
Market Cap4.66B
Revenue(TTM)956.88M
Net Income(TTM)61.36M
Analysts80
Price Target150.11 (15.92%)
Short Float %4.79%
Short Ratio4.43
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)0%
PT rev (3m)-3.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.64 | ||
| Fwd PE | 33.62 | ||
| P/S | 4.87 | ||
| P/FCF | 39.52 | ||
| P/OCF | 35.46 | ||
| P/B | 5.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.86 |
EPS(TTM)3.11
EY2.4%
EPS(NY)3.85
Fwd EY2.97%
FCF(TTM)3.28
FCFY2.53%
OCF(TTM)3.65
OCFY2.82%
SpS26.6
BVpS22.28
TBVpS-1.43
PEG (NY)5.23
PEG (5Y)5.59
Graham Number39.49
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%
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 Turnover0.63
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 | 5.26 |
F-Score5
WACC9.35%
ROIC/WACC0.85
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 Year33.89%
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%
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 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.
How financially healthy is NOVANTA INC?
The financial health rating of NOVANTA INC (NOVT) is 5 / 10.