NOVANTA INC (NOVT) Fundamental Analysis & Valuation
NASDAQ:NOVT • CA67000B1040
131.22 USD
-5.37 (-3.93%)
At close: Mar 6, 2026
131.22 USD
0 (0%)
After Hours: 3/6/2026, 8:00:02 PM
This NOVT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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. NOVT has an excellent financial health rating, but there are some minor concerns on its profitability. NOVT is valied quite expensively at the moment, while it does show a decent growth rate.
1. NOVT Profitability Analysis
1.1 Basic Checks
- NOVT had positive earnings in the past year.
- 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
- With a decent Return On Assets value of 2.98%, NOVT is doing good in the industry, outperforming 64.52% of the companies in the same industry.
- NOVT has a Return On Equity (4.10%) which is in line with its industry peers.
- NOVT has a Return On Invested Capital (5.79%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for NOVT is in line with the industry average of 8.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 4.1% | ||
| ROIC | 5.79% |
ROA(3y)4.51%
ROA(5y)4.72%
ROE(3y)7.84%
ROE(5y)9.2%
ROIC(3y)7.61%
ROIC(5y)7.39%
1.3 Margins
- The Profit Margin of NOVT (5.49%) is better than 70.97% of its industry peers.
- NOVT's Profit Margin has declined in the last couple of years.
- NOVT has a better Operating Margin (11.90%) than 79.03% of its industry peers.
- NOVT's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 44.39%, NOVT is doing good in the industry, outperforming 77.42% 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 | 11.9% | ||
| PM (TTM) | 5.49% | ||
| GM | 44.39% |
OM growth 3Y-1.6%
OM growth 5Y3.31%
PM growth 3Y-13.92%
PM growth 5Y-6.14%
GM growth 3Y0.32%
GM growth 5Y1.4%
2. NOVT Health Analysis
2.1 Basic Checks
- NOVT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, NOVT has less shares outstanding
- Compared to 5 years ago, NOVT has more shares outstanding
- The debt/assets ratio for NOVT has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.32 indicates that NOVT is not in any danger for bankruptcy at the moment.
- NOVT has a Altman-Z score of 7.32. This is amongst the best in the industry. NOVT outperforms 82.26% of its industry peers.
- The Debt to FCF ratio of NOVT is 5.24, which is a neutral value as it means it would take NOVT, 5.24 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.24, NOVT is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
- NOVT has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
- NOVT's Debt to Equity ratio of 0.16 is in line compared to the rest of the industry. NOVT outperforms 45.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 7.32 |
ROIC/WACC0.64
WACC9.05%
2.3 Liquidity
- A Current Ratio of 3.69 indicates that NOVT has no problem at all paying its short term obligations.
- With a decent Current ratio value of 3.69, NOVT is doing good in the industry, outperforming 71.77% of the companies in the same industry.
- A Quick Ratio of 2.80 indicates that NOVT has no problem at all paying its short term obligations.
- With a decent Quick ratio value of 2.80, NOVT is doing good in the industry, outperforming 70.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.69 | ||
| Quick Ratio | 2.8 |
3. NOVT Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 6.49% over the past year.
- NOVT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.07% yearly.
- The Revenue has been growing slightly by 3.30% in the past year.
- The Revenue has been growing by 10.67% on average over the past years. This is quite good.
EPS 1Y (TTM)6.49%
EPS 3Y2.23%
EPS 5Y11.07%
EPS Q2Q%19.74%
Revenue 1Y (TTM)3.3%
Revenue growth 3Y4.44%
Revenue growth 5Y10.67%
Sales Q2Q%8.5%
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 12.50% on average per year.
- NOVT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.67% yearly.
EPS Next Y10.81%
EPS Next 2Y12.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.88%
Revenue Next 2Y6.67%
Revenue Next 3YN/A
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 stable.
- 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. NOVT Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 40.01, NOVT can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as NOVT.
- The average S&P500 Price/Earnings ratio is at 26.29. NOVT is valued rather expensively when compared to this.
- The Price/Forward Earnings ratio is 36.10, which means the current valuation is very expensive for NOVT.
- NOVT's Price/Forward Earnings ratio is in line with the industry average.
- NOVT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.01 | ||
| Fwd PE | 36.1 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as NOVT.
- NOVT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 96.68 | ||
| EV/EBITDA | 26.58 |
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.
- A more expensive valuation may be justified as NOVT's earnings are expected to grow with 12.50% in the coming years.
PEG (NY)3.7
PEG (5Y)3.61
EPS Next 2Y12.5%
EPS Next 3YN/A
5. NOVT Dividend Analysis
5.1 Amount
- No dividends for NOVT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NOVT Fundamentals: All Metrics, Ratios and Statistics
131.22
-5.37 (-3.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-23 2026-02-23/amc
Earnings (Next)05-04 2026-05-04
Inst Owners102.56%
Inst Owner Change12.75%
Ins Owners1.01%
Ins Owner Change3.19%
Market Cap4.68B
Revenue(TTM)980.60M
Net Income(TTM)53.83M
Analysts80
Price Target158.61 (20.87%)
Short Float %9.86%
Short Ratio7.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2.91%
Min EPS beat(2)1.38%
Max EPS beat(2)4.44%
EPS beat(4)4
Avg EPS beat(4)3.79%
Min EPS beat(4)1.38%
Max EPS beat(4)7.75%
EPS beat(8)7
Avg EPS beat(8)5.79%
EPS beat(12)10
Avg EPS beat(12)6.43%
EPS beat(16)14
Avg EPS beat(16)6.63%
Revenue beat(2)0
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)-0.91%
Revenue beat(4)0
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)-0.72%
Revenue beat(8)0
Avg Revenue beat(8)-1.3%
Revenue beat(12)1
Avg Revenue beat(12)-1.1%
Revenue beat(16)4
Avg Revenue beat(16)-0.6%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.12%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.01 | ||
| Fwd PE | 36.1 | ||
| P/S | 4.77 | ||
| P/FCF | 96.68 | ||
| P/OCF | 73.09 | ||
| P/B | 3.56 | ||
| P/tB | 9.63 | ||
| EV/EBITDA | 26.58 |
EPS(TTM)3.28
EY2.5%
EPS(NY)3.63
Fwd EY2.77%
FCF(TTM)1.36
FCFY1.03%
OCF(TTM)1.8
OCFY1.37%
SpS27.48
BVpS36.84
TBVpS13.63
PEG (NY)3.7
PEG (5Y)3.61
Graham Number52.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 4.1% | ||
| ROCE | 7.32% | ||
| ROIC | 5.79% | ||
| ROICexc | 7.61% | ||
| ROICexgc | 23.95% | ||
| OM | 11.9% | ||
| PM (TTM) | 5.49% | ||
| GM | 44.39% | ||
| FCFM | 4.94% |
ROA(3y)4.51%
ROA(5y)4.72%
ROE(3y)7.84%
ROE(5y)9.2%
ROIC(3y)7.61%
ROIC(5y)7.39%
ROICexc(3y)8.81%
ROICexc(5y)8.44%
ROICexgc(3y)26.96%
ROICexgc(5y)27.21%
ROCE(3y)9.61%
ROCE(5y)9.34%
ROICexgc growth 3Y-3.25%
ROICexgc growth 5Y-0.61%
ROICexc growth 3Y-4.42%
ROICexc growth 5Y0.15%
OM growth 3Y-1.6%
OM growth 5Y3.31%
PM growth 3Y-13.92%
PM growth 5Y-6.14%
GM growth 3Y0.32%
GM growth 5Y1.4%
F-Score5
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 5.24 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 25.23% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 5.17 | ||
| Cash Conversion | 35.87% | ||
| Profit Quality | 89.97% | ||
| Current Ratio | 3.69 | ||
| Quick Ratio | 2.8 | ||
| Altman-Z | 7.32 |
F-Score5
WACC9.05%
ROIC/WACC0.64
Cap/Depr(3y)32.98%
Cap/Depr(5y)36.37%
Cap/Sales(3y)1.89%
Cap/Sales(5y)2.15%
Profit Quality(3y)149.3%
Profit Quality(5y)138.46%
High Growth Momentum
Growth
EPS 1Y (TTM)6.49%
EPS 3Y2.23%
EPS 5Y11.07%
EPS Q2Q%19.74%
EPS Next Y10.81%
EPS Next 2Y12.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.3%
Revenue growth 3Y4.44%
Revenue growth 5Y10.67%
Sales Q2Q%8.5%
Revenue Next Year6.88%
Revenue Next 2Y6.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.14%
EBIT growth 3Y2.76%
EBIT growth 5Y14.34%
EBIT Next Year44.88%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-65.74%
FCF growth 3Y-12.06%
FCF growth 5Y-17.88%
OCF growth 1Y-59.59%
OCF growth 3Y-10.98%
OCF growth 5Y-14.5%
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 6 / 10.
What are the PE and PB ratios of NOVANTA INC (NOVT) stock?
The Price/Earnings (PE) ratio for NOVANTA INC (NOVT) is 40.01 and the Price/Book (PB) ratio is 3.56.
What is the earnings growth outlook for NOVANTA INC?
The Earnings per Share (EPS) of NOVANTA INC (NOVT) is expected to grow by 10.81% in the next year.