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NOVANTA INC (NOVT) Stock Fundamental Analysis

NASDAQ:NOVT - Nasdaq - CA67000B1040 - Common Stock

149.63  +1.97 (+1.33%)

After market: 149.63 0 (0%)

Fundamental Rating

5

Taking everything into account, NOVT scores 5 out of 10 in our fundamental rating. NOVT was compared to 126 industry peers in the Electronic Equipment, Instruments & Components industry. While NOVT belongs to the best of the industry regarding profitability, 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

In the past year NOVT was profitable.
NOVT had a positive operating cash flow in the past year.
In the past 5 years NOVT has always been profitable.
NOVT had a positive operating cash flow in each of the past 5 years.
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 50M 100M

1.2 Ratios

Looking at the Return On Assets, with a value of 4.24%, NOVT is in the better half of the industry, outperforming 66.94% of the companies in the same industry.
NOVT's Return On Equity of 8.10% is fine compared to the rest of the industry. NOVT outperforms 66.12% of its industry peers.
NOVT has a Return On Invested Capital of 8.01%. This is in the better half of the industry: NOVT outperforms 73.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NOVT is in line with the industry average of 9.03%.
Industry RankSector Rank
ROA 4.24%
ROE 8.1%
ROIC 8.01%
ROA(3y)5.34%
ROA(5y)5.17%
ROE(3y)11.1%
ROE(5y)10.48%
ROIC(3y)8.37%
ROIC(5y)8.07%
NOVT Yearly ROA, ROE, ROICNOVT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

The Profit Margin of NOVT (6.52%) is better than 74.38% of its industry peers.
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 12.73%, NOVT belongs to the top of the industry, outperforming 86.78% of the companies in the same industry.
NOVT's Operating Margin has improved in the last couple of years.
NOVT has a Gross Margin of 44.42%. This is in the better half of the industry: NOVT outperforms 76.03% of its industry peers.
NOVT's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 12.73%
PM (TTM) 6.52%
GM 44.42%
OM growth 3Y11.43%
OM growth 5Y1.69%
PM growth 3Y3.14%
PM growth 5Y0.67%
GM growth 3Y3.09%
GM growth 5Y1.28%
NOVT Yearly Profit, Operating, Gross MarginsNOVT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 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.
Compared to 1 year ago, NOVT has more shares outstanding
NOVT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NOVT has been reduced compared to a year ago.
NOVT Yearly Shares OutstandingNOVT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 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 200M 400M 600M 800M 1B

2.2 Solvency

NOVT has an Altman-Z score of 6.11. This indicates that NOVT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.11, NOVT belongs to the top of the industry, outperforming 80.17% of the companies in the same industry.
The Debt to FCF ratio of NOVT is 4.02, which is a neutral value as it means it would take NOVT, 4.02 years of fcf income to pay off all of its debts.
NOVT has a Debt to FCF ratio of 4.02. This is in the better half of the industry: NOVT outperforms 62.81% of its industry peers.
NOVT has a Debt/Equity ratio of 0.61. This is a neutral value indicating NOVT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, NOVT is doing worse than 80.99% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF 4.02
Altman-Z 6.11
ROIC/WACC0.78
WACC10.32%
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 200M 400M 600M

2.3 Liquidity

A Current Ratio of 2.79 indicates that NOVT has no problem at all paying its short term obligations.
NOVT's Current ratio of 2.79 is in line compared to the rest of the industry. NOVT outperforms 57.85% of its industry peers.
NOVT has a Quick Ratio of 1.81. This is a normal value and indicates that NOVT is financially healthy and should not expect problems in meeting its short term obligations.
NOVT has a Quick ratio (1.81) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 2.79
Quick Ratio 1.81
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 100M 200M 300M 400M

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5

3. Growth

3.1 Past

NOVT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.05%.
The Earnings Per Share has been growing slightly by 7.03% on average over the past years.
Looking at the last year, NOVT shows a small growth in Revenue. The Revenue has grown by 3.86% in the last year.
The Revenue has been growing slightly by 7.49% on average over the past years.
EPS 1Y (TTM)-6.05%
EPS 3Y15.9%
EPS 5Y7.03%
EPS Q2Q%0%
Revenue 1Y (TTM)3.86%
Revenue growth 3Y14.29%
Revenue growth 5Y7.49%
Sales Q2Q%10.34%

3.2 Future

The Earnings Per Share is expected to grow by 14.35% on average over the next years. This is quite good.
Based on estimates for the next years, NOVT will show a quite strong growth in Revenue. The Revenue will grow by 8.33% on average per year.
EPS Next Y2.45%
EPS Next 2Y13.14%
EPS Next 3Y14.35%
EPS Next 5YN/A
Revenue Next Year8.03%
Revenue Next 2Y8.72%
Revenue Next 3Y8.33%
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 stable.
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 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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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 50.72, which means the current valuation is very expensive for NOVT.
NOVT's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.96, NOVT is valued quite expensively.
A Price/Forward Earnings ratio of 38.71 indicates a quite expensive valuation of NOVT.
NOVT's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of NOVT to the average of the S&P500 Index (24.11), we can say NOVT is valued expensively.
Industry RankSector Rank
PE 50.72
Fwd PE 38.71
NOVT Price Earnings VS Forward Price EarningsNOVT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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.
NOVT's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 46.84
EV/EBITDA 33.33
NOVT Per share dataNOVT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 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.
NOVT has a very decent profitability rating, which may justify a higher PE ratio.
NOVT's earnings are expected to grow with 14.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)20.7
PEG (5Y)7.21
EPS Next 2Y13.14%
EPS Next 3Y14.35%

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0

5. Dividend

5.1 Amount

No dividends for NOVT!.
Industry RankSector Rank
Dividend Yield N/A

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NOVANTA INC

NASDAQ:NOVT (1/17/2025, 8:17:52 PM)

After market: 149.63 0 (0%)

149.63

+1.97 (+1.33%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)11-05 2024-11-05/bmo
Earnings (Next)N/A N/A
Inst Owners101.28%
Inst Owner Change0%
Ins Owners0.72%
Ins Owner Change-3.24%
Market Cap5.37B
Analysts82.22
Price Target181.56 (21.34%)
Short Float %4.92%
Short Ratio8.5
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)1
Avg EPS beat(2)0.44%
Min EPS beat(2)-2.34%
Max EPS beat(2)3.22%
EPS beat(4)2
Avg EPS beat(4)6.31%
Min EPS beat(4)-2.34%
Max EPS beat(4)25.81%
EPS beat(8)6
Avg EPS beat(8)7.46%
EPS beat(12)10
Avg EPS beat(12)7.39%
EPS beat(16)14
Avg EPS beat(16)12.21%
Revenue beat(2)0
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)-1%
Revenue beat(4)0
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)-0.66%
Revenue beat(8)1
Avg Revenue beat(8)-0.78%
Revenue beat(12)5
Avg Revenue beat(12)-0.01%
Revenue beat(16)7
Avg Revenue beat(16)0.09%
PT rev (1m)0%
PT rev (3m)-1.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.22%
Valuation
Industry RankSector Rank
PE 50.72
Fwd PE 38.71
P/S 5.82
P/FCF 46.84
P/OCF 39.54
P/B 7.24
P/tB N/A
EV/EBITDA 33.33
EPS(TTM)2.95
EY1.97%
EPS(NY)3.87
Fwd EY2.58%
FCF(TTM)3.19
FCFY2.14%
OCF(TTM)3.78
OCFY2.53%
SpS25.69
BVpS20.66
TBVpS-1.4
PEG (NY)20.7
PEG (5Y)7.21
Profitability
Industry RankSector Rank
ROA 4.24%
ROE 8.1%
ROCE 9.31%
ROIC 8.01%
ROICexc 8.64%
ROICexgc 26.8%
OM 12.73%
PM (TTM) 6.52%
GM 44.42%
FCFM 12.44%
ROA(3y)5.34%
ROA(5y)5.17%
ROE(3y)11.1%
ROE(5y)10.48%
ROIC(3y)8.37%
ROIC(5y)8.07%
ROICexc(3y)9.3%
ROICexc(5y)9.1%
ROICexgc(3y)30.02%
ROICexgc(5y)29.12%
ROCE(3y)9.73%
ROCE(5y)9.39%
ROICexcg growth 3Y3.92%
ROICexcg growth 5Y-5.2%
ROICexc growth 3Y9.61%
ROICexc growth 5Y-3.24%
OM growth 3Y11.43%
OM growth 5Y1.69%
PM growth 3Y3.14%
PM growth 5Y0.67%
GM growth 3Y3.09%
GM growth 5Y1.28%
F-Score3
Asset Turnover0.65
Health
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF 4.02
Debt/EBITDA 2.68
Cap/Depr 40.17%
Cap/Sales 2.29%
Interest Coverage 3.74
Cash Conversion 79.86%
Profit Quality 190.83%
Current Ratio 2.79
Quick Ratio 1.81
Altman-Z 6.11
F-Score3
WACC10.32%
ROIC/WACC0.78
Cap/Depr(3y)41.92%
Cap/Depr(5y)36.22%
Cap/Sales(3y)2.46%
Cap/Sales(5y)2.17%
Profit Quality(3y)127.26%
Profit Quality(5y)160.38%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.05%
EPS 3Y15.9%
EPS 5Y7.03%
EPS Q2Q%0%
EPS Next Y2.45%
EPS Next 2Y13.14%
EPS Next 3Y14.35%
EPS Next 5YN/A
Revenue 1Y (TTM)3.86%
Revenue growth 3Y14.29%
Revenue growth 5Y7.49%
Sales Q2Q%10.34%
Revenue Next Year8.03%
Revenue Next 2Y8.72%
Revenue Next 3Y8.33%
Revenue Next 5YN/A
EBIT growth 1Y-6.37%
EBIT growth 3Y27.35%
EBIT growth 5Y9.31%
EBIT Next Year33.74%
EBIT Next 3Y20.04%
EBIT Next 5YN/A
FCF growth 1Y96.83%
FCF growth 3Y-8.27%
FCF growth 5Y6.43%
OCF growth 1Y72.28%
OCF growth 3Y-5.03%
OCF growth 5Y6.03%