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.
We assign a fundamental rating of 5 out of 10 to NOVT. NOVT was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. While NOVT has a great health rating, its profitability is only average at the moment. NOVT is quite expensive at the moment. It does show a decent growth rate.
1. NOVT Profitability Analysis
1.1 Basic Checks
- NOVT had positive earnings in the past year.
- 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.
1.2 Ratios
- The Return On Assets of NOVT (2.98%) is better than 63.71% of its industry peers.
- The Return On Equity of NOVT (4.10%) is comparable to the rest of the industry.
- NOVT has a Return On Invested Capital (5.79%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for NOVT is in line with the industry average of 8.67%.
| 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
- With a decent Profit Margin value of 5.49%, NOVT is doing good in the industry, outperforming 70.16% of the companies in the same industry.
- In the last couple of years the Profit Margin of NOVT has declined.
- NOVT's Operating Margin of 11.90% is fine compared to the rest of the industry. NOVT outperforms 79.03% of its industry peers.
- NOVT's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 44.39%, NOVT is in the better half of the industry, outperforming 76.61% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOVT is destroying value.
- Compared to 1 year ago, NOVT has less shares outstanding
- The number of shares outstanding for NOVT has been increased compared to 5 years ago.
- The debt/assets ratio for NOVT has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.08 indicates that NOVT is not in any danger for bankruptcy at the moment.
- The Altman-Z score of NOVT (7.08) is better than 80.65% of its industry peers.
- NOVT has a debt to FCF ratio of 5.24. This is a neutral value as NOVT would need 5.24 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 5.24, NOVT is doing good in the industry, outperforming 60.48% of the companies in the same industry.
- A Debt/Equity ratio of 0.16 indicates that NOVT is not too dependend on debt financing.
- The Debt to Equity ratio of NOVT (0.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 7.08 |
ROIC/WACC0.64
WACC9.01%
2.3 Liquidity
- A Current Ratio of 3.69 indicates that NOVT has no problem at all paying its short term obligations.
- NOVT has a Current ratio of 3.69. This is in the better half of the industry: NOVT outperforms 69.35% of its industry peers.
- NOVT has a Quick Ratio of 2.80. This indicates that NOVT is financially healthy and has no problem in meeting its short term obligations.
- NOVT's Quick ratio of 2.80 is fine compared to the rest of the industry. NOVT outperforms 67.74% of its industry peers.
| 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.
- Looking at the last year, NOVT shows a small growth in Revenue. The Revenue has grown by 3.30% in the last 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
- The Earnings Per Share is expected to grow by 12.50% on average over the next years. This is quite good.
- 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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
- Compared to the rest of the industry, the Price/Earnings ratio of NOVT is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of NOVT to the average of the S&P500 Index (26.29), we can say NOVT is valued expensively.
- A Price/Forward Earnings ratio of 36.10 indicates a quite expensive valuation of NOVT.
- NOVT's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.60, NOVT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.01 | ||
| Fwd PE | 36.1 |
4.2 Price Multiples
- NOVT's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOVT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 96.68 | ||
| EV/EBITDA | 25.5 |
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.
- NOVT's earnings are expected to grow with 12.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.7
PEG (5Y)3.61
EPS Next 2Y12.5%
EPS Next 3YN/A
5. NOVT Dividend Analysis
5.1 Amount
- NOVT does not give a dividend.
| 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 Owners113.42%
Inst Owner Change13.26%
Ins Owners1.02%
Ins Owner Change2.75%
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)-8.09%
EPS NQ rev (3m)-8.09%
EPS NY rev (1m)-1.38%
EPS NY rev (3m)-2.46%
Revenue NQ rev (1m)-60.99%
Revenue NQ rev (3m)-60.99%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.09%
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 | 25.5 |
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 | 7.08 |
F-Score5
WACC9.01%
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.