136.79 USD
-2.09 (-1.5%)
Taking everything into account, NOVT scores 5 out of 10 in our fundamental rating. NOVT was compared to 123 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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
1.2 Ratios
- The Return On Assets of NOVT (3.51%) is better than 63.41% of its industry peers.
- NOVT's Return On Equity of 6.59% is fine compared to the rest of the industry. NOVT outperforms 61.79% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.59%, NOVT is in the better half of the industry, outperforming 74.80% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for NOVT is in line with the industry average of 8.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 6.59% | ||
| ROIC | 7.59% |
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 has a better Profit Margin (5.50%) than 70.73% of its industry peers.
- NOVT's Profit Margin has been stable in the last couple of years.
- The Operating Margin of NOVT (12.40%) is better than 79.67% of its industry peers.
- NOVT's Operating Margin has improved in the last couple of years.
- NOVT has a better Gross Margin (44.80%) than 77.24% of its industry peers.
- NOVT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.4% | ||
| PM (TTM) | 5.5% | ||
| GM | 44.8% |
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
- NOVT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, NOVT has more shares outstanding
- NOVT has more shares outstanding than it did 5 years ago.
- NOVT has a worse debt/assets ratio than last year.
2.2 Solvency
- NOVT has an Altman-Z score of 5.64. This indicates that NOVT is financially healthy and has little risk of bankruptcy at the moment.
- NOVT's Altman-Z score of 5.64 is fine compared to the rest of the industry. NOVT outperforms 74.80% of its industry peers.
- The Debt to FCF ratio of NOVT is 4.43, which is a neutral value as it means it would take NOVT, 4.43 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of NOVT (4.43) is better than 65.04% of its industry peers.
- NOVT has a Debt/Equity ratio of 0.56. This is a neutral value indicating NOVT is somewhat dependend on debt financing.
- The Debt to Equity ratio of NOVT (0.56) is worse than 74.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.43 | ||
| Altman-Z | 5.64 |
ROIC/WACC0.87
WACC8.73%
2.3 Liquidity
- NOVT has a Current Ratio of 2.51. 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 2.51, NOVT is in line with its industry, outperforming 52.85% of the companies in the same industry.
- NOVT has a Quick Ratio of 1.54. 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 of 1.54. This is comparable to the rest of the industry: NOVT outperforms 46.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.10% 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.
- Looking at the last year, NOVT shows a small growth in Revenue. The Revenue has grown by 4.07% in the last year.
- Measured over the past years, NOVT shows a quite strong growth in Revenue. The Revenue has been growing by 8.68% on average per year.
EPS 1Y (TTM)6.1%
EPS 3Y5.54%
EPS 5Y7.45%
EPS Q2Q%2.35%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y10.33%
Revenue growth 5Y8.68%
Sales Q2Q%1.4%
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 10.73% on average per year.
- The Revenue is expected to grow by 5.48% on average over the next years.
EPS Next Y8.07%
EPS Next 2Y9.99%
EPS Next 3Y10.73%
EPS Next 5YN/A
Revenue Next Year2.77%
Revenue Next 2Y4.71%
Revenue Next 3Y5.48%
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
- NOVT is valuated quite expensively with a Price/Earnings ratio of 43.70.
- 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 (28.82), we can say NOVT is valued expensively.
- Based on the Price/Forward Earnings ratio of 36.71, the valuation of NOVT can be described as expensive.
- 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 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.7 | ||
| Fwd PE | 36.71 |
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 a bit cheaper when compared to the industry. NOVT is cheaper than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.7 | ||
| EV/EBITDA | 29.92 |
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.
- The decent profitability rating of NOVT may justify a higher PE ratio.
PEG (NY)5.41
PEG (5Y)5.86
EPS Next 2Y9.99%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
- No dividends for NOVT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 7 / 10.
What are the PE and PB ratios of NOVANTA INC (NOVT) stock?
The Price/Earnings (PE) ratio for NOVANTA INC (NOVT) is 43.7 and the Price/Book (PB) ratio is 6.11.
What is the earnings growth outlook for NOVANTA INC?
The Earnings per Share (EPS) of NOVANTA INC (NOVT) is expected to grow by 8.07% in the next year.