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NOVANTA INC (NOVT) Stock Fundamental Analysis

NASDAQ:NOVT - Nasdaq - CA67000B1040 - Common Stock - Currency: USD

140.51  -2.29 (-1.6%)

After market: 140.51 0 (0%)

Fundamental Rating

5

NOVT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

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.
In the past 5 years NOVT always reported a positive cash flow from operatings.
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

The Return On Assets of NOVT (4.24%) is better than 69.17% of its industry peers.
With a decent Return On Equity value of 8.10%, NOVT is doing good in the industry, outperforming 68.33% of the companies in the same industry.
The Return On Invested Capital of NOVT (8.01%) is better than 75.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOVT is in line with the industry average of 8.95%.
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

NOVT has a Profit Margin of 6.52%. This is in the better half of the industry: NOVT outperforms 75.83% of its industry peers.
NOVT's Profit Margin has been stable in the last couple of years.
The Operating Margin of NOVT (12.73%) is better than 86.67% of its industry peers.
NOVT's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 44.42%, NOVT is doing good in the industry, outperforming 76.67% of the companies in the same industry.
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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOVT is destroying value.
The number of shares outstanding for NOVT has been increased compared to 1 year ago.
Compared to 5 years ago, NOVT has more shares outstanding
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 5.96. This indicates that NOVT is financially healthy and has little risk of bankruptcy at the moment.
NOVT's Altman-Z score of 5.96 is amongst the best of the industry. NOVT outperforms 80.83% of its industry peers.
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's Debt to FCF ratio of 4.02 is in line compared to the rest of the industry. NOVT outperforms 58.33% 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.
NOVT has a Debt to Equity ratio of 0.61. This is amonst the worse of the industry: NOVT underperforms 80.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF 4.02
Altman-Z 5.96
ROIC/WACC0.91
WACC8.79%
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

NOVT has a Current Ratio of 2.79. 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 2.79, NOVT is in line with its industry, outperforming 59.17% of the companies in the same industry.
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 comparable to the rest of the industry.
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

The earnings per share for NOVT have decreased by -6.05% in the last year.
The Earnings Per Share has been growing slightly by 7.03% on average over the past years.
The Revenue has been growing slightly by 3.86% in the past year.
Measured over the past years, NOVT shows a small growth in Revenue. The Revenue has been growing by 7.49% on average per year.
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.
The Revenue is expected to grow by 8.33% on average over the next years. This is quite good.
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

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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

With a Price/Earnings ratio of 47.63, NOVT can be considered very expensive at the moment.
NOVT's Price/Earnings is on the same level as the industry average.
NOVT is valuated expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
NOVT is valuated quite expensively with a Price/Forward Earnings ratio of 36.35.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOVT is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of NOVT to the average of the S&P500 Index (22.68), we can say NOVT is valued expensively.
Industry RankSector Rank
PE 47.63
Fwd PE 36.35
NOVT Price Earnings VS Forward Price EarningsNOVT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

NOVT's Enterprise Value to EBITDA ratio is in line with the industry average.
NOVT's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 43.98
EV/EBITDA 32.3
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.
The decent profitability rating of NOVT 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)19.44
PEG (5Y)6.77
EPS Next 2Y13.14%
EPS Next 3Y14.35%

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0

5. Dividend

5.1 Amount

NOVT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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NOVANTA INC

NASDAQ:NOVT (2/21/2025, 8:00:01 PM)

After market: 140.51 0 (0%)

140.51

-2.29 (-1.6%)

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)02-25 2025-02-25/amc
Inst Owners101.28%
Inst Owner Change0.55%
Ins Owners0.72%
Ins Owner Change-3.28%
Market Cap5.05B
Analysts82.22
Price Target181.56 (29.22%)
Short Float %4.71%
Short Ratio8.9
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)-20.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.61%
Valuation
Industry RankSector Rank
PE 47.63
Fwd PE 36.35
P/S 5.47
P/FCF 43.98
P/OCF 37.13
P/B 6.8
P/tB N/A
EV/EBITDA 32.3
EPS(TTM)2.95
EY2.1%
EPS(NY)3.87
Fwd EY2.75%
FCF(TTM)3.19
FCFY2.27%
OCF(TTM)3.78
OCFY2.69%
SpS25.69
BVpS20.66
TBVpS-1.4
PEG (NY)19.44
PEG (5Y)6.77
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 5.96
F-Score3
WACC8.79%
ROIC/WACC0.91
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%