NOVANTA INC (NOVT) Stock Fundamental Analysis
NASDAQ:NOVT - Nasdaq - CA67000B1040 - Common Stock - Currency: USD
Overall NOVT gets a fundamental rating of 5 out of 10. We evaluated NOVT 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.
1. Profitability
1.1 Basic Checks
In the past year NOVT was profitable.
NOVT had a positive operating cash flow in the past year.
NOVT had positive earnings in each of the past 5 years.
NOVT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.62%, NOVT is doing good in the industry, outperforming 73.39% of the companies in the same industry.
NOVT has a better Return On Equity (8.59%) than 72.58% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.56%, NOVT is in the better half of the industry, outperforming 79.84% of the companies in the same industry.
NOVT had an Average Return On Invested Capital over the past 3 years of 8.83%. This is in line with the industry average of 9.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 8.59% | ||
| ROIC | 8.56% |
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
With a decent Profit Margin value of 6.75%, NOVT is doing good in the industry, outperforming 75.81% of the companies in the same industry.
In the last couple of years the Profit Margin of NOVT has remained more or less at the same level.
The Operating Margin of NOVT (13.09%) is better than 88.71% of its industry peers.
In the last couple of years the Operating Margin of NOVT has grown nicely.
NOVT's Gross Margin of 44.41% is fine compared to the rest of the industry. NOVT outperforms 76.61% of its industry peers.
NOVT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.09% | ||
| PM (TTM) | 6.75% | ||
| GM | 44.41% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NOVT is destroying value.
The number of shares outstanding for NOVT has been increased compared to 1 year ago.
The number of shares outstanding for NOVT has been increased compared to 5 years ago.
NOVT has a worse debt/assets ratio than last year.
2.2 Solvency
NOVT has an Altman-Z score of 5.19. This indicates that NOVT is financially healthy and has little risk of bankruptcy at the moment.
NOVT has a Altman-Z score of 5.19. This is in the better half of the industry: NOVT outperforms 79.84% of its industry peers.
NOVT has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as NOVT would need 2.98 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.98, NOVT is in the better half of the industry, outperforming 66.94% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that NOVT is somewhat dependend on debt financing.
NOVT has a Debt to Equity ratio of 0.56. This is in the lower half of the industry: NOVT underperforms 76.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 5.19 |
ROIC/WACC0.95
WACC8.96%
2.3 Liquidity
A Current Ratio of 2.58 indicates that NOVT has no problem at all paying its short term obligations.
The Current ratio of NOVT (2.58) is comparable to the rest of the industry.
A Quick Ratio of 1.72 indicates that NOVT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.72, NOVT is in line with its industry, outperforming 50.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.99% over the past year.
Measured over the past 5 years, NOVT shows a small growth in Earnings Per Share. The EPS has been growing by 7.45% on average per year.
Looking at the last year, NOVT shows a small growth in Revenue. The Revenue has grown by 7.66% in the last year.
The Revenue has been growing by 8.68% on average over the past years. This is quite good.
EPS 1Y (TTM)1.99%
EPS 3Y5.54%
EPS 5Y7.45%
EPS Q2Q%20.63%
Revenue 1Y (TTM)7.66%
Revenue growth 3Y10.33%
Revenue growth 5Y8.68%
Sales Q2Q%12.5%
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 16.52% on average per year.
The Revenue is expected to grow by 5.98% on average over the next years.
EPS Next Y14.58%
EPS Next 2Y16.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.89%
Revenue Next 2Y5.98%
Revenue Next 3YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 35.89, 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 rather expensively when we compare the Price/Earnings ratio to 27.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 31.32 indicates a quite expensive valuation of NOVT.
NOVT's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.85. NOVT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.89 | ||
| Fwd PE | 31.32 |
4.2 Price Multiples
NOVT's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, NOVT is valued a bit cheaper than 62.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.12 | ||
| EV/EBITDA | 23.81 |
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 16.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.46
PEG (5Y)4.81
EPS Next 2Y16.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for NOVT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
110.54
-4.04 (-3.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102.41%
Inst Owner Change0.26%
Ins Owners0.71%
Ins Owner Change-0.72%
Market Cap3.98B
Analysts82.22
Price Target175.95 (59.17%)
Short Float %4.98%
Short Ratio7.7
Dividend
| Industry Rank | Sector 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)1.06%
Min EPS beat(2)-2.34%
Max EPS beat(2)4.45%
EPS beat(4)3
Avg EPS beat(4)7.79%
Min EPS beat(4)-2.34%
Max EPS beat(4)25.81%
EPS beat(8)6
Avg EPS beat(8)7.75%
EPS beat(12)10
Avg EPS beat(12)7.58%
EPS beat(16)14
Avg EPS beat(16)11.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.99%
Min Revenue beat(2)-2.87%
Max Revenue beat(2)-1.12%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-2.87%
Max Revenue beat(4)-0.66%
Revenue beat(8)1
Avg Revenue beat(8)-1.05%
Revenue beat(12)4
Avg Revenue beat(12)-0.4%
Revenue beat(16)7
Avg Revenue beat(16)0.01%
PT rev (1m)0%
PT rev (3m)-3.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.31%
EPS NY rev (1m)-8.71%
EPS NY rev (3m)-8.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.89 | ||
| Fwd PE | 31.32 | ||
| P/S | 4.19 | ||
| P/FCF | 28.12 | ||
| P/OCF | 25.08 | ||
| P/B | 5.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.81 |
EPS(TTM)3.08
EY2.79%
EPS(NY)3.53
Fwd EY3.19%
FCF(TTM)3.93
FCFY3.56%
OCF(TTM)4.41
OCFY3.99%
SpS26.4
BVpS20.74
TBVpS-0.67
PEG (NY)2.46
PEG (5Y)4.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 8.59% | ||
| ROCE | 10.18% | ||
| ROIC | 8.56% | ||
| ROICexc | 9.44% | ||
| ROICexgc | 31.01% | ||
| OM | 13.09% | ||
| PM (TTM) | 6.75% | ||
| GM | 44.41% | ||
| FCFM | 14.89% |
ROA(3y)5.51%
ROA(5y)5.15%
ROE(3y)10.75%
ROE(5y)10.25%
ROIC(3y)8.83%
ROIC(5y)7.95%
ROICexc(3y)9.75%
ROICexc(5y)8.94%
ROICexgc(3y)29.5%
ROICexgc(5y)29.04%
ROCE(3y)10.5%
ROCE(5y)9.46%
ROICexcg growth 3Y0.54%
ROICexcg growth 5Y2%
ROICexc growth 3Y8.22%
ROICexc growth 5Y0.49%
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%
F-Score3
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.98 | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 30.89% | ||
| Cap/Sales | 1.81% | ||
| Interest Coverage | 3.8 | ||
| Cash Conversion | 88.13% | ||
| Profit Quality | 220.56% | ||
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 5.19 |
F-Score3
WACC8.96%
ROIC/WACC0.95
Cap/Depr(3y)36.85%
Cap/Depr(5y)36.81%
Cap/Sales(3y)2.12%
Cap/Sales(5y)2.19%
Profit Quality(3y)151.34%
Profit Quality(5y)178.76%
High Growth Momentum
Growth
EPS 1Y (TTM)1.99%
EPS 3Y5.54%
EPS 5Y7.45%
EPS Q2Q%20.63%
EPS Next Y14.58%
EPS Next 2Y16.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.66%
Revenue growth 3Y10.33%
Revenue growth 5Y8.68%
Sales Q2Q%12.5%
Revenue Next Year4.89%
Revenue Next 2Y5.98%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.81%
EBIT growth 3Y14.82%
EBIT growth 5Y11.57%
EBIT Next Year37.69%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y41.19%
FCF growth 3Y23.74%
FCF growth 5Y21.91%
OCF growth 1Y32.01%
OCF growth 3Y18.77%
OCF growth 5Y20.19%