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. NOVT is valied quite expensively at the moment, while it does show a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year NOVT was profitable.
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.

1.2 Ratios

NOVT's Return On Assets of 3.51% is fine compared to the rest of the industry. NOVT outperforms 62.90% of its industry peers.
Looking at the Return On Equity, with a value of 6.59%, NOVT is in the better half of the industry, outperforming 62.10% of the companies in the same industry.
NOVT's Return On Invested Capital of 7.59% is fine compared to the rest of the industry. NOVT outperforms 75.00% 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 8.83%.

		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

With a decent Profit Margin value of 5.50%, 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 remained more or less at the same level.
NOVT has a Operating Margin of 12.40%. This is in the better half of the industry: NOVT outperforms 79.03% of its industry peers.
In the last couple of years the Operating Margin of NOVT has grown nicely.
With a decent Gross Margin value of 44.80%, NOVT is doing good in 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	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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

NOVT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NOVT has more shares outstanding than it did 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 5.62. This indicates that NOVT is financially healthy and has little risk of bankruptcy at the moment.
NOVT's Altman-Z score of 5.62 is fine compared to the rest of the industry. NOVT outperforms 75.00% of its industry peers.
NOVT has a debt to FCF ratio of 4.43. This is a neutral value as NOVT would need 4.43 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.43, NOVT is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that NOVT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, NOVT is doing worse than 75.00% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.56
Debt/FCF	4.43
Altman-Z	5.62

ROIC/WACC0.5

WACC15.21%

2.3 Liquidity

A Current Ratio of 2.51 indicates that NOVT has no problem at all paying its short term obligations.
NOVT has a Current ratio (2.51) which is comparable to the rest of the 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 (1.54) which is in line with its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.51
Quick Ratio	1.54

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

NOVT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.10%.
NOVT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.45% yearly.
The Revenue has been growing slightly by 4.07% in the past 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

NOVT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.73% yearly.
The Revenue is expected to grow by 5.67% on average over the next years.

EPS Next Y8.07%

EPS Next 2Y9.99%

EPS Next 3Y10.73%

EPS Next 5YN/A

Revenue Next Year2.8%

Revenue Next 2Y4.76%

Revenue Next 3Y5.67%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 44.05 indicates a quite expensive valuation of NOVT.
NOVT's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.21. NOVT is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 37.00, which means the current valuation is very expensive for NOVT.
NOVT's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.26. NOVT is valued rather expensively when compared to this.

		Industry Rank	Sector Rank
PE	44.05
Fwd PE	37

4.2 Price Multiples

NOVT's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOVT indicates a somewhat cheap valuation: NOVT is cheaper than 63.71% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	48.08
EV/EBITDA	29.81

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.