Reasonable Growth, Debt Levels, and a High ROIC Make NOVANTA INC (NASDAQ:NOVT) Appealing to Quality Investors.

In this article we will dive into NOVANTA INC (NASDAQ:NOVT) as a possible candidate for quality investing. Investors should always do their own research, but we noticed NOVANTA INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

• NOVT has achieved substantial revenue growth over the past 5 years, with a 8.68% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a robust ROIC excluding cash and goodwill at 31.01%, NOVT showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• With a Debt/Free Cash Flow Ratio of 2.98, NOVT exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• NOVT exhibits impressive Profit Quality (5-year) with a 179.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• NOVT has experienced impressive EBIT growth over the past 5 years, with 11.57% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• NOVT has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental Analysis Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Overall NOVT gets a fundamental rating of 5 out of 10. We evaluated NOVT against 123 industry peers in the Electronic Equipment, Instruments & Components industry. NOVT scores excellent on profitability, but there are some minor concerns on its financial health. NOVT is quite expensive at the moment. It does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of NOVT

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.