NOVANTA INC (NOVT) Stock Fundamental Analysis
NASDAQ:NOVT - Nasdaq - CA67000B1040 - Common Stock - Currency: USD
NOVT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 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 quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years NOVT has always been profitable.
Each year in the past 5 years NOVT had a positive operating cash flow.
1.2 Ratios
NOVT's Return On Assets of 5.10% is fine compared to the rest of the industry. NOVT outperforms 73.60% of its industry peers.
NOVT has a better Return On Equity (9.17%) than 74.40% of its industry peers.
NOVT has a Return On Invested Capital of 8.73%. This is in the better half of the industry: NOVT outperforms 80.00% 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 9.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 9.17% | ||
| ROIC | 8.73% |
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's Profit Margin of 7.42% is fine compared to the rest of the industry. NOVT outperforms 76.80% of its industry peers.
In the last couple of years the Profit Margin of NOVT has remained more or less at the same level.
NOVT's Operating Margin of 13.28% is amongst the best of the industry. NOVT outperforms 88.00% of its industry peers.
In the last couple of years the Operating Margin of NOVT has grown nicely.
NOVT has a Gross Margin of 44.71%. This is in the better half of the industry: NOVT outperforms 78.40% of its industry peers.
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 | 13.28% | ||
| PM (TTM) | 7.42% | ||
| GM | 44.71% |
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 below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NOVT has more shares outstanding
Compared to 5 years ago, NOVT has more shares outstanding
The debt/assets ratio for NOVT is higher compared to a year ago.
2.2 Solvency
NOVT has an Altman-Z score of 5.86. This indicates that NOVT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NOVT (5.86) is better than 80.80% of its industry peers.
NOVT has a debt to FCF ratio of 2.77. This is a good value and a sign of high solvency as NOVT would need 2.77 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.77, NOVT is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
NOVT has a Debt/Equity ratio of 0.50. This is a neutral value indicating NOVT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.50, NOVT is not doing good in the industry: 73.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 5.86 |
ROIC/WACC0.9
WACC9.69%
2.3 Liquidity
NOVT has a Current Ratio of 2.56. This indicates that NOVT is financially healthy and has no problem in meeting its short term obligations.
NOVT's Current ratio of 2.56 is in line compared to the rest of the industry. NOVT outperforms 54.40% of its industry peers.
A Quick Ratio of 1.70 indicates that NOVT should not have too much problems paying its short term obligations.
NOVT's Quick ratio of 1.70 is in line compared to the rest of the industry. NOVT outperforms 48.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
NOVT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.99%.
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.
The Revenue has been growing slightly by 6.51% 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)1.99%
EPS 3Y5.54%
EPS 5Y7.45%
EPS Q2Q%0%
Revenue 1Y (TTM)6.51%
Revenue growth 3Y10.33%
Revenue growth 5Y8.68%
Sales Q2Q%1.06%
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 15.86% yearly.
The Revenue is expected to grow by 6.52% on average over the next years.
EPS Next Y11.6%
EPS Next 2Y15.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.35%
Revenue Next 2Y5.44%
Revenue Next 3Y6.52%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.07 indicates a quite expensive valuation of NOVT.
NOVT's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of NOVT to the average of the S&P500 Index (27.69), we can say NOVT is valued slightly more expensively.
NOVT is valuated quite expensively with a Price/Forward Earnings ratio of 30.60.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOVT is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.36, NOVT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.07 | ||
| Fwd PE | 30.6 |
4.2 Price Multiples
NOVT's Enterprise Value to EBITDA ratio is in line with the industry average.
66.40% of the companies in the same industry are more expensive than NOVT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.97 | ||
| EV/EBITDA | 26.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NOVT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NOVT's earnings are expected to grow with 15.86% in the coming years.
PEG (NY)3.54
PEG (5Y)5.51
EPS Next 2Y15.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for NOVT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
126.51
+2.41 (+1.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners101.98%
Inst Owner Change-0.1%
Ins Owners0.85%
Ins Owner Change1.61%
Market Cap4.55B
Analysts82
Price Target155.55 (22.95%)
Short Float %4.48%
Short Ratio6.03
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)2
Avg EPS beat(2)6.1%
Min EPS beat(2)4.45%
Max EPS beat(2)7.75%
EPS beat(4)3
Avg EPS beat(4)3.27%
Min EPS beat(4)-2.34%
Max EPS beat(4)7.75%
EPS beat(8)6
Avg EPS beat(8)7.12%
EPS beat(12)10
Avg EPS beat(12)7.09%
EPS beat(16)14
Avg EPS beat(16)8.92%
Revenue beat(2)0
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-2.87%
Max Revenue beat(2)-1.95%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-2.87%
Max Revenue beat(4)-1%
Revenue beat(8)0
Avg Revenue beat(8)-1.51%
Revenue beat(12)3
Avg Revenue beat(12)-0.74%
Revenue beat(16)6
Avg Revenue beat(16)-0.23%
PT rev (1m)3.52%
PT rev (3m)-11.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.07 | ||
| Fwd PE | 30.6 | ||
| P/S | 4.78 | ||
| P/FCF | 31.97 | ||
| P/OCF | 28.92 | ||
| P/B | 5.91 | ||
| P/tB | 1528.57 | ||
| EV/EBITDA | 26.03 |
EPS(TTM)3.08
EY2.43%
EPS(NY)4.13
Fwd EY3.27%
FCF(TTM)3.96
FCFY3.13%
OCF(TTM)4.37
OCFY3.46%
SpS26.46
BVpS21.4
TBVpS0.08
PEG (NY)3.54
PEG (5Y)5.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 9.17% | ||
| ROCE | 10.39% | ||
| ROIC | 8.73% | ||
| ROICexc | 9.57% | ||
| ROICexgc | 30.96% | ||
| OM | 13.28% | ||
| PM (TTM) | 7.42% | ||
| GM | 44.71% | ||
| FCFM | 14.96% |
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-Score6
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.77 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 26.75% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 4.15 | ||
| Cash Conversion | 86.2% | ||
| Profit Quality | 201.56% | ||
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 5.86 |
F-Score6
WACC9.69%
ROIC/WACC0.9
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%0%
EPS Next Y11.6%
EPS Next 2Y15.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.51%
Revenue growth 3Y10.33%
Revenue growth 5Y8.68%
Sales Q2Q%1.06%
Revenue Next Year3.35%
Revenue Next 2Y5.44%
Revenue Next 3Y6.52%
Revenue Next 5YN/A
EBIT growth 1Y3.25%
EBIT growth 3Y14.82%
EBIT growth 5Y11.57%
EBIT Next Year36.15%
EBIT Next 3Y19.86%
EBIT Next 5YN/A
FCF growth 1Y95.52%
FCF growth 3Y23.74%
FCF growth 5Y21.91%
OCF growth 1Y75.44%
OCF growth 3Y18.77%
OCF growth 5Y20.19%