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NOVANTA INC (NOVT) Stock Fundamental Analysis

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

129.26  -1.91 (-1.46%)

After market: 129.26 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to NOVT. NOVT was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. NOVT has an excellent profitability rating, but 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.
NOVT had a positive operating cash flow in each of the past 5 years.
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 2024 50M 100M 150M

1.2 Ratios

NOVT's Return On Assets of 5.10% is fine compared to the rest of the industry. NOVT outperforms 74.40% of its industry peers.
Looking at the Return On Equity, with a value of 9.17%, NOVT is in the better half of the industry, outperforming 73.60% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.73%, NOVT is in the better half of the industry, outperforming 78.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NOVT is in line with the industry average of 9.29%.
Industry RankSector 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%
NOVT Yearly ROA, ROE, ROICNOVT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

The Profit Margin of NOVT (7.42%) is better than 76.00% 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 88.80% of its industry peers.
NOVT's Operating Margin has improved in the last couple of years.
NOVT has a Gross Margin of 44.71%. This is in the better half of the industry: NOVT outperforms 77.60% of its industry peers.
NOVT's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
NOVT Yearly Profit, Operating, Gross MarginsNOVT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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5

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
The number of shares outstanding for NOVT has been increased compared to 5 years ago.
Compared to 1 year ago, NOVT has a worse debt to assets ratio.
NOVT Yearly Shares OutstandingNOVT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2024 200M 400M 600M 800M 1B

2.2 Solvency

An Altman-Z score of 6.11 indicates that NOVT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.11, NOVT belongs to the best of the industry, outperforming 81.60% of the companies in the same industry.
The Debt to FCF ratio of NOVT is 2.77, which is a good value as it means it would take NOVT, 2.77 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.77, NOVT is doing good in the industry, outperforming 72.00% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that NOVT is somewhat dependend on debt financing.
The Debt to Equity ratio of NOVT (0.50) is worse than 72.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 2.77
Altman-Z 6.11
ROIC/WACC0.92
WACC9.46%
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 2024 200M 400M 600M

2.3 Liquidity

A Current Ratio of 2.56 indicates that NOVT has no problem at all paying its short term obligations.
The Current ratio of NOVT (2.56) is comparable to the rest of the industry.
A Quick Ratio of 1.70 indicates that NOVT should not have too much problems paying its short term obligations.
NOVT has a Quick ratio (1.70) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.56
Quick Ratio 1.7
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 2024 100M 200M 300M 400M

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5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.99% over the past year.
NOVT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.45% yearly.
Looking at the last year, NOVT shows a small growth in Revenue. The Revenue has grown by 6.51% 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%0%
Revenue 1Y (TTM)6.51%
Revenue growth 3Y10.33%
Revenue growth 5Y8.68%
Sales Q2Q%1.06%

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 15.86% on average per year.
The Revenue is expected to grow by 5.44% on average over the next years.
EPS Next Y13.26%
EPS Next 2Y15.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.35%
Revenue Next 2Y5.44%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
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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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 41.97, which means the current valuation is very expensive for NOVT.
Compared to the rest of the industry, the Price/Earnings ratio of NOVT is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.68, NOVT is valued quite expensively.
NOVT is valuated quite expensively with a Price/Forward Earnings ratio of 31.26.
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 22.50, NOVT is valued a bit more expensive.
Industry RankSector Rank
PE 41.97
Fwd PE 31.26
NOVT Price Earnings VS Forward Price EarningsNOVT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 the industry average as 64.80% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 32.66
EV/EBITDA 27.41
NOVT Per share dataNOVT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 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.
NOVT has a very decent profitability rating, which may justify a higher PE ratio.
NOVT's earnings are expected to grow with 15.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.17
PEG (5Y)5.63
EPS Next 2Y15.86%
EPS Next 3YN/A

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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 (5/19/2025, 4:30:02 PM)

After market: 129.26 0 (0%)

129.26

-1.91 (-1.46%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)05-06 2025-05-06/bmo
Earnings (Next)08-04 2025-08-04
Inst Owners102.41%
Inst Owner Change-0.64%
Ins Owners0.71%
Ins Owner Change-0.21%
Market Cap4.65B
Analysts82
Price Target165.9 (28.35%)
Short Float %4.77%
Short Ratio5.07
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)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)-5.71%
PT rev (3m)-8.62%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)-16.54%
EPS NY rev (1m)-1.16%
EPS NY rev (3m)-9.76%
Revenue NQ rev (1m)-1.14%
Revenue NQ rev (3m)-7.23%
Revenue NY rev (1m)-1.47%
Revenue NY rev (3m)-5.56%
Valuation
Industry RankSector Rank
PE 41.97
Fwd PE 31.26
P/S 4.88
P/FCF 32.66
P/OCF 29.54
P/B 6.04
P/tB 1561.37
EV/EBITDA 27.41
EPS(TTM)3.08
EY2.38%
EPS(NY)4.13
Fwd EY3.2%
FCF(TTM)3.96
FCFY3.06%
OCF(TTM)4.38
OCFY3.39%
SpS26.47
BVpS21.41
TBVpS0.08
PEG (NY)3.17
PEG (5Y)5.63
Profitability
Industry RankSector 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 RankSector 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 6.11
F-Score6
WACC9.46%
ROIC/WACC0.92
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 Y13.26%
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 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3.25%
EBIT growth 3Y14.82%
EBIT growth 5Y11.57%
EBIT Next Year37.69%
EBIT Next 3YN/A
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%