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NOVANTA INC (NOVT) Stock Fundamental Analysis

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

114.97  -3.2 (-2.71%)

After market: 114.97 0 (0%)

Fundamental Rating

5

NOVT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. While NOVT belongs to the best of the industry regarding profitability, 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

In the past year NOVT was profitable.
NOVT had a positive operating cash flow in the past year.
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.
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 4.06% is fine compared to the rest of the industry. NOVT outperforms 70.16% of its industry peers.
NOVT's Return On Equity of 7.66% is fine compared to the rest of the industry. NOVT outperforms 69.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.94%, NOVT is in the better half of the industry, outperforming 78.23% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NOVT is in line with the industry average of 9.65%.
Industry RankSector Rank
ROA 4.06%
ROE 7.66%
ROIC 7.94%
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

NOVT has a Profit Margin of 6.41%. This is in the better half of the industry: NOVT outperforms 74.19% of its industry peers.
NOVT's Profit Margin has been stable in the last couple of years.
The Operating Margin of NOVT (13.13%) is better than 85.48% of its industry peers.
In the last couple of years the Operating Margin of NOVT has grown nicely.
The Gross Margin of NOVT (44.79%) is better than 78.23% of its industry peers.
NOVT's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 13.13%
PM (TTM) 6.41%
GM 44.79%
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.
NOVT has more shares outstanding than it did 1 year ago.
NOVT has more shares outstanding than it did 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

NOVT has an Altman-Z score of 4.90. This indicates that NOVT is financially healthy and has little risk of bankruptcy at the moment.
NOVT has a better Altman-Z score (4.90) than 74.19% of its industry peers.
The Debt to FCF ratio of NOVT is 3.93, which is a good value as it means it would take NOVT, 3.93 years of fcf income to pay off all of its debts.
NOVT's Debt to FCF ratio of 3.93 is fine compared to the rest of the industry. NOVT outperforms 68.55% of its industry peers.
NOVT has a Debt/Equity ratio of 0.57. This is a neutral value indicating NOVT is somewhat dependend on debt financing.
The Debt to Equity ratio of NOVT (0.57) is worse than 74.19% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.57
Debt/FCF 3.93
Altman-Z 4.9
ROIC/WACC0.83
WACC9.53%
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

NOVT has a Current Ratio of 2.54. This indicates that NOVT is financially healthy and has no problem in meeting its short term obligations.
NOVT's Current ratio of 2.54 is in line compared to the rest of the industry. NOVT outperforms 54.84% of its industry peers.
NOVT has a Quick Ratio of 1.62. This is a normal value and indicates that NOVT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NOVT (1.62) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.54
Quick Ratio 1.62
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

NOVT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.42%.
The Earnings Per Share has been growing slightly by 7.45% on average over the past years.
NOVT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.34%.
NOVT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.68% yearly.
EPS 1Y (TTM)5.42%
EPS 3Y5.54%
EPS 5Y7.45%
EPS Q2Q%4.11%
Revenue 1Y (TTM)6.34%
Revenue growth 3Y10.33%
Revenue growth 5Y8.68%
Sales Q2Q%2.16%

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.
Based on estimates for the next years, NOVT will show a small growth in Revenue. The Revenue will grow by 6.52% on average per year.
EPS Next Y11.6%
EPS Next 2Y15.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.35%
Revenue Next 2Y5.54%
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.
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 2027 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

A Price/Earnings ratio of 36.97 indicates a quite expensive valuation of NOVT.
Compared to the rest of the industry, the Price/Earnings ratio of NOVT is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.87. NOVT is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 27.81, NOVT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOVT is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of NOVT to the average of the S&P500 Index (35.34), we can say NOVT is valued slightly cheaper.
Industry RankSector Rank
PE 36.97
Fwd PE 27.81
NOVT Price Earnings VS Forward Price EarningsNOVT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as NOVT.
NOVT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NOVT is cheaper than 66.94% of the companies in the same industry.
Industry RankSector Rank
P/FCF 35.09
EV/EBITDA 24.49
NOVT Per share dataNOVT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20 25

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NOVT 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)3.19
PEG (5Y)4.96
EPS Next 2Y15.86%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for NOVT!.
Industry RankSector Rank
Dividend Yield N/A

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NOVANTA INC

NASDAQ:NOVT (8/15/2025, 8:00:01 PM)

After market: 114.97 0 (0%)

114.97

-3.2 (-2.71%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)08-05 2025-08-05/bmo
Earnings (Next)11-03 2025-11-03
Inst Owners103.39%
Inst Owner Change-6.33%
Ins Owners0.85%
Ins Owner Change1.61%
Market Cap4.14B
Analysts80
Price Target155.55 (35.3%)
Short Float %4.66%
Short Ratio7.02
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)4.68%
Min EPS beat(2)1.6%
Max EPS beat(2)7.75%
EPS beat(4)3
Avg EPS beat(4)2.87%
Min EPS beat(4)-2.34%
Max EPS beat(4)7.75%
EPS beat(8)6
Avg EPS beat(8)6.4%
EPS beat(12)10
Avg EPS beat(12)6.7%
EPS beat(16)14
Avg EPS beat(16)7.78%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)-0.72%
Revenue beat(4)0
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-2.87%
Max Revenue beat(4)-0.72%
Revenue beat(8)0
Avg Revenue beat(8)-1.57%
Revenue beat(12)2
Avg Revenue beat(12)-0.85%
Revenue beat(16)6
Avg Revenue beat(16)-0.27%
PT rev (1m)3.52%
PT rev (3m)-6.24%
EPS NQ rev (1m)-12.19%
EPS NQ rev (3m)-20.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.46%
Revenue NQ rev (1m)-3.38%
Revenue NQ rev (3m)-6.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 36.97
Fwd PE 27.81
P/S 4.32
P/FCF 35.09
P/OCF 31.49
P/B 5.16
P/tB N/A
EV/EBITDA 24.49
EPS(TTM)3.11
EY2.71%
EPS(NY)4.13
Fwd EY3.6%
FCF(TTM)3.28
FCFY2.85%
OCF(TTM)3.65
OCFY3.18%
SpS26.6
BVpS22.28
TBVpS-1.43
PEG (NY)3.19
PEG (5Y)4.96
Profitability
Industry RankSector Rank
ROA 4.06%
ROE 7.66%
ROCE 9.45%
ROIC 7.94%
ROICexc 8.66%
ROICexgc 28.8%
OM 13.13%
PM (TTM) 6.41%
GM 44.79%
FCFM 12.32%
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-Score5
Asset Turnover0.63
Health
Industry RankSector Rank
Debt/Equity 0.57
Debt/FCF 3.93
Debt/EBITDA 2.49
Cap/Depr 23.38%
Cap/Sales 1.41%
Interest Coverage 4.44
Cash Conversion 71.67%
Profit Quality 192.08%
Current Ratio 2.54
Quick Ratio 1.62
Altman-Z 4.9
F-Score5
WACC9.53%
ROIC/WACC0.83
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)5.42%
EPS 3Y5.54%
EPS 5Y7.45%
EPS Q2Q%4.11%
EPS Next Y11.6%
EPS Next 2Y15.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.34%
Revenue growth 3Y10.33%
Revenue growth 5Y8.68%
Sales Q2Q%2.16%
Revenue Next Year3.35%
Revenue Next 2Y5.54%
Revenue Next 3Y6.52%
Revenue Next 5YN/A
EBIT growth 1Y7.12%
EBIT growth 3Y14.82%
EBIT growth 5Y11.57%
EBIT Next Year36.12%
EBIT Next 3Y19.86%
EBIT Next 5YN/A
FCF growth 1Y52.28%
FCF growth 3Y23.74%
FCF growth 5Y21.91%
OCF growth 1Y43.08%
OCF growth 3Y18.77%
OCF growth 5Y20.19%