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NOVANTA INC (NOVT) Stock Fundamental Analysis

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

133.33  +0.48 (+0.36%)

After market: 133.33 0 (0%)

Fundamental Rating

5

Overall NOVT gets a fundamental rating of 5 out of 10. We evaluated NOVT against 125 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.


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 has a better Return On Assets (5.10%) than 73.60% of its industry peers.
NOVT's Return On Equity of 9.17% is fine compared to the rest of the industry. NOVT outperforms 74.40% of its industry peers.
NOVT has a better Return On Invested Capital (8.73%) than 80.00% 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 9.30%.
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

With a decent Profit Margin value of 7.42%, NOVT is doing good in the industry, outperforming 76.80% of the companies in the same industry.
NOVT's Profit Margin has been stable in the last couple of years.
The Operating Margin of NOVT (13.28%) is better than 88.00% of its industry peers.
In the last couple of years the Operating Margin of NOVT has grown nicely.
NOVT's Gross Margin of 44.71% is fine compared to the rest 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 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

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NOVT is creating some value.
The number of shares outstanding for NOVT has been increased compared to 1 year ago.
The number of shares outstanding for NOVT has been increased compared to 5 years ago.
The debt/assets ratio for NOVT is higher compared to a year ago.
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 6.17 indicates that NOVT is not in any danger for bankruptcy at the moment.
NOVT's Altman-Z score of 6.17 is amongst the best of the industry. NOVT outperforms 80.80% of its industry peers.
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.
NOVT's Debt to FCF ratio of 2.77 is fine compared to the rest of the industry. NOVT outperforms 72.80% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that NOVT is somewhat dependend on debt financing.
NOVT has a Debt to Equity ratio of 0.50. This is in the lower half of the industry: NOVT underperforms 73.60% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 2.77
Altman-Z 6.17
ROIC/WACC0.99
WACC8.78%
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.
NOVT has a Current ratio (2.56) which is comparable to the rest of the industry.
NOVT has a Quick Ratio of 1.70. This is a normal value and indicates that NOVT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.70, NOVT perfoms like the industry average, outperforming 48.00% of the companies in the same 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.
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.
NOVT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.51%.
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.
NOVT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.52% yearly.
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.
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

NOVT is valuated quite expensively with a Price/Earnings ratio of 43.29.
NOVT's Price/Earnings ratio is in line with the industry average.
NOVT is valuated expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 32.25 indicates a quite expensive valuation of NOVT.
NOVT's Price/Forward Earnings is on the same level as the industry average.
NOVT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 43.29
Fwd PE 32.25
NOVT Price Earnings VS Forward Price EarningsNOVT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

NOVT's Enterprise Value to EBITDA is on the same level as the industry average.
67.20% of the companies in the same industry are more expensive than NOVT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 33.69
EV/EBITDA 27.75
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)3.73
PEG (5Y)5.81
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 (7/3/2025, 3:36:07 PM)

After market: 133.33 0 (0%)

133.33

+0.48 (+0.36%)

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 Owners101.98%
Inst Owner Change-0.85%
Ins Owners0.85%
Ins Owner Change1.57%
Market Cap4.80B
Analysts82
Price Target150.26 (12.7%)
Short Float %4.4%
Short Ratio6.01
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)-9.43%
PT rev (3m)-14.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.79%
EPS NY rev (1m)-1.46%
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 RankSector Rank
PE 43.29
Fwd PE 32.25
P/S 5.04
P/FCF 33.69
P/OCF 30.48
P/B 6.23
P/tB 1610.98
EV/EBITDA 27.75
EPS(TTM)3.08
EY2.31%
EPS(NY)4.13
Fwd EY3.1%
FCF(TTM)3.96
FCFY2.97%
OCF(TTM)4.37
OCFY3.28%
SpS26.46
BVpS21.4
TBVpS0.08
PEG (NY)3.73
PEG (5Y)5.81
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 6.17
F-Score6
WACC8.78%
ROIC/WACC0.99
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%