NOVANTA INC (NOVT) Stock Fundamental Analysis
USA - NASDAQ:NOVT - CA67000B1040 - Common Stock
116.48 USD
+3.48 (+3.08%)
116.48 USD
0 (0%)
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. 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.
1. Profitability
1.1 Basic Checks
NOVT had positive earnings in the past year.
NOVT had a positive operating cash flow in the past year.
In the past 5 years NOVT has always been profitable.
In the past 5 years NOVT always reported a positive cash flow from operatings.
1.2 Ratios
NOVT has a Return On Assets of 4.06%. This is in the better half of the industry: NOVT outperforms 67.48% of its industry peers.
NOVT has a Return On Equity of 7.66%. This is in the better half of the industry: NOVT outperforms 65.85% of its industry peers.
NOVT has a Return On Invested Capital of 7.94%. This is in the better half of the industry: NOVT outperforms 76.42% 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 9.33%.
| Industry Rank | Sector 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%
1.3 Margins
NOVT's Profit Margin of 6.41% is fine compared to the rest of the industry. NOVT outperforms 73.17% of its industry peers.
NOVT's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 13.13%, NOVT belongs to the best of the industry, outperforming 83.74% of the companies in the same industry.
NOVT's Operating Margin has improved in the last couple of years.
NOVT has a better Gross Margin (44.79%) than 77.24% 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 | 13.13% | ||
| 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NOVT is destroying value.
Compared to 1 year ago, NOVT has more shares outstanding
NOVT has more shares outstanding than it did 5 years ago.
NOVT has a worse debt/assets ratio than last year.
2.2 Solvency
NOVT has an Altman-Z score of 4.94. This indicates that NOVT is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.94, NOVT is doing good in the industry, outperforming 68.29% of the companies in the same industry.
NOVT has a debt to FCF ratio of 3.93. This is a good value and a sign of high solvency as NOVT would need 3.93 years to pay back of all of its debts.
NOVT's Debt to FCF ratio of 3.93 is fine compared to the rest of the industry. NOVT outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that NOVT is somewhat dependend on debt financing.
NOVT's Debt to Equity ratio of 0.57 is on the low side compared to the rest of the industry. NOVT is outperformed by 74.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | 4.94 |
ROIC/WACC0.85
WACC9.29%
2.3 Liquidity
A Current Ratio of 2.54 indicates that NOVT has no problem at all paying its short term obligations.
NOVT has a Current ratio (2.54) which is comparable to the rest of the industry.
A Quick Ratio of 1.62 indicates that NOVT should not have too much problems paying its short term obligations.
NOVT's Quick ratio of 1.62 is in line compared to the rest of the industry. NOVT outperforms 46.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.62 |
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%.
NOVT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.45% yearly.
The Revenue has been growing slightly by 6.34% in the past year.
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
The Earnings Per Share is expected to grow by 11.84% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.52% on average over the next years.
EPS Next Y7.96%
EPS Next 2Y11.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.76%
Revenue Next 2Y4.8%
Revenue Next 3Y6.52%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 37.45, the valuation of NOVT can be described as expensive.
NOVT's Price/Earnings is on the same level as the industry average.
NOVT is valuated rather expensively when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
NOVT is valuated quite expensively with a Price/Forward Earnings ratio of 30.24.
The rest of the industry has a similar Price/Forward Earnings ratio as NOVT.
The average S&P500 Price/Forward Earnings ratio is at 23.09. NOVT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.45 | ||
| Fwd PE | 30.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NOVT.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOVT indicates a somewhat cheap valuation: NOVT is cheaper than 69.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.55 | ||
| EV/EBITDA | 24.79 |
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.
PEG (NY)4.7
PEG (5Y)5.02
EPS Next 2Y11.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NOVT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
116.48
+3.48 (+3.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102.42%
Inst Owner Change0.1%
Ins Owners0.96%
Ins Owner Change3.49%
Market Cap4.19B
Revenue(TTM)956.88M
Net Income(TTM)61.36M
Analysts80
Price Target150.11 (28.87%)
Short Float %5.2%
Short Ratio4.89
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)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)0%
PT rev (3m)-3.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.45 | ||
| Fwd PE | 30.24 | ||
| P/S | 4.38 | ||
| P/FCF | 35.55 | ||
| P/OCF | 31.9 | ||
| P/B | 5.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.79 |
EPS(TTM)3.11
EY2.67%
EPS(NY)3.85
Fwd EY3.31%
FCF(TTM)3.28
FCFY2.81%
OCF(TTM)3.65
OCFY3.13%
SpS26.6
BVpS22.28
TBVpS-1.43
PEG (NY)4.7
PEG (5Y)5.02
Graham Number39.49
Profitability
| Industry Rank | Sector 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%
ROICexgc growth 3Y0.54%
ROICexgc 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 Rank | Sector 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 | 4.94 |
F-Score5
WACC9.29%
ROIC/WACC0.85
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 Y7.96%
EPS Next 2Y11.84%
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 Year2.76%
Revenue Next 2Y4.8%
Revenue Next 3Y6.52%
Revenue Next 5YN/A
EBIT growth 1Y7.12%
EBIT growth 3Y14.82%
EBIT growth 5Y11.57%
EBIT Next Year33.89%
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%