Taking everything into account, NOVT scores 5 out of 10 in our fundamental rating. NOVT was compared to 123 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.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.

1.2 Ratios

The Return On Assets of NOVT (3.51%) is better than 64.23% of its industry peers.
With a decent Return On Equity value of 6.59%, NOVT is doing good in the industry, outperforming 61.79% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.59%, NOVT is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
NOVT had an Average Return On Invested Capital over the past 3 years of 8.83%. This is in line with the industry average of 8.82%.

		Industry Rank	Sector Rank
ROA	3.51%
ROE	6.59%
ROIC	7.59%

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 has a Profit Margin of 5.50%. This is in the better half of the industry: NOVT outperforms 70.73% 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 has a Operating Margin of 12.40%. This is in the better half of the industry: NOVT outperforms 79.67% of its industry peers.
NOVT's Operating Margin has improved in the last couple of years.
The Gross Margin of NOVT (44.80%) is better than 77.24% of its industry peers.
NOVT's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	12.4%
PM (TTM)	5.5%
GM	44.8%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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.
The debt/assets ratio for NOVT is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 5.64 indicates that NOVT is not in any danger for bankruptcy at the moment.
NOVT has a better Altman-Z score (5.64) than 74.80% of its industry peers.
The Debt to FCF ratio of NOVT is 4.43, which is a neutral value as it means it would take NOVT, 4.43 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NOVT (4.43) is better than 65.04% of its industry peers.
NOVT has a Debt/Equity ratio of 0.56. This is a neutral value indicating NOVT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, NOVT is not doing good in the industry: 73.98% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	0.56
Debt/FCF	4.43
Altman-Z	5.64

ROIC/WACC0.87

WACC8.77%

2.3 Liquidity

A Current Ratio of 2.51 indicates that NOVT has no problem at all paying its short term obligations.
With a Current ratio value of 2.51, NOVT perfoms like the industry average, outperforming 52.85% of the companies in the same industry.
A Quick Ratio of 1.54 indicates that NOVT should not have too much problems paying its short term obligations.
NOVT has a Quick ratio (1.54) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	2.51
Quick Ratio	1.54

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.10% 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.
NOVT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.07%.
The Revenue has been growing by 8.68% on average over the past years. This is quite good.

EPS 1Y (TTM)6.1%

EPS 3Y5.54%

EPS 5Y7.45%

EPS Q2Q%2.35%

Revenue 1Y (TTM)4.07%

Revenue growth 3Y10.33%

Revenue growth 5Y8.68%

Sales Q2Q%1.4%

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 10.73% yearly.
NOVT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.48% yearly.

EPS Next Y8.07%

EPS Next 2Y9.99%

EPS Next 3Y10.73%

EPS Next 5YN/A

Revenue Next Year2.77%

Revenue Next 2Y4.71%

Revenue Next 3Y5.48%

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 44.86, NOVT can be considered very expensive at the moment.
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 (28.39), we can say NOVT is valued expensively.
NOVT is valuated quite expensively with a Price/Forward Earnings ratio of 37.68.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOVT is on the same level as its industry peers.
NOVT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.72.

		Industry Rank	Sector Rank
PE	44.86
Fwd PE	37.68

4.2 Price Multiples

NOVT's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, NOVT is valued a bit cheaper than 63.41% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	48.96
EV/EBITDA	29.94

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.