Novanta Inc., together with its subsidiaries, designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems to original equipment manufacturers in the medical and industrial markets worldwide.
Reasonable growth potential with acceptable track record.
Share Price & News
How has Novanta's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1GSN has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 1GSN exceeded the German Electronic industry which returned 13.9% over the past year.
Return vs Market: 1GSN exceeded the German Market which returned 15% over the past year.
Price Volatility Vs. Market
How volatile is Novanta's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Novanta undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 1GSN (€91) is trading above our estimate of fair value (€60.7)
Significantly Below Fair Value: 1GSN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 1GSN is poor value based on its PE Ratio (79.8x) compared to the Electronic industry average (33.7x).
PE vs Market: 1GSN is poor value based on its PE Ratio (79.8x) compared to the German market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: 1GSN is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: 1GSN is overvalued based on its PB Ratio (8.6x) compared to the DE Electronic industry average (1.8x).
How is Novanta forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1GSN's forecast earnings growth (30.4% per year) is above the savings rate (-0.4%).
Earnings vs Market: 1GSN's earnings (30.4% per year) are forecast to grow faster than the German market (13.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 1GSN's revenue (5.2% per year) is forecast to grow faster than the German market (5% per year).
High Growth Revenue: 1GSN's revenue (5.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if 1GSN's Return on Equity is forecast to be high in 3 years time
How has Novanta performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1GSN has a large one-off loss of $15.9M impacting its September 27 2019 financial results.
Growing Profit Margin: 1GSN's current net profit margins (6.9%) are higher than last year (6.4%).
Past Earnings Growth Analysis
Earnings Trend: 1GSN's earnings have grown significantly by 34.5% per year over the past 5 years.
Accelerating Growth: 1GSN's earnings growth over the past year (11%) is below its 5-year average (34.5% per year).
Earnings vs Industry: 1GSN earnings growth over the past year (11%) exceeded the Electronic industry -3.9%.
Return on Equity
High ROE: 1GSN's Return on Equity (10.7%) is considered low.
Return on Assets
Return on Capital Employed
How is Novanta's financial position?
Financial Position Analysis
Short Term Liabilities: 1GSN's short term assets ($296.9M) exceed its short term liabilities ($124.9M).
Long Term Liabilities: 1GSN's short term assets ($296.9M) do not cover its long term liabilities ($330.2M).
Debt to Equity History and Analysis
Debt Level: 1GSN's debt to equity ratio (56.5%) is considered high.
Reducing Debt: 1GSN's debt to equity ratio has increased from 48.9% to 56.5% over the past 5 years.
Debt Coverage: 1GSN's debt is well covered by operating cash flow (21.9%).
Interest Coverage: 1GSN's interest payments on its debt are well covered by EBIT (8.3x coverage).
Inventory Level: 1GSN has a high level of physical assets or inventory.
Debt Coverage by Assets: 1GSN's debt is covered by short term assets (assets are 1.3x debt).
What is Novanta's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate 1GSN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate 1GSN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if 1GSN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 1GSN's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 1GSN's dividend in 3 years as they are not forecast to pay a notable one for the German market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Matthijs Glastra (50yo)
Mr. Matthijs Glastra has been the Chief Executive Officer and Director of Novanta Inc. (alternate name: GSI Group Inc.) since September 1, 2016 and was its Executive Officer since September 2012. Mr. Glast ...
CEO Compensation Analysis
Compensation vs Market: Matthijs's total compensation ($USD3.98M) is above average for companies of similar size in the German market ($USD2.02M).
Compensation vs Earnings: Matthijs's compensation has been consistent with company performance over the past year.
|CEO & Director||3.4yrs||US$3.98m||0.30% $9.5m|
|Chief Financial Officer||8.9yrs||US$1.75m||0.46% $14.7m|
|Chief Human Resources Officer||3.2yrs||US$888.23k||0.055% $1.8m|
|VP, Corporate Controller & Chief Accounting Officer||8.5yrs||no data||0.071% $2.3m|
|Group President of Photonics||3.6yrs||no data||no data|
|Group President of Precision Motion||3.3yrs||no data||no data|
|Group President of Minimally Invasive Surgery||1.8yrs||no data||no data|
Experienced Management: 1GSN's management team is considered experienced (3.4 years average tenure).
|CEO & Director||3.4yrs||US$3.98m||0.30% $9.5m|
|Independent Chairman of the Board||9.6yrs||US$250.00k||1.89% $60.2m|
|Independent Director||9.6yrs||US$140.00k||0.0028% $90.2k|
|Independent Director||7.7yrs||US$125.00k||0.0028% $90.2k|
|Independent Director||0.8yrs||no data||no data|
|Independent Director||2.8yrs||US$125.00k||0.0028% $90.2k|
|Independent Director||1.8yrs||US$80.50k||0.0028% $90.2k|
|Independent Director||7.7yrs||US$127.86k||0.0028% $90.2k|
Experienced Board: 1GSN's board of directors are considered experienced (5.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 1GSN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Novanta Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Novanta Inc.
- Ticker: 1GSN
- Exchange: DB
- Founded: 1968
- Industry: Electronic Equipment and Instruments
- Sector: Tech
- Market Cap: US$3.457b
- Listing Market Cap: US$3.188b
- Shares outstanding: 35.07m
- Website: https://www.novanta.com
Number of Employees
- Novanta Inc.
- 125 Middlesex Turnpike
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NOVT||NasdaqGS (Nasdaq Global Select)||Yes||Common Shares||US||USD||Sep 1995|
|1GSN||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Sep 1995|
|0VAG||LSE (London Stock Exchange)||Yes||Common Shares||GB||USD||Sep 1995|
|NOVT N||BMV (Bolsa Mexicana de Valores)||Yes||Common Shares||MX||MXN||Sep 1995|
Novanta Inc., together with its subsidiaries, designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems to original equipment manufacturers in the medical and industrial markets worldwide. The company’s Photonics segment offers photonics-based solutions, including laser scanning and laser beam delivery, CO2 laser, continuous wave and ultrafast laser, and optical light engine products for photonics-based applications, such as industrial material processing, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures. Its Vision segment provides a range of medical grade technologies, including medical insufflators, pumps, and related disposables; visualization solutions; wireless imaging and operating room integration technologies; optical data collection and machine vision technologies; radio frequency identification technologies; thermal chart recorders; spectrometry technologies; and embedded touch screen solutions. The company’s Precision Motion segment offers optical and inductive encoders, precision motors, motion control sub-assemblies, air bearings, air bearing spindles, and precision machined components. It sells its products through its direct sales force, resellers, distributors, and system integrators under the Cambridge Technology, Lincoln Laser, ExoTec Precision, Synrad, Laser Quantum, WOM, NDS, NDSsi, Reach Technology, JADAK, ThingMagic, Photo Research, General Scanning, Celera Motion, MicroE, Applimotion, Zettlex, and Westwind brands. The company was formerly known as GSI Group, Inc. and changed its name to Novanta Inc. in May 2016. Novanta Inc. was founded in 1968 and is headquartered in Bedford, Massachusetts.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/16 21:35|
|End of Day Share Price||2020/02/14 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.