NasdaqGS:NOVT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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. More Details


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

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: NOVT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NOVT's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

NOVT

-1.7%

US Electronic

-0.4%

US Market


1 Year Return

31.6%

NOVT

24.0%

US Electronic

19.5%

US Market

Return vs Industry: NOVT exceeded the US Electronic industry which returned 24% over the past year.

Return vs Market: NOVT exceeded the US Market which returned 19.6% over the past year.


Shareholder returns

NOVTIndustryMarket
7 Day-2.8%-1.7%-0.4%
30 Day2.8%7.1%2.3%
90 Day13.8%24.0%12.7%
1 Year31.6%31.6%27.1%24.0%22.3%19.5%
3 Year116.3%116.3%40.2%34.2%44.4%34.8%
5 Year953.4%953.4%177.3%159.6%128.7%103.3%

Long-Term 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

Valuation

Is Novanta undervalued compared to its fair value and its price relative to the market?

109.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NOVT ($128.51) is trading above our estimate of fair value ($41.08)

Significantly Below Fair Value: NOVT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NOVT is poor value based on its PE Ratio (109.9x) compared to the US Electronic industry average (28x).

PE vs Market: NOVT is poor value based on its PE Ratio (109.9x) compared to the US market (21x).


Price to Earnings Growth Ratio

PEG Ratio: NOVT is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: NOVT is overvalued based on its PB Ratio (10x) compared to the US Electronic industry average (2.7x).


Next Steps

Future Growth

How is Novanta forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

26.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOVT's forecast earnings growth (26.7% per year) is above the savings rate (2%).

Earnings vs Market: NOVT's earnings (26.7% per year) are forecast to grow faster than the US market (21.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NOVT's revenue (5.5% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: NOVT's revenue (5.5% 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 NOVT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Novanta performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOVT has a large one-off loss of $11.5M impacting its October 2 2020 financial results.

Growing Profit Margin: NOVT's current net profit margins (6.8%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: NOVT's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: NOVT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NOVT had negative earnings growth (-4.6%) over the past year, making it difficult to compare to the Electronic industry average (-9.3%).


Return on Equity

High ROE: NOVT's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Novanta's financial position?


Financial Position Analysis

Short Term Liabilities: NOVT's short term assets ($302.8M) exceed its short term liabilities ($133.6M).

Long Term Liabilities: NOVT's short term assets ($302.8M) exceed its long term liabilities ($272.7M).


Debt to Equity History and Analysis

Debt Level: NOVT's debt to equity ratio (42.8%) is considered high.

Reducing Debt: NOVT's debt to equity ratio has reduced from 43.9% to 42.8% over the past 5 years.

Debt Coverage: NOVT's debt is well covered by operating cash flow (66.8%).

Interest Coverage: NOVT's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Novanta current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NOVT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NOVT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NOVT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NOVT'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 NOVT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Matthijs Glastra (51 yo)

4.33yrs

Tenure

US$4,058,923

Compensation

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 ($USD4.06M) is about average for companies of similar size in the US market ($USD5.01M).

Compensation vs Earnings: Matthijs's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Matthijs Glastra
CEO & Director4.33yrsUS$4.06m0.33%
$ 14.8m
Robert Buckley
Chief Financial Officer9.83yrsUS$1.64m0.45%
$ 20.3m
Brian Young
Chief Human Resources Officer4.08yrsUS$806.42k0.032%
$ 1.5m
Peter Chang
VP, Corporate Controller & Chief Accounting Officer9.42yrsno data0.038%
$ 1.7m
Kitty Sahin
Executive Vice President of Strategy & Business Development1yrno datano data
Phil Martin
Group President of Photonics4.5yrsno datano data
Leane Sinicki
Group President of Precision Motion4.25yrsno datano data
Heinrich Dreyer
Group President of Minimally Invasive Surgery2.75yrsno datano data
Ray Nash
Corporate Finance Leaderno datano datano data

4.3yrs

Average Tenure

51yo

Average Age

Experienced Management: NOVT's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthijs Glastra
CEO & Director4.33yrsUS$4.06m0.33%
$ 14.8m
Stephen Bershad
Independent Chairman of the Board10.5yrsUS$312.49k1.89%
$ 85.2m
Ira Lamel
Independent Director10.5yrsUS$202.49k0.0048%
$ 215.1k
Deborah DiSanzo Eldracher
Independent Director1.67yrsUS$121.40k0.0033%
$ 150.9k
Brian King
Independent Director3.67yrsUS$187.49k0.0048%
$ 215.1k
Lonny Carpenter
Independent Director2.67yrsUS$187.49k0.0048%
$ 215.1k
Thomas Secor
Independent Director8.58yrsUS$197.47k0.0048%
$ 215.1k
Maxine Mauricio
Independent Director0.67yrno datano data

4.0yrs

Average Tenure

55.5yo

Average Age

Experienced Board: NOVT's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Novanta Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Novanta Inc.
  • Ticker: NOVT
  • Exchange: NasdaqGS
  • Founded: 1968
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$4.518b
  • Shares outstanding: 35.16m
  • Website: https://www.novanta.com

Number of Employees


Location

  • Novanta Inc.
  • 125 Middlesex Turnpike
  • Bedford
  • Massachusetts
  • 1730
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOVTNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDSep 1995
1GSNDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1995
0VAGLSE (London Stock Exchange)YesCommon SharesGBUSDSep 1995
NOVT NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNSep 1995

Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/18 23:28
End of Day Share Price2021/01/15 00:00
Earnings2020/10/02
Annual Earnings2019/12/31


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.