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NOVT

NovantaNasdaqGS:NOVT Stock Report

Market Cap

US$5.7b

7D

-4.2%

1Y

35.0%

Updated

28 Nov, 2021

Data

Company Financials +
NOVT fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance3/6
Financial Health3/6
Dividends0/6

NOVT Stock Overview

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.

Novanta Competitors

Coherent

NasdaqGS:COHR

US$6.3b

OSI Systems

NasdaqGS:OSIS

US$1.6b

Entegris

NasdaqGS:ENTG

US$20.2b

Synaptics

NasdaqGS:SYNA

US$10.7b

Price History & Performance

Summary of all time highs, changes and price drops for Novanta
Historical stock prices
Current Share PriceUS$160.23
52 Week HighUS$184.44
52 Week LowUS$115.58
Beta0.99
1 Month Change-7.15%
3 Month Change6.25%
1 Year Change34.95%
3 Year Change146.77%
5 Year Change699.15%
Change since IPO905.35%

Recent News & Updates

Nov 23
Is Novanta (NASDAQ:NOVT) A Risky Investment?

Is Novanta (NASDAQ:NOVT) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Sep 16
Novanta (NASDAQ:NOVT) Has More To Do To Multiply In Value Going Forward

Novanta (NASDAQ:NOVT) Has More To Do To Multiply In Value Going Forward

There are a few key trends to look for if we want to identify the next multi-bagger. Amongst other things, we'll want...

Aug 25
Is Now The Time To Put Novanta (NASDAQ:NOVT) On Your Watchlist?

Is Now The Time To Put Novanta (NASDAQ:NOVT) On Your Watchlist?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

NOVTUS ElectronicUS Market
7D-4.2%-3.4%-2.7%
1Y35.0%22.2%21.3%

Return vs Industry: NOVT exceeded the US Electronic industry which returned 22.2% over the past year.

Return vs Market: NOVT exceeded the US Market which returned 21.3% over the past year.

Price Volatility

Is NOVT's price volatile compared to industry and market?
NOVT volatility
NOVT Average Weekly Movement4.7%
Electronic Industry Average Movement6.9%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: NOVT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NOVT's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19682,200Matthijs Glastrahttps://www.novanta.com

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. Its Photonics segment offers photonics-based solutions, including laser scanning and beam delivery, CO2 laser, solid state laser, ultrafast laser, and optical light engine products for photonics-based applications, such as industrial processing, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures. The company’s Vision segment provides a range of medical grade technologies, including medical insufflators, pumps, and related disposables; visualization solutions; wireless, recorder, and video integration technologies for operating room integrations; optical data collection and machine vision technologies; radio frequency identification technologies; thermal chart recorders; spectrometry technologies; and embedded touch screen solutions.

Novanta Fundamentals Summary

How do Novanta's earnings and revenue compare to its market cap?
NOVT fundamental statistics
Market CapUS$5.70b
Earnings (TTM)US$49.23m
Revenue (TTM)US$655.33m

115.9x

P/E Ratio

8.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NOVT income statement (TTM)
RevenueUS$655.33m
Cost of RevenueUS$372.13m
Gross ProfitUS$283.20m
ExpensesUS$233.96m
EarningsUS$49.23m

Last Reported Earnings

Oct 01, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.38
Gross Margin43.21%
Net Profit Margin7.51%
Debt/Equity Ratio89.4%

How did NOVT perform over the long term?

See historical performance and comparison

Valuation

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

115.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NOVT ($160.23) is trading above our estimate of fair value ($103.73)

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 (115.9x) compared to the US Electronic industry average (17.4x).

PE vs Market: NOVT is poor value based on its PE Ratio (115.9x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: NOVT is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: NOVT is overvalued based on its PB Ratio (11.4x) compared to the US Electronic industry average (2.5x).


Future Growth

How is Novanta forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

31.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOVT's forecast earnings growth (31.7% per year) is above the savings rate (2%).

Earnings vs Market: NOVT's earnings (31.7% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: NOVT's revenue (13.8% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: NOVT's revenue (13.8% 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


Past Performance

How has Novanta performed over the past 5 years?

6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOVT has a large one-off loss of $18.2M impacting its October 1 2021 financial results.

Growing Profit Margin: NOVT's current net profit margins (7.5%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: NOVT's earnings have grown by 6.2% per year over the past 5 years.

Accelerating Growth: NOVT's earnings growth over the past year (19.8%) exceeds its 5-year average (6.2% per year).

Earnings vs Industry: NOVT earnings growth over the past year (19.8%) underperformed the Electronic industry 52.7%.


Return on Equity

High ROE: NOVT's Return on Equity (9.8%) is considered low.


Financial Health

How is Novanta's financial position?


Financial Position Analysis

Short Term Liabilities: NOVT's short term assets ($353.3M) exceed its short term liabilities ($188.0M).

Long Term Liabilities: NOVT's short term assets ($353.3M) do not cover its long term liabilities ($522.2M).


Debt to Equity History and Analysis

Debt Level: NOVT's net debt to equity ratio (68.9%) is considered high.

Reducing Debt: NOVT's debt to equity ratio has increased from 30.9% to 89.4% over the past 5 years.

Debt Coverage: NOVT's debt is well covered by operating cash flow (25.2%).

Interest Coverage: NOVT's interest payments on its debt are well covered by EBIT (13x coverage).


Balance Sheet


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 (52 yo)

5.17yrs

Tenure

US$4,896,387

Compensation

Mr. Matthijs Glastra has been the Chief Executive Officer and Director of Novanta Inc. since September 1, 2016 and serves as its Chairman of the Board since May 13, 2021 and served as its Executive Officer...


CEO Compensation Analysis

Compensation vs Market: Matthijs's total compensation ($USD4.90M) is about average for companies of similar size in the US market ($USD6.24M).

Compensation vs Earnings: Matthijs's compensation has increased by more than 20% in the past year.


Leadership Team

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


Board Members

Experienced Board: NOVT's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Novanta Inc.'s 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$5.704b
  • Shares outstanding: 35.60m
  • Website: https://www.novanta.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/28 23:19
End of Day Share Price2021/11/26 00:00
Earnings2021/10/01
Annual Earnings2020/12/31


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.