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NOVT

Novanta NasdaqGS:NOVT Stock Report

Last Price

US$124.00

Market Cap

US$4.4b

7D

4.7%

1Y

-19.0%

Updated

04 Oct, 2022

Data

Company Financials +
NOVT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance5/6
Financial Health2/6
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

Price History & Performance

Summary of all time highs, changes and price drops for Novanta
Historical stock prices
Current Share PriceUS$124.00
52 Week HighUS$184.44
52 Week LowUS$110.84
Beta1.19
1 Month Change-3.63%
3 Month Change1.72%
1 Year Change-18.99%
3 Year Change57.92%
5 Year Change178.97%
Change since IPO678.03%

Recent News & Updates

Oct 03
What Does Novanta Inc.'s (NASDAQ:NOVT) Share Price Indicate?

What Does Novanta Inc.'s (NASDAQ:NOVT) Share Price Indicate?

Novanta Inc. ( NASDAQ:NOVT ), might not be a large cap stock, but it received a lot of attention from a substantial...

Sep 19
With EPS Growth And More, Novanta (NASDAQ:NOVT) Makes An Interesting Case

With EPS Growth And More, Novanta (NASDAQ:NOVT) Makes An Interesting Case

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Aug 23
Novanta Inc. (NASDAQ:NOVT) Shares Could Be 31% Above Their Intrinsic Value Estimate

Novanta Inc. (NASDAQ:NOVT) Shares Could Be 31% Above Their Intrinsic Value Estimate

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Novanta Inc...

Aug 09

Novanta Non-GAAP EPS of $0.78 beats by $0.06, revenue of $215.34M beats by $6.27M, raises FY guidance

Novanta press release (NASDAQ:NOVT): Q2 Non-GAAP EPS of $0.78 beats by $0.06. Revenue of $215.34M (+28.6% Y/Y) beats by $6.27M. Guidance: For the third quarter of 2022, the Company expects GAAP revenue of approximately $214 million to $216 million, demonstrating reported growth of 20% to 22%. The Company expects Adjusted Gross Profit Margin to be approximately 46.0%. The Company expects Adjusted EBITDA to be in the range of $43.5 million to $45.5 million and Adjusted Diluted EPS to be in the range of $0.71 to $0.76. For the full year 2022, the Company expects GAAP revenue of approximately $848 million to $852 million, demonstrating reported growth of 20% to 21%. The Company expects Adjusted Gross Profit Margin to be approximately 46.0%. The Company expects Adjusted EBITDA to be in the range of $177 million to $180 million and Adjusted Diluted EPS to be in the range of $2.96 to $3.02. The Company’s guidance assumes no significant changes in foreign exchange rates.

Shareholder Returns

NOVTUS ElectronicUS Market
7D4.7%1.9%1.0%
1Y-19.0%-20.3%-20.0%

Return vs Industry: NOVT exceeded the US Electronic industry which returned -20.3% over the past year.

Return vs Market: NOVT exceeded the US Market which returned -20% over the past year.

Price Volatility

Is NOVT's price volatile compared to industry and market?
NOVT volatility
NOVT Average Weekly Movement5.8%
Electronic Industry Average Movement6.7%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: NOVT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NOVT's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19682,700Matthijs 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. The company’s Photonics segment offers photonics-based solutions, including laser scanning and beam delivery, CO2 laser, solid state laser, ultrafast laser, and optical light engine products serving photonics-based applications for industrial processing, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures. It’s Vision segment provides a range of medical grade technologies, including medical insufflators, pumps, and related disposables; visualization solutions; wireless technologies, video recorders, 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$4.42b
Earnings (TTM)US$63.66m
Revenue (TTM)US$796.26m

69.4x

P/E Ratio

5.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NOVT income statement (TTM)
RevenueUS$796.26m
Cost of RevenueUS$444.14m
Gross ProfitUS$352.11m
Other ExpensesUS$288.46m
EarningsUS$63.66m

Last Reported Earnings

Jul 01, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.79
Gross Margin44.22%
Net Profit Margin7.99%
Debt/Equity Ratio76.5%

How did NOVT perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is NOVT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NOVT?

Other financial metrics that can be useful for relative valuation.

NOVT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6x
Enterprise Value/EBITDA31.1x
PEG Ratio3.4x

Price to Earnings Ratio vs Peers

How does NOVT's PE Ratio compare to its peers?

NOVT PE Ratio vs Peers
The above table shows the PE ratio for NOVT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average32.5x
NATI National Instruments
50.6x40.6%US$5.3b
BMI Badger Meter
43.9x8.5%US$2.8b
VNT Vontier
5.4x-8.6%US$2.8b
CGNX Cognex
30.3x20.9%US$7.8b
NOVT Novanta
69.4x20.6%US$4.4b

Price-To-Earnings vs Peers: NOVT is expensive based on its Price-To-Earnings Ratio (69.4x) compared to the peer average (32.5x).


Price to Earnings Ratio vs Industry

How does NOVT's PE Ratio compare vs other companies in the US Electronic Industry?

Price-To-Earnings vs Industry: NOVT is expensive based on its Price-To-Earnings Ratio (69.4x) compared to the US Electronic industry average (14.5x)


Price to Earnings Ratio vs Fair Ratio

What is NOVT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NOVT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio69.4x
Fair PE Ratio24.1x

Price-To-Earnings vs Fair Ratio: NOVT is expensive based on its Price-To-Earnings Ratio (69.4x) compared to the estimated Fair Price-To-Earnings Ratio (24.1x).


Share Price vs Fair Value

What is the Fair Price of NOVT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NOVT ($124) is trading above our estimate of fair value ($113.62)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


20.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOVT's forecast earnings growth (20.6% per year) is above the savings rate (1.9%).

Earnings vs Market: NOVT's earnings (20.6% per year) are forecast to grow faster than the US market (14.7% per year).

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

Revenue vs Market: NOVT's revenue (7.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: NOVT's revenue (7.5% 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


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Past Performance

How has Novanta performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NOVT has high quality earnings.

Growing Profit Margin: NOVT's current net profit margins (8%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: NOVT's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: NOVT's earnings growth over the past year (45%) exceeds its 5-year average (7% per year).

Earnings vs Industry: NOVT earnings growth over the past year (45%) exceeded the Electronic industry 20.1%.


Return on Equity

High ROE: NOVT's Return on Equity (12%) is considered low.


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Financial Health

How is Novanta's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NOVT's short term assets ($399.4M) exceed its short term liabilities ($198.4M).

Long Term Liabilities: NOVT's short term assets ($399.4M) do not cover its long term liabilities ($475.3M).


Debt to Equity History and Analysis

Debt Level: NOVT's net debt to equity ratio (57.7%) is considered high.

Reducing Debt: NOVT's debt to equity ratio has increased from 34.4% to 76.5% over the past 5 years.

Debt Coverage: NOVT's debt is not well covered by operating cash flow (19.2%).

Interest Coverage: NOVT's interest payments on its debt are well covered by EBIT (9.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Novanta Dividend Yield vs Market
How does Novanta dividend yield compare to the market?
SegmentDividend Yield
Company (Novanta)n/a
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Electronic)1.7%
Analyst forecast in 3 Years (Novanta)0%

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NOVT has not reported any payouts.


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Management

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

4.5yrs

Average management tenure


CEO

Matthijs Glastra (53 yo)

6.08yrs

Tenure

US$12,375,690

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

Matthijs Glastra's Compensation vs Novanta Earnings
How has Matthijs Glastra's remuneration changed compared to Novanta's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 01 2022n/an/a

US$64m

Apr 01 2022n/an/a

US$58m

Dec 31 2021US$12mUS$690k

US$50m

Oct 01 2021n/an/a

US$49m

Jul 02 2021n/an/a

US$44m

Apr 02 2021n/an/a

US$44m

Dec 31 2020US$5mUS$625k

US$45m

Oct 02 2020n/an/a

US$41m

Jul 03 2020n/an/a

US$42m

Apr 03 2020n/an/a

US$40m

Dec 31 2019US$4mUS$640k

US$41m

Sep 27 2019n/an/a

US$43m

Jun 28 2019n/an/a

US$56m

Mar 29 2019n/an/a

US$57m

Dec 31 2018US$4mUS$581k

US$51m

Sep 28 2018n/an/a

US$39m

Jun 29 2018n/an/a

US$18m

Mar 30 2018n/an/a

US$12m

Dec 31 2017US$4mUS$511k

US$40m

Sep 29 2017n/an/a

US$48m

Jun 30 2017n/an/a

US$55m

Mar 31 2017n/an/a

US$54m

Dec 31 2016US$3mUS$457k

US$22m

Sep 30 2016n/an/a

US$20m

Jul 01 2016n/an/a

US$19m

Apr 01 2016n/an/a

US$34m

Dec 31 2015US$1mUS$411k

US$36m

Compensation vs Market: Matthijs's total compensation ($USD12.38M) is above average for companies of similar size in the US market ($USD6.84M).

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 (4.5 years average tenure).


Board Members

Experienced Board: NOVT's board of directors are not considered experienced ( 1.7 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

What is the ownership structure of NOVT?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders360,0581.0%
Institutions36,658,47799.0%

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


Top Shareholders

Top 25 shareholders own 78.23% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.5%
BlackRock, Inc.
4,098,247$508.2m60.22%0.01%
9.24%
The Vanguard Group, Inc.
3,294,893$408.6m0.6%0.01%
5.86%
T. Rowe Price Group, Inc.
2,087,442$258.8m0.04%0.03%
5.32%
Neuberger Berman Investment Advisers LLC
1,894,452$234.9m-2.38%0.22%
4.8%
AllianceBernstein L.P.
1,710,572$212.1m-0.57%0.08%
4%
Conestoga Capital Advisors, LLC
1,426,507$176.9m1.6%3.09%
3.31%
Wasatch Advisors Inc
1,181,493$146.5m-3.31%0.68%
2.85%
Capital Research and Management Company
1,015,687$125.9m0%0.01%
2.83%
Artisan Partners Limited Partnership
1,007,062$124.9m-10.84%0.12%
2.79%
Allspring Global Investments, LLC
994,248$123.3m-2.21%0.18%
2.78%
William Blair Investment Management, LLC
990,300$122.8m-1.83%0.22%
2.45%
J.P. Morgan Asset Management, Inc.
874,747$108.5m-0.72%0.02%
2.03%
State Street Global Advisors, Inc.
721,859$89.5m1.36%no data
1.9%
Champlain Investment Partners, LLC
676,847$83.9m104.94%0.52%
1.84%
Dimensional Fund Advisors LP
657,567$81.5m-0.49%0.02%
1.79%
Fred Alger Management, LLC
639,592$79.3m-6.7%0.35%
1.76%
Geode Capital Management, LLC
628,146$77.9m-0.29%0.01%
1.74%
Macquarie Investment Management Business Trust
619,969$76.9m7.22%0.08%
1.72%
Nationwide Fund Advisors
614,151$76.2m8.34%0.53%
1.61%
AXA Investment Managers S.A.
573,477$71.1m0.13%0.15%
1.3%
Invesco Ltd.
462,036$57.3m18.72%0.02%
1.26%
Columbia Management Investment Advisers, LLC
449,028$55.7m12.58%0.02%
1.19%
Federated Hermes, Inc.
425,600$52.8m0%0.15%
1.18%
GW&K Investment Management, LLC
420,546$52.1m5.21%0.54%
1.17%
Goldman Sachs Asset Management, L.P.
417,624$51.8m-12.97%0.02%

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
  • Implied Market Cap: US$4.420b
  • Shares outstanding: 35.64m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/04 00:00
End of Day Share Price2022/10/04 00:00
Earnings2022/07/01
Annual Earnings2021/12/31


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.