Novanta Inc

Miscellaneous
Industrial Machinery/Components
www.novanta.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $4.23B
PE 66
Debt $416.64M
Cash $113.99M
EV $4.53B
FCF $141.35M

Earnings

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Sales & Net Margins

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Earnings	$64.09M
EBIT	$110.58M
ROE	9%
ROA	8%
FCF	$141.35M
Equity	$745.70M
Growth Stability	89%
PE	66
PEG	4.75
PB	5.67
P/FCF	29.92
P/S	4.46
Price/Cash	0.03
Debt/Equity	0.56
Debt/FCF	2.95
Net Margins	7%
Gross Margins	44%
Op. Margins	12%
Earnings CAGR	10%
Sales Growth YoY	13%
Sales Growth QoQ	-3%
Sales CAGR	11%
FCF CAGR	13%
Equity CAGR	13%
Earnings Stability	0.49
Earnings Growth YoY	32%
Earnings Growth QoQ	-14%

Earnings CAGR 5Y	14%
Sales CAGR 5Y	12%
FCF CAGR 5Y	5%
Equity CAGR 5Y	13%
Earnings CAGR 3Y	7%
Sales CAGR 3Y	7%
FCF CAGR 3Y	44%
Equity CAGR 3Y	14%
Market Cap	$4.23B
Revenue	$949.25M
Assets	$1.39B
Total Debt	$416.64M
Cash	$113.99M
Shares Outstanding	35.94M
EV	4.53B
Earnings Score	57%
Moat Score	86%
Safety Score	90%
Final Score	78%
Working Capital	265.86M
Current Ratio	2.58
Gross Profit	$421.55M
Shares Growth 3y	0%
Equity Growth QoQ	0%
Equity Growth YoY	11%

Assets & ROA

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Stockholders Equity & ROE

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Novanta Inc manufactures photonic and motion-control components for original equipment manufacturers in the medical equipment and industrial technology markets. The firm operates in three segments: photonics, vision, and precision motion. The photonics segment, which sells photonics-based products that include carbon dioxide lasers, laser scanning, super-resolution imaging lasers, and laser beam delivery items. The vision segment sells medical-grade technologies, including visualization solutions, imaging informatics products, and thermal printers contributing the majority of revenue. The precision motion segment sells optical encoders, motion control technology, and precision machined components. The firm generates the majority of its revenue from the United States and Europe.

SEC Filings

Direct access to Novanta Inc (NOVT) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 27
- 10-Q Jun 28
- 10-Q Mar 29
2023
- 10-K Dec 31
- 10-Q Sep 29
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01

Sector Comparison

How does Novanta Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Novanta Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 10%

Stability 49%

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Novanta Inc Discounted Cash Flow

Fully customizable DCF calculator online for Novanta Inc.

Years

Calculation mode

= $3.4B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$141M	$159M	$180M	$203M	$229M	$258M	$291M	$328M	$369M	$417M	$470M	$4.7B
DCF		$145M	$149M	$152M	$156M	$160M	$164M	$168M	$172M	$177M	$181M	$1.8B
Value	$3.4B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	10%	6%	12%	8%	7%	8%	7%	9%	8%	7%	7%
ROA	-	8%	10%	10%	6%	6%	5%	8%	9%	8%	8%
ROE	-	8%	19%	13%	10%	9%	10%	13%	11%	9%	9%

Bad Net Margins (6.75%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	1.98	4.32	2.77	4.2	1.55	5.82	6.12	3.54	2.95	2.95
Debt over Equity	0.39	0.3	0.75	0.56	0.53	0.42	0.83	0.75	0.53	0.56	0.56
Growth Stability	-	-	-	100%	93%	89%	100%	100%	100%	97%	89%

Neutral Debt/FCF ratio (2.95)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.56)

The company is not overleveraged and has a good balance between equity and debt.

Neutral Graham’s Stability (89%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	3%	35%	18%	2%	-6%	20%	22%	2%	8%	12%
Earnings YoY growth	-	-38%	173%	-18%	-17%	9%	13%	47%	-2%	-12%	14%
Equity YoY growth	-	6%	20%	18%	13%	14%	9%	11%	17%	11%	13%
FCF YoY growth	-	41%	38%	38%	-30%	147%	-42%	-5%	41%	41%	5%