ScoreWhy is Novanta, Inc. ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.46 times
2
Poor long term growth as Net Sales has grown by an annual rate of 10.67% and Operating profit at 14.34% over the last 5 years
3
Positive results in Jun 26
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
- PRE-TAX PROFIT(Q) Highest at USD 27.4 MM
- RAW MATERIAL COST(Y) Fallen by -4.08% (YoY)
4
With ROCE of 9.76%, it has a very expensive valuation with a 3.28 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 46.29%, its profits have fallen by -4.4%
5
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Market Beating Performance
- The stock has generated a return of 46.29% in the last 1 year, much higher than market (S&P 500) returns of 22.36%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Novanta, Inc. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Novanta, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Novanta, Inc.
46.29%
0.06
52.61%
S&P 500
22.36%
1.70
13.18%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.67%
EBIT Growth (5y)
14.34%
EBIT to Interest (avg)
6.84
Debt to EBITDA (avg)
1.90
Net Debt to Equity (avg)
0.38
Sales to Capital Employed (avg)
0.77
Tax Ratio
20.27%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
11.19%
ROE (avg)
18.67%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
58
Industry P/E
Price to Book Value
3.07
EV to EBIT
33.59
EV to EBITDA
21.94
EV to Capital Employed
3.28
EV to Sales
4.00
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
9.76%
ROE (Latest)
5.25%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
PRE-TAX PROFIT(Q)
Highest at USD 27.4 MM
RAW MATERIAL COST(Y)
Fallen by -4.08% (YoY
CASH AND EQV(HY)
Highest at USD 1,107.45 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -26.79 %
NET SALES(Q)
Highest at USD 265.81 MM
NET PROFIT(Q)
Highest at USD 21.61 MM
-6What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 132.64 MM
ROCE(HY)
Lowest at 5.11%
OPERATING PROFIT MARGIN(Q)
Lowest at 17.01 %
Here's what is working for Novanta, Inc.
Pre-Tax Profit
Highest at USD 27.4 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Sales
Highest at USD 265.81 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Profit
Highest at USD 21.61 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Cash and Eqv
Highest at USD 1,107.45 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -26.79 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -4.08% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Novanta, Inc.
Operating Cash Flow
Lowest at USD 132.64 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Operating Profit Margin
Lowest at 17.01 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
