ScoreWhy is Novanta, Inc. ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.90 times
2
Poor long term growth as Net Sales has grown by an annual rate of 9.76% and Operating profit at 13.92% over the last 5 years
3
Flat results in Sep 25
- ROCE(HY) Lowest at 6.84%
- OPERATING PROFIT MARGIN(Q) Lowest at 17.85 %
- DEBTORS TURNOVER RATIO(HY) Lowest at 5.73 times
4
With ROCE of 10.14%, it has a very expensive valuation with a 3.90 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 -13.13%, its profits have risen by 2.9% ; the PEG ratio of the company is 21.2
5
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -13.13% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
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.
-14.44%
-0.51
50.54%
S&P 500
13.68%
0.71
19.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.76%
EBIT Growth (5y)
13.92%
EBIT to Interest (avg)
6.84
Debt to EBITDA (avg)
1.90
Net Debt to Equity (avg)
0.38
Sales to Capital Employed (avg)
0.80
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
59
Industry P/E
Price to Book Value
5.25
EV to EBIT
38.50
EV to EBITDA
25.71
EV to Capital Employed
3.90
EV to Sales
4.77
PEG Ratio
21.22
Dividend Yield
NA
ROCE (Latest)
10.14%
ROE (Latest)
8.90%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -1.14% (YoY
NET SALES(Q)
Highest at USD 247.84 MM
-6What is not working for the Company
ROCE(HY)
Lowest at 6.84%
OPERATING PROFIT MARGIN(Q)
Lowest at 17.85 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.73 times
NET PROFIT(Q)
Lowest at USD 15.44 MM
Here's what is working for Novanta, Inc.
Net Sales
Highest at USD 247.84 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Raw Material Cost
Fallen by -1.14% (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
Depreciation
Highest at USD 15.71 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Novanta, Inc.
Operating Profit Margin
Lowest at 17.85 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
Lowest at USD 15.44 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Debtors Turnover Ratio
Lowest at 5.73 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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