A Business at a Glance
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NOVANTA INC
NOVT
$5.2B
Mkt Cap
$141.54
-1.20%
NOVANTA INC (NOVT) has a current P/E ratio of 96.3, compared to its historical median P/E of 78.1. The stock is currently considered Fair based on its historical valuation range.
NOVANTA INC (NOVT) has a 5-year average return on invested capital (ROIC) of 8.6%. This is below average and may indicate limited pricing power.
NOVANTA INC (NOVT) has a market capitalization of $5.0B. It is classified as a mid-cap stock.
NOVANTA INC (NOVT) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.03%.
Based on historical P/E analysis, NOVANTA INC (NOVT) appears fair. The current P/E of 96.3 is 23% above its historical median of 78.1. The estimated fair value CAGR (P/E method) is 6.6%.
NOVANTA INC (NOVT) operates in the Miscellaneous Electrical Machinery, Equipment & Supplies industry, within the Technology sector.
NOVANTA INC (NOVT) reported annual revenue of $981 million in its most recent fiscal year, based on SEC EDGAR filings.
Novanta is a global supplier of core technology solutions to medical, life science, and advanced industrial original equipment manufacturers, combining proprietary expertise in precision medicine, precision manufacturing, robotics and automation, and advanced surgery to solve complex technical challenges. The company operates through two primary segments: Automation Enabling Technology, which serves robotics, automation, and semiconductor applications, and Medical Solutions, which encompasses advanced surgery, precision medicine, and medical consumables. Novanta's business model is built on long-life-cycle OEM customer platforms with recurring revenue streams, particularly through medical consumables that represent approximately 15% of total sales with sustained double-digit growth trajectories. The company distributes its solutions directly to OEM customers in attractive niche markets, leveraging deep application expertise and customer intimacy to achieve design wins and exclusive content arrangements. Novanta's competitive moat is anchored in proprietary technology, years of innovation investment, application know-how, and strong customer relationships that create switching costs and enable cross-selling opportunities across its diversified portfolio. The company serves medical end-markets representing approximately 53% of sales and advanced industrial markets representing 47%, with geographic presence spanning North America, Europe, and Asia, and is actively pursuing complementary acquisitions to enhance growth profile and reduce cyclicality.
【Strong momentum and margin recovery】 Management expects mid-single-digit organic growth for full-year 2026, driven by sustained customer demand, record bookings visibility, and new product momentum across all business segments. Gross margin expansion of approximately 100 basis points is anticipated as regional manufacturing transfers complete in the first half of 2026 and pricing actions, surcharges, and cost reduction initiatives take full effect in the second half. The company is prioritizing acquisition deployment of meaningful capital into larger opportunities in target markets to accelerate strategic direction toward higher-growth medical and recurring consumables segments, while completing manufacturing foundation transformation and embedding the Novanta Growth System across the organization. Management is confident in navigating the path ahead based on strong committed bookings visibility, solid execution of new product introductions, and positive end-market dynamics, with particular optimism around GenAI-driven tailwinds in robotics and automation, advanced surgery growth, and data center infrastructure expansion.
| Metric | Target | Period |
|---|---|---|
| Revenue | $1,040 million–$1,055 million | FY2026 |
| Adjusted EBITDA | $245 million–$250 million | FY2026 |
| Adjusted diluted EPS | $3.50–$3.65 | FY2026 |
| FY2026 Adjusted gross margin | 47% | FY2026 |
| FY2026 Operating cash flow | $145 million–$185 million | FY2026 |
Revenue (FY2026): “For the full year of 2026, we now expect GAAP revenue to be approximately $1,040 million-$1,055 million, which raises our previous range and represents reported growth greater than 7% and organic growth of up to 6%.”
Adjusted EBITDA (FY2026): “We continue to expect Adjusted EBITDA to be between $245 million and $250 million, which represents year-over-year growth of 11%-13%”
Adjusted diluted EPS (FY2026): “adjusted diluted EPS to be in the range of $3.50-$3.65, representing year-over-year growth in the range of 6%-11%”
FY2026 Adjusted gross margin (FY2026): “For adjusted growth margins for the full year, we expect to achieve approximately 47%, which is 100 basis points of expansion year-over-year.”
FY2026 Operating cash flow (FY2026): “Operating cash flow guidance for the full year is $145 million-$185 million, more than double our 2025 results.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.0B | 981M | 949M | 882M | 861M | 707M |
| Net Income | 54M | 54M | 64M | 73M | 74M | 50M |
| EPS | $1.50 | $1.47 | $1.77 | $2.02 | $2.06 | $1.41 |
| Free Cash Flow | 68M | 48M | 141M | 100M | 71M | 75M |
| ROIC | 5.9% | 6.4% | 8.9% | 10.2% | 9.7% | 8.0% |
| Gross Margin | 44.2% | 44.4% | 44.4% | 45.4% | 44.0% | 42.5% |
| Debt/Equity | 0.18 | 0.23 | 0.63 | 0.59 | 0.84 | 0.94 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 89M | 94M | 111M | 110M | 103M | 64M |
| Operating Margin | 8.9% | 9.6% | 11.6% | 12.5% | 12.0% | 9.1% |
| ROE | 4.1% | 5.2% | 9.0% | 11.7% | 13.5% | 10.1% |
| Shares Outstanding | 36M | 37M | 36M | 36M | 36M | 36M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 365M | 374M | 385M | 521M | 614M | 626M | 591M | 707M | 861M | 882M | 949M | 981M | 1.0B |
| Gross Margin | 41.2% | 42.3% | 42.2% | 42.3% | 42.6% | 41.9% | 41.4% | 42.5% | 44.0% | 45.4% | 44.4% | 44.4% | 44.2% |
| R&D | 29M | 31M | 32M | 42M | 51M | 56M | 61M | 73M | 86M | 92M | 96M | 95M | 95M |
| SG&A | 84M | 82M | 81M | 102M | 116M | 118M | 110M | 129M | 159M | 164M | 176M | 196M | 204M |
| EBIT | -17M | 29M | 33M | 58M | 71M | 55M | 56M | 64M | 103M | 110M | 111M | 94M | 89M |
| Op. Margin | -4.6% | 7.7% | 8.6% | 11.0% | 11.6% | 8.8% | 9.5% | 9.1% | 12.0% | 12.5% | 11.6% | 9.6% | 8.9% |
| Net Income | -24M | 36M | 22M | 60M | 49M | 41M | 45M | 50M | 74M | 73M | 64M | 54M | 54M |
| Net Margin | -6.6% | 9.5% | 5.7% | 11.5% | 8.0% | 6.5% | 7.5% | 7.1% | 8.6% | 8.3% | 6.8% | 5.5% | 5.3% |
| Non-Recurring | 20M | 27M | 9.7M | 1.7M | 3.8M | 11M | 8.4M | 12M | 7.5M | 14M | 19M | 23M | 21M |
| Returns on Capital | |||||||||||||
| ROIC | -7.8% | 8.1% | 8.1% | 13.2% | 12.6% | 6.4% | 6.4% | 8.0% | 9.7% | 10.2% | 8.9% | 6.4% | 5.9% |
| ROE | -10.7% | 15.6% | 8.7% | 21.1% | 14.4% | 10.4% | 10.0% | 10.1% | 13.5% | 11.7% | 9.0% | 5.2% | 4.1% |
| ROA | -6.3% | 8.8% | 5.2% | 10.4% | 6.8% | 5.1% | 5.1% | 4.8% | 6.0% | 5.9% | 4.9% | 3.4% | 3.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 42M | 33M | 48M | 63M | 90M | 63M | 140M | 95M | 91M | 120M | 159M | 64M | 84M |
| Free Cash Flow | 37M | 28M | 39M | 54M | 75M | 53M | 130M | 75M | 71M | 100M | 141M | 48M | 68M |
| Owner Earnings | 14M | 8.8M | 23M | 27M | 45M | 16M | 79M | 26M | 15M | 48M | 80M | -27M | -11M |
| CapEx | 5.4M | 5.6M | 8.5M | 9.1M | 15M | 11M | 11M | 20M | 20M | 20M | 17M | 16M | 15M |
| Maint. CapEx | 24M | 20M | 21M | 31M | 37M | 38M | 38M | 43M | 53M | 47M | 56M | 62M | 63M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 24M | 20M | 21M | 31M | 37M | 38M | 38M | 43M | 53M | 47M | 56M | 62M | 63M |
| CapEx/OCF | 12.8% | 16.6% | 17.7% | 14.3% | 16.4% | 17.0% | 7.5% | 21.1% | 21.6% | 16.6% | 10.8% | 24.4% | 18.4% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 1.6M | 1.6M | 370K | 5.9M | 10M | 5.5M | 0 | 10M | 0 | 0 | 39M | 52M |
| Buyback Yield | N/A | 0.3% | 0.2% | 0.0% | 0.3% | 0.3% | 0.1% | N/A | 0.2% | N/A | N/A | 0.9% | 1.0% |
| Stock-Based Comp | 4.3M | 4.4M | 4.3M | 5.5M | 7.7M | 9.3M | 23M | 26M | 23M | 26M | 23M | 30M | 32M |
| Debt Repayment | 34M | 31M | 16M | 27M | 75M | 51M | 35M | 32M | 59M | 87M | 131M | 366M | 366M |
| Balance Sheet | |||||||||||||
| Net Debt | 61M | 36M | 9.8M | 135M | 125M | 631M | 114M | 370M | 384M | 295M | 353M | -81M | -147M |
| Cash & Equiv. | 51M | 60M | 68M | 100M | 82M | 79M | 125M | 117M | 100M | 105M | 114M | 381M | 389M |
| Long-Term Debt | 105M | 88M | 71M | 226M | 203M | 215M | 195M | 429M | 431M | 349M | 412M | 213M | 201M |
| Debt/Equity | 0.53 | 0.39 | 0.30 | 0.75 | 0.56 | 1.70 | 0.50 | 0.94 | 0.84 | 0.59 | 0.63 | 0.23 | 0.18 |
| Interest Coverage | -3.3 | 5.6 | 7.2 | 8.0 | 710.1 | 128.6 | 129.4 | 188.4 | 334.7 | 403.3 | 468.6 | 482.1 | 481.8 |
| Equity | 211M | 245M | 259M | 312M | 368M | 417M | 477M | 521M | 578M | 673M | 746M | 1.3B | 1.3B |
| Total Assets | 396M | 416M | 426M | 727M | 720M | 870M | 865M | 1.2B | 1.2B | 1.2B | 1.4B | 1.8B | 1.8B |
| Total Liabilities | 185M | 171M | 167M | 368M | 351M | 453M | 388M | 707M | 664M | 553M | 643M | 493M | 488M |
| Intangibles | 67M | 66M | 62M | 155M | 143M | 166M | 149M | 221M | 176M | 145M | 186M | 181M | 170M |
| Retained Earnings | -225M | -190M | -168M | -128M | -79M | -38M | 6.2M | 57M | 131M | 203M | 268M | 321M | 342M |
| Working Capital | 129M | 128M | 129M | 190M | 178M | 170M | 190M | 190M | 256M | 276M | 266M | 570M | 566M |
| Current Assets | 183M | 185M | 199M | 288M | 282M | 305M | 304M | 374M | 421M | 415M | 434M | 783M | 787M |
| Current Liabilities | 54M | 57M | 70M | 98M | 104M | 135M | 114M | 184M | 165M | 139M | 168M | 212M | 221M |
| Per Share Data | |||||||||||||
| EPS | -0.70 | 1.02 | 0.63 | 1.13 | 1.43 | 1.15 | 1.25 | 1.41 | 2.06 | 2.02 | 1.77 | 1.47 | 1.50 |
| Owner EPS | 0.39 | 0.25 | 0.64 | 0.51 | 1.31 | 0.44 | 2.21 | 0.72 | 0.40 | 1.33 | 2.20 | -0.75 | -0.30 |
| Book Value | 6.09 | 7.01 | 7.41 | 5.86 | 10.72 | 11.77 | 13.39 | 14.60 | 16.07 | 18.67 | 20.60 | 35.89 | 36.82 |
| Cash Flow/Share | 1.22 | 0.96 | 1.37 | 1.19 | 2.61 | 1.78 | 3.94 | 2.65 | 2.53 | 3.33 | 4.38 | 1.75 | 3.26 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 34.6M | 34.9M | 34.9M | 53.1M | 34.3M | 35.5M | 35.6M | 35.7M | 35.9M | 36.1M | 36.2M | 36.6M | 35.6M |
| Valuation | |||||||||||||
| P/E Ratio | N/A | 13.5 | 33.4 | 44.4 | 43.4 | 78.1 | 95.9 | 124.8 | 65.9 | 84.9 | 87.4 | 83.5 | 94.1 |
| P/FCF | 13.9 | 17.2 | 18.7 | 49.1 | 28.4 | 60.7 | 32.9 | 84.1 | 68.6 | 61.8 | 39.6 | 92.8 | 73.6 |
| EV/EBIT | N/A | 15.7 | 21.0 | 47.1 | 30.7 | 58.8 | 75.6 | 101.2 | 49.7 | 57.4 | 52.4 | 42.8 | 54.9 |
| Price/Book | 2.4 | N/A | 2.8 | 8.6 | 5.8 | 7.6 | 9.0 | 12.0 | 8.4 | 9.2 | 7.5 | 3.4 | 3.8 |
| Price/Sales | 1.2 | 1.3 | 1.4 | 3.6 | 3.5 | 4.6 | 6.1 | 7.3 | 5.7 | 6.4 | 6.4 | 4.7 | 5.0 |
| FCF Yield | 7.2% | 5.8% | 5.3% | 2.0% | 3.5% | 1.6% | 3.0% | 1.2% | 1.5% | 1.6% | 2.5% | 1.1% | 1.4% |
| Market Cap | 513M | 479M | 735M | 2.7B | 2.1B | 3.2B | 4.3B | 6.3B | 4.9B | 6.2B | 5.6B | 4.5B | 5.0B |
| Avg. Price | 12.30 | 13.79 | 15.78 | 35.75 | 62.58 | 81.85 | 100.98 | 144.04 | 136.61 | 156.16 | 167.53 | 124.58 | 141.54 |
| Year-End Price | 14.82 | 13.73 | 21.05 | 50.20 | 62.11 | 89.83 | 119.93 | 175.92 | 135.77 | 171.53 | 154.74 | 122.72 | 141.54 |
NOVANTA INC passes 2 of 9 quality checks, indicating weak fundamentals.
NOVANTA INC trades at 96.3x trailing earnings, compared to its 15-year median P/E of 78.1x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 104.3x vs a median of 54.9x. The company's 5-year average ROIC is 8.6% with a gross margin of 44.1%. Total shareholder yield (buybacks) is 1.0%. At current prices, the estimated annualized return to fair value is +3.5%.
NOVANTA INC (NOVT) has a net profit margin of 5.5%. This is a modest margin.
NOVANTA INC (NOVT) generated $48 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
NOVANTA INC (NOVT) has a debt-to-equity ratio of 0.23. This indicates a conservatively financed balance sheet.
NOVANTA INC (NOVT) reported earnings per share (EPS) of $1.47 in its most recent fiscal year.
NOVANTA INC (NOVT) has a return on equity (ROE) of 5.2%. This indicates moderate shareholder returns.
NOVANTA INC (NOVT) has a 5-year average gross margin of 44.1%. This indicates decent pricing power.
The Ledger Terminal provides 16 years of financial data for NOVANTA INC (NOVT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
NOVANTA INC (NOVT) has a book value per share of $35.89, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects mid-single-digit organic growth for full-year 2026, driven by sustained customer demand, record bookings visibility, and new product momentum across all business segments. Gross margin expansion of approximately 100 basis points is anticipated as regional manufacturing transfers complete in the first half of 2026 and pricing actions, surcharges, and cost reduction initiatives take full effect in the second half. The company is prioritizing acquisition deployment of meaningful capital into larger opportunities in target markets to accelerate strategic direction toward higher-growth medical and recurring consumables segments, while completing manufacturing foundation transformation and embedding the Novanta Growth System across the organization. Management is confident in navigating the path ahead based on strong committed bookings visibility, solid execution of new product introductions, and positive end-market dynamics, with particular optimism around GenAI-driven tailwinds in robotics and automation, advanced surgery growth, and data center infrastructure expansion.
Based on recent SEC filings and earnings calls, NOVANTA INC (NOVT) has provided the following forward guidance: Revenue: $1,040 million–$1,055 million (FY2026); Adjusted EBITDA: $245 million–$250 million (FY2026); Adjusted diluted EPS: $3.50–$3.65 (FY2026); FY2026 Adjusted gross margin: 47% (FY2026); FY2026 Operating cash flow: $145 million–$185 million (FY2026).