Novanta NOVT
United StatesTechnology · Scientific & Technical InstrumentsUSD
194.50 USD (+35.4%)
2 analysts
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Novanta Inc. designs and manufactures precision components and subsystems—lasers, vision, motors, and control electronics—for medical equipment and advanced manufacturing (semiconductors, aerospace) OEMs.
Key points
from its scores- ✓Good share-price trend8.8
- ✓Strong growth8.4
- ✓Very solid balance sheet7.7
- ✕Little or no dividend1.5
- ✕Unfavourable risk and backdrop3.0
AI analysis
bottom line, main risk, context and newsMomentum and growth are solid, but the demanding valuation and low return on capital suggest waiting for a better entry point.
Novanta shows very strong growth (earnings +150%, revenue +10.3%) with net cash and ample liquidity, but its valuation is demanding (P/E 90.91, EV/EBITDA 27.63) and its return on capital is low (ROE 5.11, ROIC 6.22), leaving a limited margin of safety.
The demanding valuation (P/E 90.91) leaves little room for any disappointment in expected growth, especially in an environment of rising long-term rates that pressures long-duration multiples.
Context and risks
Novanta has no relevant recent news. Its precision instrumentation business for medical and advanced manufacturing OEMs has no material exposure to interest rates, oil, or conflicted shipping routes, and its balance sheet shows net cash, so the rise in US rates does not affect its financial cost structure.
Is Novanta stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 113% above the Technology median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 90.9 | 31.3 | +190% |
| EV / EBITDA | 27.6 | 20.4 | +35% |
| Price / book | 3.4 | 6.3 | −47% |
| Price / sales | 5.3 | 5.3 | −0% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.5 out of 10 (median for Technology: 5.3).
Average analyst target: 194.50 USD, +35.4% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 4.9 (sector 6.4), Growth 8.4 (sector 7.5).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 90.9
- Forward P/E
- 32.9
- EV / EBITDA
- 27.6
- Price / book
- 3.4
- Price / sales
- 5.3
- PEG
- 0.94
- Market cap
- 5.4B USD
- Enterprise value
- 5.0B USD
Profitability
- ROE
- 5.1%
- ROA
- 4.1%
- ROIC (approx.)
- 6.2%
- Gross margin
- 44.5%
- Operating margin
- 11.5%
- Net margin
- 6.0%
- Free cash flow
- 118.4M USD
- FCF yield
- 2.2%
- Cash conversion
- 65%
Solvency
- Total debt
- 285.6M USD
- Net debt
- −433.1M USD
- Cash
- 718.6M USD
- EBITDA
- 181.0M USD
- Net debt / EBITDA
- −2.39
- Debt / equity
- 17.67
- Current ratio
- 4.57
- Quick ratio
- 3.65
Growth
- Revenue growth
- +10.3%
- Earnings growth
- +150.0%
- EPS (TTM)
- 1.58 USD
- EPS (forward)
- 4.37 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.73
- Analyst consensus
- Strong buy (2)
- Target price
- 194.50 USD
- 52-week range
- 98.27 – 176.38
Recent news
All NOVT news →Compare it with its sector
All 283 in Technology →Frequently asked questions about Novanta
Is Novanta stock cheap or expensive?
On P/E and EV / EBITDA, it trades 113% above the Technology median on average. Valuation score: 4.5 out of 10 (median for Technology: 5.3). Average analyst target: 194.50 USD, +35.4% versus the price. This is not investment advice.
What score does Novanta get on MeridIAn Screener?
It scores 5.6 out of 10, rank 1,355 of 2,130 (better than 35% of the companies analysed). Its strongest category is Momentum (8.8) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is Novanta's P/E ratio?
Its P/E is 90.9: the share price equals 90.9 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 32.9.
How much is Novanta worth on the stock market?
Its market capitalisation is 5.4B USD and its enterprise value, debt included, is 5.0B USD.
How much debt does Novanta have?
It has more cash than debt: net cash of 433.1M USD.
Does Novanta pay a dividend?
It pays no dividend, or almost none.
How has Novanta stock performed over the last year?
It has risen 43.7% over the last year, excluding dividends. Over the last 52 weeks it has traded between 98.27 and 176.38 USD. Past performance does not guarantee future results.
What do analysts think of Novanta?
2 analysts cover it; their average recommendation is “Strong buy” and their average target is 194.50 USD (+35.4% versus the price). It is an estimate, not market data.