Novanta Inc. Tangible Equity Units
Novanta Inc. Tangible Equity Units Fundamental Analysis
Novanta Inc. Tangible Equity Units (NOVTU) shows weak financial fundamentals with a PE ratio of 62.83, profit margin of 5.03%, and ROE of 4.60%. The company generates $0.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NOVTU's fundamental strength across five key dimensions:
Efficiency Score
WeakNOVTU struggles to generate sufficient returns from assets.
Valuation Score
ModerateNOVTU shows balanced valuation metrics.
Growth Score
WeakNOVTU faces weak or negative growth trends.
Financial Health Score
ExcellentNOVTU maintains a strong and stable balance sheet.
Profitability Score
WeakNOVTU struggles to sustain strong margins.
Key Financial Metrics
Is NOVTU Expensive or Cheap?
P/E Ratio
NOVTU trades at 62.83 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NOVTU's PEG of 1.49 indicates fair valuation.
Price to Book
The market values Novanta Inc. Tangible Equity Units at 2.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.07 times EBITDA. This signals the market has high growth expectations.
How Well Does NOVTU Make Money?
Net Profit Margin
For every $100 in sales, Novanta Inc. Tangible Equity Units keeps $5.03 as profit after all expenses.
Operating Margin
Core operations generate 9.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.60 in profit for every $100 of shareholder equity.
ROA
Novanta Inc. Tangible Equity Units generates $2.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Novanta Inc. Tangible Equity Units generates limited operating cash flow of $55.30M, signaling weaker underlying cash strength.
Free Cash Flow
Novanta Inc. Tangible Equity Units produces free cash flow of $43.33M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.20 in free cash annually.
FCF Yield
NOVTU converts 1.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
62.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How NOVTU Stacks Against Its Sector Peers
| Metric | NOVTU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 62.83 | 35.19 | Worse (Expensive) |
| ROE | 4.60% | 1155.00% | Weak |
| Net Margin | 5.03% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.63 | 0.41 | Weak (High Leverage) |
| Current Ratio | 2.51 | 4.71 | Strong Liquidity |
| ROA | 2.41% | -314918.00% (disorted) | Weak |
NOVTU outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Novanta Inc. Tangible Equity Units's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta