Novanta Inc. Tangible Equity Units (NOVTU)
Valuation Overview•Is Novanta Inc. Tangible Equity Units Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 55/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant growth concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
NOVTU struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($39M) and minimal debt risk.
The company maintains stable top-line performance paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 9.7%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $257.7M | — | — | — | — | |
| EBITDA | $44.3M | — | — | — | — | |
| Net Income | $21.1M | — | — | — | — | |
| EPS (Diluted) | $0.51 | — | — | — | — | |
| Free Cash Flow | $46.2M | — | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 42.8% | 41.6% | 41.6% | 41.6% |
| Operating Margin | 9.7% | 11.9% | 11.9% | 11.9% |
| Net Margin | 5.3% | 5.5% | 5.5% | 5.5% |
| FCF Margin | 6.6% | 4.9% | 4.9% | 4.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.78 | $0.81 | +4.2% | ||
| Q1'26 | $0.88 | $0.91 | +3.4% | ||
| Q4'25 | $0.82 | $0.30 | -63.8% |
Total return is +8.0% (1Y), lagging the benchmark by -17.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +8.0% | -1.3% | — |
| 1Y | +8.0% | -17.0% | +2.4% |
| 3YCAGR | +2.6% | -18.2% | +2.4% |
| 5YCAGR | +1.5% | -11.7% | +2.4% |
| 10YCAGR | +0.8% | -13.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Novanta Inc. Tangible Equity Units (NOVTU) valuation, health, and returns.
Based on peer relative multiples, Novanta Inc. Tangible Equity Units appears Cheap versus peers compared to industry peers.
Novanta Inc. Tangible Equity Units has multiple valuation anchors: Peer Relative Fair Value: $226.87. A convergence of these signals offers higher conviction.
Novanta Inc. Tangible Equity Units displays fair financial health with a composite quality score of 55/100, supported by a Altman Z-Score of 4.1 (safe zone), Piotroski F-Score of 8/9, Return on Invested Capital (ROIC) of 6.9%.
Novanta Inc. Tangible Equity Units returns capital via buybacks instead of dividends, carrying a 1.7% buyback yield and reducing outstanding shares by +0.0% in the last 12 months.
Novanta Inc. Tangible Equity Units's current growth trajectory is Stable. The company achieved N/A 1Y revenue growth and N/A 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Novanta Inc. Tangible Equity Units include: -18.0% 1-year max drawdown. Volatility risk is characterized by a beta of 1.00x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.