NOVT
NOVANTA INC
Next earnings Aug 3, 2026 · consensus $0.85 EPS, $268M rev
Last earnings +1.2% on 2026-05-11
$161.72
▲ +2.52%$161.72▲ +24.40%
over 1Y
L $99.22H $168.59
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+2.5%
1W+0.8%
1M-4.1%
3M+38.2%
YTD+45.5%
1Y+24.4%
Hold
Conviction
Horizon
Long (>12mo)
12-mo target
$•••
Street · 9 analysts
Strong Buy
Quality acquisitive photonics/medical-tech compounder with a fortress balance sheet, but declining GAAP earnings against a 105x P/E.
P/E (price / FY diluted EPS) 105.6 · FY2025
The read
Middling fundamentals and a rich price (~93% above fair value) leave little margin of safety — a wait-and-see.
Novanta designs precision photonics, vision, and motion technologies embedded in medical, life-science, and advanced-industrial/automation equipment — a high-quality, recurring, design-in franchise built through serial acquisitions. The balance sheet is excellent and improved sharply in FY2025: cash more than tripled to $381M, long-term debt fell 48.4% to $213M, equity jumped 76.2% to $1.31B, and leverage is a low 0.37x liabilities/equity. Gross margin is a healthy 44.4%, R&D is sustained at $95.5M, and the company continues to repurchase stock ($39.3M, up 292.8%).
The problem is the earnings trend versus the valuation. Revenue grew 3.3% to $981M, but net income has now fallen for three straight years — from $74.1M (FY2022) to $72.9M, $64.1M, and $53.8M (FY2025, -16.0%) — with diluted EPS down 16.9% to $1.47 and ROE compressed to just 4.1%. Some of this is GAAP noise: acquisition-related amortization (within $61.9M of D&A) and integration costs depress reported earnings well below the adjusted/cash earnings the company emphasizes. But operating income also fell 15.0% to $94.0M (9.6% margin), and operating cash flow dropped 59.6% to $64.1M — a real deterioration that cannot be dismissed entirely as accounting.
Is NOVT a buy? The one-page verdict, explained →
The options angle
model · matches our verdictCovered call~90d expiry
- Long 100 shares @ ~161.72
- Short call 170 @ ~11.43 est
debit $15,029max +$1,971max −$15,028BE 150.29
HOLD means own it, don't chase it — harvesting premium against the position matches the verdict.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $707M | $861M | $882M | $949M | $981M |
| Gross profit | $300M | $378M | $400M | $422M | $435M |
| Operating income | $64.1M | $103M | $110M | $111M | $94.0M |
| Net income | $50.3M | $74.1M | $72.9M | $64.1M | $53.8M |
| Diluted EPS | $1.41 | $2.06 | $2.02 | $1.77 | $1.47 |
| Net margin | 7.1% | 8.6% | 8.3% | 6.8% | 5.5% |
10-year statements — income, cash flow, balance sheet & CSV export →
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$5.63B
EV / EBITDA36.1
EV / Sales5.7
EV / FCF116.2
P / FCF118.9
PEG (trailing)—
Earnings yield0.9%
FCF yield0.8%
Quality & risk
ROIC (est.)4.7%
Free cash flow$48.4M
Total debt$251M
Net cash$130M
Altman Z-Score8.35 safe
Piotroski F-Score6/9
Capital returns
Buyback yield0.7%
Dividend yield (est.)—
Shareholder yield0.7%
Shares Δ YoY-0.8%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsRoutine disclosure cadence — no material red flags in recent filings.
Recent filings
all on EDGAR ↗144Filing2026-07-02open ↗S-3ASRFiling2026-06-29open ↗8-KPeriod ending 2026-06-082026-06-09open ↗8-KPeriod ending 2026-06-082026-06-09open ↗4Period ending 2026-06-022026-06-04open ↗144/AFiling2026-06-02open ↗144Filing2026-06-02open ↗8-KPeriod ending 2026-05-282026-05-29open ↗SDFiling2026-05-29open ↗8-KPeriod ending 2026-05-152026-05-15open ↗4Period ending 2026-05-122026-05-14open ↗144Filing2026-05-12open ↗
Frequently asked
- Is NOVANTA INC (NOVT) a buy?
- NOVT currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. Quality acquisitive photonics/medical-tech compounder with a fortress balance sheet, but declining GAAP earnings against a 105x P/E.
- What is NOVT's fair value?
- A Modified-Graham model based on NOVT's SEC fundamentals estimates a fair value of about $11.25. It is an estimate from reported earnings, not a price target.
- Is NOVT overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, NOVT currently appears overvalued relative to its SEC-grounded earnings power.
- What is NOVANTA INC's quality score?
- NOVT scores 59.55479139241882/100 (grade C) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001076930, latest 10-Q filed 2026-05-11) · EODHD · Proprietary analysis · as of 6/21/2026, 8:58:09 PM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 21, 2026, 4:58 PM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.