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Novanta Inc.

Rank #349Hypergrowth

NOVT · Nasdaq · Technology

Novanta Inc. (NOVT) — Rank #349 by gross profitability (GP/assets 0.20) · ROE 3.3% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0001076930 · all metrics point-in-time as of the filing date.

About

Novanta Inc., together with its subsidiaries, provides precision medicine, precision manufacturing, medical solutions, robotics and automation solutions, and advanced surgery solutions in the United States and internationally.

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The company operates Automation Enabling Technologies and Medical Solutions segments. The Precision Medicine and Manufacturing segment designs, manufactures, and markets laser beam steering and scanning solutions, laser sources, robotic and precision motion, robotic end-of-arm tooling, and bearing spindles. This segment serves advanced industrial processes, advanced industrial and medical robotics, other medical and life science automation applications, and medical laser procedures, such as ophthalmology applications. The Medical Solutions segment provides a range of medical grade technologies, including medical insufflators, pumps, and related disposables; imaging, identification and RFID solutions; advanced motion control solutions; and light engines, and integrated operating room technologies. The company was formerly known as GSI Group, Inc. and changed its name to Novanta Inc. in May 2016. Novanta Inc.

was incorporated in 1968 and is based in Bedford, Massachusetts.

Industry
Scientific & Technical Instruments
Sector
Technology
State
A3
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

NOVT-4.1% · -0.8% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$5.22B

P/E (annual)

93.9

P/S (annual)

5.3

P/B

3.2

P/OCF (annual)

81.5

Shareholder Yield

-5.1%

Employees

3,000

Industry

Scientific & Technical Instruments

Exchange

Nasdaq

Signal Flags

3 green2 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.20
Return on equity
3.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.32
Current ratio
4.57×
Net cash
$488.99M

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
3.0%

Growth

1/2 pass
Revenue growth
154.9%
Piotroski F-Score
6 / 9
Share dilution
5.1%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

30.5%

stretched

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 5.1% — per-share value needs a total required return of 35.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 2.7%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

25.0%

r = 10% (base)

30.5%

r = 12%

35.4%

Net debt / market cap: -9.7%

Note: current FCF margin is 2.3σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $48.4M3Y mean FCF: $40.5M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

109.0xExpensive
12.6xmed 59.0x109.0x

P / S

Price / revenue per share

8.2xExpensive
1.2xmed 3.0x8.2x

P / B

Price / book value per share

10.2xExpensive
1.8xmed 4.8x10.2x

P / GP

Price / gross profit per share

19.9xExpensive
2.8xmed 7.1x19.9x

P / FCF

Price / free cash flow per share

37.4xFair
9.9xmed 29.1x62.3x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.20

Primary signal (Novy-Marx).

24th pctl of 43 SIC 36 peers

Return on equity

3.3%

Gross margin

44.4%

50th pctl of 43 SIC 36 peers

Revenue growth (YoY)

154.9%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2015201620172020
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

—

Revenue CAGR (5Y)

10.7%

Earnings CAGR (3Y)

-10.1%

FCF CAGR (3Y)

—

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.32

72nd pctl of 41 SIC 36 peers (best = lowest)

Current ratio

4.57×

81st pctl of 43 SIC 36 peers

Quick ratio

3.65×

Net cash

$488.99M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$48.43M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.10

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

3.0%

Stock-based comp intensity.

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20132020
Value
Hypergrowth
View full financial statements →