Novanta Inc.

Rank #350Hypergrowth

NOVTU · Nasdaq · Technology

Novanta Inc. (NOVTU) — Rank #350 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.

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
Website: novanta.com

Price History

NOVTU+33.4% · +41.1% CAGRSPY+14.9% · +18.0% CAGR

Company Snapshot

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

Market Cap

—

P/E (annual)

40.2

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

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)

18.7%

fairly valued

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 23.8% 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%

13.8%

r = 10% (base)

18.7%

r = 12%

23.0%

Net debt / market cap: -22.5%

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

Earnings bubble check

Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.

FCF margin22.0% now vs 7.5%–22.0% 10yr range

2.3σ above average

Disclosure regression check

A previously-disclosed line item is no longer reported. Worth checking the filing for why.

AcquisitionsCash flow detail

last seen FY2017

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

	2015	2016	2017	2020
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

2013-2016

2017-2020

20132020

Value

Hypergrowth

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