Novanta Inc (NOVT) Stock Analysis
Verdict: WATCH (do not buy)
Accretive M&A in medical consumables boosts growth, but an 88.9x TTM P/E and heavy CEO selling cap near-term upside.
Investment score: 51/100
Analysis as of
Is Novanta Inc stock worth reviewing? AI model thesis
Novanta displays healthy organic growth (9%) and strategic execution via its Riverpoint Medical deal, but an inflated 88.86x TTM P/E multiple and persistent insider liquidation justify a neutral Hold stance.
7-factor investment score
- Valuation: 30/100 (weight 20%)
- Financial Health: 70/100 (weight 15%)
- Technical Momentum: 40/100 (weight 15%)
- Earnings Quality: 75/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 80/100 (weight 10%)
- Risk-Adjusted Return: 45/100 (weight 15%)
Novanta Inc opportunities and risks
What speaks for NOVT
- Accretive Riverpoint Medical acquisition expands consumable medical revenue
What speaks against NOVT
- Extreme valuation exposure to macroeconomic slowdowns
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| NOVT | 88.9x | 4.9x | 29.8x | 42.5% | 6.0% | 2.3% |
| TDY | 29.5x | 4.5x | 19.0x | 39.0% | 15.3% | 4.0% |
| ZBRA | 36.2x | 3.2x | 18.5x | 48.9% | 9.2% | 4.9% |
| AEIS | 49.9x | 5.7x | 34.4x | 39.7% | 10.8% | 0.7% |
| CGNX | 59.9x | 9.6x | 36.7x | 68.9% | 16.1% | 2.6% |
| RAL | n/a | 3.7x | n/a | 48.9% | -56.4% | 4.0% |
| Peer median | 36.2x | 4.5x | 19.0x | 48.9% | 10.8% | 4.0% |
Frequently asked questions about Novanta Inc (NOVT)
Is NOVT stock a good investment?
The cached TradeMates AI model rates Novanta Inc as WATCH (do not buy) with an investment score of 51/100. Novanta displays healthy organic growth (9%) and strategic execution via its Riverpoint Medical deal, but an inflated 88.86x TTM P/E multiple and persistent insider liquidation justify a neutral Hold stance. This is algorithmic model output, not personal investment advice.
Is NOVT stock a buy?
The TradeMates model verdict for NOVT is WATCH (do not buy) with an investment score of 51/100. Treat this as a model signal to review, not a personal buy recommendation.