Novanta Inc. designs, develops, manufactures, and sells precision photonic and motion control components, and subsystems to original equipment manufacturers in the medical equipment and advanced industrial technology markets. The company operates through three segments: Laser Products, Vision Technologies, and Precision Motion. The company was founded in 1968 and is based in Bedford, Massachusetts.
NOVT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Novanta Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Novanta Inc ranked in the 37th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for NOVT, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 6.99 -- which is good for besting 61.05% of its peer stocks (US stocks in the Technology sector with positive cash flow).
95% of the company's capital comes from equity, which is greater than 83.97% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 5% of the company's capital (with equity being the remaining amount). Approximately only 16% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as NOVT, try VRNT, ROG, CRUS, HQY, and ACN.
BEDFORD, Mass.--(BUSINESS WIRE)-- #CambridgeTechnology--New MOVIA 2-axis scan head from Cambridge Technology, a business unit of Novanta, is compatible with a majority of lasers for processing materials.
Novanta, Inc. (NOVT) Q2 2020 Earnings Conference Call August 06, 2020 10:00 AM ET Company Participants Ray Nash - Corporate Finance Leader Matthijs Glastra - Chief Executive Officer Robert Buckley - Chief Financial Officer Conference Call Participants Joe Jagoda - CJS Securities Rick Eastman - Robert W. Baird Brian Drab...
BEDFORD, Mass.--(BUSINESS WIRE)--Novanta Inc. (Nasdaq: NOVT) (the “Company”), a trusted technology partner to medical and advanced technology equipment manufacturers, today reported financial results for the second quarter 2020. Financial Highlights Three Months Ended (In millions, except per share amounts) July 3, June 28, 2020 2019 GAAP Revenue $ 144.7 $ 155.1 Operating Income $ 13.7 $ 15.1 Consolidated Net Income $ 11.7 $ 10.4 Diluted EPS $ 0.3