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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Novanta Inc. To summarize, we found that Novanta Inc ranked in the 21th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 64.83%. 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 6.76; that's higher than 62.67% of US stocks in the Technology sector that have positive free cash flow.
93% of the company's capital comes from equity, which is greater than 83.28% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 7% of the company's capital (with equity being the remaining amount). Approximately merely 16.68% 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 FICO, JKHY, PRCP, INTU, and VRSN.
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. (Nasdaq: NOVT) (the "Company"), a trusted technology partner to medical and advanced technology equipment manufacturers, announced today that Matthijs Glastra, Chief Executive Officer, and Robert Buckley, Chief Financial Officer, are scheduled to present at the Baird Global Healthcare Conference on Wednesday, September 9, 2020, which is being held virtually.
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...