NOVT:NASDAQNovanta Inc. Analysis
Data as of 2026-04-20 - not real-time
$129.86
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
Novanta trades at $129.86, comfortably above its 20‑day SMA (~$121) and near its 50‑day SMA (~$129), with a bullish MACD histogram (+1.70) and an RSI of 59, indicating short‑term momentum without an overbought signal.
Nevertheless, a trailing P/E of 88 versus an industry average of 37 and a DCF fair value of $37 flag the stock as markedly overvalued, even as analysts have upgraded the rating to Outperform and project roughly 21% upside to the DCF target. The company delivers 8.5% revenue growth, solid cash generation, and no dividend, underscoring a growth‑oriented but pricey position.
Nevertheless, a trailing P/E of 88 versus an industry average of 37 and a DCF fair value of $37 flag the stock as markedly overvalued, even as analysts have upgraded the rating to Outperform and project roughly 21% upside to the DCF target. The company delivers 8.5% revenue growth, solid cash generation, and no dividend, underscoring a growth‑oriented but pricey position.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- price above short‑term moving averages
- bullish MACD histogram
- high valuation tempers upside
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- steady revenue and margin expansion
- forward EPS growth and analyst upgrade to Outperform
- potential ~21% upside to DCF target
Long Term
> 3 yearsNeutral
Model confidence: 7/10
Key Factors
- ongoing demand in precision medical and automation markets
- persistent valuation premium over fundamentals
- strong cash position and low dividend reliance
Key Metrics & Analysis
Financial Health
Revenue Growth8.50%
Profit Margin5.49%
P/E Ratio88.3
ROE5.23%
ROA4.54%
Debt/Equity23.03
P/B Ratio3.5
Op. Cash Flow$64.1M
Free Cash Flow$64.3M
Industry P/E36.8
Technical Analysis
TrendNeutral
RSI59.4
Support$112.51
Resistance$132.43
MA 20$121.23
MA 50$128.80
MA 200$121.27
MACDBullish
VolumeDecreasing
Fear & Greed Index87.59
Valuation
Fair Value$37.06
Target Price$157.00
Upside/Downside20.90%
GradeOvervalued
TypeGrowth
Risk Assessment
Beta1.97
Volatility42.05%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.