Novanta Inc. cash flow to debt ratio of 18.75% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Novanta Inc.'s free cash flow has decreased 65.74% from $141.35M last year to $48.43M, signaling decreasing performance

Novanta Inc.'s debt to equity ratio is 0.18, which means that the company's assets are healthy financed, signaling financial stability.

Novanta Inc.'s debt has decreased relative to shareholder equity from 0.63 last year to 0.18 today, signaling strengthened financials

Novanta Inc. has a net cash position, so leverage is healthy.

Novanta Inc.'s interest coverage ratio of 8.29 indicates that earnings with good margin can cover interest payments on company debt

Novanta Inc.'s profit margin has decreased (11.15%) in the last year from 6.75% to 6.00%, signaling decreasing performance

Novanta Inc.'s short-term assets of $782.60M exceed its short-term liabilities of $212.37M

Novanta Inc.'s return on assets of 2.89% is lower than the 5.00% threshold, indicating inefficient asset utilization

Novanta Inc.'s return on equity of 4.90%, is lower than 15.00%, indicating bad performance

Novanta Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Novanta Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Novanta Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Novanta Inc. has a free cash flow yield of 0.83%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Novanta Inc.'s yearly earnings has decreased 16.01% since last year from $64.09M to $53.83M, signaling decreasing performance

Novanta Inc.'s yearly revenue has increased 3.30% since last year from $949.25M to $980.60M, signaling increasing performance

ROIC 4.28% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Novanta Inc.'s 3-year revenue CAGR of 4.43% is positive, indicating growing revenue over the past 3 years

Novanta Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Novanta Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Novanta Inc. is overvalued relative to its fair value price of 8.19 based on Discounted Cash Flow model

Novanta Inc. has an earnings yield of 0.92%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Novanta Inc. is overvalued relative to its fair value price of 31.13 based on EBITDA multiple model

Novanta Inc. has an EV/EBITDA ratio of 37.87x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Novanta Inc. is overvalued relative to its fair value price of 67.97 based on Earnings Fair Value model

Novanta Inc. has a PEG-ratio over 1 which is considered overvalued

Novanta Inc. has a price-to-book ratio of 4.16x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Novanta Inc. has a price-to-sales ratio of 6.53x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue