Novanta Operating Margin vs. Price To Book

NOVT Stock  USD 170.40  2.11  1.25%   
Based on the key profitability measurements obtained from Novanta's financial statements, Novanta is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Novanta's ability to earn profits and add value for shareholders.

Novanta Operating Profit Margin

0.13

At this time, Novanta's Price To Sales Ratio is comparatively stable compared to the past year. Days Sales Outstanding is likely to gain to 78.43 in 2024, whereas Sales General And Administrative To Revenue is likely to drop 0.0009 in 2024. At this time, Novanta's Operating Income is comparatively stable compared to the past year. Income Before Tax is likely to gain to about 87.9 M in 2024, whereas Net Income From Continuing Ops is likely to drop slightly above 42.3 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.320.4536
Way Down
Very volatile
For Novanta profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Novanta to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Novanta utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Novanta's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Novanta over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
For more information on how to buy Novanta Stock please use our How to Invest in Novanta guide.
Is Electronic Equipment, Instruments & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Novanta. If investors know Novanta will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Novanta listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.10)
Earnings Share
1.66
Revenue Per Share
25.689
Quarterly Revenue Growth
0.103
Return On Assets
0.0535
The market value of Novanta is measured differently than its book value, which is the value of Novanta that is recorded on the company's balance sheet. Investors also form their own opinion of Novanta's value that differs from its market value or its book value, called intrinsic value, which is Novanta's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Novanta's market value can be influenced by many factors that don't directly affect Novanta's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Novanta's value and its price as these two are different measures arrived at by different means. Investors typically determine if Novanta is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Novanta's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Novanta Price To Book vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Novanta's current stock value. Our valuation model uses many indicators to compare Novanta value to that of its competitors to determine the firm's financial worth.
Novanta is regarded fourth in operating margin category among its peers. It is regarded third in price to book category among its peers fabricating about  57.09  of Price To Book per Operating Margin. At this time, Novanta's Operating Profit Margin is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Novanta by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Novanta Price To Book vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Novanta

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.14 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Novanta

P/B

 = 

MV Per Share

BV Per Share

 = 
8.19 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

Novanta Price To Book Comparison

Novanta is currently under evaluation in price to book category among its peers.

Novanta Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Novanta, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Novanta will eventually generate negative long term returns. The profitability progress is the general direction of Novanta's change in net profit over the period of time. It can combine multiple indicators of Novanta, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-24 M-22.8 M
Operating Income110.5 M116 M
Income Before Tax83.7 M87.9 M
Total Other Income Expense Net-26.7 M-28.1 M
Net Income72.9 M76.5 M
Income Tax Expense10.9 M11.4 M
Net Income Applicable To Common Shares85.2 M89.4 M
Net Income From Continuing Ops75.6 M42.3 M
Non Operating Income Net Other-273.6 K-259.9 K
Interest Income10.7 M7.5 M
Net Interest Income-25.6 M-24.3 M
Change To Netincome8.7 M8.9 M
Net Income Per Share 2.03  2.13 
Income Quality 1.65  1.73 
Net Income Per E B T 0.87  0.66 

Novanta Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Novanta. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Novanta position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Novanta's important profitability drivers and their relationship over time.

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Correlation Analysis

Reduce portfolio risk simply by holding instruments which are not perfectly correlated
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Alcohol
Alcohol Theme
Companies involved in production and distribution of wines and alcoholic beverages. The Alcohol theme has 37 constituents at this time.
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Additional Tools for Novanta Stock Analysis

When running Novanta's price analysis, check to measure Novanta's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Novanta is operating at the current time. Most of Novanta's value examination focuses on studying past and present price action to predict the probability of Novanta's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Novanta's price. Additionally, you may evaluate how the addition of Novanta to your portfolios can decrease your overall portfolio volatility.