Novanta Profitability Analysis
| NOVT Stock | USD 173.43 3.64 2.14% |
Net Income | First Reported 1999-03-31 | Previous Quarter 13.8 M | Current Value 19.2 M | Quarterly Volatility 22.2 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.32 | 0.4332 |
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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.
Novanta |
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 Return On Asset vs. Return On Equity 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 considered to be number one stock in return on equity category among its peers. It is regarded fourth in return on asset category among its peers reporting about 0.62 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Novanta is roughly 1.62 . At this time, Novanta's Return On Equity 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 Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Novanta |
| = | 0.0867 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Novanta |
| = | 0.0535 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Novanta Return On Asset Comparison
Novanta is currently under evaluation in return on asset 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -24 M | -22.8 M | |
| Operating Income | 110.5 M | 116 M | |
| Income Before Tax | 83.7 M | 87.9 M | |
| Total Other Income Expense Net | -26.7 M | -28.1 M | |
| Net Income | 72.9 M | 76.5 M | |
| Income Tax Expense | 10.9 M | 11.4 M | |
| Net Income Applicable To Common Shares | 85.2 M | 89.4 M | |
| Net Income From Continuing Ops | 75.6 M | 42.3 M | |
| Non Operating Income Net Other | -273.6 K | -259.9 K | |
| Interest Income | 10.7 M | 7.5 M | |
| Net Interest Income | -25.6 M | -24.3 M | |
| Change To Netincome | 8.7 M | 8.9 M | |
| Net Income Per Share | 2.03 | 2.13 | |
| Income Quality | 1.50 | 0.82 | |
| 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.
Novanta Profitability Trends
Novanta profitability trend refers to the progression of profit or loss within a business. An upward trend means that Novanta's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Novanta's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Novanta Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Novanta different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Novanta in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Novanta's future profitability.
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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.