Novanta Inc.
- Open
- 145.01
- Day high
- 150.00
- Day low
- 144.04
- Prev close
- 149.67
- Volume
- 338K
- Mkt cap
- $5.3B
- P/E (TTM)
- 106.2
- EPS (TTM)
- $1.40
- P/B
- 4.0
- P/S
- 5.3
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$5.0M over the last 3 months (0 open-market buys, 18 sales)
- 🏛Institutions accumulating (13F)
Novanta Inc. (NOVT) is a Technology company listed on NASDAQ. The stock is up 21% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 18 sales (SEC Form 4).
Novanta Inc. (NOVT) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
NOVT earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 12, 2026 | $0.78 | $0.81 | +3.8% | $258M | +1.7% |
| Feb 25, 2025 | $0.81 | $0.76 | -6.2% | $238M | -2.7% |
| Feb 28, 2024 | $0.63 | $0.63 | +0.0% | $212M | +0.4% |
| Mar 1, 2023 | $0.69 | $0.75 | +8.7% | $218M | +1.3% |
| Mar 1, 2022 | $0.63 | $0.67 | +6.3% | $199M | +3.5% |
| Mar 1, 2021 | $0.43 | $0.53 | +23.3% | $147M | +0.3% |
| Nov 10, 2020 | $0.40 | $0.42 | +5.0% | $143M | +8.3% |
| Aug 6, 2020 | $0.24 | $0.48 | +100.0% | $145M | +37.7% |
| Feb 26, 2020 | $0.54 | $0.55 | +1.9% | $160M | +1.9% |
| Nov 5, 2019 | $0.52 | $0.53 | +1.9% | $154M | +1.9% |
| Aug 6, 2019 | $0.54 | $0.54 | +0.0% | $155M | +0.0% |
| Feb 27, 2019 | $0.52 | $0.56 | +7.7% | $156M | +9.8% |
NOVT insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 7, 2026 | Glastra Matthijsdirector, officer: Chief Executive Officer | Sell | 437 | $163.71 |
| Jul 7, 2026 | Glastra Matthijsdirector, officer: Chief Executive Officer | Sell | 200 | $164.20 |
| Jul 7, 2026 | Glastra Matthijsdirector, officer: Chief Executive Officer | Sell | 3,024 | $160.13 |
| Jul 7, 2026 | Glastra Matthijsdirector, officer: Chief Executive Officer | Sell | 1,672 | $161.28 |
| Jul 7, 2026 | Glastra Matthijsdirector, officer: Chief Executive Officer | Sell | 1,167 | $162.01 |
| Jun 4, 2026 | Glastra Matthijsdirector, officer: Chief Executive Officer | Sell | 38 | $164.61 |
| Jun 4, 2026 | Glastra Matthijsdirector, officer: Chief Executive Officer | Sell | 1,420 | $167.68 |
| Jun 4, 2026 | Glastra Matthijsdirector, officer: Chief Executive Officer | Sell | 500 | $166.19 |
| Jun 4, 2026 | Glastra Matthijsdirector, officer: Chief Executive Officer | Sell | 1,301 | $169.76 |
| Jun 4, 2026 | Glastra Matthijsdirector, officer: Chief Executive Officer | Sell | 2,841 | $168.76 |
| Jun 4, 2026 | Glastra Matthijsdirector, officer: Chief Executive Officer | Sell | 400 | $171.28 |
| May 14, 2026 | Glastra Matthijsdirector, officer: Chief Executive Officer | Sell | 5,079 | $150.00 |
| May 14, 2026 | Glastra Matthijsdirector, officer: Chief Executive Officer | Sell | 2,421 | $151.34 |
| May 7, 2026 | Glastra Matthijsdirector, officer: Chief Executive Officer | Sell | 1,180 | $132.51 |
| May 7, 2026 | Glastra Matthijsdirector, officer: Chief Executive Officer | Sell | 4,275 | $130.59 |
Source: NOVT SEC Form 4 filings, latest Jul 7, 2026. For informational purposes only — not investment advice.
See the full NOVT insider & 13F page →Novanta Inc. company profile
Overview
Novanta Inc. (NASDAQ:NOVT) is a Massachusetts-based technology company founded in 1968 that designs and manufactures precision photonics, vision, and motion control components for medical and industrial applications. Originally known as GSI Group, Inc., the company rebranded to Novanta in 2016 to reflect its focus on innovation and advanced technologies. Today, Novanta serves as a critical supplier to original equipment manufacturers worldwide, providing specialized components that enable everything from laser surgery procedures to DNA sequencing equipment and industrial automation systems.
Business
Novanta operates in the specialized technology sector, providing precision-engineered components and subsystems that enable advanced medical devices and industrial equipment. The company's products are essential building blocks that original equipment manufacturers (OEMs) integrate into their final systems, rather than selling directly to end consumers. The company operates through two primary business segments. Automation Enabling Technologies represents approximately 45% of total sales and focuses on industrial applications including precision manufacturing, robotics, and microelectronics. This segment provides laser scanning systems, CO2 and solid-state lasers, optical encoders, precision motors, servo drives, and motion control solutions. These components are critical for applications like semiconductor manufacturing, industrial laser processing, factory automation, and emerging robotics applications including humanoid robots. Medical Solutions accounts for approximately 55% of sales and serves the healthcare industry with specialized medical-grade technologies. This segment includes medical insufflators and pumps used in minimally invasive surgery, visualization solutions for operating rooms, wireless technologies, video integration systems, optical data collection equipment, radio frequency identification (RFID) technologies, and embedded touch screen solutions. The medical segment also produces consumable products like disposable components for surgical procedures, which provide recurring revenue streams. The company's products enable critical functions across diverse applications. For example, their laser systems power industrial cutting and welding operations, their precision motion components enable robotic movements with microscopic accuracy, and their medical visualization systems help surgeons perform complex procedures. In DNA sequencing, Novanta's optical components help analyze genetic material, while in semiconductor manufacturing, their precision systems enable the production of computer chips.
Revenue model
Novanta generates revenue primarily through product sales to original equipment manufacturers who integrate Novanta's components into their own systems. The company operates on a business-to-business model, selling specialized components and subsystems rather than complete end-user products. The revenue model includes both one-time equipment sales and recurring consumables revenue. In the medical segment, Novanta benefits from a razor-and-blade model where initial equipment sales are followed by ongoing purchases of disposable components used in surgical procedures. This creates predictable recurring revenue streams as hospitals and surgical centers continue to perform procedures using Novanta-enabled equipment. The company's customers include major medical device manufacturers, industrial automation companies, semiconductor equipment makers, and robotics manufacturers. These OEM customers typically engage in long-term design partnerships with Novanta, integrating specific components into their products over multi-year cycles. Several factors influence Novanta's margins and profitability. Positive factors include the company's focus on high-value, precision-engineered products that command premium pricing due to their specialized nature and critical functionality. The medical segment particularly benefits from higher margins due to strict regulatory requirements that create barriers to entry. New product launches typically carry higher margins, and Novanta's "vitality index" measures the percentage of revenue from recently launched products. The company's ongoing implementation of the Novanta Growth System (NGS) focuses on operational efficiency improvements that expand margins. Negative factors include exposure to cyclical industrial markets, particularly microelectronics manufacturing which has experienced significant downturns. Supply chain disruptions and component shortages can impact production costs. Trade tariffs, particularly on Chinese imports, create cost pressures that the company must mitigate through supply chain optimization and regional manufacturing strategies. Reduced government funding, such as NIH budget cuts affecting life sciences research, can impact demand in precision medicine applications. Factory utilization rates significantly impact margins, as lower volumes spread fixed costs across fewer units.
Competitive moat
Novanta's competitive moat stems from several interconnected factors, though it operates in a moderately competitive landscape rather than enjoying an unassailable position. The company's primary moat derives from high switching costs and design-in relationships with OEM customers. Once Novanta's components are integrated into a customer's product design, replacing them requires significant engineering effort, testing, and regulatory approvals, particularly in medical applications where FDA clearances may be required. The company benefits from specialized technical expertise accumulated over decades in precision photonics, motion control, and medical device manufacturing. This knowledge base, combined with extensive intellectual property portfolios across multiple technology domains, creates barriers for new entrants. Novanta's ability to provide integrated solutions rather than just individual components adds value for customers seeking to simplify their supply chains. Regulatory barriers strengthen the moat in medical applications, where products must meet strict FDA and international medical device standards. The time and cost required to achieve these certifications create switching costs and limit competition from less established players. However, Novanta's moat has limitations. The company faces competition from larger industrial conglomerates with greater resources, as well as specialized competitors in each of its technology areas. The cyclical nature of some end markets, particularly industrial capital equipment, creates vulnerability to economic downturns. Additionally, customers' consolidation trends can increase their bargaining power and pressure margins. The company's acquisition strategy aims to strengthen its moat by expanding into higher-growth markets and adding complementary technologies, but integration risks and the need to continuously innovate to maintain technological leadership present ongoing challenges.
Risks & safety
Novanta demonstrates a moderate margin of safety with generally solid financial fundamentals but some valuation concerns. **Financial Strength:** - Cash position: $106 million with minimal cash burn risk - Current ratio: 2.56x indicating strong liquidity - Debt-to-equity ratio: 0.57x representing manageable leverage - Free cash flow: $27.4 million in Q1 2025, demonstrating cash generation ability - Operating cash flow conversion remains healthy at $32 million **Valuation Metrics:** - P/E ratio: 54.8x appears elevated for current growth rates - EV/EBITDA: 28.6x suggests premium valuation - Price-to-book: 6.0x indicates significant premium to tangible assets - Graham number suggests potential overvaluation relative to conservative metrics **Other Considerations:** - Strong balance sheet provides cushion during market downturns - Diversified revenue streams across medical and industrial markets reduce concentration risk - Recurring consumables revenue in medical segment provides stability - Trade tariff exposure creates near-term cost pressures requiring mitigation
Recent development
Over the past several years, Novanta has executed a strategic transformation focused on expanding its presence in high-growth medical markets while optimizing its industrial technology portfolio. The company has significantly increased its medical segment exposure, which now represents 55% of total sales compared to a more balanced split historically. Strategic acquisitions have been central to this transformation. The company completed the Motion Solutions acquisition in early 2024, adding precision motion capabilities. Most recently, Novanta acquired Keonn, an RFID solution provider, to expand its identification and tracking technologies for medical applications. The company maintains an active acquisition pipeline focused on secular growth markets like healthcare and intelligent subsystems. New product development has accelerated dramatically, with Novanta launching 50 new products in 2024 and planning 50% more launches in 2025. The company targets $50 million in incremental revenue from new product launches in 2025, representing a significant growth driver. These launches span multiple areas including minimally invasive surgery technologies, robotics applications, and precision manufacturing solutions. Operational improvements through the Novanta Growth System (NGS) have driven margin expansion, with adjusted gross margins improving from 46% to 49% in the Automation Enabling Technologies segment. The company implemented a $20 million annual cost savings program to enhance profitability and mitigate external cost pressures. Market positioning has evolved toward higher-growth applications, with increased focus on advanced surgery, precision robotics, AI-enabled applications, and consumable medical products that provide recurring revenue streams. The company has also begun addressing emerging markets like humanoid robotics, though this remains a small portion of overall business.
NOVT company profile · for informational purposes only — not investment advice.
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