Latest Ratios: P/E Ratio 43.2x · EV/EBITDA 12.5x · ROE 4.1%. (2025–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 |
|---|---|---|
| Market Cap | $2.3B | — |
| Enterprise Value | $2.2B | — |
| P/E Ratio → | 43.23 | — |
| P/S Ratio | 2.31 | — |
| P/B Ratio | 1.77 | — |
| P/FCF | 46.73 | — |
| P/OCF | 35.33 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 |
|---|---|---|
| EV / Revenue | — | — |
| EV / EBITDA | 12.45 | — |
| EV / EBIT | 19.06 | — |
| EV / FCF | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 |
|---|---|---|
| Gross Margin | 41.6% | 41.6% |
| Operating Margin | 11.9% | 11.9% |
| Net Profit Margin | 5.5% | 5.5% |
| Metric | TTM | FY 2025 |
|---|---|---|
| ROE | 4.1% | 4.1% |
| ROA | 3.0% | 3.0% |
| ROIC | 6.9% | 6.9% |
| ROCE | 7.3% | 7.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 |
|---|---|---|
| Debt / Equity | 0.26 | 0.26 |
| Debt / EBITDA | 1.91 | 1.91 |
| Net Debt / Equity | — | -0.03 |
| Net Debt / EBITDA | -0.22 | -0.22 |
| Debt / FCF | — | -0.81 |
| Interest Coverage | 5.43 | 5.43 |
Net cash position: cash ($381M) exceeds total debt ($342M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 |
|---|---|---|
| Current Ratio | 3.69 | 3.69 |
| Quick Ratio | 2.80 | 2.80 |
| Cash Ratio | 1.79 | 1.79 |
| Asset Turnover | — | 0.54 |
| Inventory Turnover | 3.04 | 3.04 |
| Days Sales Outstanding | — | 68.82 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 |
|---|---|---|
| Dividend Yield | — | — |
| Payout Ratio | — | — |
| Metric | TTM | FY 2025 |
|---|---|---|
| Earnings Yield | 2.3% | — |
| FCF Yield | 2.1% | — |
| Buyback Yield | 1.7% | — |
| Total Shareholder Yield | 1.7% | — |
| Shares Outstanding | — | $37M |
Inorganic integration and execution
Based on reported figures, NOVTU trades at a trailing P/E of 45.19, which appears to command a significant premium relative to traditional industrial hardware peers, suggesting that investors are pricing in the company's structural integration into long-cycle medical robotics platforms rather than its cyclical industrial laser exposure.
The valuation multiple suggests the market views NOVTU as a specialized MedTech provider rather than a commodity component manufacturer. However, investors should monitor whether this premium is sustainable if the company fails to demonstrate consistent organic growth beyond its acquisition-led strategy.
According to quarterly financial data, NOVTU's ROIC has remained in a narrow range between 1.0% and 2.2% over the last ten quarters, indicating that the company's aggressive acquisition strategy is currently diluting the efficiency of its invested capital base relative to historical performance.
The low ROIC figures suggest that the significant goodwill and intangible assets added through acquisitions are not yet generating returns that exceed the company's cost of capital. This warrants further investigation into whether the acquired units are achieving the expected operational synergies or if integration fatigue is suppressing returns.
As reported in recent financial statements, the company's cash conversion cycle reached 120 days in 2026Q1, reflecting a persistent reliance on high inventory buffers to meet the stringent delivery requirements of medical OEM customers, which exerts ongoing pressure on the firm's short-term liquidity position.
The elevated DIO and CCC metrics suggest that NOVTU must maintain substantial working capital to support its 'pseudo-recurring' revenue model. While this inventory strategy secures design wins, it also ties up significant cash, limiting the company's operational agility during periods of supply chain volatility.
Based on a comparison with industry peers like IPG Photonics and MKS Instruments, NOVTU's net margin of 5.5% and ROE of 5.1% highlight a structural gap, as the company's high-touch engineering model requires significantly more overhead than the more standardized manufacturing processes of its direct competitors.
The performance gap appears to be a function of NOVTU's deliberate pivot toward high-complexity medical markets, which carry higher R&D and integration costs. Investors should distinguish between these structural costs and potential operational inefficiencies when benchmarking against pure-play industrial hardware firms.
The most commonly misapplied metric for NOVTU is the GAAP net margin, which, at 5.49%, obscures the underlying cash-generating capacity of the business by including significant non-cash charges related to the amortization of intangible assets from the company's frequent and aggressive acquisition-led growth strategy.
Analysts should instead focus on adjusted EBITDA or free cash flow margins to better understand the core earning power of the business. Relying on GAAP net income may lead to an overly pessimistic view of the company's profitability, as it fails to account for the non-recurring nature of acquisition-related accounting adjustments.
Includes 30+ ratios · 1 years · Updated daily
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Quick answers to the most common questions about buying NOVTU stock.
Novanta Inc. Tangible Equity Units's current P/E ratio is 43.2x. This places it at the 50th percentile of its historical range.
Novanta Inc. Tangible Equity Units's current EV/EBITDA is 12.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
Novanta Inc. Tangible Equity Units's return on equity (ROE) is 4.1%. The historical average is 4.1%.
Based on historical data, Novanta Inc. Tangible Equity Units is trading at a P/E of 43.2x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Novanta Inc. Tangible Equity Units has 41.6% gross margin and 11.9% operating margin. Operating margin between 10-20% is typical for established companies.
Novanta Inc. Tangible Equity Units's Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.