Stock fact sheet · data as of
Novanta Inc. (NOVT): fair value, margin of safety and Wheel Score
Ticker symbol NOVT · Technology · Hardware, Equipment & Parts · United States · Blend
Is NOVT undervalued?
Novanta Inc. (NOVT) closed at 145.23 on 5 Nov 2026, 261% above the GLS average fair value of 40.22. 8 of the 8 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
There is a wide gap between GLS Growth (7.83) and 10 Cap (67.34). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for NOVT, so the nightly engine files it under Blend (value score 15, growth score 34, out of 100).
Nine valuation models for NOVT
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 41.30 | -72% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 36.55 | -75% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 66.25 | -54% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 27.48 | -81% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 7.83 | -95% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 67.34 | -54% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 58.25 | -60% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 16.73 | -88% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 7.66 | -95% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 194.00 | +34% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Novanta Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. On durability NOVT scores 6.1/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are thin or negative - ROIC 3.3%, ROE 4.1%, ROA 3.0% - with debt at 0.26 times equity and a free-cash-flow yield of 2.1%.
Novanta Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Robotics and Automation 33%, Advanced Surgery 25%, Precision Medicine 23% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 3.3% |
|---|---|---|---|
| GLS Moat | 6.1 / 10 | ROE | 4.1% |
| Debt / equity | 0.26 | ROA | 3.0% |
| Free-cash-flow yield | 2.1% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 37: Weak
With a Wheel Score of 37 Novanta Inc. sits in the Weak band. It fails filter 3, below fair value - trades 261% above our fair value; and filter 5, can repay its debt - 3.9 years to repay its debt (over 3); Value (weak) is its weakest part.
Implied volatility is 58% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 3,380 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 396k shares a day on a market cap of $5.5B, with a beta of 1.71 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 261% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Fails | 3.9 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 261% above fair value | |
| Premium | Strong | implied volatility 58% | |
| Moat | Good | moat 6.1/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Strong | Red Flags score 92/100 | |
| Option trading | Weak | 183 contracts a day, 3,380 open interest | |
| Stability | Fair | beta 1.71, $5.5B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Novanta Inc. reports earnings on 9 Nov 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Hardware, Equipment & Parts
The 12 companies below are the closest to Novanta Inc. by market cap within the Hardware, Equipment & Parts industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PLXS Plexus Corp. | 206.72 | 92.81 | -123% | 38Weak | $5.5B |
| VNT Vontier Corporation | 37.58 | 42.65 | +12% | 47Weak | $5.1B |
| ST Sensata Technologies Holding plc | 41.12 | 40.29 | -2% | 41Weak | $6.0B |
| ESE ESCO Technologies Inc. | 239.86 | 266.11 | +10% | 38Weak | $6.2B |
| ITRI Itron, Inc. | 101.60 | 172.59 | +41% | 82Good | $4.5B |
| VICR Vicor Corporation | 159.07 | 89.88 | -77% | 28Weak | $7.3B |
| OLED Universal Display Corporation | 89.57 | 81.94 | -9% | 37Weak | $4.0B |
| SANM Sanmina Corporation | 143.77 | 152.65 | +6% | 32Weak | $7.7B |
| TTMI TTM Technologies, Inc. | 73.38 | 55.93 | -31% | 30Weak | $7.7B |
| RAL Ralliant Corp | 71.58 | 19.53 | -267% | 38Weak | $7.9B |
| VSH Vishay Intertechnology, Inc. | 25.84 | 18.80 | -37% | 36Weak | $3.7B |
| AEIS Advanced Energy Industries, Inc. | 211.56 | 110.51 | -91% | 36Weak | $8.6B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about NOVT
Is NOVT undervalued right now?
No: at 145.23 the stock trades 261% above the GLS average fair value of 40.22 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of NOVT and what does it mean?
NOVT scores 37 out of 100 (Weak) - it fails Wheel Trade Filters 3, 5. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for NOVT?
40.22 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Novanta Inc. report earnings next?
The next earnings report is due on 9 Nov 2026 (after the close), 4 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does NOVT have listed options, and how liquid are they?
Yes. The nightly snapshot found 92 listed contracts with 3,380 open interest across all expiries and implied volatility of 58% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.