Novanta Gross Profit vs. Operating Margin

NOVT Stock  USD 166.20  1.10  0.66%   
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.
 
Gross Profit  
First Reported
1999-03-31
Previous Quarter
96.8 M
Current Value
109.2 M
Quarterly Volatility
24.7 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
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.
  
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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
1.65
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 Operating Margin vs. Gross Profit 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 gross profit category among its peers. It is regarded fourth in operating margin category among its peers . The ratio of Gross Profit to Operating Margin for Novanta is about  2,640,390,516 . At this time, Novanta's Gross Profit 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 Operating Margin vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Novanta

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
378.63 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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.

Novanta Operating Margin Comparison

Novanta is currently under evaluation in operating margin 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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Petroleum and Natural Gas Theme
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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.