Novanta: The Solution To Elevated Expectations Is Lower Prices

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Skip to contentHome page Seeking Alpha - Power to InvestorsSep. 29, 2025 5:13 PM ETNovanta Inc. (NOVT) StockNOVTThe Value InvestorInvesting Group LeaderSummaryNovanta Inc. remains a trusted technology partner for OEMs, but recent growth has been modest and organic performance underwhelming.Despite a strong track record and niche positioning, Novanta trades at a demanding 30x earnings multiple, currently posting quite flattish growth.Recent results show minimal sales and earnings growth, while NOVT leverage is set to rise due to a $200 million buyback program.I remain on the sidelines, seeking a lower entry point and a higher earnings yield to justify NOVT stock's premium and ensure a margin of safety.Looking for a helping hand in the market? Members of Value In Corporate Events get exclusive ideas and guidance to navigate any climate. Learn More »Luis Alvarez/DigitalVision via Getty ImagesEarly in April, I called Novanta Inc. (NASDAQ:NOVT) a trusted, yet premium technology partner. The company claims to be a crucial technology partner to OEMs, and while it has a sound track record, growth in recentMore on my IG serviceIf you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service we cover major earnings events, M&A, IPOs and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!This article was written byThe Value Investor27.2K FollowersThe Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events.As the leader of the investing group Value In Corporate Events they provide members with opportunities to capitalize on IPOs, mergers & acquisitions, earnings reports and changes in corporate capital allocation. Coverage includes 10 major events a month with an eye towards finding the best opportunities. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsRecommended For YouAbout NOVT StockSymbolLast Price% Chg1D5D1M6M1Y5Y10YMarket CapRev Growth (YoY)Short InterestPrev. CloseMore on NOVTRelated StocksSymbolLast Price% Chg--1D5D1M6M1Y5Y10YTrending AnalysisTrending NewsSeeking Alpha - Power to InvestorsPower to InvestorsFollow usDownload appContact usSubscription Support: 1-347-509-6837© 2025 Seeking AlphaTo ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.Is this happening to you frequently? Please report it on our feedback forum.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.