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NOVTU, Novanta Inc. Tangible Equity

Novanta Inc. is a leading global supplier of core technology solutions that give medical, life science, and advanced industrial original equipment manufacturers a competitive advantage.

We combine deep proprietary technology expertise and competencies in precision medicine, precision manufacturing, robotics and automation, and advanced surgery with a proven ability to solve complex technical challenges.

For the year ended December 31, 2025, the medical market accounted for approximately 53% of our revenue.

Latest annual: FY2025 10-K

NOVTU · Novanta Inc. Tangible Equity

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$981M

+3.3% YoY · 11% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $1.0B 5-yr avg $876M

Gross margin 44% 5-yr avg 44%

Operating margin 8.9% 5-yr avg 11.0%

ROIC 6% 5-yr avg 8%

Owner-earnings margin 7% 5-yr avg 10%

Free cash flow margin 7% 5-yr avg 10%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What moves the needle: Gross margin has run about 42% and operating margin about 10% through the cycle, a solid spread between what it charges and what the product costs to make. That margin has held in a narrow 8.6%–13% band over the years, so steadiness itself is the evidence — the lever is unit growth and cost discipline, not a moving line. Inventory runs near 17% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. On its own account, the filing leans hardest on debt terms & refinancing, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has sat near the cost of capital (median 9%). By owner earnings: roughly 10% of revenue reaches owners as cash, consistently. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

47% of revenue comes from outside the United States.

Revenue by geography, FY2025

United States53%$519M
Rest Of Europe14%$137M
Germany12%$115M
Rest Of Asia Pacific10%$97M
China10%$93M
Other Countries2%$19M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMApr 2026
											Income statement
$385M	$521M	$614M	$626M	$591M	$707M	$861M	$882M	$949M	$981M	$1.0B	RevenueRevenue
42%	42%	43%	42%	41%	42%	44%	45%	44%	44%	44%	Gross marginGross mgn
21%	20%	19%	19%	19%	18%	18%	19%	19%	20%	20%	SG&A / revenueSG&A/rev
8%	8%	8%	9%	10%	10%	10%	10%	10%	10%	10%	R&D / revenueR&D/rev
$33M	$58M	$71M	$55M	$56M	$64M	$103M	$110M	$111M	$94M	$89M	Operating incomeOp. inc.
8.6%	11.0%	11.6%	8.8%	9.5%	9.1%	12.0%	12.5%	11.6%	9.6%	8.9%	Operating marginOp. mgn
$22M	$60M	$49M	$41M	$45M	$50M	$74M	$73M	$64M	$54M	$54M	Net incomeNet inc.
32%	19%	17%	11%	8%	10%	15%	13%	19%	23%	23%	Effective tax rateTax rate
											Cash flow & returns
$48M	$63M	$90M	$63M	$140M	$95M	$91M	$120M	$159M	$64M	$84M	Operating cash flowOp. cash
$21M	$31M	$37M	$38M	$38M	$43M	$53M	$47M	$56M	$62M	$63M	DepreciationDeprec.
$519K	($33M)	($4M)	($25M)	$34M	($25M)	($60M)	($25M)	$16M	($81M)	($65M)	Working capital & otherWC & other
$8M	$9M	$15M	$11M	$11M	$20M	$20M	$20M	$17M	$16M	$15M	CapexCapex
2.2%	1.7%	2.4%	1.7%	1.8%	2.8%	2.3%	2.3%	1.8%	1.6%	1.5%	Capex / revenueCapex/rev
$39M	$54M	$75M	$53M	$130M	$75M	$71M	$100M	$141M	$48M	$68M	Owner earningsOwner earn.
10.2%	10.4%	12.2%	8.4%	22.0%	10.6%	8.3%	11.4%	14.9%	4.9%	6.8%	Owner earnings marginOE mgn
$39M	$54M	$75M	$53M	$130M	$75M	$71M	$100M	$141M	$48M	$68M	Free cash flowFCF
10.2%	10.4%	12.2%	8.4%	22.0%	10.6%	8.3%	11.4%	14.9%	4.9%	6.8%	Free cash flow marginFCF mgn
$9M	$168M	$34M	—	—	—	—	—	—	—	$34M	AcquisitionsAcquis.
$2M	$370K	$6M	$10M	$6M	—	$10M	—	—	$39M	—	BuybacksBuybacks
8%	10%	12%	9%	9%	7%	10%	10%	9%	6%	6%	ROICROIC
8%	19%	13%	10%	9%	10%	13%	11%	9%	4%	4%	Return on equityROE
8%	19%	13%	10%	9%	10%	13%	11%	9%	4%	4%	Retained to equityRetained/eq
											Balance sheet
$68M	$100M	$82M	$79M	$125M	$117M	$100M	$105M	$114M	$381M	$389M	Cash & investmentsCash+inv
$64M	$81M	$84M	$91M	$75M	$116M	$138M	$139M	$151M	$185M	$174M	ReceivablesReceiv.
$60M	$91M	$105M	$117M	$93M	$126M	$168M	$149M	$145M	$188M	$193M	InventoryInvent.
$32M	$40M	$51M	$53M	$43M	$69M	$75M	$57M	$77M	$95M	$96M	Accounts payablePayables
$91M	$133M	$138M	$155M	$125M	$173M	$230M	$232M	$219M	$278M	$271M	Operating working capitalOper. WC
$199M	$288M	$282M	$305M	$304M	$374M	$421M	$415M	$434M	$783M	$787M	Current assetsCur. assets
$70M	$98M	$104M	$135M	$114M	$184M	$165M	$139M	$168M	$212M	$221M	Current liabilitiesCur. liab.
2.8×	2.9×	2.7×	2.3×	2.7×	2.0×	2.6×	3.0×	2.6×	3.7×	3.6×	Current ratioCurr. ratio
$108M	$211M	$218M	$275M	$286M	$480M	$479M	$485M	$584M	$647M	$643M	GoodwillGoodwill
$426M	$727M	$720M	$870M	$865M	$1.2B	$1.2B	$1.2B	$1.4B	$1.8B	$1.8B	Total assetsAssets
$78M	$235M	$207M	$220M	$200M	$434M	$435M	$354M	$417M	$251M	$241M	Total debtDebt
$10M	$135M	$125M	$141M	$75M	$317M	$335M	$249M	$303M	($130M)	($147M)	Net debt / (cash)Net debt
$259M	$312M	$368M	$417M	$477M	$521M	$578M	$673M	$746M	$1.3B	$1.3B	Shareholders’ equityEquity
1.1%	1.1%	1.3%	1.5%	3.9%	3.6%	2.7%	2.9%	2.5%	3.0%	3.2%	Stock comp / revenueSBC/rev
											Per share
34.9M	35.3M	35.5M	35.5M	35.7M	35.8M	35.9M	36.0M	36.1M	36.7M	41.2M	Shares out (diluted)Shares
$11.02	$14.78	$17.32	$17.61	$16.57	$19.75	$23.97	$24.47	$26.28	$26.72	$24.42	Revenue / shareRev/sh
$0.63	$1.70	$1.38	$1.15	$1.25	$1.41	$2.06	$2.02	$1.77	$1.47	$1.31	EPS (diluted)EPS
$1.13	$1.54	$2.11	$1.48	$3.64	$2.09	$1.98	$2.78	$3.91	$1.32	$1.66	Owner earnings / shareOE/sh
$1.13	$1.54	$2.11	$1.48	$3.64	$2.09	$1.98	$2.78	$3.91	$1.32	$1.66	Free cash flow / shareFCF/sh
$0.24	$0.26	$0.41	$0.30	$0.30	$0.56	$0.55	$0.55	$0.48	$0.43	$0.38	Cap. spending / shareCapex/sh
$7.41	$8.83	$10.38	$11.74	$13.37	$14.57	$16.08	$18.69	$20.64	$35.81	$31.85	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+10.3%/yr	+10.0%/yr
Owner earnings / share	+1.8%/yr	−18.4%/yr
EPS	+9.8%/yr	+3.3%/yr
Capital spending / share	+6.5%/yr	+7.6%/yr
Book value / share	+19.1%/yr	+21.8%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

37Mpeak FY2025

ROIC

6%low FY2025

Gross margin

44%low FY2020

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$48Mowner earningsvs.$54Mnet incomelow FY2016

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business reported $54M of profit but $48M of owner earnings: $5M less than the profit line, taken out by capital spending and the timing of cash.

Reported net income$54M

Owner earnings$48M · 5% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$54M	$64M	$73M	$74M	$50M
Depreciation & amortizationnon-cash charge added back	+$62M	+$56M	+$47M	+$53M	+$43M
Stock-based compensationreal costnon-cash, but a real cost	+$30M	+$23M	+$26M	+$23M	+$26M
Working capital & othertiming of cash in and out, other non-cash items	−$81M	+$16M	−$25M	−$60M	−$25M
Cash from operations	$64M	$159M	$120M	$91M	$95M
Capital expenditurecash put back in to keep running and to grow	−$16M	−$17M	−$20M	−$20M	−$20M
Owner earnings	$48M	$141M	$100M	$71M	$75M
Owner-earnings marginowner earnings ÷ revenue	5%	15%	11%	8%	11%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $30M), owner earnings is nearer $19M.

Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 7.2×

Comfortable

Operating income $94M ÷ interest expense $13M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +$130M

Net cash

Cash $381M − debt $251M

What this means
Cash and short-term investments exceed every dollar of debt by $130M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 131d

Long (60+ days)

DSO 69 + DIO 126 − DPO 63 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 9%

Solid through the cycle

10-yr median, range 6%–12%; 6% latest = NOPAT $73M ÷ invested capital $1.2B

Industry peers: median 3%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 6% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 10%

Solid through the cycle

10-yr median margin, range 5%–22%; latest $48M = operating cash $64M − maintenance capex $16M

Industry peers: median 6%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 5% of revenue this year, a 10% median across 10 years. Treating stock comp as the real expense it is (less $30M of SBC) leaves $19M.
Are earnings backed by cash? 1.19×

Cash-backed

Cash from ops $64M ÷ net income $54M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 81%

Returns about half

Dividends + buybacks $39M ÷ Owner Earnings $48M

What this means
Of $48M Owner Earnings, $39M (81%) went back to shareholders, $0 dividends, $39M buybacks. Net of $30M stock comp, the real buyback was about $10M. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.25×

Harvesting

Capex $16M ÷ depreciation $62M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 4 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $981M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 3.69×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $251M vs $570M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Pass

A profit every year (10-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +45%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $1.79/share (latest year $1.51), the averaged base the calculator's gate runs on, and book value is $36.91/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 10 of 10

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Return on capital ≥ 15% 0 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 10% → 11% (3-yr avg ends)

What this means
Through the cycle the operating margin held roughly steady — about 10% early, 11% lately, median 10%.
Reinvestment, incremental ROIC 7%

What this means
Reinvested capital came back at only a modest incremental return — near the cost of capital, where extra growth adds little per dollar. The record shows whether it is a soft stretch or a thinning moat.
Owner earnings growth +8%/yr

What this means
Owner earnings grew about 8% a year over the record.
Worst year 2016 · 8.6% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count +0.6%/yr

What this means
Roughly flat share count, little dilution, little buyback.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Apr 3, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$787M

Cash & short-term investments$389M
Receivables$174M
Inventory$193M
Other current assets$31M

Current liabilities$221M

Debt due within a year$40M
Accounts payable$96M
Other current liabilities$84M

Current ratio3.56×all current assets ÷ what's due · Graham looked for 2×

Quick ratio2.69×stricter: inventory excluded

Cash ratio1.76×strictest: cash alone against what's due

Working capital$566Mthe cushion left after near-term bills

Debt due this year vs. cash$40M due · $389M cash covered by cash on hand, no refinancing forced · both figures from the Apr 3, 2026 balance sheet

Revenue, latest quarter vs. a year ago+10.4%the freshest read on whether the business is still growing

Current ratio, recent quarters2.8× → 3.6×

Deeper floors

Tangible book value$497Mequity stripped of goodwill & intangibles

Net current asset value$299MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$288M$47M of it operating leases

Deferred revenue$16Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $932M of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.

Reinvested$146M · 16%
Buybacks$73M · 8%
Retained (debt / cash)$714M · 77%

Returned to owners$73M
9% of the owner earnings the business produced over the span, $0 as dividends and $73M as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span debt rose $164M and cash and short-term investments rose $321M.
Average price paid for buybacks$26.43
Across the years where the filing reports a share count, 0M shares were bought for $370K, about $26.43 each.
Net change in share count17.9%
The diluted count rose from 35M to 41M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Return on what it retained9%
Of the earnings it kept rather than paid out ($459M over the span), annual owner earnings (first three years vs last three) grew $40M, so each retained $1 added about 0.09 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$828M46% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity49%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$211Mover 10 years buying other businesses, against $146M of capital spent building

None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Matthijs Glastra	$12.4M	$24.5M	$75M
2022	Matthijs Glastra	$7.3M	$2.8M	$71M
2023	Matthijs Glastra	$8.3M	$14.4M	$100M
2024	Matthijs Glastra	$8.8M	−$260k	$141M
2025	Matthijs Glastra	$10.0M	$2.4M	$48M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership1.2%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio186:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$30M
The slice of the business handed to employees in shares this year, 3% of revenue, equal to 31% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Novanta Inc. Tangible Equity is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

2 of the 6 tests turned up something to look into; the other 4 came back clean.

Look hereDid the share count rise anyway?17.9%
Diluted shares grew 17.9% over 2016–2025, even as the company spent $73M on buybacks. The repurchases were a treadmill: stock issued to staff outran them, so owners' slice still shrank. Read the buyback line beside this one, not on its own.
Look hereDid debt outgrow the business?$78M → $241M
Debt rose from $78M to $241M while owner earnings went from about $56M to $97M — about 1.4 years of owner earnings in debt then, about 2.5 now: measured against what the business earns, the balance sheet carries more debt than it did. Debt raised for buybacks or deals rather than growth is the kind that bites in a downturn.

And these came back clean

Is it less profitable than it was?
Did reported profit become cash?
Did receivables and inventory outpace sales?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Income taxes, Acquisitions, Stock compensation as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Electrical Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
ENSEnerSys	$3.8B	31%	12.1%	10%	11%
ENREnergizer Holdings	$3.0B	39%	11.4%	9%	10%
ATKRAtkore	$2.9B	28%	13.6%	20%	12%
SPBSpectrum Brands Holdings	$2.8B	34%	3.8%	3%	6%
FLNCFluence Energy Inc.	$2.3B	4%	-5.0%	-32%	-6%
ADTNADTRAN Holdings Inc.	$1.1B	39%	-4.9%	-5%	-1%
NOVTUNovanta Inc. Tangible Equity	$981M	43%	10.3%	9%	10%
MVSTMicrovast Holdings Inc.	$428M	10%	-34.8%	-30%	-9%
Group median	—	32%	7.1%	6%	8%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Novanta Inc. Tangible Equity has delivered.

Today’s price $

Through the cycle, Novanta Inc. Tangible Equity earns about $103M on its 10.5% median owner-earnings margin. This year’s 4.9% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($103M) Net of stock comp (−$32M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+7%/yr

Owner-earnings growth · ’16→’25+8%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $68M on 36M shares outstanding, per the 10-Q cover, as of 2026-05-04; net cash $147M. The if-converted diluted count is 41M, 16% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh NOVTU against another business →

The owners of NOVTU: the meeting and the votes →

Cite: Owner Scorecard, "Novanta Inc. Tangible Equity (NOVTU), the owner's record," https://ownerscorecard.com/c/NOVTU, data as of 2026-07-09.

Manual order: ← NOVT its page in the Manual NOW →

Industry order: ← NOVT the Electrical Equipment chapter NRGV →