NovantaMEX:NOVTN 81 Gross Margin % is 44.07% as of Mar. 2026, which is 4% above its 10-year median of 42.53. GuruFocus rates MEX:NOVTN with a GF Score™ of 81/100 and a GF Value™ of MXN2,746.60 (Fairly Valued). The stock has 7 warning signs investors should review. Among 2,449 Hardware companies, Novanta ranks better than 81.99% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Novanta's Gross Profit for the
three
months ended in Mar. 2026 was MXN2,048 Mil. Novanta's Revenue for the
three
months ended in Mar. 2026 was MXN4,647 Mil. Therefore, Novanta's Gross Margin % for the quarter that ended in Mar. 2026 was 44.07%.
The historical rank and industry rank for Novanta's Gross Margin % or its related term are showing as below:
MEX:NOVTN'
s Gross Margin % Range Over the Past 10 Years
Min: 41.4 Med: 42.53 Max: 45.36
Current: 44.23
During the past 13 years, the highestGross Margin % of Novanta was 45.36%. The lowest was 41.40%. And the median was 42.53%.
MEX:NOVTN's Gross Margin % is ranked better than 81.99% of 2449
companies
in the Hardware industry
Industry Median: 24.52
vs MEX:NOVTN: 44.23
Novanta had a gross margin of 44.07% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Novanta was 1.50% per year.
Novanta (MEX:NOVTN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Novanta had a gross margin of 44.07% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Novanta Gross Margin % Related Terms
Novanta Gross Margin % Historical Data
* Premium members only.
The historical data trend for Novanta's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:NOVTN vs ST, VNT, ESE: Gross Margin % Comparison
For the Scientific & Technical Instruments subindustry, Novanta's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Novanta Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Novanta's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Novanta's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Novanta (MEX:NOVTN) has a Gross Margin % of 44.07% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Novanta and its competitors. This is near median its historical median of 42.53. Over the past decade, Novanta's Gross Margin % has ranged from 41.40 to 45.36. According to the industry distribution chart, Novanta ranks #441 out of 2449 companies in the Hardware industry, placing it in the top 18%.
Is Novanta's Gross Margin % too high?
Novanta's current Gross Margin % of 44.07% is near median its 10-year median of 42.53. Over the past 10 years, this metric has ranged from a low of 41.40 to a high of 45.36. The Hardware industry median Gross Margin % is 24.52. Novanta's value of 44.07% is 79.7% above this industry median. Based on the distribution chart, Novanta ranks #441 out of 2449 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Novanta has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Novanta's Gross Margin % compare to ST and VNT?
According to the Hardware industry distribution chart, Novanta ranks #441 out of 2449 companies for Gross Margin %. This places Novanta in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.52. Novanta's value of 44.07% is 79.7% above this benchmark. Historically, Novanta's own Gross Margin % has ranged from 41.40 to 45.36 over the past decade. While the company's 10-year median is 42.53 vs. the industry median of 24.52, Novanta has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.52, based on 2,449 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novanta's current Gross Margin % of 44.07% is 79.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Novanta and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novanta's current Gross Margin % is 44.07%, which is near median its own 10-year median of 42.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novanta stock overvalued right now?
Based on GuruFocus' analysis, Novanta (MEX:NOVTN) is currently considered Fairly Valued. The stock's GF Value™ is MXN2,746.60, compared to a current price of MXN2,717.80 — trading 1% below its estimated fair value. The current Gross Margin % is 44.07%, which is near median its 10-year median of 42.53 and 79.7% above the Hardware industry median of 24.52. Novanta's overall GF Score™ is 81/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Novanta (MEX:NOVTN), the current Gross Margin % is 44.07% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Novanta (MEX:NOVTN) Overvalued in 2026?
Based on GuruFocus' analysis, Novanta stock appears to be undervalued.
The current stock price of MXN2,717.80 is trading 1% below its estimated GF Value™ of MXN2,746.60.
GuruFocus considers Novanta to be Fairly Valued.
Key valuation signals for MEX:NOVTN:
Gross Margin %: 44.07% (near median its 10-year median of 42.53)
GF Value™: MXN2,746.60 vs. price of MXN2,717.80 (1% below fair value)
Industry Position: 79.7% above the Hardware median (#441 of 2449)
No single metric tells the full story. See the MEX:NOVTN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Novanta Inc supplies core technology solutions to medical, life science, and advanced industrial OEMs, leveraging proprietary expertise in precision medicine, precision manufacturing, robotics and automation, and advanced surgery. It has two segments: Automation Enabling Technologies and Medical Solutions. Automation Enabling Technologies, which generates the majority of revenue, provides laser beam steering and scanning solutions, laser sources, and robotic and precision motion technologies. The Medical Solutions segment provides medical-grade technologies, including medical insufflators, endoscopic pumps, and integrated operating room technologies. The company operates in the United States, Germany, and other markets, with revenue generated from the United States.
81GF Score
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