Novanta (MEX:NOVTN) ROCE %: 7.61% (As of Mar. 2026)

What is Novanta ROCE %?

Novanta MEX:NOVTN 81 ROCE % is 7.61% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Novanta's annualized ROCE % for the quarter that ended in Mar. 2026 was 7.61%.

Novanta (MEX:NOVTN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Novanta ROCE % Related Terms

Novanta ROCE % Historical Data

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The historical data trend for Novanta's ROCE % 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.

Novanta ROCE % Chart

Novanta Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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9.26

9.88

10.61

11.81

7.76

Novanta Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															9.65	8.22	8.50	8.36	7.61

81GF Score

Novanta Inc MEX:NOVTN

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Novanta ROCE % Calculation

Novanta's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	2100.617	/	( ( (28958.369 - 3499.399)	+	(32538.209 - 3823.816) )	/ 2 )
	=	2100.617	/	( (25458.97	+	28714.393)	/ 2 )
	=	2100.617	/	27086.6815
	=	7.76 %

Novanta's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	2174.312	/	( ( (32538.209 - 3823.816)	+	(32441.819 - 3981.476) )	/ 2 )
	=	2174.312	/	( ( 28714.393	+	28460.343 )	/ 2 )
	=	2174.312	/	28587.368
	=	7.61 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 7.61% mean?

Novanta (MEX:NOVTN) has a ROCE % of 7.61% as of Mar. 2026.

Is Novanta's ROCE % too high?

Novanta's current ROCE % is 7.61%. The Hardware industry median ROCE % is 5.83. Novanta's value of 7.61% is 30.6% above this industry median. 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 ROCE % compare to ST and VNT?

Novanta's ROCE % of 7.61% can be compared against companies in the Hardware industry. The industry median ROCE % is 5.83. Novanta's value of 7.61% is 30.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Hardware company?

The median ROCE % among Hardware companies is 5.83, based on 2,444 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novanta's current ROCE % of 7.61% is 30.6% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Hardware industry, the median ROCE % is 5.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novanta's current ROCE % is 7.61%. 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 ROCE % is 7.61% and 30.6% above the Hardware industry median of 5.83. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Novanta (MEX:NOVTN), the current ROCE % is 7.61% 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:

ROCE %: 7.61%
GF Value™: MXN2,746.60 vs. price of MXN2,717.80 (1% below fair value)
GF Score™: 81/100 with 7 warning signs
Industry Position: 30.6% above the Hardware median

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 Business Description

Industry Technology Hardware

Comparable Companies ST VNT ESE ITRI BMI VPG ITRN MLAB CGNX AERG TSE:6861 COHR KEYS GRMN TPE:2360 TDY OSTO:HEXA B MKSI FTV TRMB

Other Exchanges NOVT:USA 0VAG:UK 1GSN:Germany

Address 125 Middlesex Turnpike, Bedford, MA, USA, 01730

Website https://www.novanta.com

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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MXN2,717.80

Price

MXN2,746.60

GF Value

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