Is NOVANTA INC (NOVT) Halal?

NASDAQ Technology United States $4.0B
✓ HALAL
Confidence: 95/100
NOVANTA INC (NOVT) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 6.4% against the AAOIFI threshold of 30%, NOVANTA INC comfortably passes the key financial ratio tests. The company operates in the Technology sector (Scientific & Technical Instruments), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 6.4%
/ 30%
8.1%
/ 30%
4.1%
/ 30%
2.61%
/ 5%
✓ HALAL
DJIM 6.4%
/ 33%
8.1%
/ 33%
4.1%
/ 33%
2.61%
/ 5%
✓ HALAL
MSCI 16.7%
/ 33%
21.1%
/ 33%
10.7%
/ 33%
2.61%
/ 5%
✓ HALAL
S&P 6.4%
/ 33%
8.1%
/ 33%
4.1%
/ 33%
2.61%
/ 5%
✓ HALAL
FTSE 16.7%
/ 33%
21.1%
/ 33%
10.7%
/ 50%
2.61%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
77.0
Forward: 27.8
EPS
$1.47
P/B Ratio
3.1
EV/EBITDA
22.2
EV: $4.0B
Revenue
$981M
Growth: 8.5%
Beta
1.6
High volatility
Current Ratio
3.7

Profitability

Gross Margin 44.4%
Operating Margin 11.7%
Net Margin 5.5%
Return on Equity (ROE) 5.2%
Return on Assets (ROA) 4.5%

Cash Flow & Balance Sheet

Operating Cash Flow$64M
Free Cash Flow$48M
Total Debt$302M
Debt-to-Equity23.0
Current Ratio3.7
Total Assets$1.8B

Price & Trading

Last Close$118.49
50-Day MA$132.98
200-Day MA$121.53
Avg Volume452K
Beta1.6
52-Week Range
$98.27
$149.95

About NOVANTA INC (NOVT)

CEO
Mr. Matthijs Glastra
Employees
3,000
Sector
Technology
Industry
Scientific & Technical Instruments
Country
United States
Exchange
NASDAQ
Market Cap
$4.0B
Currency
USD

Novanta Inc., together with its subsidiaries, provides precision medicine, precision manufacturing, medical solutions, robotics and automation solutions, and advanced surgery solutions in the United States and internationally. The company operates Automation Enabling Technologies and Medical Solutions segments. The Precision Medicine and Manufacturing segment designs, manufactures, and markets laser beam steering and scanning solutions, laser sources, robotic and precision motion, robotic end-of-arm tooling, and bearing spindles. This segment serves advanced industrial processes, advanced industrial and medical robotics, other medical and life science automation applications, and medical laser procedures, such as ophthalmology applications. The Medical Solutions segment provides a range of medical grade technologies, including medical insufflators, pumps, and related disposables; imaging, identification and RFID solutions; advanced motion control solutions; and light engines, and integrated operating room technologies. The company was formerly known as GSI Group, Inc. and changed its name to Novanta Inc. in May 2016. Novanta Inc. was incorporated in 1968 and is based in Bedford, Massachusetts.

Purification Calculator

As a halal stock with 2.61% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is NOVANTA INC (NOVT) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), NOVANTA INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is NOVANTA INC's debt ratio?

NOVANTA INC's debt ratio is 6.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 16.7%.

Does NOVANTA INC require dividend purification?

Yes, NOVANTA INC has an impermissible income ratio of 2.61%, which means 2.61% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are NOVANTA INC's key financial metrics?

NOVANTA INC has a market capitalization of $4.0B, trailing P/E ratio of 77.0, and revenue of $981M. The company maintains a gross margin of 44.4% and a net margin of 5.5%. Return on equity stands at 5.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.