Enovis CORP (NYSE: ENOV)

Sector: Healthcare Industry: Medical Devices CIK: 0001420800
Market Cap 1.22 Bn
P/B 0.60
P/E -0.89
P/S 0.54
ROIC (Qtr) -34.75
Div Yield % 0.00
Rev 1y % (Qtr) 8.65
Total Debt (Qtr) 1.42 Bn
Debt/Equity (Qtr) 0.70
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About

Enovis Corporation, a prominent player in the medical technology industry, operates under the ticker symbol ENOV. The company has undergone a transformation from its previous identity as Colfax Corporation and has since dedicated its efforts towards the development of clinically differentiated solutions that enhance patient outcomes and revolutionize workflows. As a leading provider of medical devices and services, Enovis boasts an extensive range of products catering to reconstructive surgery, rehabilitation, pain management, and physical therapy. The...

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Investment thesis

Bull case

  • Operating cash flow of 217.08M provides exceptional 264.09x coverage of minority interest expenses 822000, showing strong core operations.
  • Cash position of 33.62M provides exceptional 40.90x coverage of minority interest expenses 822000, indicating strong liquidity.
  • Tangible assets of 1.93B provide robust 5.42x coverage of other current liabilities 356.67M, indicating strong asset backing.
  • Strong R&D investment of 112.92M at 0.58x of capex 194.31M shows balanced investment in innovation and infrastructure.
  • Tangible assets of 1.93B provide robust 3.36x coverage of current liabilities 575.44M, showing strong asset backing.

Bear case

  • Operating cash flow of 217.08M barely covers its investment activities of (224.26M), with a coverage ratio of -0.97, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 33.62M against inventory of 613.75M, the 0.05 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Investment activities of (224.26M) provide weak support for R&D spending of 112.92M, which is -1.99x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 33.62M provide limited coverage of acquisition spending of (31.35M), which is -1.07x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 22.77M provides weak coverage of capital expenditures of 194.31M, with a 0.12 ratio suggesting additional external financing needs for growth initiatives.

Business Segments Breakdown of Revenue (2024)

Business Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Medical Devices
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ABT Abbott Laboratories 173.80 Bn 32.73 5.47 12.94 Bn
2 SYK Stryker Corp 141.15 Bn 43.48 5.62 15.86 Bn
3 MDT Medtronic plc 123.47 Bn 25.92 3.55 29.10 Bn
4 BSX Boston Scientific Corp 112.80 Bn 38.92 5.62 11.44 Bn
5 EW Edwards Lifesciences Corp 45.66 Bn 33.38 7.76 0.70 Bn
6 DXCM Dexcom Inc 27.52 Bn 32.91 5.90 1.34 Bn
7 STE STERIS plc 24.13 Bn 34.08 4.14 2.05 Bn
8 PODD Insulet Corp 17.33 Bn 70.38 6.87 1.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.59 2.13
EV to Cash from Ops. EV/CFO 12.04 2.75
EV to Debt EV to Debt 1.84 17.25
EV to EBIT EV/EBIT -2.03 2.89
EV to EBITDA EV/EBITDA -2.63 4.53
EV to Free Cash Flow [EV/FCF] EV/FCF 114.83 29.36
EV to Market Cap EV to Market Cap 2.15 25.09
EV to Revenue EV/Rev 1.17 32.80
Price to Book Value [P/B] P/B 0.60 4.73
Price to Earnings [P/E] P/E -0.89 -2.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 40.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.59
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.37
Interest Coverage Int. cover (Qtr) -35.40 196.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -17.43 -152.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -5.10 8,476.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.44
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1,680.36 -792.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -762.10 3.79
EBIT Growth (1y) % EBIT 1y % (Qtr) -1,368.03 -301.80
EBT Growth (1y) % EBT 1y % (Qtr) -845.81 -121.44
EPS Growth (1y) % EPS 1y % (Qtr) -1,015.14 -87.51
FCF Growth (1y) % FCF 1y % (Qtr) 131.67 10.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 14.57 38.21
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.50 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.06 1.80
Current Ratio Curr Ratio (Qtr) 2.23 4.18
Debt to Equity Ratio Debt/Equity (Qtr) 0.70 1.20
Interest Cover Ratio Int Coverage (Qtr) -35.40 196.93
Times Interest Earned Times Interest Earned (Qtr) -35.40 196.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -44.60 -2,396.63
EBIT Margin % EBIT Margin % (Qtr) -57.67 -2,478.60
EBT Margin % EBT Margin % (Qtr) -59.30 -2,690.42
Gross Margin % Gross Margin % (Qtr) 58.40 30.80
Net Profit Margin % Net Margin % (Qtr) -61.20 -2,821.53