Envista Holdings Corp (NYSE: NVST)

Sector: Healthcare Industry: Medical Instruments & Supplies CIK: 0001757073
Market Cap 4.71 Bn
P/B 1.52
P/E 100.25
P/S 1.73
ROIC (Qtr) 2.63
Div Yield % 0.00
Rev 1y % (Qtr) 14.96
Total Debt (Qtr) 1.60 Bn
Debt/Equity (Qtr) 0.51
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About

Envista Holdings Corp, also known by its stock symbol NVST, is a global entity in the dental industry, boasting a family of over 30 trusted dental brands, including Nobel Biocare, Ormco, DEXIS, and Kerr. The company's mission is to partner with dental professionals worldwide to enhance lives by digitizing, personalizing, and democratizing oral care. Operating in the dental industry, Envista's main business activities revolve around providing industry-leading solutions, technologies, and services to dental professionals. These offerings cater to...

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Investment thesis

Bull case

  • Healthy cash reserves of 1.21B provide 31.07x coverage of short-term debt 39M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 230.90M exceeds capital expenditure of 44.80M by 5.15x, indicating strong organic growth funding capability.
  • Operating cash flow of 275.70M fully covers other non-current liabilities 161.40M by 1.71x, showing strong long-term stability.
  • Cash reserves of 1.21B provide robust 1.42x coverage of current liabilities 852.60M, indicating strong short-term solvency.
  • Cash reserves of 1.21B provide solid 7.51x coverage of other non-current liabilities 161.40M, indicating strong liquidity.

Bear case

  • Operating cash flow of 275.70M barely covers its investment activities of (51.10M), with a coverage ratio of -5.40, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (51.10M) provide weak support for R&D spending of 114M, which is -0.45x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of 213.80M show weak coverage of depreciation charges of 150.70M, with a 1.42 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 230.90M represents just -256.56x of debt issuance (900000), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 150.70M relative to operating cash flow of 275.70M, which is 0.55x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Medical Instruments & Supplies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ISRG Intuitive Surgical Inc 176.13 Bn 61.67 17.50 0.00 Bn
2 BDX Becton Dickinson & Co 50.84 Bn 28.94 2.32 19.54 Bn
3 ALC Alcon Inc 39.87 Bn 38.08 3.91 5.24 Bn
4 RMD Resmed Inc 37.63 Bn 36.86 8.03 0.85 Bn
5 HOLX Hologic Inc 16.89 Bn 31.05 4.09 2.52 Bn
6 COO Cooper Companies, Inc. 16.34 Bn 43.59 3.99 2.51 Bn
7 WST West Pharmaceutical Services Inc 15.98 Bn 228.35 15.87 0.32 Bn
8 ALGN Align Technology Inc 13.70 Bn 36.21 3.44 0.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.91 2.69
EV to Cash from Ops. EV/CFO 18.79 33.85
EV to Debt EV to Debt 3.24 26.88
EV to EBIT EV/EBIT 24.23 21.42
EV to EBITDA EV/EBITDA 14.12 13.45
EV to Free Cash Flow [EV/FCF] EV/FCF 22.43 108.54
EV to Market Cap EV to Market Cap 1.10 -4.25
EV to Revenue EV/Rev 1.90 291.65
Price to Book Value [P/B] P/B 1.52 6.13
Price to Earnings [P/E] P/E 100.25 168.84
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -1.12
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.62
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.48
Interest Coverage Int. cover (Qtr) 5.84 11.77
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -32.94 -62.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 13.34 419.59
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.67
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 105.30 -57.55
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 141.51 -107.89
EBIT Growth (1y) % EBIT 1y % (Qtr) 120.59 -37.41
EBT Growth (1y) % EBT 1y % (Qtr) 116.34 -40.02
EPS Growth (1y) % EPS 1y % (Qtr) 104.31 -9.45
FCF Growth (1y) % FCF 1y % (Qtr) -23.75 57.56
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 8.30 66.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.48 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 1.42 2.52
Current Ratio Curr Ratio (Qtr) 2.38 7.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.51 0.55
Interest Cover Ratio Int Coverage (Qtr) 5.84 11.77
Times Interest Earned Times Interest Earned (Qtr) 5.84 11.77
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 13.40 -2,368.82
EBIT Margin % EBIT Margin % (Qtr) 7.86 -2,472.83
EBT Margin % EBT Margin % (Qtr) 6.52 -2,442.75
Gross Margin % Gross Margin % (Qtr) 54.70 29.78
Net Profit Margin % Net Margin % (Qtr) 1.70 -2,438.72