Envista Holdings Corp (NYSE: NVST)

Sector: Healthcare Industry: Medical Instruments & Supplies CIK: 0001757073
Market Cap 4.95 Bn
P/B 1.60
P/E 323.33
P/S 1.89
ROIC (Qtr) -2.43
Div Yield % 0.00
Rev 1y % (Qtr) 11.46
Total Debt (Qtr) 1.60 Bn
Debt/Equity (Qtr) 0.52

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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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 1.13B provide 28.93x coverage of short-term debt 39.20M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 263.10M exceeds capital expenditure of 37M by 7.11x, indicating strong organic growth funding capability.
  • Operating cash flow of 300.10M fully covers other non-current liabilities 169.70M by 1.77x, showing strong long-term stability.
  • Tangible assets of 2.63B provide robust 4.20x coverage of other current liabilities 626.50M, indicating strong asset backing.
  • Cash reserves of 1.13B provide robust 1.38x coverage of current liabilities 821.70M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of 300.10M barely covers its investment activities of (43M), with a coverage ratio of -6.98, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (43M) provide weak support for R&D spending of 108.60M, which is -0.40x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of 192.30M show weak coverage of depreciation charges of 148.80M, with a 1.29 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 263.10M represents just -292.33x of debt issuance (900000), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 148.80M relative to operating cash flow of 300.10M, which is 0.50x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

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 174.27 Bn 61.02 17.31 0.00 Bn
2 BDX Becton Dickinson & Co 59.72 Bn 37.77 3.14 19.18 Bn
3 RMD Resmed Inc 39.76 Bn 26.76 7.37 0.85 Bn
4 ALC Alcon Inc 38.93 Bn 37.18 3.82 5.24 Bn
5 WST West Pharmaceutical Services Inc 17.69 Bn 133.13 12.54 0.30 Bn
6 HOLX Hologic Inc 16.81 Bn 30.91 4.07 2.52 Bn
7 COO Cooper Companies, Inc. 16.37 Bn 43.67 4.00 2.51 Bn
8 ALGN Align Technology Inc 13.73 Bn 36.29 3.45 0.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.96 2.75
EV to Cash from Ops. EV/CFO 18.10 39.87
EV to Debt EV to Debt 3.39 27.09
EV to EBIT EV/EBIT 28.25 32.86
EV to EBITDA EV/EBITDA 16.09 19.31
EV to Free Cash Flow [EV/FCF] EV/FCF 20.65 0.88
EV to Market Cap EV to Market Cap 1.10 -4.26
EV to Revenue EV/Rev 2.07 252.61
Price to Book Value [P/B] P/B 1.60 6.13
Price to Earnings [P/E] P/E 323.33 184.03
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -1.09
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.36
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.74
Interest Coverage Int. cover (Qtr) 5.31 -117.83
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -35.53 -53.47
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 14.39 414.02
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.48
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 101.46 -57.42
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 129.92 -106.89
EBIT Growth (1y) % EBIT 1y % (Qtr) 114.96 -37.00
EBT Growth (1y) % EBT 1y % (Qtr) 111.68 -42.63
EPS Growth (1y) % EPS 1y % (Qtr) 101.15 -15.05
FCF Growth (1y) % FCF 1y % (Qtr) -5.63 56.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 8.42 67.95
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.46 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 1.38 2.51
Current Ratio Curr Ratio (Qtr) 2.37 7.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.52 0.55
Interest Cover Ratio Int Coverage (Qtr) 5.31 -117.83
Times Interest Earned Times Interest Earned (Qtr) 5.31 -117.83
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 13.00 -2,368.59
EBIT Margin % EBIT Margin % (Qtr) 7.33 -2,472.59
EBT Margin % EBT Margin % (Qtr) 5.95 -2,442.52
Gross Margin % Gross Margin % (Qtr) 55.30 30.06
Net Profit Margin % Net Margin % (Qtr) 0.60 -2,438.49