Envista Holdings Corp
Envista Holdings Corp Fundamental Analysis
Envista Holdings Corp (NVST) shows weak financial fundamentals with a PE ratio of 91.00, profit margin of 1.73%, and ROE of 1.52%. The company generates $2.7B in annual revenue with weak year-over-year growth of -2.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NVST's fundamental strength across five key dimensions:
Efficiency Score
WeakNVST struggles to generate sufficient returns from assets.
Valuation Score
ModerateNVST shows balanced valuation metrics.
Growth Score
WeakNVST faces weak or negative growth trends.
Financial Health Score
ExcellentNVST maintains a strong and stable balance sheet.
Profitability Score
ModerateNVST maintains healthy but balanced margins.
Key Financial Metrics
Is NVST Expensive or Cheap?
P/E Ratio
NVST trades at 91.00 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NVST's PEG of 0.41 indicates potential undervaluation.
Price to Book
The market values Envista Holdings Corp at 1.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.68 times EBITDA. This signals the market has high growth expectations.
How Well Does NVST Make Money?
Net Profit Margin
For every $100 in sales, Envista Holdings Corp keeps $1.73 as profit after all expenses.
Operating Margin
Core operations generate 8.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.52 in profit for every $100 of shareholder equity.
ROA
Envista Holdings Corp generates $0.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Envista Holdings Corp produces operating cash flow of $275.74M, showing steady but balanced cash generation.
Free Cash Flow
Envista Holdings Corp produces free cash flow of $230.44M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.40 in free cash annually.
FCF Yield
NVST converts 5.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
91.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How NVST Stacks Against Its Sector Peers
| Metric | NVST Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 91.00 | 28.54 | Worse (Expensive) |
| ROE | 1.52% | 743.00% | Weak |
| Net Margin | 1.73% | -22232.00% (disorted) | Weak |
| Debt/Equity | 0.55 | 0.28 | Weak (High Leverage) |
| Current Ratio | 2.38 | 4.57 | Strong Liquidity |
| ROA | 0.83% | -14508.00% (disorted) | Weak |
NVST outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Envista Holdings Corp's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-27.83%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
-506.59%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-33.04%
Industry Style: Defensive, Growth, Innovation
Declining