Enovis (ENOV) AI Stock Analysis

• Market Cap: $2.15B
• Dividend Yield: N/A
• Average Volume (3M): 908.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 23.46%
• EPS Growth: -1552.75%
• Country: US
• Employees: 7,367
• Sector: Industrials
• Sector Strength: 66
• Industry: Industrial - Machinery
• EPS (TTM): -14.81
• Shares Outstanding: 56,963,440
• 10 Day Avg. Volume: 762,764
• 30 Day Avg. Volume: 908,755
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.06
• Price to Cash Flow (P/CF): 6.30
• P/FCF Ratio: 12.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $62.71
• Price Target Upside: 66.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

Enovis is experiencing strong revenue growth and successful integration of strategic acquisitions, leading to improved EBITDA margins. However, significant challenges remain, including profitability issues with negative profit margins, high interest expenses, and potential tariff impacts. Technical indicators are bearish, and the valuation suggests the stock is undervalued due to current financial struggles. These mixed factors result in a cautious score, with the need for addressing financial health to improve future prospects.

Positive Factors

Market Performance

ENOV management is comfortable with the Q1 guidance, reflecting strong procedure volumes and a positive market trajectory.

Product Launch

Arvis in Shoulder is receiving positive feedback from surgeons, with expectations for a full commercial launch and interest from cost-conscious surgeons.

Valuation

The stock trading at less than half the valuation of its mid-cap MedTech peers suggests ENOV is significantly undervalued.

Negative Factors

Leadership Uncertainty

ENOV has started a search process for a CEO replacement.

Revenue Estimate

Updating the model post earnings resulted in a slight reduction in the 2025 revenue estimate.

Enovis Business Overview & Revenue Model

Company Description

Enovis Corporation operates as a medical technology company worldwide. It develops, manufactures, and distributes medical device products used by orthopedic specialists, surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers, and other healthcare professionals to treat patients with musculoskeletal conditions resulting from degenerative diseases, deformities, traumatic events, and sports related injuries. It offers rigid and soft orthopedic bracings, hot and cold therapy products, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators used for pain management, and physical therapy products; and a suite of reconstructive joint products for the hip, knee, shoulder, elbow, foot, ankle, and finger. Enovis Corporation sells its products through independent distributors, such as healthcare professionals, consumer retail stores, and pharmacies; and directly under the DJO brand. The company was formerly known as Colfax Corporation. Enovis Corporation is headquartered in Wilmington, Delaware.

How the Company Makes Money

Enovis makes money primarily through the sale of its medical devices and products to healthcare facilities, including hospitals, surgical centers, and rehabilitation clinics. The company's revenue streams are centered around its orthopedic and rehabilitation segments, with significant income generated from the sale of joint replacement implants and surgical instruments. Enovis also benefits from long-term partnerships and contracts with healthcare providers that ensure a steady demand for its products. Additionally, the company invests in research and development to innovate and expand its product offerings, which can lead to new revenue opportunities in existing and emerging markets.

Enovis Financial Statement Overview

Summary

Enovis shows strong revenue growth but faces challenges with profitability, as indicated by negative profit margins and ROE. The balance sheet shows a prudent leverage position, yet cash flow difficulties are notable, with negative free cash flow affecting liquidity management. Overall, the company needs to address its profitability and cash flow issues to improve financial health.

Income Statement

Enovis has experienced a significant revenue increase from 2023 to 2024, marking a 23.48% growth rate. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -39.17% for 2024 and a negative EBIT margin of -39.27%. These negative margins indicate substantial challenges in managing expenses relative to revenue.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.03 in 2024, suggesting lower leverage risk. However, the return on equity (ROE) remains negative at -32.22%, indicating that the company is not generating value for shareholders. The equity ratio is 54.30%, reflecting a stable financial structure with a majority of assets funded by equity.

Cash Flow

Operating cash flow to net income ratio is positive at 0.14, but the free cash flow is negative, indicating a cash outflow situation. The free cash flow to net income ratio is negative, highlighting struggles in converting earnings into cash, which can impact liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.11B	1.71B	1.56B	3.85B	3.07B
	Gross Profit
1.18B	990.78M	869.38M	1.61B	1.29B
	EBIT
-775.72M	-65.71M	-88.57M	256.64M	162.29M
	EBITDA
-827.42M	169.92M	225.78M	95.03M	180.05M
	Net Income Common Stockholders
-825.49M	-33.26M	-38.19M	98.69M	64.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.17M	36.19M	24.30M	719.37M	97.07M
	Total Assets
4.72B	4.51B	4.27B	8.52B	7.35B
	Total Debt
72.49M	536.42M	310.54M	2.23B	2.37B
	Net Debt
24.32M	500.23M	286.24M	1.51B	2.27B
	Total Liabilities
2.15B	1.09B	823.45M	3.85B	3.76B
	Stockholders Equity
2.56B	3.42B	3.45B	4.62B	3.54B
Cash Flow		Free Cash Flow
-67.21M	12.77M	-161.31M	251.86M	187.15M
	Operating Cash Flow
113.50M	134.99M	-55.86M	356.10M	301.94M
	Investing Cash Flow
-955.47M	-242.47M	-176.39M	-320.48M	-175.08M
	Financing Cash Flow
846.82M	127.80M	-465.13M	584.91M	-131.65M

Enovis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENOV, the sentiment is Negative. The current price of 37.76 is below the 20-day moving average (MA) of 37.99, below the 50-day MA of 42.08, and below the 200-day MA of 43.77, indicating a bearish trend. The MACD of -0.70 indicates Negative momentum. The RSI at 41.19 is Neutral, neither overbought nor oversold. The STOCH value of 42.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENOV.

Enovis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYK	82 Outperform	$139.13B	46.96	15.26%	0.89%	10.23%	-5.74%
JNJ	78 Outperform	$394.52B	28.28	20.06%	3.03%	-4.51%	3.69%
BSX	78 Outperform	$146.96B	79.65	9.03%	―	17.60%	16.84%
MDT	77 Outperform	$112.39B	26.63	8.42%	3.18%	2.72%	4.48%
ZBH	73 Outperform	$22.35B	25.33	7.24%	0.85%	3.84%	-9.29%
Sector *	62 Neutral	$8.06B	13.61	3.91%	3.11%	3.80%	-14.06%
ENOV	46 Neutral	$2.15B	―	-27.69%	―	23.46%	-1552.75%

Enovis Corporate Events

Enovis CEO Matthew Trerotola Announces Retirement Plan

On February 25, 2025, Enovis Corporation announced that CEO Matthew L. Trerotola will retire upon the appointment of his successor. A retirement and transition agreement was made on March 13, 2025, allowing Trerotola to serve as an Executive Advisor for a year, with a reduced salary and continued benefits, but no new equity or incentive awards.

Enovis CEO Retirement and Leadership Transition Announced

On February 25, 2025, Enovis Corporation announced that its CEO, Matthew L. Trerotola, plans to retire once a successor is appointed. To ensure a smooth transition, Trerotola will serve as an Executive Advisor for one year following the appointment of the new CEO. The company is actively searching for a growth-oriented leader in the MedTech industry to continue its focus on innovation and patient outcomes. This leadership change comes as Enovis positions itself for continued growth and industry leadership.

Enovis Highlights Growth at J.P. Morgan Conference

Enovis Corporation announced its participation in the J.P. Morgan Healthcare Conference, highlighting its strategic focus on innovation, operational excellence, and growth in the orthopedic sector. The company’s robust financial profile and strategic initiatives, including global expansion and strategic acquisitions, position it as a significant player in the medtech industry, with anticipated continued growth and market leadership.