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Enovis (ENOV)
NYSE:ENOV
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Enovis (ENOV) AI Stock Analysis

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ENOV

Enovis

(NYSE:ENOV)

Rating:54Neutral
Price Target:
$32.00
▲(3.56% Upside)
Enovis' overall stock score is primarily influenced by its financial challenges, including declining revenue and profitability issues. The positive momentum in technical analysis and optimistic earnings call provide some support, but the negative valuation metrics weigh heavily on the score. The company's strong operational efficiency and improved financial guidance are positive factors, but ongoing cash flow difficulties and market resistance limit the overall score.
Positive Factors
Earnings
Enovis reported Q2 revenues above expectations, with strong performance across various segments, indicating robust business momentum.
Financial Performance
ENOV raised its FY25 guidance across revenue, organic growth, EBITDA, and EPS, supported by operational execution, FX tailwinds, and decreased expected tariff impacts.
Valuation
The stock is trading at less than half the valuation of its mid-cap MedTech peers, suggesting it is significantly undervalued.
Negative Factors
Organic Growth
Organic revenue growth slowed to 5.1% in 2Q25 from 10.4% in 1Q25.
Price Target
The price target is lowered to $49 due to peer multiple contraction.
Product Launch
The next-gen ARVIS launch has been delayed by approximately 6 months to incorporate enhancements, although surgeon excitement around the platform remains high.

Enovis (ENOV) vs. SPDR S&P 500 ETF (SPY)

Enovis Business Overview & Revenue Model

Company DescriptionEnovis 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 MoneyEnovis generates revenue through multiple key streams, primarily by selling medical devices and orthopedic solutions to hospitals, clinics, and healthcare professionals. The company's revenue model includes direct sales of products, as well as potential recurring revenue from post-operative care solutions and digital health services. Significant partnerships with healthcare providers and distributors enhance its market reach and facilitate the introduction of innovative products. Additionally, Enovis may engage in research and development collaborations that can lead to new product offerings and expand its revenue opportunities.

Enovis Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call for Enovis was generally positive, with strong revenue and margin growth, successful product launches, and improved financial guidance. However, there were challenges such as delays in the Arvis product launch, flat growth in the U.S. hip and knee segment, and tariff-related headwinds. Despite these setbacks, the company's overall performance and outlook are optimistic.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Enovis delivered reported growth of 7% and 5% on an organic constant currency basis in the second quarter of 2025. Recon business saw organic growth of 8%, and the company's revenue guidance for the year was raised by $25 million.
Improvements in Margin and Earnings
Adjusted gross margins improved by 90 basis points in the quarter and 200 basis points year-to-date. Adjusted earnings per share increased by 27% versus the prior year.
Positive Developments in Product Launches
The company reported good progress on new product launches, with the Nebula system and OrthoDrive surgical impactor receiving positive feedback from surgeons.
Successful Integration of Acquisitions
The integration of Lima has unlocked growth potential, particularly in the shoulder segment, with ARG and SMR systems driving competitive share gains.
Raised Financial Guidance
Enovis increased its revenue guidance by $25 million and raised its adjusted EBITDA range by $7 million, reflecting improved currency outlook and organic growth execution.
Negative Updates
Delays in Product Launch
The launch of the next-generation Arvis platform is delayed by six months, impacting sales in the hip and knee segments.
Challenges in Hip and Knee Growth
U.S. hip and knee growth was flat, affected by fewer selling days and headwinds in capital sales as customers deferred orders.
Tariff Headwinds
The company faced $6 million in tariff costs in Q2, impacting cash flow. The tariff situation remains fluid, and future impacts are uncertain.
Company Guidance
During Enovis' second-quarter 2025 earnings call, the company announced several key financial metrics and provided updated guidance. Enovis reported a 7% increase in sales to $565 million, with organic growth of 5%. Their Recon business achieved 8% organic growth, while P&R grew by 3%. Adjusted gross margins expanded by 90 basis points in the quarter, with a 200 basis point improvement year-to-date. Adjusted EBITDA was flat at 17.2%, with year-to-date expansion of 75 basis points. The company raised its revenue guidance to a range of $2.245 billion to $2.275 billion, driven by improved currency outlooks and strong organic growth execution. Organic growth guidance was increased to 6.25% to 6.75%, and adjusted earnings per share guidance was increased by $0.10 to a range of $3.05 to $3.20. Enovis also reiterated its expectation for positive free cash flow in 2025, with a focus on reducing debt and improving leverage.

Enovis Financial Statement Overview

Summary
Enovis is facing significant financial challenges, with declining revenue and profitability issues. While there are improvements in leverage, the company struggles with cash flow generation. The strong gross profit margin indicates operational efficiency, but overall financial health is weakened by ongoing losses and cash flow difficulties.
Income Statement
45
Neutral
Enovis has experienced a decline in revenue, with a negative revenue growth rate of -19.77% in the TTM period. The company is facing challenges with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin remains relatively strong at 69.79%, suggesting some operational efficiency. However, the overall financial health is impacted by significant losses.
Balance Sheet
55
Neutral
The debt-to-equity ratio has improved significantly in the TTM period, indicating better leverage management. However, the return on equity is negative, reflecting ongoing profitability challenges. The equity ratio remains stable, suggesting a solid asset base relative to equity.
Cash Flow
40
Negative
The cash flow situation is concerning, with a significant decline in free cash flow growth and negative free cash flow in the TTM period. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio is negative, highlighting cash flow challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.19B2.11B1.71B1.56B1.43B1.12B
Gross Profit1.30B1.18B990.78M869.38M657.88M1.14B
EBITDA-460.10M-481.03M169.92M225.78M248.21M180.05M
Net Income-827.47M-825.49M-33.26M-14.99M71.66M42.63M
Balance Sheet
Total Assets5.02B4.72B4.51B4.27B8.52B7.35B
Cash, Cash Equivalents and Short-Term Investments44.07M48.17M36.19M24.30M680.25M97.07M
Total Debt1.46B1.40B536.42M334.82M2.16B2.41B
Total Liabilities2.44B2.15B1.09B823.45M3.85B3.76B
Stockholders Equity2.58B2.56B3.42B3.45B4.62B3.54B
Cash Flow
Free Cash Flow-3.95M-67.21M12.77M-161.31M251.86M187.15M
Operating Cash Flow188.06M113.50M134.99M-55.86M356.10M301.94M
Investing Cash Flow-226.63M-955.47M-242.47M-176.39M-320.48M-175.08M
Financing Cash Flow37.19M846.82M127.80M-465.13M584.91M-131.65M

Enovis Technical Analysis

Technical Analysis Sentiment
Positive
Last Price30.90
Price Trends
50DMA
30.00
Positive
100DMA
31.58
Negative
200DMA
37.46
Negative
Market Momentum
MACD
0.50
Negative
RSI
56.85
Neutral
STOCH
57.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENOV, the sentiment is Positive. The current price of 30.9 is above the 20-day moving average (MA) of 29.31, above the 50-day MA of 30.00, and below the 200-day MA of 37.46, indicating a neutral trend. The MACD of 0.50 indicates Negative momentum. The RSI at 56.85 is Neutral, neither overbought nor oversold. The STOCH value of 57.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENOV.

Enovis Risk Analysis

Enovis disclosed 44 risk factors in its most recent earnings report. Enovis reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Enovis Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$2.28B26.0221.91%0.09%2.82%7.50%
70
Neutral
$1.52B25.589.51%1.44%-0.38%-44.93%
69
Neutral
$2.46B43.988.37%0.63%9.64%-24.68%
67
Neutral
$3.43B22.8513.98%1.12%10.28%-16.81%
55
Neutral
$1.79B-1.50%3.53%-7.93%91.44%
54
Neutral
$1.77B-28.31%14.40%-662.25%
51
Neutral
$7.85B-0.21-41.41%2.22%22.81%-2.01%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ENOV
Enovis
30.90
-13.67
-30.67%
EPAC
Enerpac Tool Group
42.34
2.51
6.30%
CXT
Crane NXT
59.73
4.23
7.62%
HI
Hillenbrand
25.39
-4.68
-15.56%
SXI
Standex International
204.07
34.43
20.30%
TNC
Tennant Co
82.04
-11.52
-12.31%

Enovis Corporate Events

Executive/Board ChangesShareholder Meetings
Enovis Holds Annual Meeting, Elects Board Directors
Neutral
May 21, 2025

On May 21, 2025, Enovis Corporation held its Annual Meeting of Stockholders, where three proposals were presented. The stockholders elected nine directors to the board, ratified Ernst & Young LLP as the independent registered public accounting firm for 2025, and approved the executive compensation of the named executive officers.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 23, 2025