Enovis (ENOV) AI Stock Analysis

• Market Cap: $1.74B
• Dividend Yield: N/A
• Average Volume (3M): 810.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: 11.57%
• EPS Growth: -1016.39%
• Country: US
• Employees: 7,367
• Sector: Healthcare
• Sector Strength: 45
• Industry: Industrial - Machinery
• EPS (TTM): 0.75
• Shares Outstanding: 57,189,380
• 10 Day Avg. Volume: 757,689
• 30 Day Avg. Volume: 810,456
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.15
• P/FCF Ratio: -36.09
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: -3.28
• 1Y Price Target: $49.00
• Price Target Upside: 61.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 3.19
• Revenue Forecast (FY): $2.26B

• Rating: 48 Neutral
• Price Target: $27.00 ▼(-11.27% Downside)

Enovis's overall stock score is primarily influenced by its financial performance challenges, including negative profitability and cash flow concerns. The technical analysis indicates bearish momentum, while valuation metrics are unattractive due to a negative P/E ratio. The earnings call provided some positive insights, such as revenue growth and improved guidance, but these are overshadowed by significant challenges like goodwill impairment and tariff impacts.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Enovis's products, suggesting effective market strategies and product adoption, which are crucial for long-term business sustainability.

International Expansion

The growth in international sales highlights Enovis's successful global expansion strategy, enhancing its market position and diversifying revenue streams, which is vital for long-term growth.

Product Innovation

The strong response to new product launches like Arvis Ultra underscores Enovis's commitment to innovation, which is key to maintaining competitive advantage and driving future growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues, as indicated by negative margins, suggest operational inefficiencies that could hinder long-term financial health and investment capacity.

Goodwill Impairment

The significant goodwill impairment reflects challenges in asset valuation, potentially impacting investor confidence and future financial flexibility.

Cash Flow Concerns

Declining free cash flow growth raises concerns about Enovis's ability to fund operations and investments, posing risks to long-term liquidity and growth potential.

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 generates revenue primarily through the sale of its orthopedic and rehabilitation products. Key revenue streams include sales from surgical devices, which are utilized in various orthopedic procedures, and the distribution of supportive products such as braces and rehabilitation equipment. The company also leverages digital health solutions that provide additional services and support to healthcare providers and patients. Significant partnerships with healthcare systems and providers enhance its market reach and contribute to its earnings, alongside continuous investments in research and development to innovate and expand its product offerings.

Enovis Financial Statement Overview

Summary

Enovis is experiencing revenue growth but faces significant profitability challenges, with negative margins and returns. The balance sheet shows improved leverage, yet negative return on equity highlights profitability issues. Cash flow metrics indicate potential liquidity concerns, necessitating strategic adjustments to improve cash generation and operational efficiency.

Income Statement

Enovis has shown a consistent increase in revenue over the years, with a TTM revenue growth rate of 1.995%. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin remains relatively stable, but the negative EBIT and EBITDA margins suggest operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved significantly, indicating a reduction in leverage, which is a positive sign. However, the return on equity is negative, reflecting ongoing challenges in generating profits from shareholders' equity. The equity ratio is stable, suggesting a solid asset base relative to equity.

Cash Flow

Enovis's cash flow situation is concerning, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is positive, but the free cash flow to net income ratio indicates that cash generation is not keeping pace with net losses. This could pose liquidity challenges if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.23B	2.11B	1.71B	1.56B	1.43B	1.12B
Gross Profit	1.30B	1.18B	990.78M	869.38M	777.67M	603.64M
EBITDA	-989.61M	-481.03M	169.73M	241.69M	170.25M	180.05M
Net Income	-1.37B	-825.49M	-33.26M	-13.29M	71.66M	42.63M
Balance Sheet
Total Assets	4.43B	4.72B	4.51B	4.27B	8.52B	7.35B
Cash, Cash Equivalents and Short-Term Investments	33.62M	48.17M	36.19M	24.30M	680.25M	101.07M
Total Debt	1.44B	1.40B	536.42M	334.82M	2.16B	2.41B
Total Liabilities	2.41B	2.15B	1.09B	823.45M	3.85B	3.76B
Stockholders Equity	2.02B	2.56B	3.42B	3.45B	4.62B	3.54B
Cash Flow
Free Cash Flow	22.77M	-67.21M	12.77M	-161.31M	251.86M	187.15M
Operating Cash Flow	217.08M	113.50M	134.99M	-55.86M	356.10M	301.94M
Investing Cash Flow	-224.26M	-955.47M	-242.47M	-176.39M	-320.48M	-175.08M
Financing Cash Flow	435.00K	846.82M	127.80M	-465.13M	584.91M	-131.65M

Enovis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.43
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 30.43 is above the 20-day moving average (MA) of 29.90, below the 50-day MA of 30.83, and below the 200-day MA of 32.86, indicating a neutral trend. The MACD of -0.62 indicates Positive momentum. The RSI at 51.91 is Neutral, neither overbought nor oversold. The STOCH value of 53.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENOV.

Enovis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPAC	74 Outperform	$1.97B	21.89	22.47%	0.10%	4.65%	8.81%
SXI	73 Outperform	$2.85B	53.91	7.72%	0.54%	18.51%	-28.69%
HI	64 Neutral	$2.24B	52.10	3.07%	2.84%	-16.00%	―
HLIO	62 Neutral	$1.84B	54.67	3.75%	0.68%	-1.46%	-10.03%
XMTR	55 Neutral	$2.84B	―	-21.46%	―	22.40%	-18.99%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ENOV	48 Neutral	$1.74B	―	-51.11%	―	11.57%	-1016.39%

Enovis Corporate Events

Enovis Corporation Reports Strong Growth Amid Challenges

The recent earnings call for Enovis Corporation painted a picture of robust growth tempered by certain challenges. The company reported strong revenue growth and improved gross margins, with notable advancements in innovation, particularly in international markets and the launch of Arvis Ultra. However, the call also highlighted significant hurdles, such as goodwill impairment and the adverse effects of tariffs and divestitures.

Enovis Corporation Reports Strong Q3 2025 Results

Enovis Corporation is a global medical technology company focused on developing innovative solutions to improve patient outcomes and enhance mobility, operating primarily in the healthcare sector with a commitment to personalized and effective care.

Enovis Corporation Reports Strong Growth Amid Challenges

Enovis Corporation’s recent earnings call painted a picture of robust growth tempered by certain challenges. The company reported strong revenue growth and margin improvements, largely driven by successful product launches and international expansion. However, the positive outcomes were balanced by challenges such as the delay in the Arvis launch, tariff impacts, and flat growth in some segments. Despite these hurdles, the company remains optimistic about future growth, supported by strategic initiatives.