Enovix (ENVX) AI Stock Analysis

• Market Cap: $1.17B
• Dividend Yield: N/A
• Average Volume (3M): 5.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.42
• Revenue Growth: 77.59%
• EPS Growth: 2.01%
• Country: US
• Employees: 570
• Sector: Industrials
• Sector Strength: 82
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.15
• Shares Outstanding: 192,003,860
• 10 Day Avg. Volume: 5,235,141
• 30 Day Avg. Volume: 5,692,944
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -673.66
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.86
• Price Target Upside: 201.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Enovix demonstrates substantial financial challenges with recurring losses and negative cash flow, impacting its financial health. However, strategic initiatives and recent corporate developments offer some optimism for future improvement. Technical indicators are mixed, and valuation metrics underscore current profitability struggles. The recent strategic acquisitions and leadership changes add a positive outlook, yet the overarching challenges remain significant.

Positive Factors

Market Expansion

Use case interest continues to expand beyond smartphones to defense, smart glasses, and handheld computers.

Strategic Partnerships

A major U.S. technology leader has placed a genuine order with Enovix, serving as a tangible endorsement of their technology and operational progress.

Technology Advancements

The breakthrough in energy density achieved by Enovix’s design is now on the verge of entering the market.

Negative Factors

Financial Outlook

Analysts have lowered the price target for ENVX from $10 to $7 due to changes in discount rate and line ramp.

Operating Costs

An increase in operating and capital expenses is expected due to the ramp in sample cell production, which may impact financials.

Stock Performance

The stock has fallen over 50% from its peak earlier this year despite the fundamentals improving and management executing on milestones.

Enovix Business Overview & Revenue Model

Company Description

Enovix Corporation (ENVX) is an advanced battery technology company based in Fremont, California. The company specializes in developing and manufacturing next-generation lithium-ion batteries with a focus on 3D cell architecture. Enovix's core products are designed to enhance energy density and improve performance for a variety of applications, including consumer electronics, electric vehicles, and other energy storage needs. The company is known for its innovative approach to battery design, which aims to meet the growing demand for higher-capacity and longer-lasting batteries.

How the Company Makes Money

Enovix makes money primarily through the sale of its advanced lithium-ion batteries to manufacturers of consumer electronics, electric vehicles, and other technology-driven sectors. The company's revenue model is centered around the commercial production and licensing of its unique 3D cell architecture, which offers significant improvements in energy density and battery life. Key revenue streams include direct sales of battery products to original equipment manufacturers (OEMs) and strategic partnerships that involve joint development and commercialization efforts. Additionally, Enovix may engage in research and development collaborations that contribute to its earnings by leveraging its proprietary technology to create tailored energy solutions.

Enovix Financial Statement Overview

Summary

Enovix faces substantial financial hurdles characterized by recurring losses and cash flow challenges. While there is moderate balance sheet stability, the company's inability to generate profit and positive cash flow from operations raises concerns about long-term financial health.

Income Statement

Enovix has faced significant challenges in terms of profitability, with a consistent pattern of net losses and negative EBIT and EBITDA margins. While there was a slight revenue increase in recent periods, the company’s gross profit margin remains extremely low, indicating difficulties in cost management and sales execution.

Balance Sheet

The balance sheet shows moderate stability with a relatively high equity ratio and manageable debt levels. However, the debt-to-equity ratio has increased slightly, emphasizing the need for cautious financial management. The return on equity remains negative due to persistent net losses.

Cash Flow

Cash flow analysis indicates a challenging situation, with negative operating and free cash flows. Despite positive financing cash flow, driven by external funding, the company's ability to generate cash from operations remains weak. This raises concerns regarding sustainability without additional financing.

Breakdown
Dec 2024	Dec 2023	Mar 2023	Mar 2022	Dec 2020
Income Statement		Total Revenue
23.07M	263.00K	6.20M	0.00	0.00
	Gross Profit
-2.04M	-43.03M	-17.04M	-1.97M	-3.38M
	EBIT
-242.67M	-165.48M	-131.98M	-69.52M	-23.53M
	EBITDA
-174.26M	-165.48M	-189.34M	-68.03M	-25.33M
	Net Income Common Stockholders
-222.24M	-154.09M	99.30M	-126.04M	-37.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
272.87M	306.81M	322.85M	385.29M	29.14M
	Total Assets
527.17M	564.30M	440.59M	482.56M	64.96M
	Total Debt
192.56M	190.61M	8.23M	9.07M	0.00
	Net Debt
-80.30M	-42.51M	-314.62M	-376.22M	-29.14M
	Total Liabilities
277.77M	303.20M	84.16M	156.45M	28.75M
	Stockholders Equity
246.74M	258.15M	356.43M	326.12M	36.22M
Cash Flow		Free Cash Flow
-184.82M	-110.39M	-118.95M	-95.29M	-47.00M
	Operating Cash Flow
-108.63M	-77.41M	-82.74M	-51.70M	-20.05M
	Investing Cash Flow
-1.38M	-132.01M	-36.21M	-43.58M	-26.95M
	Financing Cash Flow
150.75M	159.59M	56.51M	451.49M	65.92M

Enovix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.58
• 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 ENVX, the sentiment is Positive. The current price of 6.58 is above the 20-day moving average (MA) of 6.33, below the 50-day MA of 7.13, and below the 200-day MA of 9.63, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 48.87 is Neutral, neither overbought nor oversold. The STOCH value of 46.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENVX.

Enovix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.10%	-10.59%
MVST	52 Neutral	$625.13M	―	-45.91%	―	23.87%	-100.53%
SLDP	52 Neutral	$205.95M	―	-20.64%	―	3.22%	-33.20%
AMPX	51 Neutral	$279.67M	―	-70.24%	―	166.95%	-3.40%
ENVX	49 Neutral	$1.17B	―	-85.86%	―	77.59%	2.01%
EOSE	47 Neutral	$1.21B	―	125.43%	―	37.60%	-161.38%
PLUG	45 Neutral	$805.85M	―	-90.88%	―	-29.45%	-10.79%

Enovix Corporate Events

Enovix Appoints New CFO to Boost Growth

On April 17, 2025, Enovix Corporation announced the appointment of Ryan Benton as Chief Financial Officer, effective April 14, 2025. Benton, who brings over three decades of financial leadership experience, previously served as CFO for several public companies, including Silvaco and Exar Corporation. His appointment is seen as a strategic move to strengthen Enovix’s financial leadership as the company approaches mass production of smartphone batteries and anticipates a significant consumer product launch by the end of the year. Benton’s experience and communication style are expected to enhance investor relations and support Enovix’s growth strategy, particularly in light of the company’s recent acquisition in Korea, which aims to improve cost and quality in its supply chain.

Spark’s Take on ENVX Stock

According to Spark, TipRanks’ AI Analyst, ENVX is a Neutral.

Enovix is facing significant financial challenges, with negative profitability metrics and cash flow inefficiencies. While technical indicators are mixed, the stock shows no strong momentum. Valuation metrics reflect its current unprofitable status, though strategic partnerships and technological advancements indicate potential for future growth. The recent appointment of a new Chief Accounting Officer is a positive step towards operational improvements. Overall, the stock’s score reflects these challenges and opportunities.

To see Spark’s full report on ENVX stock, click here.

Enovix Acquires SolarEdge Assets to Boost Manufacturing

On April 3, 2025, Enovix Corporation announced the acquisition of battery cell manufacturing assets from SolarEdge in South Korea. This acquisition, which includes a 330,000 square foot facility adjacent to Enovix’s existing site in Nonsan City, aims to expand the company’s manufacturing capacity and meet the growing demand in the defense industry. The transaction is expected to close in April 2025, and Enovix plans to hire key personnel from SolarEdge Korea to enhance its manufacturing, quality, R&D, and process engineering capabilities. This strategic move is anticipated to simplify the supply chain, accelerate innovation, and improve gross margins, with a projected increase in battery sales for defense and industrial applications in 2025 and 2026.