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Enovix (ENVX)
NASDAQ:ENVX
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Enovix
(NASDAQ:ENVX)
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Rating:55Neutral
Price Target:
$8.00
▼(-2.56% Downside)
Enovix's overall stock score reflects strong revenue growth and strategic advancements, but profitability and cash flow challenges weigh heavily. The company's improved balance sheet and recent corporate events provide a positive outlook, yet technical indicators suggest caution.
Positive Factors
Technology leadership — AI‑1 energy density
Independent third‑party validation of AI‑1's 935 Wh/L volumetric energy density demonstrates a durable technical advantage versus incumbent smartphone cells. Higher energy density is a structural differentiator for OEM adoption, enabling smaller devices or longer runtimes and supporting future product roadmaps (AI‑2/AI‑3) that can sustain competitive moats across consumer and adjacent markets.
Strong liquidity for scale-up
A large cash and marketable securities balance provides a multi‑quarter runway to fund Fab2, capital expenditures, and commercialization. This strengthens the company’s ability to invest in manufacturing scale, absorb iteration costs, and pursue strategic partnerships without immediate refinancing, materially lowering execution risk over the next 6–24 months.
Revenue growth and manufacturing progress
Rapid revenue growth and improving gross margins indicate early commercial traction and initial unit economics improvement. Combined with yield gains, process optimizations, and $20M of Korea shipments, these operational improvements are durable fundamentals that lower future per‑unit costs and help pave a path to scale and eventual positive operating cash flow.
Negative Factors
Negative operating and free cash flow
Persistent negative operating and free cash flows reflect structural cash burn until volumes and margins scale. Even with sizable cash reserves, ongoing negative OCF increases reliance on external funding or equity dilution and pressures capital allocation. The company must convert technological wins into sustained positive cash generation to improve financial resilience.
Ongoing unprofitability and negative ROE
Negative ROE and continued net losses show the business is not yet converting investments into shareholder returns. This structural lack of profitability constrains internal funding for growth, elevates sensitivity to financing costs, and requires material margin expansion or volume scale to justify continued capital deployment into manufacturing and R&D.
Commercialization delay and rising operating expenses
A required additional design iteration and delayed smartphone qualification push out expected revenue and OEM adoption timelines, extending the period before scale benefits accrue. Concurrently higher non‑GAAP operating expenses increase the break‑even threshold, lengthening the time required to reach positive cash flow and profitable scale.
Enovix (ENVX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.77B
Dividend YieldN/A
Average Volume (3M)5.74M
Price to Earnings (P/E)―
Beta (1Y)2.37
Revenue Growth45.98%
EPS Growth44.14%
CountryUS
Employees570
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.14
Shares Outstanding215,816,010
10 Day Avg. Volume5,568,189
30 Day Avg. Volume5,739,951
Financial Highlights & Ratios
PEG Ratio1.46
Price to Book (P/B)7.80
Price to Sales (P/S)83.45
P/FCF Ratio-10.42
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue68.40
Enterprise Value/Gross Profit444.73
Enterprise Value/Ebitda-19.14
Forecast
1Y Price Target
$19.00Price Target Upside131.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)-0.62
Revenue Forecast (FY)$62.45M
Enovix Business Overview & Revenue Model
Company DescriptionEnovix Corporation designs, develops, and manufactures lithium-ion batteries. The company was founded in 2007 and is headquartered in Fremont, California.
How the Company Makes MoneyEnovix generates revenue primarily through the sale of its advanced battery systems to manufacturers in the consumer electronics and electric vehicle sectors. The company employs a business model that includes direct sales to original equipment manufacturers (OEMs) and strategic partnerships for joint development projects. Key revenue streams include contracts for battery supply agreements, licensing of its 3D Silicon™ technology, and potential collaborations with automotive companies aiming to integrate Enovix’s battery solutions into their electric vehicle platforms. Additionally, government grants and funding for research and development activities further contribute to its earnings.
Enovix Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
Enovix demonstrated strong financial growth and operational progress, particularly in revenue, profitability, and product validation. However, delays in smartphone battery qualification and increased expenses present challenges. Overall, the company is positioned for future success with a strong financial foundation and promising market opportunities.Q3-2025 Updates
Positive Updates
Revenue Growth and Profitability
Enovix achieved an 85% year-over-year increase in revenue to $8 million. The company also reported a non-GAAP gross profit of $1.7 million, representing a 21% margin, compared to a loss in the prior year.
Strong Financial Position
Enovix secured long-term funding to finance Fab2 and issued new convertible notes due in 2030, ending the quarter with $648 million in cash and marketable securities.
AI-1 Smartphone Battery Validation
The AI-1 smartphone battery was validated by Polaris Labs as the highest energy density battery reported for a smartphone, with leading fast charge capabilities. The lead smartphone program with Honor has entered the final validation phase.
Smart Eyewear and Defense Market Expansion
Delivered over 1,000 battery packs for smart eyewear under a supply agreement and shipped approximately $20 million of products from the Korea facility, mostly to defense and industrial customers.
Manufacturing and Operational Improvements
Enovix achieved yield improvements in Malaysia across all production zones and optimized battery formation processes, increasing throughput and reducing future CapEx requirements.
Negative Updates
Smartphone Battery Qualification Delays
Enovix needs an additional design iteration to achieve the 1,000 charge-discharge cycle requirement for the Honor smartphone battery, delaying commercialization to the first half of 2026.
Increased Operating Expenses
Non-GAAP operating expenses rose to $31.5 million, up year-on-year, driven by higher depreciation and amortization, with continued investment in R&D and manufacturing readiness.
Company Guidance
In the third quarter of 2025, Enovix Corporation provided robust guidance, highlighting significant advancements and financial achievements. The company reported an 85% increase in revenue year-over-year, reaching $8 million, and achieved a non-GAAP gross profit of $1.7 million with a 21% margin. Enovix secured long-term funding, raising their cash and marketable securities to $648 million, which supports their Fab2 development and positions them for positive cash flow. Their AI-1 smartphone battery, validated by Polaris Labs, demonstrated the highest energy density in the industry, with partnerships progressing towards a 2026 launch. Enovix also delivered over 1,000 battery packs for smart eyewear under customer qualification and reported a strong pipeline in the defense sector, contributing to $20 million in year-to-date shipments from their Korean facility. For the fourth quarter, Enovix projects revenue of $9.5 to $10.5 million and capital expenditures between $9 and $12 million, primarily for Fab2 and their new production line in South Korea.Enovix Financial Statement Overview
Summary
Enovix is experiencing revenue growth but struggles with profitability and cash flow management. The balance sheet shows moderate leverage, but the company needs to improve operational efficiency and profitability to ensure long-term financial health.Income Statement
Enovix shows a positive revenue growth rate of 16.16% TTM, indicating potential market expansion. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is slightly positive, suggesting some improvement in cost management, but overall profitability remains a concern.45
Neutral
Balance Sheet
The debt-to-equity ratio of 0.82 TTM indicates moderate leverage, which is manageable but requires monitoring. The return on equity is negative, reflecting ongoing losses. The equity ratio is stable, suggesting a solid capital structure, but the company needs to improve profitability to enhance shareholder returns.50
Neutral
Cash Flow
Enovix's cash flow situation is challenging, with negative operating and free cash flows. The free cash flow to net income ratio is positive, indicating some efficiency in cash usage relative to net losses. However, the negative growth in free cash flow and operating cash flow coverage ratio highlight liquidity concerns.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.27M | 23.07M | 7.64M | 6.20M | 0.00 | 0.00 |
| Gross Profit | 4.66M | -2.04M | -55.42M | -17.04M | -1.97M | -3.38M |
| EBITDA | -108.19M | -172.18M | -176.30M | -189.34M | -68.03M | -25.33M |
| Net Income | -159.22M | -222.24M | -214.07M | -51.62M | -125.87M | -39.65M |
Balance Sheet | ||||||
| Total Assets | 913.71M | 527.17M | 564.30M | 440.59M | 482.56M | 64.96M |
| Cash, Cash Equivalents and Short-Term Investments | 558.82M | 272.87M | 306.81M | 322.85M | 385.29M | 29.14M |
| Total Debt | 21.56M | 192.56M | 190.61M | 8.23M | 9.07M | 0.00 |
| Total Liabilities | 616.61M | 277.77M | 303.20M | 84.16M | 156.45M | 28.75M |
| Stockholders Equity | 294.26M | 246.74M | 258.15M | 356.43M | 326.12M | 36.22M |
Cash Flow | ||||||
| Free Cash Flow | -117.82M | -184.82M | -110.39M | -118.95M | -95.29M | -47.00M |
| Operating Cash Flow | -84.25M | -108.63M | -77.41M | -82.74M | -51.70M | -20.05M |
| Investing Cash Flow | -355.56M | -1.38M | -132.01M | -36.21M | -43.58M | -26.95M |
| Financing Cash Flow | 577.26M | 150.75M | 159.59M | 56.51M | 451.49M | 65.92M |
Enovix Technical Analysis
Negative
8.21
Price Trends
8.22
Negative
9.51
Negative
9.45
Negative
Market Momentum
-0.11
Negative
45.94
Neutral
41.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENVX, the sentiment is Negative. The current price of 8.21 is above the 20-day moving average (MA) of 7.93, below the 50-day MA of 8.22, and below the 200-day MA of 9.45, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 45.94 is Neutral, neither overbought nor oversold. The STOCH value of 41.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENVX.
Enovix Risk Analysis
Enovix disclosed 70 risk factors in its most recent earnings report. Enovix reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Enovix Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $5.61B | -2.02 | ― | ― | 324.10% | -214.91% | |
55 Neutral | $1.77B | -9.64 | -68.95% | ― | 45.98% | 44.14% | |
52 Neutral | $1.04B | -6.01 | -35.82% | ― | 19.82% | -7.14% | |
51 Neutral | $1.11B | -10.50 | -23.63% | ― | 25.24% | -12.96% | |
50 Neutral | $1.35B | -39.02 | -39.01% | ― | 234.14% | 42.67% | |
48 Neutral | $3.27B | -1.04 | -95.42% | ― | 2.53% | -2.83% |
* Industrials Sector Average
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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.