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Envista Holdings Corp (NVST)
NYSE:NVST
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Envista Holdings
(NYSE:NVST)
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Rating:61Neutral
Price Target:
$31.00
▲(6.97% Upside)
Action:ReiteratedDate:02/07/26
NVST scores as mid-range: financial stability and solid cash generation are offset by uneven profitability, while technical momentum is strong but looks overbought. The latest guidance supports ongoing operational improvement, but valuation remains the largest headwind given the very high P/E and no indicated dividend yield.
Positive Factors
Free cash flow generation & conversion
Consistent positive free cash flow and high conversion indicate the business self-funds operations, R&D and buybacks without heavy external financing. Durable FCF supports reinvestment and shareholder returns while providing a buffer against cyclical weakness and execution slippage.
Product innovation and commercial momentum
A steady stream of new-product revenue and stepped-up R&D spending demonstrate a sustainable innovation engine. This supports organic growth, strengthens brand differentiation across implants, orthodontics and diagnostics, and increases customer stickiness over the medium term.
Manageable leverage and balance-sheet flexibility
Conservative net leverage and a sizable equity base provide financial flexibility to fund capex, M&A or buybacks and absorb shocks. Low net debt/EBITDA and available cash generation reduce refinancing risk and support multi-quarter operational execution plans.
Negative Factors
Volatile earnings and slim margins
Material swings in net income and very low reported margins limit predictability of earnings power. Persistent volatility undermines ROE recovery and makes it harder to plan consistent reinvestment or dividend policies, increasing execution risk over the next several quarters.
Tariff-related cost pressure
Ongoing tariffs represent a structural margin headwind that must be offset by price, cost cuts or supply-chain changes. If passthrough is limited by competitive dynamics, margins and adjusted EBITDA could be persistently compressed, reducing cash available for strategic initiatives.
China VBP timing and demand uncertainty
Regulatory and procurement timing in China can produce quarter-to-quarter order swings in a material revenue pool. That structural uncertainty complicates forecasting, inventory and working capital planning and may depress medium-term growth visibility in the region.
Envista Holdings (NVST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.67B
Dividend YieldN/A
Average Volume (3M)3.30M
Price to Earnings (P/E)104.5
Beta (1Y)0.93
Revenue Growth4.73%
EPS GrowthN/A
CountryUS
Employees12,300
SectorHealthcare
Sector Strength45
IndustryMedical - Equipment & Services
Share Statistics
EPS (TTM)0.38
Shares Outstanding163,875,400
10 Day Avg. Volume3,081,057
30 Day Avg. Volume3,301,762
Financial Highlights & Ratios
PEG Ratio-0.74
Price to Book (P/B)1.17
Price to Sales (P/S)1.34
P/FCF Ratio15.83
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue1.96
Enterprise Value/Gross Profit3.57
Enterprise Value/Ebitda15.07
Forecast
1Y Price Target
$28.50Price Target Upside-1.66% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Envista Holdings Business Overview & Revenue Model
Company DescriptionEnvista Holdings Corp. manufactures and markets dental products for diagnosing, treating and preventing dental conditions. The company is headquartered in Brea, California and currently employs 12,800 full-time employees. The firm provides products that are used to diagnose, treat and prevent disease and ailments of the teeth, gums and supporting bone. The firm operates through two segments: Specialty Products & Technologies, and Equipment & Consumables. Its Specialty Products & Technologies segment develops, manufactures and markets dental implant systems, dental prosthetics and associated treatment software and technologies, as well as orthodontic bracket systems, aligners and lab products. Its Equipment & Consumables segment develops, manufactures and markets dental equipment and supplies used in dental offices, including digital imaging systems, software and other visualization/magnification systems; treatment units and other dental practice equipment; endodontic systems and related consumables; restorative materials and instruments, rotary burs, impression materials, bonding agents and cements and infection prevention products.
How the Company Makes MoneyEnvista generates revenue primarily through the sale of dental products and equipment across various segments. Its key revenue streams include orthodontic devices, restorative materials, and digital imaging products. The company benefits from a strong distribution network and strategic partnerships with dental professionals and institutions, enabling it to reach a wide customer base. Additionally, Envista invests in research and development to introduce new technologies and improve existing products, which contributes to its competitive advantage and revenue growth.
Envista Holdings Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and financial progress: broad-based revenue growth, notable margin and EPS expansion, high free cash flow conversion, product innovation momentum, cost reduction in G&A, and a return to shareholder-friendly actions (repurchases). Notable risks include FX comparability effects, tariff headwinds (~$30M in 2025; ~$40M annualized in 2026), China VBP timing uncertainty, some segment margin pressure (Diagnostics/Equipment) and the fact that portions of Q4 growth were aided by non-recurring items. On balance, the company presented measurable, repeatable improvements and conservative guidance that account for known risks while projecting continued progress in 2026.Q4-2025 Updates
Positive Updates
Strong Q4 Revenue and Core Growth
Q4 sales of $751M with core sales growth of 10.8% year-over-year (reported growth ~15% including FX (+~400 bps) and other items). All businesses posted positive growth in Q4 and sequential acceleration across quarters.
2025 Full-Year Growth and Profitability
Full year sales of $2.7B with core sales up 6.5% (underlying ~4% excluding one-time items). Adjusted EBITDA increased ~26% for 2025 with adjusted EBITDA margin of ~13.7% (up ~190 bps). Adjusted EPS $1.19, up $0.46 (~63%).
Margin and EPS Improvement in Q4
Q4 adjusted EBITDA margin 14.8%, +90 bps year-over-year. Adjusted EPS in Q4 was $0.38, up more than 50% vs Q4 2024 (increase of $0.14).
Free Cash Flow Strength and Balance Sheet
Full-year free cash flow conversion of 114% with free cash flow of $231M and net debt / adjusted EBITDA ~0.6x, supporting financial flexibility.
Shareholder Returns
Initiated $250M share repurchase program and returned $166M to shareholders in 2025 (repurchased >9M shares at an average price of ~$18).
Product Innovation and Commercial Momentum
Generated nearly $100M in revenue from products introduced in the prior 12 months; trained 30% more customers in 2025; multiple major new product launches across Spark, implants, consumables and diagnostics; R&D investment increased (double-digit increases in Q4).
Operational Cost Discipline
G&A spending reduced by >$35M (~10%) in 2025 while maintaining service and quality levels; productivity gains contributed meaningfully to margin expansion (net productivity ~100 bps benefit in Q4).
2026 Guidance Reflects Confidence
Guidance for 2026: core revenue growth 2–4%, adjusted EBITDA dollar growth 7–13%, adjusted EPS $1.35–$1.45 (13–22% growth), free cash flow conversion ~100%, and expected non-GAAP tax rate ~28%.
Negative Updates
FX and One-Time Comparables Impacting Margins
Q4 adjusted gross margin down 220 bps YoY due to a significant FX transaction benefit in Q4 2024 that did not recur. FX was a headwind to margins (~270 bps YoY impact mentioned).
Tariff-Related Cost Headwinds
Tariff impact was ~ $30M in 2025 with gross tariff expense ~$10M in Q4 (~160 bps margin pressure). Company expects ~ $40M tariff effect in 2026 due to annualization and did not model further tariff reductions.
Q4 Growth Partly Driven by Non-Recurring Items
Management noted Q4 core growth benefited from Spark revenue deferral change and favorable 2024 comparables (notably China ortho and Diagnostics comps), with underlying core growth closer to mid-single digits once adjusted.
Diagnostics & Equipment Margin Pressure
Equipment & Consumables segment core sales +10.7% in Q4 but adjusted operating profit margin for the segment declined ~510 bps, driven by increased investment and prior-year FX benefits that did not repeat.
China VBP Timing and Volatility
China remains a source of uncertainty (represents ~7% of sales). VBP timing for ortho and implants is uncertain and can cause quarter-to-quarter order volatility (Q4 2024 saw high double-digit contraction in China ortho).
Free Cash Flow Dollars Decline in Q4
Q4 free cash flow was $92M, down ~$32M YoY due to unusually strong working capital improvements in prior-year quarter and higher CapEx in Q4 2025; full-year FCF dollars were down YoY for similar reasons.
Reinvestment Offsets Some Productivity Gains
Company reinvested a portion of productivity gains into sales, marketing and R&D (about 170 bps reinvested in Q4), which partially offset margin expansion.
Ongoing Macroeconomic and Execution Risks
Management highlighted risks to guidance including macro volatility (tariffs, interest rates, consumer confidence), China VBP timing, and normalization of pricing (tariff-related price increases expected to moderate).
Company Guidance
Envista guided 2026 to core revenue growth of 2%–4%, adjusted EBITDA dollar growth of 7%–13% (implying roughly a 50–100 bps margin improvement), adjusted EPS of $1.35–$1.45 (or ~13%–22% EPS growth), and free cash flow conversion of ~100%; key assumptions include a non‑GAAP tax rate of ~28%, a remaining Spark deferral tailwind of about $15M in H1, a ~1.5% full‑year FX benefit (EUR 1 = USD 1.17), no modeled material tariff changes but an annualized tariff impact of roughly $40M in 2026 (vs. ~$30M in 2025) that management expects to offset with price, cost and supply‑chain actions, and a billing‑days cadence (Q1 has ~4 extra selling days vs. Q4) that could shift ~4–5 points of reported growth into Q1.Envista Holdings Financial Statement Overview
Summary
Revenue and gross margins are steady, leverage is manageable, and operating/free cash flow remains positive. However, earnings have been volatile (notably the 2024 loss) and profitability/ROE are still recovering, which limits confidence in consistent earnings power.Income Statement
Revenue has been broadly stable to modestly growing, with 2025 revenue up ~3.7% versus 2024. Gross margins remain solid and consistent (~55% range), indicating decent pricing power/product mix. However, profitability has been volatile: 2024 swung to a very large net loss, followed by a return to a small profit in 2025 (net margin ~1.7%), still well below 2021–2022 levels. Overall, the top line looks steady, but earnings quality and consistency are the key weakness.52
Neutral
Balance Sheet
Leverage appears manageable, with debt-to-equity generally in the ~0.36–0.53 range across the period and 2025 at ~0.51. Equity remains sizable relative to total assets, providing balance-sheet support. The main concern is uneven shareholder returns driven by the earnings swings (ROE was sharply negative in 2024 and low positive in 2025), which reduces confidence in the underlying earnings power despite acceptable leverage.64
Positive
Cash Flow
Cash generation is a relative bright spot: the company has produced positive operating cash flow and free cash flow each year shown, including 2025 free cash flow of ~$230M. Free cash flow has been volatile (down ~12% in 2025 after improving in 2024), but cash flow has generally tracked reported earnings reasonably well, and the business has continued to self-fund with ongoing free cash flow. The key weakness is the lack of a steady upward trajectory in free cash flow.67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.72B | 2.51B | 2.57B | 2.57B | 2.51B |
| Gross Profit | 1.50B | 1.39B | 1.45B | 1.49B | 1.46B |
| EBITDA | 341.70M | 279.50M | 463.00M | 497.70M | 496.00M |
| Net Income | 47.00M | -1.12B | -100.20M | 243.10M | 340.50M |
Balance Sheet | |||||
| Total Assets | 5.68B | 5.35B | 6.61B | 6.59B | 6.57B |
| Cash, Cash Equivalents and Short-Term Investments | 1.21B | 1.07B | 940.00M | 606.90M | 1.07B |
| Total Debt | 1.71B | 1.55B | 1.65B | 1.53B | 1.48B |
| Total Liabilities | 2.57B | 2.42B | 2.43B | 2.38B | 2.52B |
| Stockholders Equity | 3.11B | 2.93B | 4.17B | 4.21B | 4.06B |
Cash Flow | |||||
| Free Cash Flow | 230.40M | 302.70M | 217.50M | 107.00M | 306.90M |
| Operating Cash Flow | 275.70M | 336.50M | 275.70M | 182.70M | 361.60M |
| Investing Cash Flow | -51.10M | -54.60M | -62.40M | -657.30M | 262.70M |
| Financing Cash Flow | -170.90M | -103.70M | 118.90M | 12.50M | -465.60M |
Envista Holdings Technical Analysis
Positive
28.98
Price Trends
24.39
Positive
22.23
Positive
20.99
Positive
Market Momentum
1.51
Negative
66.23
Neutral
47.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVST, the sentiment is Positive. The current price of 28.98 is above the 20-day moving average (MA) of 26.68, above the 50-day MA of 24.39, and above the 200-day MA of 20.99, indicating a bullish trend. The MACD of 1.51 indicates Negative momentum. The RSI at 66.23 is Neutral, neither overbought nor oversold. The STOCH value of 47.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVST.
Envista Holdings Risk Analysis
Envista Holdings disclosed 47 risk factors in its most recent earnings report. Envista Holdings 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
Envista Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $4.67B | 104.47 | 1.56% | ― | 4.73% | ― | |
60 Neutral | $6.26B | -17.32 | -4.69% | ― | 6.23% | 17.53% | |
52 Neutral | $2.43B | -11.82 | -34.78% | ― | ― | -34.96% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $2.49B | -2.83 | -44.44% | 5.61% | -7.08% | -113.81% | |
49 Neutral | $936.92M | -5.59 | -16.81% | ― | 7.16% | 3.95% | |
48 Neutral | $1.08B | -18.05 | -16.90% | ― | 15.23% | 38.79% |
* Healthcare 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.