Envista Holdings (NVST) AI Stock Analysis

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Envista Holdings

(NYSE:NVST)

Rating:56Neutral

Price Target:

$17.00

▲( 1.67% Upside)

Envista Holdings' overall score reflects financial challenges, particularly in profitability and valuation, which weigh down its attractiveness. However, operational improvements and strategic actions highlighted in the earnings call provide some confidence in future performance. Technical indicators and a solid cash flow position offer additional, albeit moderate, support.

Positive Factors

Earnings

NVST beat consensus revenue and earnings in 1Q25 and management reiterated its 2025 revenue and EPS guidance.

Financial Performance

Margin performance exceeded expectations, with an EBITDA margin of 12.8%, benefiting from pricing gains and productivity initiatives.

Growth Projections

There is potential for Envista to grow at the high-end of the 2-4% core revenue growth target in the medium term.

Negative Factors

Demand Environment

The dental demand environment is still soft, with declines in consumer confidence levels.

Geographic and Product Line Weakness

Certain geographies and product lines remain weak, such as diagnostics declines in North America and China, and declining challenger implants globally.

Macro Conditions and Tariffs

Uncertainty over macro conditions and tariffs creates new headwinds for the company.

Envista Holdings (NVST) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.83B

Dividend YieldN/A

Average Volume (3M)2.59M

Price to Earnings (P/E)―

Beta (1Y)0.77

Revenue Growth-2.30%

EPS Growth-854.21%

CountryUS

Employees12,300

SectorHealthcare

Sector Strength41

IndustryMedical - Equipment & Services

Share Statistics

EPS (TTM)0.24

Shares Outstanding169,487,010

10 Day Avg. Volume2,495,471

30 Day Avg. Volume2,585,592

Financial Highlights & Ratios

PEG Ratio4.38

Price to Book (P/B)1.00

Price to Sales (P/S)0.00

P/FCF Ratio11.13

Enterprise Value/Market Cap1.22

Enterprise Value/Revenue0.34

Enterprise Value/Gross Profit2.56

Enterprise Value/Ebitda-0.86

Forecast

1Y Price Target

$18.45

Price Target Upside10.35% Upside

Rating ConsensusHold

Number of Analyst Covering13

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 Holdings makes money primarily through the sale of its dental products and solutions to dental professionals and organizations worldwide. The company's revenue streams are predominantly driven by its Specialty Products & Technologies segment, which includes high-margin products like dental implants and orthodontic solutions. The Equipment & Consumables segment contributes significantly as well, with products such as digital imaging tools and essential dental consumables. Envista also benefits from strategic partnerships and collaborations with dental professionals and institutions, which help to expand its market reach and drive sales. Additionally, the company invests in ongoing research and development to innovate and maintain a competitive edge in the dental industry.

Envista Holdings Financial Statement Overview

Summary

Envista Holdings faces financial challenges with profitability and revenue growth pressures. While the company's balance sheet offers stability through its equity, rising leverage is a concern. Cash flow generation remains a bright spot, though negative profitability impacts overall financial health. Strategic focus on improving operational efficiencies and managing debt levels could enhance future performance.

Income Statement

Neutral

Envista Holdings has experienced fluctuations in profitability with negative net income in recent periods. The gross profit margin remains fairly stable, indicating decent control over cost of goods sold. However, the negative EBIT and EBITDA margins in the TTM period highlight operational inefficiencies. Revenue growth has been inconsistent, with recent declines contributing to overall instability.

Balance Sheet

Neutral

The company's balance sheet shows a healthy equity position relative to its total assets, suggesting solid financial backing. However, a rising debt-to-equity ratio poses a risk, reflecting increased leverage that could impact future financial flexibility. The return on equity has been adversely affected by negative net income, limiting shareholders' returns.

Cash Flow

Neutral

Envista Holdings demonstrates a relatively strong cash flow position, with consistent positive operating cash flow. Free cash flow remains positive but shows signs of decline, indicating potential challenges in sustaining cash generation. The operating cash flow to net income ratio is favorable, suggesting effective cash conversion from operations, though negative net income affects the overall assessment.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.50B	2.51B	2.57B	2.57B	2.51B	2.28B
	Gross Profit
1.36B	1.37B	1.45B	1.47B	1.43B	1.16B
	EBIT
125.50M	-1.04B	31.50M	319.20M	306.20M	33.30M
	EBITDA
-940.10M	-883.80M	171.10M	484.40M	460.50M	205.60M
	Net Income Common Stockholders
-1.12B	-1.12B	-100.20M	243.10M	263.50M	33.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.07B	1.07B	940.00M	606.90M	1.07B	888.90M
	Total Assets
5.35B	5.35B	6.61B	6.59B	6.57B	6.88B
	Total Debt
1.55B	1.55B	1.65B	1.53B	1.46B	1.98B
	Net Debt
478.60M	478.60M	713.60M	922.20M	386.30M	1.09B
	Total Liabilities
2.42B	2.42B	2.43B	2.38B	2.52B	3.15B
	Stockholders Equity
2.93B	2.93B	4.17B	4.21B	4.06B	3.72B
Cash Flow		Free Cash Flow
267.80M	302.70M	217.50M	107.00M	336.70M	236.20M
	Operating Cash Flow
296.50M	336.50M	275.70M	182.70M	391.40M	283.90M
	Investing Cash Flow
-52.70M	-54.60M	-62.40M	-657.30M	232.90M	-69.10M
	Financing Cash Flow
-118.70M	-103.70M	118.90M	12.50M	-465.60M	492.50M

Envista Holdings Technical Analysis

Technical Analysis Sentiment

Negative

Last Price16.72

Price Trends

50DMA

16.65

Positive

100DMA

18.32

Negative

200DMA

18.74

Negative

Market Momentum

MACD

0.19

Positive

RSI

46.47

Neutral

STOCH

9.68

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVST, the sentiment is Negative. The current price of 16.72 is below the 20-day moving average (MA) of 17.21, above the 50-day MA of 16.65, and below the 200-day MA of 18.74, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 46.47 is Neutral, neither overbought nor oversold. The STOCH value of 9.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVST.

Envista Holdings Risk Analysis

Envista Holdings disclosed 49 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 3 New Risks

Changes in accounting standards and subjective assumptions, estimates and judgments by management related to complex accounting matters could significantly affect our financial results or financial condition. Q4, 2024

We may be unable to raise the funds necessary to repurchase the Notes for cash following a fundamental change, or to pay any cash amounts due upon conversion, and our other indebtedness may limit our ability to repurchase the Notes or pay cash upon their conversion. Q4, 2024

We currently outsource certain elements of our information technology systems to third-party services providers and their failure to adequately perform their services or attacks to their information systems could have a material adverse impact on our business operations and make our systems vulnerable to attacks. Q4, 2024

Envista Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LH	74 Outperform	$20.29B	27.98	8.98%	1.19%	7.13%	74.73%
PDCO	70 Outperform	$2.77B	20.21	14.15%	2.49%	-0.85%	-23.40%
SHC	66 Neutral	$3.45B	140.42	5.88%	―	2.78%	-54.72%
SGRY	60 Neutral	$2.92B	―	-10.43%	―	13.54%	-30732.00%
NVST	56 Neutral	$2.83B	―	-31.33%	―	-2.30%	-854.21%
XRAY	54 Neutral	$3.08B	―	-34.47%	4.14%	-5.61%	-921.99%
Sector *	53 Neutral	$5.14B	3.03	-44.09%	2.83%	16.75%	-0.06%

* Healthcare Sector Average

Performance Comparison

NVST

Envista Holdings

16.72

-1.31

-7.27%

XRAY

DENTSPLY SIRONA

15.47

-11.32

-42.25%

Labcorp Holdings

242.53

48.09

24.73%

PDCO

Patterson Companies

31.33

7.88

33.60%

SGRY

Surgery Partners

22.80

-2.73

-10.69%

SHC

Sotera Health

12.16

1.12

10.14%

Envista Holdings Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q1-2025)

% Change Since: 2.33%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

The earnings call described a balanced performance with solid growth and operational improvements offset by challenges related to foreign exchange impacts and geopolitical uncertainties in China. The company's financial strength and strategic initiatives provide a buffer against these challenges.

Q1-2025 Updates

Positive Updates

Solid Start to 2025

Envista delivered core growth of 0.2% and adjusted EBITDA margin around 13%, both in line with expectations, and adjusted EPS of $0.24, slightly ahead of expectations. Progress was also made on the $250 million share repurchase program.

Growth in Key Segments

Growth was delivered across consumables, Nobel Biocare, and Ormco (excluding China). Positive growth was also noted in North America, Japan, and emerging markets excluding China.

Operational Improvements

The company saw gains in customer service, price, G&A productivity, and Spark margins. Employee engagement improved by 4 points, and there was year-over-year improvement in employee retention.

Strong Cash Position

Envista maintains a strong balance sheet with net debt to adjusted EBITDA of approximately 1 times, providing flexibility during macroeconomic uncertainty.

Negative Updates

Impact of Foreign Exchange Rates

Currency exchange rates negatively impacted sales year over year by about 140 basis points, and the adjusted gross margin decreased by 260 basis points due to FX headwinds.

Challenges in China

Declines in diagnostics globally and brackets and wires in China due to ortho VBP preparations impacted performance. The geopolitical situation also adds uncertainty.

Free Cash Flow Outflow

Free cash flow was an outflow of $5 million in Q1, attributed to the timing of incentive compensation and working capital.

Company Guidance

During Envista Holdings Corporation's First Quarter 2025 earnings call, the company provided guidance for the fiscal year, maintaining its projections despite macroeconomic uncertainties. Envista anticipates a core growth of 1% to 3%, adjusted EBITDA margins around 14%, and adjusted EPS between $0.95 and $1.05. The first quarter results showed a core growth of 0.2%, an adjusted EBITDA margin of approximately 13%, and adjusted EPS of $0.24, exceeding expectations slightly. The company is actively managing its operations to mitigate tariff impacts and has a $250 million share repurchase program underway. Additionally, Envista has seen improvements in several areas, including customer service, G&A productivity, and employee engagement, while maintaining a strong balance sheet to navigate the current economic landscape.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.