ENVISTA HOLDINGS CORP (NVST) Stock Fundamental Analysis
NYSE:NVST - New York Stock Exchange, Inc. - US29415F1049 - Common Stock - Currency: USD
NVST gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 187 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of NVST get a neutral evaluation. Nothing too spectacular is happening here. NVST has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year NVST was profitable.
NVST had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NVST reported negative net income in multiple years.
NVST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NVST (-20.57%) is comparable to the rest of the industry.
With a Return On Equity value of -37.03%, NVST perfoms like the industry average, outperforming 51.87% of the companies in the same industry.
The Return On Invested Capital of NVST (2.59%) is better than 70.05% of its industry peers.
NVST had an Average Return On Invested Capital over the past 3 years of 4.17%. This is below the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.57% | ||
| ROE | -37.03% | ||
| ROIC | 2.59% |
ROA(3y)-6.24%
ROA(5y)-2.61%
ROE(3y)-11.58%
ROE(5y)-5.09%
ROIC(3y)4.17%
ROIC(5y)4.15%
1.3 Margins
NVST's Operating Margin of 6.01% is fine compared to the rest of the industry. NVST outperforms 72.73% of its industry peers.
In the last couple of years the Operating Margin of NVST has declined.
With a Gross Margin value of 54.77%, NVST perfoms like the industry average, outperforming 50.80% of the companies in the same industry.
In the last couple of years the Gross Margin of NVST has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.01% | ||
| PM (TTM) | N/A | ||
| GM | 54.77% |
OM growth 3Y-26.92%
OM growth 5Y-10.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.9%
GM growth 5Y-1.29%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NVST is destroying value.
NVST has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NVST has more shares outstanding
NVST has a worse debt/assets ratio than last year.
2.2 Solvency
NVST has an Altman-Z score of 1.50. This is a bad value and indicates that NVST is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.50, NVST is in line with its industry, outperforming 54.01% of the companies in the same industry.
The Debt to FCF ratio of NVST is 5.27, which is a neutral value as it means it would take NVST, 5.27 years of fcf income to pay off all of its debts.
NVST's Debt to FCF ratio of 5.27 is amongst the best of the industry. NVST outperforms 81.82% of its industry peers.
NVST has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
NVST has a Debt to Equity ratio of 0.43. This is comparable to the rest of the industry: NVST outperforms 44.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 5.27 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.36
WACC7.21%
2.3 Liquidity
NVST has a Current Ratio of 2.12. This indicates that NVST is financially healthy and has no problem in meeting its short term obligations.
NVST has a Current ratio of 2.12. This is in the lower half of the industry: NVST underperforms 63.10% of its industry peers.
A Quick Ratio of 1.82 indicates that NVST should not have too much problems paying its short term obligations.
NVST has a Quick ratio of 1.82. This is comparable to the rest of the industry: NVST outperforms 48.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The earnings per share for NVST have decreased strongly by -49.65% in the last year.
Measured over the past years, NVST shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -28.29% on average per year.
NVST shows a decrease in Revenue. In the last year, the revenue decreased by -2.30%.
Measured over the past years, NVST shows a small growth in Revenue. The Revenue has been growing by 1.90% on average per year.
EPS 1Y (TTM)-49.65%
EPS 3Y-28.29%
EPS 5YN/A
EPS Q2Q%-7.69%
Revenue 1Y (TTM)-2.3%
Revenue growth 3Y0.02%
Revenue growth 5Y1.9%
Sales Q2Q%-1.07%
3.2 Future
NVST is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.46% yearly.
The Revenue is expected to grow by 7.74% on average over the next years.
EPS Next Y40.2%
EPS Next 2Y29.16%
EPS Next 3Y23.71%
EPS Next 5Y33.46%
Revenue Next Year1.68%
Revenue Next 2Y2.46%
Revenue Next 3Y2.61%
Revenue Next 5Y7.74%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
NVST is valuated quite expensively with a Price/Earnings ratio of 28.72.
76.47% of the companies in the same industry are more expensive than NVST, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.45. NVST is around the same levels.
A Price/Forward Earnings ratio of 16.74 indicates a correct valuation of NVST.
Based on the Price/Forward Earnings ratio, NVST is valued cheaply inside the industry as 81.28% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.90. NVST is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.72 | ||
| Fwd PE | 16.74 |
4.2 Price Multiples
NVST's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NVST is cheaper than 80.21% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NVST is valued cheaper than 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.9 | ||
| EV/EBITDA | 14.08 |
4.3 Compensation for Growth
NVST's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NVST's earnings are expected to grow with 23.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y29.16%
EPS Next 3Y23.71%
5. Dividend
5.1 Amount
NVST does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.39
+0.22 (+1.09%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners117.29%
Inst Owner Change-68.93%
Ins Owners0.45%
Ins Owner Change10.08%
Market Cap3.46B
Analysts73
Price Target19.61 (-3.83%)
Short Float %6.03%
Short Ratio4.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.98%
Min EPS beat(2)7.34%
Max EPS beat(2)14.62%
EPS beat(4)3
Avg EPS beat(4)-2.03%
Min EPS beat(4)-59.95%
Max EPS beat(4)29.88%
EPS beat(8)4
Avg EPS beat(8)-6.11%
EPS beat(12)6
Avg EPS beat(12)-4.55%
EPS beat(16)10
Avg EPS beat(16)-1.18%
Revenue beat(2)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-0.9%
Max Revenue beat(2)-0.26%
Revenue beat(4)0
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)-0.18%
Revenue beat(8)0
Avg Revenue beat(8)-2.02%
Revenue beat(12)0
Avg Revenue beat(12)-2.08%
Revenue beat(16)1
Avg Revenue beat(16)-2.89%
PT rev (1m)-1.17%
PT rev (3m)-10.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.51%
EPS NY rev (1m)0.31%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.72 | ||
| Fwd PE | 16.74 | ||
| P/S | 1.38 | ||
| P/FCF | 12.9 | ||
| P/OCF | 11.66 | ||
| P/B | 1.14 | ||
| P/tB | 41.89 | ||
| EV/EBITDA | 14.08 |
EPS(TTM)0.71
EY3.48%
EPS(NY)1.22
Fwd EY5.97%
FCF(TTM)1.58
FCFY7.75%
OCF(TTM)1.75
OCFY8.58%
SpS14.77
BVpS17.91
TBVpS0.49
PEG (NY)0.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.57% | ||
| ROE | -37.03% | ||
| ROCE | 3.27% | ||
| ROIC | 2.59% | ||
| ROICexc | 3.38% | ||
| ROICexgc | 21.13% | ||
| OM | 6.01% | ||
| PM (TTM) | N/A | ||
| GM | 54.77% | ||
| FCFM | 10.7% |
ROA(3y)-6.24%
ROA(5y)-2.61%
ROE(3y)-11.58%
ROE(5y)-5.09%
ROIC(3y)4.17%
ROIC(5y)4.15%
ROICexc(3y)4.97%
ROICexc(5y)5.02%
ROICexgc(3y)81.26%
ROICexgc(5y)N/A
ROCE(3y)5.28%
ROCE(5y)5.25%
ROICexcg growth 3Y-55.07%
ROICexcg growth 5Y-3.56%
ROICexc growth 3Y-21.01%
ROICexc growth 5Y-0.5%
OM growth 3Y-26.92%
OM growth 5Y-10.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.9%
GM growth 5Y-1.29%
F-Score4
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 5.27 | ||
| Debt/EBITDA | 4.81 | ||
| Cap/Depr | 24.14% | ||
| Cap/Sales | 1.15% | ||
| Interest Coverage | 2.93 | ||
| Cash Conversion | 110.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 1.5 |
F-Score4
WACC7.21%
ROIC/WACC0.36
Cap/Depr(3y)41.77%
Cap/Depr(5y)41.11%
Cap/Sales(3y)2.19%
Cap/Sales(5y)2.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-49.65%
EPS 3Y-28.29%
EPS 5YN/A
EPS Q2Q%-7.69%
EPS Next Y40.2%
EPS Next 2Y29.16%
EPS Next 3Y23.71%
EPS Next 5Y33.46%
Revenue 1Y (TTM)-2.3%
Revenue growth 3Y0.02%
Revenue growth 5Y1.9%
Sales Q2Q%-1.07%
Revenue Next Year1.68%
Revenue Next 2Y2.46%
Revenue Next 3Y2.61%
Revenue Next 5Y7.74%
EBIT growth 1Y-50.44%
EBIT growth 3Y-26.9%
EBIT growth 5Y-8.72%
EBIT Next Year46.17%
EBIT Next 3Y19.09%
EBIT Next 5Y29.05%
FCF growth 1Y145.91%
FCF growth 3Y-0.46%
FCF growth 5Y-1.09%
OCF growth 1Y62.64%
OCF growth 3Y-2.37%
OCF growth 5Y-3.28%