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 190 industry peers in the Health Care Equipment & Supplies industry. The financial health of NVST is average, but there are quite some concerns on its profitability. NVST is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
NVST had positive earnings in the past year.
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.
In the past 5 years NVST always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -20.91%, NVST perfoms like the industry average, outperforming 51.60% of the companies in the same industry.
Looking at the Return On Equity, with a value of -38.12%, NVST is in line with its industry, outperforming 54.26% of the companies in the same industry.
NVST has a better Return On Invested Capital (2.52%) than 71.81% of its industry peers.
NVST had an Average Return On Invested Capital over the past 3 years of 3.93%. This is below the industry average of 8.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.91% | ||
| ROE | -38.12% | ||
| ROIC | 2.52% |
ROA(3y)-6.24%
ROA(5y)-2.61%
ROE(3y)-11.58%
ROE(5y)-5.09%
ROIC(3y)3.93%
ROIC(5y)4.01%
1.3 Margins
With a decent Operating Margin value of 5.69%, NVST is doing good in the industry, outperforming 73.40% of the companies in the same industry.
In the last couple of years the Operating Margin of NVST has declined.
The Gross Margin of NVST (55.40%) is comparable to the rest of the industry.
NVST's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.69% | ||
| PM (TTM) | N/A | ||
| GM | 55.4% |
OM growth 3Y-33.88%
OM growth 5Y-15.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.35%
GM growth 5Y-1.56%
2. Health
2.1 Basic Checks
NVST has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NVST has more shares outstanding
NVST has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NVST is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.55, we must say that NVST is in the distress zone and has some risk of bankruptcy.
NVST has a Altman-Z score of 1.55. This is comparable to the rest of the industry: NVST outperforms 55.85% of its industry peers.
NVST has a debt to FCF ratio of 4.61. This is a neutral value as NVST would need 4.61 years to pay back of all of its debts.
NVST has a better Debt to FCF ratio (4.61) than 81.38% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that NVST is not too dependend on debt financing.
NVST has a Debt to Equity ratio of 0.44. This is comparable to the rest of the industry: NVST outperforms 41.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.3
WACC8.44%
2.3 Liquidity
A Current Ratio of 2.04 indicates that NVST has no problem at all paying its short term obligations.
NVST has a Current ratio of 2.04. This is in the lower half of the industry: NVST underperforms 64.36% of its industry peers.
A Quick Ratio of 1.76 indicates that NVST should not have too much problems paying its short term obligations.
NVST has a Quick ratio of 1.76. This is comparable to the rest of the industry: NVST outperforms 45.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The earnings per share for NVST have decreased strongly by -52.29% in the last year.
The earnings per share for NVST have been decreasing by -28.29% on average. This is quite bad
The Revenue has decreased by -2.18% in the past year.
The Revenue has been growing slightly by 1.90% on average over the past years.
EPS 1Y (TTM)-52.29%
EPS 3Y-28.29%
EPS 5YN/A
EPS Q2Q%-17.24%
Revenue 1Y (TTM)-2.18%
Revenue growth 3Y0.02%
Revenue growth 5Y1.9%
Sales Q2Q%1.13%
3.2 Future
Based on estimates for the next years, NVST will show a very strong growth in Earnings Per Share. The EPS will grow by 33.46% on average per year.
The Revenue is expected to grow by 7.74% on average over the next years.
EPS Next Y39.06%
EPS Next 2Y28.76%
EPS Next 3Y23.72%
EPS Next 5Y33.46%
Revenue Next Year2.47%
Revenue Next 2Y2.93%
Revenue Next 3Y3.28%
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
A Price/Earnings ratio of 28.59 indicates a quite expensive valuation of NVST.
Compared to the rest of the industry, the Price/Earnings ratio of NVST indicates a somewhat cheap valuation: NVST is cheaper than 75.53% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, NVST is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.56, the valuation of NVST can be described as rather expensive.
Based on the Price/Forward Earnings ratio, NVST is valued cheaply inside the industry as 81.38% of the companies are valued more expensively.
NVST's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 20.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVST is valued cheaper than 84.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NVST is valued cheaply inside the industry as 94.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.87 | ||
| EV/EBITDA | 15.11 |
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.
A more expensive valuation may be justified as NVST's earnings are expected to grow with 23.72% in the coming years.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y28.76%
EPS Next 3Y23.72%
5. Dividend
5.1 Amount
NVST does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.87
-0.58 (-2.7%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners114.26%
Inst Owner Change0.38%
Ins Owners0.63%
Ins Owner Change0.33%
Market Cap3.59B
Analysts71
Price Target23.37 (11.98%)
Short Float %5.99%
Short Ratio4.8
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)18.61%
Min EPS beat(2)7.34%
Max EPS beat(2)29.88%
EPS beat(4)2
Avg EPS beat(4)-10.45%
Min EPS beat(4)-59.95%
Max EPS beat(4)29.88%
EPS beat(8)3
Avg EPS beat(8)-9.17%
EPS beat(12)6
Avg EPS beat(12)-5.27%
EPS beat(16)10
Avg EPS beat(16)2.19%
Revenue beat(2)0
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-0.9%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-2.18%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)-0.18%
Revenue beat(8)0
Avg Revenue beat(8)-2.34%
Revenue beat(12)0
Avg Revenue beat(12)-2.19%
Revenue beat(16)1
Avg Revenue beat(16)-3.31%
PT rev (1m)0.78%
PT rev (3m)15.59%
EPS NQ rev (1m)-16.78%
EPS NQ rev (3m)-32%
EPS NY rev (1m)-12.34%
EPS NY rev (3m)-12.95%
Revenue NQ rev (1m)-3.77%
Revenue NQ rev (3m)-4.8%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 20.56 | ||
| P/S | 1.43 | ||
| P/FCF | 11.87 | ||
| P/OCF | 10.68 | ||
| P/B | 1.22 | ||
| P/tB | 156.25 | ||
| EV/EBITDA | 15.11 |
EPS(TTM)0.73
EY3.5%
EPS(NY)1.02
Fwd EY4.86%
FCF(TTM)1.76
FCFY8.42%
OCF(TTM)1.95
OCFY9.36%
SpS14.58
BVpS17.04
TBVpS0.13
PEG (NY)0.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.91% | ||
| ROE | -38.12% | ||
| ROCE | 3.2% | ||
| ROIC | 2.52% | ||
| ROICexc | 3.32% | ||
| ROICexgc | 23% | ||
| OM | 5.69% | ||
| PM (TTM) | N/A | ||
| GM | 55.4% | ||
| FCFM | 12.06% |
ROA(3y)-6.24%
ROA(5y)-2.61%
ROE(3y)-11.58%
ROE(5y)-5.09%
ROIC(3y)3.93%
ROIC(5y)4.01%
ROICexc(3y)4.65%
ROICexc(5y)4.83%
ROICexgc(3y)79.09%
ROICexgc(5y)N/A
ROCE(3y)4.97%
ROCE(5y)5.07%
ROICexcg growth 3Y-59.35%
ROICexcg growth 5Y-9.19%
ROICexc growth 3Y-28.54%
ROICexc growth 5Y-6.3%
OM growth 3Y-33.88%
OM growth 5Y-15.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.35%
GM growth 5Y-1.56%
F-Score3
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.61 | ||
| Debt/EBITDA | 4.81 | ||
| Cap/Depr | 27.46% | ||
| Cap/Sales | 1.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 126.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 1.55 |
F-Score3
WACC8.44%
ROIC/WACC0.3
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)-52.29%
EPS 3Y-28.29%
EPS 5YN/A
EPS Q2Q%-17.24%
EPS Next Y39.06%
EPS Next 2Y28.76%
EPS Next 3Y23.72%
EPS Next 5Y33.46%
Revenue 1Y (TTM)-2.18%
Revenue growth 3Y0.02%
Revenue growth 5Y1.9%
Sales Q2Q%1.13%
Revenue Next Year2.47%
Revenue Next 2Y2.93%
Revenue Next 3Y3.28%
Revenue Next 5Y7.74%
EBIT growth 1Y-56.02%
EBIT growth 3Y-33.86%
EBIT growth 5Y-14.05%
EBIT Next Year48.93%
EBIT Next 3Y20.09%
EBIT Next 5Y29.05%
FCF growth 1Y39.17%
FCF growth 3Y-0.46%
FCF growth 5Y-1.09%
OCF growth 1Y22.05%
OCF growth 3Y-2.37%
OCF growth 5Y-3.28%