Taking everything into account, NVST scores 5 out of 10 in our fundamental rating. NVST was compared to 184 industry peers in the Health Care Equipment & Supplies industry. NVST has an average financial health and profitability rating. NVST has a correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
NVST had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With a decent Return On Assets value of 0.27%, NVST is doing good in the industry, outperforming 73.37% of the companies in the same industry.
With a decent Return On Equity value of 0.50%, NVST is doing good in the industry, outperforming 73.91% of the companies in the same industry.
The Return On Invested Capital of NVST (3.67%) is better than 71.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NVST is below the industry average of 8.81%.

		Industry Rank	Sector Rank
ROA	0.27%
ROE	0.5%
ROIC	3.67%

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

With a decent Profit Margin value of 0.58%, NVST is doing good in the industry, outperforming 73.37% of the companies in the same industry.
The Operating Margin of NVST (8.55%) is better than 76.63% of its industry peers.
In the last couple of years the Operating Margin of NVST has declined.
NVST has a Gross Margin of 55.55%. This is comparable to the rest of the industry: NVST outperforms 54.35% of its industry peers.
NVST's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	8.55%
PM (TTM)	0.58%
GM	55.55%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NVST is destroying value.
Compared to 1 year ago, NVST has more shares outstanding
Compared to 5 years ago, NVST has more shares outstanding
NVST has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.64, we must say that NVST is in the distress zone and has some risk of bankruptcy.
NVST has a Altman-Z score (1.64) which is comparable to the rest of the industry.
NVST has a debt to FCF ratio of 5.51. This is a neutral value as NVST would need 5.51 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.51, NVST is in the better half of the industry, outperforming 78.80% of the companies in the same industry.
NVST has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
NVST has a Debt to Equity ratio (0.47) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.47
Debt/FCF	5.51
Altman-Z	1.64

ROIC/WACC0.39

WACC9.36%

2.3 Liquidity

NVST has a Current Ratio of 2.37. This indicates that NVST is financially healthy and has no problem in meeting its short term obligations.
NVST has a Current ratio (2.37) which is in line with its industry peers.
A Quick Ratio of 2.02 indicates that NVST has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.02, NVST is in line with its industry, outperforming 55.43% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.37
Quick Ratio	2.02

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 35.90% over the past year.
The earnings per share for NVST have been decreasing by -28.29% on average. This is quite bad
NVST shows a small growth in Revenue. In the last year, the Revenue has grown by 4.73%.
The Revenue has been growing slightly by 1.90% on average over the past years.

EPS 1Y (TTM)35.9%

EPS 3Y-28.29%

EPS 5YN/A

EPS Q2Q%166.67%

Revenue 1Y (TTM)4.73%

Revenue growth 3Y0.02%

Revenue growth 5Y1.9%

Sales Q2Q%11.46%

3.2 Future

The Earnings Per Share is expected to grow by 33.46% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.74% on average over the next years.

EPS Next Y59.27%

EPS Next 2Y33.33%

EPS Next 3Y25.38%

EPS Next 5Y33.46%

Revenue Next Year5.56%

Revenue Next 2Y4.63%

Revenue Next 3Y4.27%

Revenue Next 5Y7.74%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 22.69, which indicates a rather expensive current valuation of NVST.
80.43% of the companies in the same industry are more expensive than NVST, based on the Price/Earnings ratio.
NVST is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.53, which indicates a rather expensive current valuation of NVST.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVST indicates a rather cheap valuation: NVST is cheaper than 84.24% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, NVST is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	22.69
Fwd PE	18.53

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NVST is valued cheaper than 86.41% of the companies in the same industry.
95.11% of the companies in the same industry are more expensive than NVST, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	15.06
EV/EBITDA	12.49

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 25.38% in the coming years. This may justify a more expensive valuation.