Envista Holdings Corp (NVST) stock analysis

P/E below its 5-year median

Envista's P/E of 6.5 is below its own 5-year median of 27.9.

P/E below the industry

Envista's P/E of 6.5 is below the Surgical, Medical, and Dental Instruments and Supplies median of 27.7.

EV/EBITDA below its 5-year median

Envista's EV/EBITDA of 5.1 is below its 5-year median of 20.8.

P/B below the industry

Envista's price-to-book of 1.32 is below the Surgical, Medical, and Dental Instruments and Supplies median of 3.22.

Trading below fair value

The share price of $25.32 is below our fair value estimate of $95.43.

Margin of safety over 20%

The price is 73.5% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 1.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -41.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 4041% over the last twelve months, against a 5-year average of 7.1% a year.

Growing slower than the industry

Revenue grew 9.8% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.

Guidance raised

Envista raised its full year 2026 Core Sales Growth outlook on Aug 5, 2026.

Gross margin improving

Gross margin was 55.9% over the last twelve months, against 55.3% a year earlier.

Return on equity under 15%

Return on equity was 20.5% over the last twelve months and averaged -3.5% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 20.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Envista's return on equity of 20.5% is above the Surgical, Medical, and Dental Instruments and Supplies median of -31.3%.

Earnings grew over 5 years

Net income grew 7.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 22.0% over the last twelve months, against a 5-year average of -4.7%.

Net margin above the industry

Envista's net margin of 22.0% is above the Surgical, Medical, and Dental Instruments and Supplies median of -14.1%.

High debt

Debt is 46.3% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 48.2% five years ago to 46.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 21.1% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.45 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.20; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Envista has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.