One-glance verdict
Overvalued
$-13.41 our estimate vs market $18.46
Wall Street consensus: $38.33 (-386.0% lower than our fair-value estimate)
238% below our estimate, beyond the bull case
Fundamentals snapshot
Enovis Corporation
ENOV · NYQ · Healthcare · Medical Devices
Current price
$18.46
52-week range
$17.30 - $34.28
Market cap
$1.06B
Balance sheet
Distressed
-0.54x Concerning
Net debt $1.36B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 2.2% last year.
- Reward Free cash flow was positive in 8/10 years.
- Risk Net debt grew 332.5% over 3 years.
- Risk Return on equity was -54.1% last year — the company lost money on shareholders' equity.
What this company does
Enovis Corporation
Enovis is a medical technology company that creates products to help people with injuries and joint issues, from simple braces and physical therapy equipment to the artificial implants used in hip and knee replacement surgeries. The company primarily earns money by selling these devices to doctors and hospitals, aiming to serve a growing number of older patients who need help staying mobile. This matters because demand for both surgical and non-surgical joint treatments is expected to increase as the population ages.
How the company got here
Enovis started its life as an industrial company named Colfax Corporation in 1995, founded by brothers Steven and Mitchell Rales. A major turning point came in 2019 when Colfax bought DJO Global, a company specializing in orthopedic devices. This purchase marked a strategic shift into the medical technology field. To complete this transformation, the company sold off its industrial businesses and, in 2022, officially changed its name to Enovis to reflect its new focus on medical technology.
What it actually does
Enovis is a medical technology company that creates products to help people with musculoskeletal conditions, which are issues affecting bones, joints, and muscles. Their products range from things you might see at a pharmacy, like knee braces and cold packs, to specialized surgical tools and implants used by doctors for joint replacement surgeries. Essentially, they make devices that help people prevent injuries, recover from them, or surgically repair joints to improve movement and reduce pain. These products are sold to healthcare professionals like surgeons, physical therapists, and athletic trainers, as well as directly to patients.
Prevention and Recovery
This part of the company focuses on helping people avoid injuries and heal from them without major surgery. It includes well-known brands like DonJoy, which makes orthopedic braces, and Aircast, known for its ankle supports. This segment also offers products for hot and cold therapy, systems to improve blood circulation, and equipment for physical therapy. This business provides a steady, reliable stream of sales and makes up a significant portion of the company's revenue.
Reconstructive
This is the surgical side of Enovis, providing the tools and artificial joints that surgeons use to rebuild or replace damaged parts of the body. This includes implants for hips, knees, shoulders, and other joints. This segment is a major focus for the company's growth, as they invest in new technologies to help surgeons perform these complex procedures more effectively. While it has historically been a smaller part of the company, strategic acquisitions (buying other companies) are helping this segment to expand, particularly in international markets.
What management is betting on now
The company's leadership is heavily focused on growing its Reconstructive business, aiming to become a bigger player in the surgical implant market. They are doing this by acquiring other companies, like LimaCorporate, to gain new technologies and expand their reach, especially in Europe. Enovis is also investing in innovative technologies, such as augmented reality systems, to provide surgeons with advanced tools for greater precision during operations. The overall goal is to shift the company's focus towards these higher-growth surgical areas while maintaining the steady business of their prevention and recovery products.
How the company got here
Enovis started its life as an industrial company named Colfax Corporation in 1995, founded by brothers Steven and Mitchell Rales. A major turning point came in 2019 when Colfax bought DJO Global, a company specializing in orthopedic devices. This purchase marked a strategic shift into the medical technology field. To complete this transformation, the company sold off its industrial businesses and, in 2022, officially changed its name to Enovis to reflect its new focus on medical technology.
What it actually does
Enovis is a medical technology company that creates products to help people with musculoskeletal conditions, which are issues affecting bones, joints, and muscles. Their products range from things you might see at a pharmacy, like knee braces and cold packs, to specialized surgical tools and implants used by doctors for joint replacement surgeries. Essentially, they make devices that help people prevent injuries, recover from them, or surgically repair joints to improve movement and reduce pain. These products are sold to healthcare professionals like surgeons, physical therapists, and athletic trainers, as well as directly to patients.
Prevention and Recovery
This part of the company focuses on helping people avoid injuries and heal from them without major surgery. It includes well-known brands like DonJoy, which makes orthopedic braces, and Aircast, known for its ankle supports. This segment also offers products for hot and cold therapy, systems to improve blood circulation, and equipment for physical therapy. This business provides a steady, reliable stream of sales and makes up a significant portion of the company's revenue.
Reconstructive
This is the surgical side of Enovis, providing the tools and artificial joints that surgeons use to rebuild or replace damaged parts of the body. This includes implants for hips, knees, shoulders, and other joints. This segment is a major focus for the company's growth, as they invest in new technologies to help surgeons perform these complex procedures more effectively. While it has historically been a smaller part of the company, strategic acquisitions (buying other companies) are helping this segment to expand, particularly in international markets.
What management is betting on now
The company's leadership is heavily focused on growing its Reconstructive business, aiming to become a bigger player in the surgical implant market. They are doing this by acquiring other companies, like LimaCorporate, to gain new technologies and expand their reach, especially in Europe. Enovis is also investing in innovative technologies, such as augmented reality systems, to provide surgeons with advanced tools for greater precision during operations. The overall goal is to shift the company's focus towards these higher-growth surgical areas while maintaining the steady business of their prevention and recovery products.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$35.14M
FY2025 Q2
$-44.86M
FY2025 Q3
$3.40M
FY2025 Q4
$29.09M
FY2026 Q2
$-28.85M
FY2026 Q3
$31.14M
Revenue
$582.78M
Net income
$-1.19M
Diluted EPS
-0.02
Operating cash flow
$75.03M
Free cash flow
$31.14M
Fetching…
Sources
Revenue
$589.15M
Net income
$-8.76M
Diluted EPS
-0.15
Operating cash flow
$23.95M
Free cash flow
$-28.85M
Fetching…
Sources
Revenue
$548.91M
Net income
$-571.15M
Diluted EPS
-9.99
Operating cash flow
$82.58M
Free cash flow
$29.09M
Fetching…
Sources
Revenue
$564.54M
Net income
$-36.74M
Diluted EPS
-0.64
Operating cash flow
$47.77M
Free cash flow
$3.40M
Fetching…
Sources
Revenue
$558.83M
Net income
$-55.97M
Diluted EPS
-0.98
Operating cash flow
$-1.60M
Free cash flow
$-44.86M
Fetching…
Sources
Revenue
$560.98M
Net income
$-703.34M
Diluted EPS
-12.69
Operating cash flow
$88.33M
Free cash flow
$35.14M
Fetching…
Sources
Is it cheap or expensive?
Fair value $-13.41 vs current price $18.46
Wall Street consensus is the average analyst price target: $38.33 (-386.0% lower than our fair-value estimate).
Our most-likely fair value is $-13.41 a share — about 172.6% below today's price of $18.46, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $1.4B. Interest coverage -0.5x.
Net debt
$1.36B
Interest coverage
-0.54x
Enovis Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
ENOV
BASELINE
Enovis Corporation
Total debt $1.37B Interest coverage -0.54x This is the baseline the peer rows are being compared against.
Total debt $834.25M Interest coverage 3.30x This peer still has a real interest-payment cushion, while ENOV does not.
Total debt $2.05B Interest coverage 0.21x This peer still has a real interest-payment cushion, while ENOV does not.
Total debt $261.90M Interest coverage -4.72x Neither company has much profit cushion over interest right now.
Total debt $604.02M Interest coverage -1.26x Neither company has much profit cushion over interest right now.
Total debt $263.75M Interest coverage 2.13x This peer still has a real interest-payment cushion, while ENOV does not.
What you should know
The case for and against ENOV
2 Rewards
3 Risks
Rewards
-
Revenue grew 2.2% last year.
-
Free cash flow was positive in 8/10 years.
Risks
-
Net debt grew 332.5% over 3 years.
-
Return on equity was -54.1% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 1.6% (peer median: 11.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
5.00x
P/B
0.72x
P/S
0.46x
EV/EBITDA
6.38x
PEG ratio
3.45x
Profitability
How much profit each dollar creates
Gross margin
61.3%
Operating margin
4.2%
Net margin
-48.0%
ROE
-54.1%
ROA
1.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.93x
Current ratio
1.99x
Quick ratio
0.74x
Total debt
$1.37B
Total cash
$12.56M
Growth
How the business has been compounding
Revenue TTM
$2.30B
Revenue 5Y CAGR
12.0%
EPS TTM
-19.27
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$270.10M
Free CF TTM
$19.92M
FCF margin
0.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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