NYSE:NVST
Envista Holdings Corp
Envista (NVST) is a leading global designer and manufacturer of consumer health products with a diverse portfolio of private label brands.
Key Metrics
Investment Thesis
Bull Case
The turnaround story is compelling as the company has stabilized its bottom line after recent losses, supported by a diverse product portfolio that mitigates single-category risks. Strong free cash flow generation and a solid balance sheet offer investors a margin of safety and potential for future capital returns.
Bear Case
Investors should be cautious due to the significant retained earnings deficit and the volatility shown in net income over the last four years, including a massive loss in 2024. High levels of long-term debt and accumulated other comprehensive losses suggest underlying financial stress that needs continued monitoring.
About Envista Holdings Corp
Envista Holdings Corp designs and manufactures innovative consumer health products, primarily serving the home care and personal hygiene markets globally. The company leverages its strong portfolio of private label brands and strategic acquisitions to drive revenue growth in a competitive retail environment.
Analysis
Management Discussion
After reporting substantial losses in 2024, Envista successfully returned to profitability with $47M net income in 2025 while achieving record revenue of $2.72B. Strong operating cash flow of $275.7M and a healthy balance sheet with $1.21B in cash provide the liquidity needed for strategic investments and potential dividends.
Industry Overview
The global consumer health products industry is characterized by rapid innovation in formulations and packaging, driven by changing consumer preferences towards natural and sustainable goods. Retail consolidation and the shift towards e-commerce present both challenges for distribution reach and opportunities for direct-to-consumer engagement.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $2.57B | $2.57B | $2.51B | $2.72B |
| Cost of Revenue | $1.09B | $1.13B | $1.14B | $1.23B |
| Gross Profit | $1.47B | $1.44B | $1.37B | $1.49B |
| Operating Expenses | $1.16B | $1.41B | $2.27B | $1.27B |
| Operating Income | $319.2M | $31.5M | $-1.04B | $216.1M |
| R&D | $100.1M | $93.8M | $99.1M | $114.0M |
| G&A | $1.06B | $1.06B | $1.16B | $1.16B |
| Stock-Based Comp | $30.5M | $30.7M | $35.3M | $37.6M |
| D&A | $137.8M | $135.6M | $123.1M | $116.0M |
| Depreciation | $31.8M | $36.0M | $40.8M | $40.1M |
| Amortization | $106.0M | $99.6M | $82.3M | $75.9M |
| Other OpEx | $0 | $258.3M | $1.01B | $0 |
| Non-Operating Income | $-35.3M | $-86.4M | $-46.5M | $-38.9M |
| Interest Expense | $38.4M | $63.4M | — | — |
| Pre-Tax Income | $283.9M | $-54.9M | $-1.08B | $177.2M |
| Income Tax | $45.9M | $45.3M | $33.9M | $130.2M |
| Continuing Ops | $238.0M | $-100.2M | $-1.12B | $47.0M |
| Discontinued Ops | $5.1M | $0 | $0 | $0 |
| Net Income | $243.1M | $-100.2M | $-1.12B | $47.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $243.1M | $-100.2M | $-1.12B | $47.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.42B | $1.74B | $1.79B | $2.03B |
| Cash & Equivalents | $606.9M | $940.0M | $1.07B | $1.21B |
| Accounts Receivable | $393.5M | $407.5M | $363.0M | $429.6M |
| Inventory | $300.8M | $258.8M | $241.0M | $288.1M |
| Prepaid Expenses | $123.4M | $137.4M | $115.2M | $97.2M |
| Other Current Assets | $0 | $0 | $0 | $0 |
| Long-Term Assets | $5.16B | $4.86B | $3.56B | $3.65B |
| PP&E (Net) | $293.6M | $309.6M | $277.0M | $296.8M |
| Intangibles | $1.09B | $954.0M | $649.9M | $627.2M |
| Goodwill | $3.50B | $3.29B | $2.26B | $2.36B |
| Operating Leases | $131.8M | $125.1M | $142.8M | $142.1M |
| Other LT Assets | $153.7M | $180.5M | $230.6M | $228.1M |
| Total Assets | $6.59B | $6.61B | $5.35B | $5.68B |
| Current Liabilities | $1.24B | $780.8M | $878.7M | $852.6M |
| Current Leases | $27.0M | $30.3M | $34.5M | $39.0M |
| Deferred Revenue | $78.9M | $106.4M | $146.5M | $184.8M |
| Taxes Payable | $42.1M | $39.9M | $58.3M | $60.5M |
| Other Current Liab | $1.09B | $604.2M | $639.4M | $568.3M |
| Long-Term Liabilities | $1.14B | $1.65B | $1.54B | $1.72B |
| Long-Term Debt | $870.7M | $1.40B | $1.28B | $1.45B |
| LT Operating Leases | $121.4M | $109.9M | $118.9M | $110.4M |
| Other LT Liab | $74.1M | $89.7M | $82.7M | $103.0M |
| Total Liabilities | $2.38B | $2.43B | $2.42B | $2.57B |
| Shareholders' Equity | $4.21B | $4.17B | $2.93B | $3.11B |
| Paid-In Capital | $3.70B | $3.76B | $3.79B | $3.88B |
| Retained Earnings | $731.4M | $631.2M | $-487.4M | $-440.4M |
| AOCI | $-225.1M | $-217.2M | $-371.1M | $-113.2M |
| Treasury Stock | — | — | — | $224.5M |
| Total L&E | $6.59B | $6.61B | $5.35B | $5.68B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $243.1M | $-100.2M | $-1.12B | $47.0M |
| Non-Cash Adjustments | $-208.0M | $430.8M | $1.27B | $113.6M |
| Working Capital Changes | $147.6M | $-54.9M | $188.6M | $115.1M |
| Cash from Operations | $182.7M | $275.7M | $336.5M | $275.7M |
| Capital Expenditures | $75.7M | $58.2M | $33.8M | $45.3M |
| Cash from Investing | $-657.3M | $-62.4M | $-54.6M | $-51.1M |
| Cash from Financing | $12.5M | $118.9M | $-103.7M | $-170.9M |
| FX Effect | $-4.6M | $900.0K | $-49.1M | $88.9M |
| Net Change in Cash | $-466.7M | $333.1M | $129.1M | $142.6M |
| Beginning Cash | $1.07B | $606.9M | $940.0M | $1.07B |
| Ending Cash | $606.9M | $940.0M | $1.07B | $1.21B |
Frequently Asked Questions
How does Envista Holdings Corp make money?
The company operates primarily through two main segments: Home Care, which includes cleaning and laundry solutions, and Personal Care, offering oral care, skin care, and baby care products. Additionally, revenue is derived from its distribution network that supplies major retailers and e-commerce platforms worldwide, supported by a significant goodwill base reflecting past acquisitions.
What are the main risks for NVST?
Fluctuations in raw material costs and supply chain disruptions could impact gross profit margins significantly. Intense competition from both private label manufacturers and national brands poses a constant threat to market share and pricing power. Currency exchange rate volatility may affect international sales and reported earnings given the company's global operations.
What is NVST's competitive advantage?
Envista benefits from a robust portfolio of established private label brands that provide recurring revenue streams and strong shelf presence in retail channels. The company maintains cost efficiency through vertical integration in manufacturing and strategic sourcing, allowing for attractive margins in a price-sensitive industry.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.