GICS Sector : Industrials
Enovis Corporation operates as a medical technology company worldwide.It develops, manufactures, and distributes medical device products used by orthopedic specialists, surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers, and other healthcare professionals to treat patients with musculoskeletal conditions resulting from degenerative diseases, deformities, traumatic events, and sports related injuries.It offers rigid and soft orthopedic bracings, hot and cold therapy products, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators used for pain management, and physical therapy products; and a suite of reconstructive joint products for the hip, knee, shoulder, elbow, foot, ankle, and finger.
Enovis reported a 9% growth in revenue on a reported basis and 7% on an organic basis for its third quarter of 2025. The Recon business was a key driver, with 9% organic growth, thanks to double-digit growth in Extremities and 7% growth in Hips and Knees globally. Adjusted gross margins improved by 140 basis points, while adjusted EBITDA margin stood at 17.3%, down 60 basis points year-over-year. Earnings per share (EPS) came in at $0.75, beating estimates of $0.67. The company's ability to generate cash was evident, with nearly $30 million in free cash flow.
Publication Date: Nov -16
The Prevention & Recovery segment grew 4% organically, reflecting stability and mix benefits across the portfolio. The Recon business continued to drive growth, with new product launches like Nebula and Orthodrive expected to contribute to above-market growth. Internationally, Recon business saw good growth driven by cross-selling and in-country execution. The U.S. Hip and Knee business was down 1% due to a capital order comparison, but implants in the U.S. were up mid-single digits.
Enovis updated its full-year 2025 outlook, adjusting revenue guidance to $2.24 billion to $2.27 billion and raising its profit and earnings outlook. The company now expects adjusted EBITDA in the range of $395 million to $405 million and adjusted EPS of $3.10 to $3.25. Analysts estimate next year's revenue growth at 4.6%. The company's focus on commercial execution, operational excellence, and financial discipline is expected to drive sustainable, profitable, and capital-efficient growth.
With a P/E Ratio of -1.26 and an EV/EBITDA of -1.64, the market seems to have factored in the challenges faced by the company. However, the Free Cash Flow Yield of 7.77% is attractive, indicating a potential undervaluation. The company's long-term target of 70% to 80% free cash flow conversion is ambitious, but its progress towards this goal will be closely watched.
Enovis showcased its next-generation Arvis system, with outstanding surgeon response. The company is working towards a broader launch of Arvis in the first half of 2026, which is expected to drive growth in its Recon business. The divestiture of Dr. Comfort is another step towards streamlining the portfolio, and the proceeds will be used to reduce debt. The company's focus on innovation and customer engagement is expected to drive growth.
Financial Contrast: MSP Recovery (NASDAQ:MSPR) & Enovis (NYSE:ENOV)
Nov -19
Chuck Royce's Strategic Moves: Significant Reduction in Air Lease Corp
Nov -12
Enovis Corporation (ENOV) Presents at UBS Global Healthcare Conference 2025 Transcript
Nov -10
Enovis Corporation (ENOV) Q3 2025 Earnings Call Transcript
Nov -07
Enovis (ENOV) Q3 Earnings and Revenues Beat Estimates
Nov -06
Enovis Announces Third Quarter 2025 Results
Nov -06
Enovis Corporation $ENOV Stake Raised by State of New Jersey Common Pension Fund D
Nov -02
Enovis announces webcast and conference call for Third Quarter 2025 Results and participation in upcoming investor conferences
Oct -24
Enovis Corporation's 9% growth in Prevention & Recovery is driven by increasing demand for orthopedic and spine solutions, expansion into emerging markets, strategic acquisitions, and investments in digital health technologies. Additionally, growing awareness of preventive care and rising healthcare expenditure contribute to the segment's growth.
Enovis Corporation's reconstructive segment growth of 11% is driven by increasing demand for orthopedic and spine procedures, expansion into emerging markets, and strategic acquisitions. Additionally, advancements in technology, such as robotic-assisted surgery and 3D printing, are fueling innovation and adoption. Furthermore, an aging population and rising prevalence of musculoskeletal disorders are contributing to the growth.
Enovis Corporation provides a range of orthotics and prosthetics solutions, including upper and lower limb prosthetics, orthotic devices, and accessories.
Enovis Corporation offers a comprehensive range of rehabilitation solutions, including physical therapy, occupational therapy, and speech therapy.
Enovis Corporation designs and manufactures surgical implants, including joint replacement implants, spinal implants, and orthobiologics.
Enovis Corporation provides a range of bracing and support solutions, including spinal bracing, knee bracing, and ankle bracing.
Enovis Corporation offers a range of wound care solutions, including dressings, debridement, and negative pressure wound therapy.
Enovis Corporation designs and manufactures surgical instruments, including orthopedic, neurosurgical, and spinal instruments.
Enovis Corporation operates in a niche market with limited substitutes, but there are some alternatives available to customers.
Enovis Corporation has a diverse customer base, which reduces the bargaining power of individual customers.
Enovis Corporation has a moderate level of dependence on its suppliers, but it has implemented strategies to mitigate supply chain risks.
The medical technology industry is highly competitive, and new entrants can easily disrupt the market with innovative products and services.
The medical technology industry is highly competitive, and Enovis Corporation faces intense rivalry from established players and new entrants.
| Value | |
|---|---|
| Debt Weight | 13.56% |
| Debt Cost | 4.59% |
| Equity Weight | 86.44% |
| Equity Cost | 14.31% |
| WACC | 12.99% |
| Leverage | 15.69% |
Value: 3.7
Growth: 8.6
Quality: 4.5
Yield: 0.0
Momentum: 8.5
Volatility: 3.7
1-Year Total Return ->
Value: 4.4
Growth: 5.1
Quality: 3.0
Yield: 0.0
Momentum: 8.0
Volatility: 6.0
1-Year Total Return ->
Value: 1.1
Growth: 4.4
Quality: 5.4
Yield: 0.0
Momentum: 10.0
Volatility: 4.0
1-Year Total Return ->
Value: 2.8
Growth: 6.7
Quality: 6.2
Yield: 0.0
Momentum: 4.5
Volatility: 4.3
1-Year Total Return ->
Value: 5.1
Growth: 4.0
Quality: 4.8
Yield: 2.0
Momentum: 2.0
Volatility: 4.7
1-Year Total Return ->
Value: 9.2
Growth: 1.6
Quality: 3.3
Yield: 0.0
Momentum: 2.5
Volatility: 4.7
1-Year Total Return ->