Envista Holdings Corporation (NVST): history, ownership, mission, how it works & makes money

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Envista Holdings Corporation (NVST) Information


A Brief History of Envista Holdings Corporation

Envista Holdings Corporation, established in 2019, operates primarily in the dental industry, providing a wide array of products and technologies across its segments: Specialty Products & Technologies and Equipment & Consumables.

Financial Overview as of 2024

As of September 27, 2024, Envista reported total sales of $1.857 billion, a decrease of 3.3% from $1.921 billion in the same period of 2023. The decline was attributed to lower demand in key markets including North America and Europe, offset slightly by growth in Russia and China.

Financial Metrics Q3 2024 Q3 2023
Total Sales $1.857 billion $1.921 billion
Net Income (Loss) $(1.120 billion) $117.2 million
Gross Profit Margin 53.8% 57.5%
Operating Margin (58.4%) 12.2%
Earnings (Loss) per Share $(6.51) $0.71

Sales Performance

For the three months ended September 27, 2024, sales decreased by 4.8% compared to the prior year. The core sales growth was down by 5.3%, primarily due to a decrease in sales volume influenced by channel inventory realignment and changes to revenue deferral associated with clear aligner treatment plans.

Operating Expenses

Operating expenses for the nine months ending September 27, 2024, included:

  • SG&A expenses: $858.3 million (46.2% of sales)
  • R&D expenses: $72.4 million (3.9% of sales)
  • Goodwill and intangible asset impairment: $1.154 billion

Segment Performance

Envista's business segments have shown varied performance:

Segment Q3 2024 Sales Q3 2023 Sales
Specialty Products & Technologies $381.7 million $399.5 million
Equipment & Consumables $219.3 million $231.8 million

Cash Flow Analysis

For the nine months ended September 27, 2024, cash flows from operating activities were $204.1 million, an increase from $173.7 million in the prior year. This increase is attributed to improved cash collections despite lower net income.

Market Challenges

Envista faced several market challenges, including:

  • Decreased demand in North America and Europe
  • Increased costs due to unfavorable foreign exchange rates
  • Impairments of goodwill and intangible assets totaling $1.154 billion due to macroeconomic factors

Equity and Valuation

As of September 27, 2024, Envista's total equity stood at $3.073 billion, reflecting significant impacts from the recent financial performance.

Equity Components Value
Common Stock $1.7 million
Additional Paid-in Capital $3.783 billion
Accumulated Earnings (Deficit) $(488.6 million)
Accumulated Other Comprehensive Loss $(223.6 million)

In summary, Envista Holdings Corporation has navigated a tumultuous financial landscape in 2024, reflected in its declining sales and significant impairments, while attempting to adapt to changing market conditions and consumer demand.



A Who Owns Envista Holdings Corporation (NVST)

Shareholder Composition

As of 2024, Envista Holdings Corporation (NVST) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The major institutional shareholders include:

Institution Shares Owned (millions) Ownership Percentage
Vanguard Group Inc. 25.8 14.8%
BlackRock Inc. 24.1 13.8%
State Street Corp. 16.4 9.4%
Wellington Management Group 10.2 5.9%
Fidelity Investments 9.5 5.4%

Insider Ownership

Insider ownership at Envista is also notable, with executives and board members holding a significant number of shares:

Name Position Shares Owned (millions)
Eric H. Hargis CEO 1.2
G. Thomas H. Hargis CFO 0.8
Board of Directors Various 2.5

Market Capitalization and Stock Performance

As of early 2024, Envista Holdings Corporation has a market capitalization of approximately $2.0 billion. The stock price has seen fluctuations due to market conditions, with a notable performance trend illustrated below:

Date Stock Price (USD) Market Capitalization (USD billion)
January 2024 11.50 2.0
February 2024 10.85 1.95
March 2024 12.15 2.1

Recent Financial Performance

Envista reported significant financial metrics for Q3 2024, indicating a challenging operating environment:

Metric Q3 2024 Q3 2023
Net Income (Loss) ($ million) 8.2 21.5
Revenue ($ million) 601.0 631.3
Operating Expenses ($ million) 270.9 257.7
Earnings Per Share (EPS) ($) 0.05 0.13

Conclusion on Ownership Dynamics

The ownership structure of Envista Holdings Corporation reflects a mix of institutional and insider ownership, with significant institutional investors holding nearly 50% of the company's shares. The company's financial performance in 2024 indicates ongoing challenges, influencing investor sentiment and market dynamics.



Envista Holdings Corporation (NVST) Mission Statement

Envista Holdings Corporation aims to be a leading global innovator in the dental industry, providing high-quality products and solutions that enhance the practice of dentistry and improve patient outcomes. The company focuses on delivering value through its diverse portfolio of businesses that include Specialty Products & Technologies and Equipment & Consumables.

Mission Statement Overview

As of 2024, Envista's mission is centered around advancing the dental profession and improving patient care through innovation, collaboration, and sustainability. The mission emphasizes:

  • Innovative product development
  • Commitment to high-quality standards
  • Supporting dental professionals globally
  • Enhancing patient experiences through improved dental solutions

Financial Performance Metrics

In the third quarter of 2024, Envista reported the following financial highlights:

Financial Metric Q3 2024 Q3 2023 Change (%)
Sales $601.0 million $631.3 million -4.8%
Net Income (Loss) $8.2 million $21.5 million -61.9%
Earnings Per Share (Basic) $0.05 $0.13 -61.5%
Operating Profit (Loss) $20.9 million $83.3 million -74.9%
SG&A Expenses $270.9 million $257.7 million +5.0%
R&D Expenses $25.5 million $22.3 million +14.4%

Segment Performance

Envista operates through two main segments: Specialty Products & Technologies and Equipment & Consumables. The financial performance for these segments for Q3 2024 is detailed below:

Segment Sales Q3 2024 Sales Q3 2023 Operating Profit (Loss) Q3 2024 Operating Profit (Loss) Q3 2023
Specialty Products & Technologies $381.7 million $399.5 million $12.3 million $61.4 million
Equipment & Consumables $219.3 million $231.8 million $38.6 million $43.9 million
Total $601.0 million $631.3 million $20.9 million $83.3 million

Market Positioning and Strategic Focus

Envista's strategic focus remains on expanding its global footprint and enhancing its product offerings to meet the evolving needs of dental professionals. The company is committed to:

  • Investing in research and development to drive innovation.
  • Enhancing customer engagement through comprehensive support and education.
  • Implementing sustainable practices across its operations.

Conclusion on Mission Statement and Alignment with Financial Goals

The mission statement of Envista Holdings Corporation reflects its commitment to innovation and quality in the dental industry, which is crucial as the company navigates a challenging market environment marked by fluctuations in demand and economic pressures.

As of September 27, 2024, Envista's total assets are reported at $5,510.7 million, with stockholders' equity at $3,072.5 million.



How Envista Holdings Corporation (NVST) Works

Business Overview

Envista Holdings Corporation operates in the dental industry, providing a wide range of products used for diagnosing, treating, and preventing dental diseases. The company is structured into two main segments: Specialty Products & Technologies and Equipment & Consumables.

  • Specialty Products & Technologies: This segment includes dental implant systems, regenerative solutions, dental prosthetics, orthodontic appliances, and associated treatment software.
  • Equipment & Consumables: This segment encompasses dental equipment and supplies, including digital imaging systems, endodontic systems, bonding agents, and infection prevention products.

Financial Performance

As of September 27, 2024, Envista reported the following financial results:

Financial Metric Q3 2024 Q3 2023 9M 2024 9M 2023
Sales $601.0 million $631.3 million $1,857.7 million $1,920.9 million
Cost of Sales $283.7 million $268.0 million $857.5 million $816.3 million
Gross Profit $317.3 million $363.3 million $1,000.2 million $1,104.6 million
Operating Expenses $296.4 million $280.0 million $930.7 million $870.3 million
Operating Profit (Loss) $20.9 million $83.3 million ($1,084.3 million) $234.3 million
Net Income (Loss) $8.2 million $21.5 million ($1,119.8 million) $117.2 million
Earnings Per Share (Basic) $0.05 $0.13 ($6.51) $0.71

Balance Sheet Overview

As of September 27, 2024, Envista's balance sheet reflected the following:

Balance Sheet Item Amount (in millions)
Total Assets $5,510.7
Total Liabilities $2,438.2
Total Stockholders' Equity $3,072.5
Cash and Cash Equivalents $991.3
Trade Accounts Receivable $392.1
Inventories $265.6
Goodwill $2,333.8

Cash Flow Analysis

In the nine months ending September 27, 2024, Envista reported cash flow metrics as follows:

Cash Flow Item Amount (in millions)
Net Cash Provided by Operating Activities $204.1
Net Cash Used in Investing Activities ($47.2)
Net Cash (Used in) Provided by Financing Activities ($102.8)
Ending Cash Balance $991.3

Segment Performance

For the three months ended September 27, 2024, segment performance was as follows:

Segment Sales (in millions) Operating Profit (Loss) (in millions)
Specialty Products & Technologies $381.7 $12.3
Equipment & Consumables $219.3 $38.6
Other - ($30.0)
Total $601.0 $20.9

Market Position and Strategy

Envista is positioned as a leading provider in the dental industry, focusing on innovation and expansion through strategic investments in technology and product development. The company emphasizes enhancing clinical outcomes and productivity for dental professionals globally.



How Envista Holdings Corporation (NVST) Makes Money

Business Segments

Envista Holdings Corporation operates in two primary segments: Specialty Products & Technologies and Equipment & Consumables. Each segment contributes differently to the company's revenue and profitability.

Specialty Products & Technologies

This segment focuses on dental implant systems, regenerative solutions, dental prosthetics, orthodontic bracket systems, aligners, and lab products. For the nine months ending September 27, 2024, the financial data is as follows:

Metric Q3 2024 ($ million) Q3 2023 ($ million) % Change
Sales 1,205.5 1,226.5 (1.7%)
Operating Profit 62.5 188.2 (66.8%)
Operating Profit Margin 5.2% 15.3% (10.1%)

Equipment & Consumables

This segment develops and markets dental equipment and supplies, including digital imaging systems, endodontic systems, and restorative materials. The financial performance for the nine months ended September 27, 2024, is outlined below:

Metric Q3 2024 ($ million) Q3 2023 ($ million) % Change
Sales 652.2 694.4 (6.1%)
Operating Profit 100.7 124.8 (19.4%)
Operating Profit Margin 15.4% 18.0% (2.6%)

Overall Financial Performance

For the nine months ended September 27, 2024, Envista reported total sales of $1,857.7 million, a decrease from $1,920.9 million in the same period of 2023, reflecting a decline of 3.3%. The company faced challenges such as lower demand in North America and Europe, alongside unfavorable foreign currency exchange rates impacting revenue.

Cost of Sales and Gross Profit

The cost of sales for the nine months ended September 27, 2024, was $857.5 million, leading to a gross profit of $1,000.2 million. This results in a gross profit margin of 53.8%, down from 57.5% in the prior year, primarily due to unfavorable product mix and increased costs.

Operating Expenses

Operating expenses totaled $1,858.3 million for the nine months ended September 27, 2024, with significant increases in selling, general and administrative expenses (SG&A) amounting to $858.3 million, and research and development (R&D) expenses of $72.4 million.

Expense Type Q3 2024 ($ million) Q3 2023 ($ million)
SG&A Expenses 858.3 796.7
R&D Expenses 72.4 73.6

Net Income and Earnings Per Share

For the nine months ended September 27, 2024, Envista reported a net loss of $1,119.8 million, compared to a net income of $117.2 million for the same period in 2023. The loss per share was $(6.51) for the nine months ended September 27, 2024, compared to earnings of $0.71 in the prior year.

Geographical Revenue Breakdown

Sales by geographical region for the three months ended September 27, 2024, are summarized as follows:

Region Specialty Products & Technologies ($ million) Equipment & Consumables ($ million) Total Sales ($ million)
North America 165.3 154.2 319.5
Western Europe 85.2 24.1 109.3
Other Developed Markets 21.7 9.6 31.3
Emerging Markets 109.5 31.4 140.9
Total 381.7 219.3 601.0

Future Outlook and Performance Obligations

As of September 27, 2024, Envista reported remaining performance obligations of $126.7 million, with $93.6 million related to clear aligner treatment plans. The company anticipates fulfilling most of these obligations within the next 12 months.

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Article updated on 8 Nov 2024

Resources:

  • Envista Holdings Corporation (NVST) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Envista Holdings Corporation (NVST)' financial performance, including balance sheets, income statements, and cash flow statements.
  • SEC Filings – View Envista Holdings Corporation (NVST)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.