Envista Holdings Corporation (NVST) Bundle
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.