Envista (NVST): Reassessing Valuation as Earnings Improve and Share Price Begins to Recover

Envista Holdings (NVST) has been quietly grinding higher this year, and with shares now around 20 dollars, investors are starting to revisit the story, especially given its improving earnings profile.

See our latest analysis for Envista Holdings.

That steady climb has come with a few bumps, as shown by a slightly negative 90 day share price return alongside a modestly positive year to date share price return. Yet the 1 year total shareholder return of 1.71 percent suggests momentum is only just starting to turn after a tougher multi year stretch.

If Envista has you rethinking your exposure to healthcare names, it could be worth scanning for ideas among healthcare stocks to see what else fits your strategy.

With earnings growing faster than revenue and the share price still trailing its pre slump levels, the key debate now is simple: is Envista quietly undervalued, or is today’s 20 dollar price already baking in the recovery?

Most Popular Narrative: 8% Undervalued

With Envista closing at 20.23 dollars against a narrative fair value of 22 dollars, the storyline leans toward a modest disconnect in pricing.

Ongoing cost reductions (notably 15 percent G and A reduction in the first half), coupled with operational optimization and unit cost reductions (especially within Spark), are catalysts for sustained margin improvement and future EPS growth, as scale and digital adoption continue.

Read the complete narrative.

Curious how steady, mid single digit sales growth can still justify a richer future earnings multiple and higher fair value than today’s price suggests? The narrative leans heavily on rising margins, shrinking share count, and a very specific profit trajectory to close that gap. Want to see exactly how those moving parts combine into a target valuation that still sits ahead of the current share price? Dive in to unpack the full logic behind that 22 dollar fair value.

Result: Fair Value of $22 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, China’s volume based procurement pressure and rising tariffs could still squeeze margins and derail the profit expansion that underpins that 22 dollar fair value.

Find out about the key risks to this Envista Holdings narrative.

Build Your Own Envista Holdings Narrative

If this view does not quite line up with your own, or you prefer digging into the numbers yourself, you can build a custom narrative in just a few minutes, Do it your way.

A great starting point for your Envista Holdings research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

Before you move on, put Simply Wall Street’s Screener to work and uncover fresh opportunities that could complement Envista and support your next portfolio move.

• Explore early-stage potential with these 3575 penny stocks with strong financials that already back their stories with improving fundamentals and solid financial footing.
• Focus on the next wave of innovation by targeting these 26 AI penny stocks positioned at the intersection of automation, data, and scalable digital business models.
• Identify compelling entry points via these 909 undervalued stocks based on cash flows where strong cash flows may not yet be fully reflected in market prices.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com