ESAB - Enovis: Solid Growth But Unstable Financial Footing

2024-05-05 17:30:00 ET

Summary

• Enovis, the medtech leftover of Colfax, has seen solid growth, but reports highly adjusted earnings and recently has taken on quite some leverage.
• The company competes in a wide range of activities in the orthopedic market, facing competition from large competitors such as Smith & Nephew and Stryker.
• Shares of Enovis have been stuck in a range and have underperformed the wider market, and while sales multiples look cheap, the financials are too adjusted to convince me.

In the spring of 2022 I believed that Enovis ( ENOV ) , the medtech leftover of Colfax had some to prove. After the business spun off the welding business ESAB ( ESAB ) , Enovis remained the surviving entity....

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