ENVX - Enovix: Liquidity Position Deteriorates Overvalued At $1.1 Billion Market Cap

2024-05-03 09:41:53 ET

Summary

• Enovix's cash and short-term investments position decreased by $44.4 million in the first quarter of 2024, reaching $262.4 million.
• The company realized a free cash burn rate of $50 million during the quarter as revenue remains elusive in 2024.
• Annuazling this burn rate places ENVX's cash runway at just five quarters with its development agreement not providing any concrete timelines on commercialization.

Enovix ( ENVX ) saw its cash and short-term investments dip by $44.4 million sequentially to $262.4 million as of the end of its just reported fiscal 2024 first quarter. The battery tech upstart continued to bleed cash, but announced a development agreement with a top five smartphone OEM. To be clear, this development agreement will have little material impact on the near term for the company's cash position. This is the core of the bearish thesis and why ENVX's near-term returns will continue to trend down after the relief rally fades. The ticker is down 24% year-to-date....

For further details see: