Enovix (ENVX) AI Stock Analysis

• Market Cap: $1.50B
• Dividend Yield: N/A
• Average Volume (3M): 6.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.10
• Revenue Growth: 1429.35%
• EPS Growth: -36.13%
• Country: US
• Employees: 560
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial Goods
• EPS (TTM): -1.45
• Shares Outstanding: 191,273,830
• 10 Day Avg. Volume: 5,964,659
• 30 Day Avg. Volume: 6,173,207
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 71.37
• Price to Cash Flow (P/CF): -25.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.00
• Price Target Upside: 180.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Enovix is facing significant financial challenges, with negative profitability metrics and cash flow inefficiencies. While technical indicators are mixed, the stock shows no strong momentum. Valuation metrics reflect its current unprofitable status, though strategic partnerships and technological advancements indicate potential for future growth. The recent appointment of a new Chief Accounting Officer is a positive step towards operational improvements. Overall, the stock's score reflects these challenges and opportunities.

Positive Factors

Market Expansion

Enovix will begin initial commercial shipments to 'smart eyewear' customers, which is a validating win with products potentially in the wild soon.

New Customer Engagements

A new OEM customer also submitted a first samples purchase order, expanding the company's active engagements to 7 of the top 8 smartphone OEMs.

Negative Factors

Equity Financing

The company surprised the market with a $100MM equity raise, which management previously suggested would not be necessary until 2026.

Enovix Business Overview & Revenue Model

Company Description

Enovix Corporation (ENVX) is a leading company in the development and manufacturing of advanced silicon-anode lithium-ion batteries. The company focuses on creating high-energy-density batteries that are designed to be safer and more efficient than traditional lithium-ion batteries. Enovix primarily serves sectors such as consumer electronics, electric vehicles, and wearable technology, providing cutting-edge energy storage solutions that push the boundaries of battery performance.

How the Company Makes Money

Enovix generates revenue primarily through the sale of its proprietary silicon-anode lithium-ion batteries. The company's revenue model is centered around mass production and distribution of these high-performance batteries to manufacturers in various industries, including consumer electronics and electric vehicles. Enovix partners with leading tech companies and automotive manufacturers to integrate its battery technology into their products, thus expanding its market reach. Additionally, Enovix may engage in licensing agreements, allowing other companies to utilize its patented technology, which contributes to its revenue streams. Strategic collaborations and continuous innovation in battery technology are key factors that drive the company's earnings.

Enovix Financial Statement Overview

Summary

Enovix faces significant profitability and operational challenges, reflected in negative margins and cash flows. Despite robust revenue growth, high leverage and cash flow issues pose risks. The company maintains strong liquidity, providing some financial flexibility. Strategic improvements in cost management and operational efficiency are crucial for enhancing financial health.

Income Statement

Enovix's income statement reveals challenges with negative profitability metrics. The TTM Gross Profit Margin and Net Profit Margin are deeply negative due to significant losses, reflecting inefficiencies in cost management. Revenue growth is robust, with a substantial increase from the previous year, indicating potential for future scaling. However, EBIT and EBITDA margins remain negative, highlighting ongoing operational challenges.

Balance Sheet

The balance sheet shows a high Debt-to-Equity ratio, suggesting significant leverage, which could pose financial risks. The Return on Equity is negative, reflecting the company's unprofitable stance. However, the Equity Ratio indicates a reasonable proportion of equity financing, offering some stability. The company's liquidity remains strong, supported by substantial cash reserves.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating unsustainable cash usage. The Free Cash Flow Growth Rate is negative, although slightly improved from previous periods, reflecting ongoing cash management struggles. The Operating Cash Flow to Net Income Ratio is negative, underscoring operational inefficiencies.

Breakdown
TTM	Dec 2023	Mar 2023	Mar 2022	Dec 2020	Dec 2019
Income Statement		Total Revenue
20.74M	263.00K	6.20M	0.00	0.00	0.00
	Gross Profit
-15.48M	-43.03M	-17.04M	-1.97M	-3.38M	-161.00K
	EBIT
-272.93M	-165.48M	-131.98M	-69.52M	-23.53M	-16.51M
	EBITDA
-133.15M	-165.48M	-189.34M	-68.03M	-25.33M	-16.00M
	Net Income Common Stockholders
-244.75M	-154.09M	99.30M	-126.04M	-37.38M	-16.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
338.75M	306.81M	322.85M	385.29M	29.14M	10.23M
	Total Assets
415.42M	564.30M	440.59M	482.56M	64.96M	16.61M
	Total Debt
9.26M	190.61M	8.23M	9.07M	0.00	5.65M
	Net Debt
-329.48M	-42.51M	-314.62M	-376.22M	-29.14M	-4.58M
	Total Liabilities
91.72M	303.20M	84.16M	156.45M	28.75M	12.91M
	Stockholders Equity
323.71M	258.15M	356.43M	326.12M	36.22M	3.71M
Cash Flow		Free Cash Flow
-208.55M	-110.39M	-118.95M	-95.29M	-47.00M	-12.63M
	Operating Cash Flow
-119.90M	-77.41M	-82.74M	-51.70M	-20.05M	-10.98M
	Investing Cash Flow
4.04M	-132.01M	-36.21M	-43.58M	-26.95M	-1.65M
	Financing Cash Flow
46.41M	159.59M	56.51M	451.49M	65.92M	5.79M

Enovix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENVX, the sentiment is Negative. The current price of 7.85 is below the 20-day moving average (MA) of 9.64, below the 50-day MA of 10.86, and below the 200-day MA of 11.06, indicating a bearish trend. The MACD of -0.88 indicates Positive momentum. The RSI at 29.46 is Positive, neither overbought nor oversold. The STOCH value of 18.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENVX.

Enovix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$8.16B	12.85	0.64%	3.04%	3.83%	-15.83%
FREY	59 Neutral	$189.66M	―	-18.30%	―	―	-457.87%
PLL	50 Neutral	$161.07M	―	-6.55%	―	―	―
SLDP	48 Neutral	$194.73M	―	-21.13%	―	15.67%	-45.59%
QS	46 Neutral	$2.32B	―	-38.29%	―	―	2.40%
ENVX	44 Neutral	$1.50B	―	-88.04%	―	1429.35%	-36.13%
ALB	42 Neutral	$8.54B	―	-12.18%	2.11%	-44.08%	-183.44%

Enovix Corporate Events

Enovix Appoints Kristina Truong as Chief Accounting Officer

Enovix Corporation announced the appointment of Kristina Truong as Senior Vice President and Chief Accounting Officer, a strategic move as the company prepares for significant growth in 2025. With over 25 years of experience, Kristina Truong will oversee financial operations and contribute to driving operational excellence and transparency, crucial as Enovix scales its operations across five international geographies.

Enovix Seeks New CFO Amid Leadership Changes

Enovix Corporation announced the departure of its Chief Financial Officer, Farhan Ahmad, and is actively seeking a replacement who excels in investor relations and communication. The company maintains a strong financial position with over $250 million in cash, a reduced cost structure, and is committed to ramping up production at its new factory in Malaysia, highlighting its focus on transparency and investor engagement.