With Enovix Stock Sliding, Have You Assessed The Risk?
Enovix (ENVX) stock is down 10.4% in a day. The recent slide reflects renewed concerns around production delays, COO transition, and scaling production challenges, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Enovix stands today.
- Size: Enovix is a $1.5 Bil company with $30 Mil in revenue currently trading at $7.38.
- Fundamentals: Last 12 month revenue growth of 46.0% and operating margin of -554.2%.
- Liquidity: Has Debt to Equity ratio of 0.35 and Cash to Assets ratio of 0.61
- Valuation: Enovix stock is currently trading at P/E multiple of -9.6 and P/EBIT multiple of -10.7
- Has returned (median) -0.5% within a year following sharp dips since 2010. See ENVX Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Very High valuation – making the stock Unattractive. For details, see Buy or Sell ENVX Stock
That brings us to the key consideration for investors worried about this fall: how resilient is ENVX stock if markets turn south? This is where our downturn resilience framework comes in. Suppose ENVX stock falls another 20-30% to $5 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- ENVX stock fell 80.0% from a high of $35.82 on 19 November 2021 to $7.15 on 4 January 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $22.21 on 18 July 2023 , and currently trades at $7.38
| ENVX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -80.0% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
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