Should you buy Enovix stock?
- 8 months ago
Enovix stock analysis.
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The processing power of smartphones is growing at a rate of 10 to 40% a year but batteries are improving at only 4% a year. So manufacturers like Apple need a battery that can keep up.
Enovix, ticker symbol ENVX, thinks it has the answer.
By introducing silicon into its batteries and replacing the so-called “jelly roll” architecture, the company thinks it can produce batteries that outperform lithium-ion batteries by as much as 80%.
And if Enovix is successful, the potential market is huge. The market for smartphone batteries alone is over 20 billion. And Enovix’s batteries could one day be used in larger applications like electric vehicles.
Based on the latest share price, Enovix has a market cap of just over 3 billion dollars. The company has 294 million of cash on the balance sheet and no debt so the enterprise value is 2.87 billion.
Going through the rest of the financials at this stage adds little value since the company is yet to start production and its made only 6 million in revenue over the last 12 months.
So an investment in Enovix relies on whether you think its battery technology is going to succeed and there are strong arguments on both sides.
For bulls, Enovix’s batteries have the potential to transform the industry. A Forbes article from April this year cited numerous experts who all argued that Enovix’s technology is the real thing.
And Enovix has a number of high-profile backers including Marc Cohodes and Stanley Druckenmiller. Executive chairman TJ Rodgers also has a history of success including an investment in Enphase Energy which increased by more than 150 times and CEO Raj Talluri has 30-years experience in the semiconductor industry.
#enovixstock #stocks #investing #stockstowatch
Discover under-the-radar stocks: https://www.overlookedalpha.com
The processing power of smartphones is growing at a rate of 10 to 40% a year but batteries are improving at only 4% a year. So manufacturers like Apple need a battery that can keep up.
Enovix, ticker symbol ENVX, thinks it has the answer.
By introducing silicon into its batteries and replacing the so-called “jelly roll” architecture, the company thinks it can produce batteries that outperform lithium-ion batteries by as much as 80%.
And if Enovix is successful, the potential market is huge. The market for smartphone batteries alone is over 20 billion. And Enovix’s batteries could one day be used in larger applications like electric vehicles.
Based on the latest share price, Enovix has a market cap of just over 3 billion dollars. The company has 294 million of cash on the balance sheet and no debt so the enterprise value is 2.87 billion.
Going through the rest of the financials at this stage adds little value since the company is yet to start production and its made only 6 million in revenue over the last 12 months.
So an investment in Enovix relies on whether you think its battery technology is going to succeed and there are strong arguments on both sides.
For bulls, Enovix’s batteries have the potential to transform the industry. A Forbes article from April this year cited numerous experts who all argued that Enovix’s technology is the real thing.
And Enovix has a number of high-profile backers including Marc Cohodes and Stanley Druckenmiller. Executive chairman TJ Rodgers also has a history of success including an investment in Enphase Energy which increased by more than 150 times and CEO Raj Talluri has 30-years experience in the semiconductor industry.
#enovixstock #stocks #investing #stockstowatch