Enovis (Enovis) Predictability Rank

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What is Enovis Predictability Rank?

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

Enovis Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

	Predictables	Non-Predictable	All stocks
Total Number of stocks	570	1833	2403
Total Lost Money	61	830	891
Total Lost More Than 50%	18	412	430
Total Lost More Than 90%	4	86	90
Average Gain	260.6%	100.0%	138.1%
Median Gain	150.0%	13.0%	39.0%
Maximum Gain	2852.0%	11483.0%	11483.0%
Maximum Loss	-100.0%	-100.0%	-100.0%
Annualized Average Gain	12.7%	6.7%	8.4%
Annualized Median Gain	8.9%	1.1%	3.1%

For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank	5-Star	4.5-Star	4-Star	3.5-Star	3-Star	2.5-Star	2-Star	1-Star (non-predictable)	Average among all
% Out of All 2403 Stocks	3.3%	2.9%	3.7%	3.3%	3.3%	3.7%	3.3%	76.3%	100%
% that are in Loss (10y)	3%	10%	8%	9%	11%	18%	16%	45%	37%
Average Gain (10y)	364.6%	330.9%	278.0%	235.1%	243.5%	227.8%	154.8%	100.0%	138.1%
Median Gain (10y)	238.5%	193.5%	171.0%	159.0%	132.5%	113.5%	87.0%	13.0%	39.0%
Maximum Gainer	2228.0%	2547.0%	2452.0%	2852.0%	2432.0%	1892.0%	1807.0%	11483.0%	11483.0%
Maximum Loser	-82.0%	-53.0%	-67.0%	-100.0%	-83.0%	-100.0%	-78.0%	-100.0%	-100.0%
Annualized Average Gain	15.4%	14.6%	13.2%	12.0%	12.2%	11.7%	9.1%	6.7%	8.4%
Annualized Median Gain	12.1%	10.6%	9.8%	9.3%	8.2%	7.3%	6.0%	1.1%	3.1%

For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

Enovis Predictability Rank Related Terms

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Enovis (Enovis) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Enovis Corp (NYSE:ENOV) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

C520:Germany

Address

2711 Centerville Road, Suite 400, Wilmington, DE, USA, 19808

Website

https://www.enovis.com

Enovis Corp is a medical technology company focused on developing clinically differentiated solutions that generate measurably better patient outcomes and transform workflows by manufacturing and distributing high-quality medical devices with a broad range of products used for reconstructive surgery, rehabilitation, pain management and physical therapy.. The company conducts its operations through two operating segments: Prevention & Recovery ("P&R") and Reconstructive ("Recon"). It generates majority revenue form Prevention & Recovery segment.

Executives

John Kleckner	officer: Principal Accounting Officer	2711 CENTERVILLE ROAD, SUITE 400, WILMINGTON DE 19808
Berry Phillip Benjamin (ben)	officer: SVP, Chief Financial Officer	2711 CENTERVILLE ROAD SUITE 400, WILMINGTON DE 19808
Rajiv Vinnakota	director	8730 STONY POINT PARKWAY, SUITE 150, RICHMOND VA 23235
A Clayton Perfall	director
Brady Shirley	officer: EVP, Colfax, Pres. & CEO, DJO	2711 CENTERVILLE ROAD, SUITE 400, WILMINGTON DE 19808
Patricia A Lang	officer: SVP, Chief HR Officer	C/O DIEBOLD NIXDORF, INCORPORATED, 5995 MAYFAIR ROAD, NORTH CANTON OH 44720
Bradley J Tandy	officer: SVP, General Counsel	P.O. BOX 587, 56 E. BELL DRIVE, WARSAW IN 46580
Daniel A Pryor	officer: SVP??Strategy & Business Deve.	DANAHER CORP, 2099 PENNSYLVANIA AVE NW 12TH FL, WASHINGTON DC 20006
Matthew L. Trerotola	director, officer: President & CEO	2711 CENTERVILLE ROAD, SUITE 400, WILMINGTON DE 19808
Christopher M Hix	officer: SVP, Chief Financial Officer	2160 SATELLITE BLVD., SUITE 200, DULUTH GA 30097
Barbara W. Bodem	director	C/O DENTSPLY SIRONA INC, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Christine Ortiz	director	1200 ABERNATHY ROAD, NE, SUITE 1200, ATLANTA GA 30328
Angela S Lalor	director	3M CENTER, BLDG. 0220-09-E-02, ST PAUL MN 55144 1000
Shyam Kambeyanda	officer: ESAB President and SVP, Colfax	2711 CENTERVILLE ROAD, SUITE 400, WILMINGTON DE 19808
Douglas J. Pitts	officer: Controller, PAO	100 MATSONFORD ROAD, RADNOR PA 19087