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Integra Lifesciences Holdings Corp. (IART)
NASDAQ:IART
Top Page
Integra Lifesciences
(NASDAQ:IART)56Neutral
Positive Factors
Leadership
The new CEO, Mojdeh Poul, brings over 30 years of MedTech experience, which is seen as timely as the company works to resolve its challenges.
Strategic Initiatives
Management has implemented a Compliance Master Plan and partnered with third-party consulting firms to address quality issues, showing proactive steps towards improvement.
Negative Factors
Financial Guidance
FY25 revenue guidance is expected to be below prior Street expectations, which could indicate limited growth potential.
Operational Challenges
The company is approaching FY25 cautiously with additional shipping holds due to quality remediation efforts, indicating ongoing operational challenges.
Integra Lifesciences (IART) vs. S&P 500 (SPY)
Market Cap
$1.69B
Dividend YieldN/A
Average Volume (3M)688.74K
Price to Earnings (P/E)―
Beta (1Y)1.83
Revenue Growth4.47%
EPS Growth-110.70%
CountryUS
Employees3,946
SectorHealthcare
Sector Strength74
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-0.09
Shares Outstanding77,218,920
10 Day Avg. Volume1,051,769
30 Day Avg. Volume688,735
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.06
Price to Cash Flow (P/CF)8.40
P/FCF Ratio38.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$25.33Price Target Upside10.13% Upside
Rating ConsensusHold
Number of Analyst Covering6
Integra Lifesciences Business Overview & Revenue Model
Company DescriptionIntegra LifeSciences (IART) is a global medical technology company focused on developing, manufacturing, and marketing innovative solutions for the surgical, neuro, and orthopedic markets. The company's core products include neurosurgical and critical care solutions, regenerative technologies, and surgical instrumentation. Integra's offerings are designed to improve patient outcomes and enhance healthcare providers' capabilities across various medical disciplines.
How the Company Makes MoneyIntegra LifeSciences generates revenue primarily through the sale of its medical devices and technologies to hospitals, healthcare providers, and distributors worldwide. The company's revenue streams are categorized into two main segments: Codman Specialty Surgical and Tissue Technologies. Codman Specialty Surgical includes products related to neurosurgery and instrumentation, while Tissue Technologies focuses on regenerative technologies and skin repair solutions. Integra also engages in strategic partnerships and acquisitions to expand its product portfolio and market reach, enhancing its ability to generate income. Additionally, the company invests in research and development to innovate and improve its product offerings, further driving sales and revenue growth.
Integra Lifesciences Financial Statement Overview
Summary
Integra Lifesciences shows mixed financial health. Revenue growth is positive, but profit margins and net income have declined, indicating challenges in maintaining profitability. The balance sheet shows reduced leverage, which is positive, but the return on equity has significantly decreased. Cash flow remains positive with strong operating cash flow, but free cash flow has declined, suggesting potential liquidity challenges if trends continue.Income Statement
Integra Lifesciences has experienced a revenue growth rate of 4.48% from 2023 to 2024, which is positive. However, the gross profit margin is relatively low at 0% due to the gross profit equaling total revenue, indicating potential misreporting or zero cost of goods sold. The net profit margin has turned negative in 2024, from 4.39% in 2023 to -0.43%, suggesting profitability issues. EBIT and EBITDA margins have also decreased significantly, indicating declining operational efficiency.55
Neutral
Balance Sheet
The debt-to-equity ratio improved from 1.06 in 2023 to 0.14 in 2024, reflecting reduced leverage and lower risk. The return on equity has dropped dramatically from 4.27% in 2023 to -0.45% in 2024, indicating a substantial decline in profitability for shareholders. The equity ratio remains stable, showing consistent financial structure in terms of asset financing.60
Neutral
Cash Flow
Free cash flow has decreased, but the operating cash flow to net income ratio is strong, even with a drop in net income. The company maintains positive operating cash flow, which is a good indicator of liquidity, but the free cash flow growth rate is negative, showing a decline from previous years.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.61B | 1.54B | 1.56B | 1.54B | 1.37B | Gross Profit |
| 882.06M | 888.39M | 970.31M | 944.64M | 851.03M | EBIT |
| 28.41M | 111.53M | 238.92M | 197.23M | 151.37M | EBITDA |
| 193.29M | 274.01M | 391.10M | 366.33M | 267.93M | Net Income Common Stockholders |
| -6.94M | 67.74M | 180.55M | 169.07M | 133.89M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 273.57M | 309.10M | 456.66M | 513.45M | 470.17M | Total Assets |
| 4.04B | 3.78B | 3.89B | 3.78B | 3.62B | Total Debt |
| 215.38M | 1.68B | 1.62B | 1.65B | 1.66B | Net Debt |
| -31.00M | 1.41B | 1.16B | 1.14B | 1.19B | Total Liabilities |
| 2.49B | 2.19B | 2.09B | 2.10B | 2.10B | Stockholders Equity |
| 1.55B | 1.59B | 1.80B | 1.68B | 1.51B |
| Cash Flow | Free Cash Flow | |||
| 24.96M | 73.09M | 217.38M | 264.35M | 139.94M | Operating Cash Flow |
| 129.38M | 139.96M | 264.47M | 312.43M | 203.83M | Investing Cash Flow |
| -390.81M | -94.18M | -58.58M | -161.44M | -68.07M | Financing Cash Flow |
| 237.86M | -229.93M | -251.95M | -98.23M | 121.63M |
Integra Lifesciences Technical Analysis
Negative
23.00
Price Trends
23.71
Negative
23.07
Negative
23.78
Negative
Market Momentum
-0.55
Positive
47.66
Neutral
26.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IART, the sentiment is Negative. The current price of 23 is below the 20-day moving average (MA) of 23.30, below the 50-day MA of 23.71, and below the 200-day MA of 23.78, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 47.66 is Neutral, neither overbought nor oversold. The STOCH value of 26.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IART.
Integra Lifesciences Risk Analysis
Integra Lifesciences disclosed 34 risk factors in its most recent earnings report. Integra Lifesciences reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Integra Lifesciences Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $145.88B | 49.25 | 15.26% | 0.85% | 10.23% | -5.74% | |
78 Outperform | $148.76B | 79.46 | 9.03% | ― | 17.60% | 16.84% | |
78 Outperform | $399.26B | 28.64 | 20.06% | 2.99% | -4.51% | 3.69% | |
77 Outperform | $119.44B | 28.31 | 8.42% | 3.00% | 2.72% | 4.48% | |
71 Outperform | $20.97B | 23.76 | 7.24% | 0.91% | 3.84% | -9.29% | |
56 Neutral | $1.69B | ― | -0.44% | ― | 4.47% | -110.70% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
IART
Integra Lifesciences
23.00
-13.22
-36.50%
BSX
Boston Scientific
99.13
33.01
49.92%
JNJ
Johnson & Johnson
166.69
10.47
6.70%
MDT
Medtronic
94.50
11.82
14.30%
SYK
Stryker
379.30
26.96
7.65%
ZBH
Zimmer Biomet Holdings
107.99
-18.96
-14.94%
Integra Lifesciences Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: 4.31% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and EPS performance. However, significant operational challenges and quality-related issues impacted organic growth and margins. The company is focused on executing its compliance master plan and improving manufacturing capacity. Guidance for the first quarter of 2025 indicates potential continued challenges, but strategic initiatives show promise for future growth.Highlights
Revenue Growth
Total revenue for the fourth quarter was $443 million, representing year-over-year reported growth of 11.5% within the guidance range. This increase was driven by supply chain recovery, clearance of ship holds, and the ramp-up of Integra Skin production.
Adjusted EPS Performance
Fourth quarter adjusted EPS was $0.97, which was above the guidance range, supported by a sequential increase in revenue and successful integration of Acclarent.
CSS Revenue Highlights
Reported fourth quarter revenues in CSS were $314.7 million, an increase of 15.8% on a reported basis and 4.1% on an organic basis, driven by the Acclarent acquisition and strong performance in the neurosurgery segment.
Tissue Technologies Growth
Tissue Technologies grew 2% on both a reported and organic basis compared to the prior year, with Wound Reconstruction franchise sales increasing by 8.2%.
Strategic Initiatives
The company is advancing its dual PMA clinical strategy for SurgiMend and DuraSorb to capitalize on the implant-based breast reconstruction market and expanded its international commercial footprint in Brazil, India, Korea, and China.
Lowlights
Operational Challenges
The company faced operational challenges, particularly in quality, manufacturing, and supply chain, necessitating a compliance master plan to address systemic issues.
First Quarter 2025 Guidance
First quarter 2025 revenues are expected to be between $375 million and $385 million, with organic growth expected to be negative, ranging from -6.2% to -3.5%.
Organic Revenue Decline
2024 organic revenue growth declined by 1.3%, impacted by approximately $90 million in supply challenges and quality-related product holds.
Adjusted EBITDA Margin Decline
Full-year adjusted EBITDA margin was 20%, down 400 basis points compared to 2023, reflecting the impact of supply challenges and investments in the compliance master plan.
Leverage and Cash Flow Constraints
Net debt was $1.5 billion with a consolidated total leverage ratio of four times, and free cash flow conversion was 12.7%, reflecting investments in manufacturing infrastructure.
Company Guidance
In the Integra LifeSciences Fourth Quarter 2024 Earnings Conference Call, the company announced a total revenue of $443 million for the quarter, representing an 11.5% year-over-year increase, landing within their guidance range. The adjusted EPS for the quarter was $0.97, surpassing the guidance range. The full-year 2024 revenues were reported at $1.61 billion, indicating a 4.5% growth on a reported basis but a 1.3% decline organically due to supply challenges. For 2025, first-quarter revenues are forecasted between $375 million and $385 million, with expected organic growth ranging from negative 6.2% to negative 3.5%. Full-year 2025 revenues are projected to be between $1.65 billion and $1.72 billion, with an anticipated adjusted EPS of $2.41 to $2.51. The guidance includes potential impacts from quality-related shipping holds, reflecting a cautious outlook amidst ongoing operational improvements.Integra Lifesciences Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Integra Lifesciences Implements New Severance Program for Executives
Neutral
Dec 17, 2024
Integra LifeSciences has adopted a change in control severance program effective January 1, 2025, providing severance and benefits to certain executives in the event of employment termination following a company change in control by December 31, 2025. The program aims to ensure stability and incentivize retention during potential transitions, impacting executive compensation and company operations if a change occurs.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.