Integra Lifesciences (IART) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: N/A
• Average Volume (3M): 735.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: 6.19%
• EPS Growth: -174.69%
• Country: US
• Employees: 4,396
• Sector: Healthcare
• Sector Strength: 60
• Industry: Medical - Devices
• EPS (TTM): 0.41
• Shares Outstanding: 77,204,640
• 10 Day Avg. Volume: 893,190
• 30 Day Avg. Volume: 735,878
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.63
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.89
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $20.50
• Price Target Upside: 60.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

Integra Lifesciences faces significant challenges, with declining profitability and bearish technical indicators being the primary concerns. Weak valuation metrics further underscore the stock's unattractiveness. However, positive revenue growth and reduced leverage on the balance sheet offer some optimism. Overall, the stock warrants cautious consideration due to its current financial and operational difficulties.

Positive Factors

Leadership and Management Strategy

Despite challenges, there is potential for a multi-year turnaround under new leadership if regulatory issues are managed effectively.

Remediation and Improvement Efforts

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

Operational Challenges

The company is facing ongoing issues with shipholds and capacity, which are affecting its overall performance.

Profitability Concerns

Gross margins for FY25 are expected to decline, suggesting potential pressure on profitability.

Revenue and Growth Expectations

The FY25 revenue guidance is expected to be below prior Street expectations, which could indicate limited growth potential.

Integra Lifesciences Business Overview & Revenue Model

Company Description

Integra 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 Money

Integra 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. While revenue growth is positive, declining profit margins and net income indicate profitability challenges. The balance sheet shows reduced leverage, which is a positive sign, but the significant decrease in return on equity is concerning. Despite strong operating cash flow, the decline in free cash flow points to potential liquidity issues.

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.

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.

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.

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
1.98B	1.68B	1.62B	1.65B	1.66B
	Net Debt
1.74B	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

• Technical Analysis Sentiment: Negative
• Last Price: 12.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 12.75 is below the 20-day moving average (MA) of 16.32, below the 50-day MA of 19.89, and below the 200-day MA of 21.66, indicating a bearish trend. The MACD of -1.50 indicates Positive momentum. The RSI at 25.15 is Positive, neither overbought nor oversold. The STOCH value of 39.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IART.

Integra Lifesciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPT	79 Outperform	$1.56B	25.99	19.36%	―	34.43%	31.90%
CNMD	72 Outperform	$1.78B	15.12	12.96%	1.39%	4.20%	43.62%
AORT	67 Neutral	$995.94M	―	-7.25%	―	5.94%	-115.82%
AHCO	64 Neutral	$1.19B	14.38	5.11%	―	-0.05%	―
LIVN	54 Neutral	$1.91B	30.62	4.87%	―	8.33%	256.54%
Sector *	52 Neutral	$5.24B	3.76	-41.88%	2.85%	17.01%	0.78%
IART	51 Neutral	$1.30B	―	-1.85%	―	6.19%	-174.69%

Integra Lifesciences Corporate Events

Integra Lifesciences Implements New Severance Program for Executives

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.