Integra Lifesciences (IART) AI Stock Analysis

• Market Cap: $1.14B
• Dividend Yield: N/A
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: 3.53%
• EPS Growth: -2309.98%
• Country: US
• Employees: 4,396
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Devices
• EPS (TTM): 0.45
• Shares Outstanding: 77,910,790
• 10 Day Avg. Volume: 1,352,599
• 30 Day Avg. Volume: 1,311,991
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.36
• Enterprise Value/Revenue: 1.67
• Enterprise Value/Gross Profit: 3.17
• Enterprise Value/Ebitda: -7.31
• 1Y Price Target: $17.50
• Price Target Upside: 27.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 50 Neutral
• Price Target: $14.50 ▲(5.99% Upside)

Integra Lifesciences faces significant financial challenges, with declining revenue, profitability, and cash flow issues being the most impactful factors. While technical analysis shows some short-term positive momentum, the overall valuation remains unattractive due to a negative P/E ratio and no dividend yield. The earnings call provided mixed signals, with some operational improvements but overshadowed by revenue and EPS declines.

Positive Factors

Leadership and Management

There is potential for a multi-year turnaround under new leadership if regulatory issues are managed effectively.

Remediation and Quality Improvement

Management has implemented a Compliance Master Plan and partnered with third-party consulting firms to address quality issues, showing proactive steps towards improvement.

Revenue Growth Potential

Management noted an expected increase in revenue driven by remediation efforts and higher production, which could improve financial performance in the future.

Negative Factors

Earnings Guidance

EPS guidance is now $2.19-2.29 versus $2.41-2.51 prior to today's release.

Operational Challenges

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

Revenue and Growth Outlook

The FY25 revenue guide was $30m or 2% below Street consensus as supply challenges are expected to weigh on Q1 growth.

Integra Lifesciences Business Overview & Revenue Model

Company Description

Integra Lifesciences Holdings Corporation (IART) is a global leader in regenerative medicine and neurosurgery. The company specializes in developing innovative solutions for treating complex medical conditions, primarily focusing on the neurosurgical, orthopedic, and reconstructive markets. Integra's core products include regenerative tissue products, surgical instruments, and medical devices designed to enhance patient outcomes in surgical procedures.

How the Company Makes Money

Integra Lifesciences generates revenue through a combination of its diverse product offerings, including advanced wound care products, neurosurgery instruments, and orthopedic implants. The company earns income by selling these products directly to hospitals, surgical centers, and healthcare providers. Key revenue streams include sales of regenerative tissue products, which are used in surgical procedures to promote healing and tissue regeneration, as well as sales from neurosurgical instruments and devices. Additionally, Integra benefits from strategic partnerships with other healthcare organizations and distributors that expand its market reach. The company's focus on innovation and its pipeline of new products also contribute significantly to its earnings potential, allowing it to address unmet medical needs and tap into new markets.

Integra Lifesciences Financial Statement Overview

Summary

Integra Lifesciences is facing financial challenges across all verticals. The income statement reveals declining revenue and profitability, while the balance sheet shows high leverage and negative returns. Cash flow metrics indicate significant cash flow issues, which could impact the company's ability to invest and grow. Overall, the company needs to address its operational inefficiencies and improve its financial health to enhance shareholder value.

Income Statement

Integra Lifesciences has experienced a significant decline in revenue growth, with a negative growth rate of -15.8% in the TTM period. The gross profit margin has also decreased over time, indicating pressure on profitability. The net profit margin has turned negative, reflecting a challenging operating environment. The EBIT and EBITDA margins have also deteriorated, suggesting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved slightly in the TTM period, but remains high, indicating significant leverage. Return on equity has turned negative, highlighting profitability challenges. The equity ratio has decreased, suggesting a higher reliance on debt financing.

Cash Flow

Free cash flow has declined significantly, with a negative growth rate of -376.3% in the TTM period. The operating cash flow to net income ratio is low, indicating potential cash flow issues. The free cash flow to net income ratio is negative, reflecting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.62B	1.61B	1.54B	1.56B	1.54B	1.37B
Gross Profit	853.07M	882.06M	888.39M	970.31M	944.64M	851.03M
EBITDA	-369.49M	193.29M	274.01M	391.10M	366.33M	267.93M
Net Income	-500.63M	-6.94M	67.74M	180.55M	169.07M	133.89M
Balance Sheet
Total Assets	3.67B	4.04B	3.78B	3.89B	3.78B	3.62B
Cash, Cash Equivalents and Short-Term Investments	253.61M	273.57M	309.10M	456.66M	513.45M	470.17M
Total Debt	2.01B	1.98B	1.68B	1.62B	1.65B	1.66B
Total Liabilities	2.63B	2.49B	2.19B	2.09B	2.10B	2.10B
Stockholders Equity	1.04B	1.55B	1.59B	1.80B	1.68B	1.51B
Cash Flow
Free Cash Flow	-9.57M	24.96M	73.09M	217.38M	264.35M	139.94M
Operating Cash Flow	59.63M	129.38M	139.96M	264.47M	312.43M	203.83M
Investing Cash Flow	-108.13M	-390.81M	-94.18M	-58.58M	-161.44M	-68.07M
Financing Cash Flow	22.55M	237.86M	-229.93M	-251.95M	-98.23M	121.63M

Integra Lifesciences Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.68
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IART, the sentiment is Neutral. The current price of 13.68 is above the 20-day moving average (MA) of 13.26, above the 50-day MA of 12.72, and below the 200-day MA of 18.78, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 53.68 is Neutral, neither overbought nor oversold. The STOCH value of 71.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IART.

Integra Lifesciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNMD	74 Outperform	$1.69B	15.39	11.69%	1.43%	4.02%	11.32%
UFPT	73 Outperform	$1.68B	25.43	19.29%	―	40.98%	34.80%
AHCO	67 Neutral	$1.28B	17.45	4.76%	―	-0.61%	―
Sector *	65 Neutral	¥346.28B	11.35	-1.45%	2.36%	9.60%	-12.35%
LIVN	61 Neutral	$2.92B	30.62	-17.87%	―	8.57%	-1154.64%
AORT	55 Neutral	$1.98B	―	-5.01%	―	7.44%	-109.83%
IART	50 Neutral	$1.14B	―	-38.92%	―	3.53%	-2309.98%

Integra Lifesciences Corporate Events

Integra Lifesciences Amends Credit Agreement for Stability

On June 6, 2025, Integra LifeSciences amended its Credit Agreement to adjust its financial covenants, particularly increasing the maximum consolidated total leverage ratio through various fiscal quarters until March 2027. This amendment, effective during the Covenant Relief Period, also imposes temporary restrictions on investments, indebtedness, and intellectual property transactions, aiming to stabilize the company’s financial operations without increasing its total debt.