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Integer Holdings (ITGR)
:ITGR

Integer Holdings (ITGR) AI Stock Analysis

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Integer Holdings

(NYSE:ITGR)

Rating:70Neutral
Price Target:
$130.00
▲(8.18%Upside)
Integer Holdings' overall stock score reflects strong financial and strategic positions, with robust earnings call insights and positive corporate events. However, technical analysis suggests caution, and high valuation metrics could limit upside potential.
Positive Factors
Earnings
Integer Holdings reported better-than-expected financial results for its 1Q25, including revenues of $437.4 million, up 7.3% year-over-year.
Product Launches
New product launches should drive significant growth in the C&V sector.
Negative Factors
Sales Performance
CRM & Neuromod sales underperformed expectations, creating a potential area of concern for future growth.
Valuation
The price target is being lowered to $140 due to reduced valuation metrics for comparable stocks.

Integer Holdings (ITGR) vs. SPDR S&P 500 ETF (SPY)

Integer Holdings Business Overview & Revenue Model

Company DescriptionInteger Holdings Corporation (ITGR) is a leading medical device outsource (MDO) manufacturer that serves the medical device industry with innovative, high-quality products and services. The company operates across various sectors, including cardiac and vascular, neuromodulation, orthopedics, advanced surgical, and non-medical markets. Integer provides a broad range of offerings, including components, subassemblies, and complete devices, enabling their clients to bring cutting-edge medical solutions to market efficiently and effectively.
How the Company Makes MoneyInteger Holdings generates revenue primarily through the design, development, and manufacturing of medical devices for original equipment manufacturers (OEMs). The company earns money by supplying critical components and fully assembled products in the cardiac, neuromodulation, and vascular segments, among others. Integer's key revenue streams include sales of medical device components like batteries, capacitors, and leads, as well as advanced surgical and orthopedic products. Integer also benefits from strategic partnerships and long-term contracts with major medical device companies, providing a steady and reliable income source. The company's focus on innovation and quality manufacturing processes contributes significantly to its earnings by attracting and retaining a loyal customer base.

Integer Holdings Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q1-2025)
|
% Change Since: -0.28%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong sales and income growth, successful acquisitions, and strategic refinancing. However, challenges such as potential tariff impacts and a slowdown in CRM and neuromodulation sales were noted. Despite these challenges, the overall sentiment is positive due to the company's robust growth and strategic initiatives.
Q1-2025 Updates
Positive Updates
Strong Sales Growth
Integer Holdings Corporation reported a 7% year-over-year increase in sales on a reported basis and 6% on an organic basis in Q1 2025.
Adjusted Operating Income Increase
Adjusted operating income grew by 14% year-over-year, doubling the sales growth rate.
Cardio and Vascular Sales Surge
Sales in the cardio and vascular segment increased by 17% in the first quarter, driven by new product ramps and acquisitions.
Raised Adjusted EPS Outlook
The company raised its adjusted EPS outlook by $0.31, with anticipated growth of 16% to 23% for the full year.
Successful Debt Refinancing
Integer Holdings completed a strategic refinancing that significantly increased the portion of debt fixed at a sub-2% rate, expecting to reduce interest expense by $13 million in 2025.
Tuck-In Acquisitions
Completed acquisitions of Precision Coating and BSI PERILING, expanding service offerings and capabilities.
Negative Updates
Potential Tariff Impact
Estimated tariff impact of $1 to $5 million on adjusted operating income for 2025.
CRM and Neuromodulation Sales Growth Deceleration
Sales in the CRM and neuromodulation segment grew by only 2% in Q1 2025, indicating a slowdown compared to previous years.
Increased Net Total Debt
Net total debt increased to $1.23 billion at the end of Q1 2025, reflecting recent acquisitions and costs associated with the convertible note offering.
Company Guidance
During Integer Holdings Corporation's first quarter 2025 earnings call, the company provided robust guidance for the full year. Sales are projected to grow 8-10% on a reported basis and 6-8% organically. The company anticipates adjusted operating income growth of 11-16%, with an expected impact from tariffs estimated to be $1-5 million. Integer raised its adjusted earnings per share (EPS) outlook by $0.31, forecasting a growth of 16-23%, partially benefiting from a March convertible note offering. The company's first-quarter performance saw sales reach $437 million, reflecting 7% year-over-year growth, with adjusted EBITDA increasing by 14% to $92 million. Integer also completed two tuck-in acquisitions, enhancing its capabilities in differentiated and proprietary coating services. The company expects to maintain its net total debt leverage within the strategic range of 2.5 to 3.5 times EBITDA by year-end.

Integer Holdings Financial Statement Overview

Summary
Integer Holdings is performing well with strong revenue growth and operational efficiency. The company maintains a solid equity base, but increased leverage requires careful monitoring. Overall, the firm is generating ample cash flow to support its growth, though attention to margin improvements could further enhance financial health.
Income Statement
78
Positive
Integer Holdings demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) increase from the previous year, indicating a healthy growth trajectory. The gross profit margin remains robust, although net profit margins have declined compared to the previous period, suggesting potential efficiency improvements. EBITDA and EBIT margins are solid, reflecting operational strength despite slight fluctuations in net income.
Balance Sheet
72
Positive
The company's balance sheet shows a stable equity ratio, indicating a solid financial foundation with adequate equity backing its assets. The debt-to-equity ratio has increased, suggesting rising leverage which could pose a risk if not managed carefully. Return on equity remains strong, demonstrating effective use of shareholder funds.
Cash Flow
75
Positive
Integer Holdings exhibits consistent operating cash flow, reflecting healthy cash generation from operations. Free cash flow has grown significantly, supporting further investment opportunities. However, the ratio of operating cash flow to net income is slightly lower, implying room for improvement in converting income into cash.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.75B1.72B1.60B1.38B1.22B1.07B
Gross Profit
466.21M459.01M418.29M359.01M336.97M285.71M
EBIT
225.30M208.24M167.33M121.33M135.71M120.61M
EBITDA
282.39M310.91M256.51M215.40M215.26M207.56M
Net Income Common Stockholders
76.90M119.90M90.65M66.38M96.81M77.26M
Balance SheetCash, Cash Equivalents and Short-Term Investments
31.71M46.54M23.67M24.27M17.89M49.21M
Total Assets
3.30B3.08B2.94B2.79B2.58B2.37B
Total Debt
1.35B1.10B1.05B1.01B897.75M777.55M
Net Debt
1.32B1.06B1.03B983.41M879.87M728.34M
Total Liabilities
1.69B1.46B1.42B1.38B1.23B1.10B
Stockholders Equity
1.61B1.62B1.52B1.42B1.35B1.27B
Cash FlowFree Cash Flow
111.49M99.60M60.27M41.65M103.20M129.90M
Operating Cash Flow
213.24M205.21M180.21M116.38M156.67M181.34M
Investing Cash Flow
-224.38M-195.41M-163.37M-200.42M-271.00M-56.58M
Financing Cash Flow
1.60M13.32M-18.01M92.48M81.99M-88.58M

Integer Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price120.17
Price Trends
50DMA
118.90
Positive
100DMA
125.60
Negative
200DMA
128.37
Negative
Market Momentum
MACD
-0.26
Positive
RSI
50.28
Neutral
STOCH
37.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITGR, the sentiment is Positive. The current price of 120.17 is above the 20-day moving average (MA) of 119.59, above the 50-day MA of 118.90, and below the 200-day MA of 128.37, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 37.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITGR.

Integer Holdings Risk Analysis

Integer Holdings disclosed 36 risk factors in its most recent earnings report. Integer Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Integer Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$3.94B63.7610.86%27.11%
70
Neutral
$4.18B57.024.98%7.41%-22.10%
64
Neutral
$4.63B-111.13%20.54%25.73%
63
Neutral
$2.37B30.62-19.69%7.97%-592.40%
56
Neutral
$5.42B-20.36%23.92%19.82%
56
Neutral
$3.32B-27.62%59.36%19.87%
53
Neutral
$5.25B3.24-45.38%2.81%16.79%-0.06%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ITGR
Integer Holdings
120.17
-0.83
-0.69%
GKOS
Glaukos
90.96
-23.00
-20.18%
LIVN
LivaNova
44.48
-8.32
-15.76%
IRTC
Irhythm Technologies
143.83
45.98
46.99%
INSP
Inspire Medical Systems
137.91
-18.53
-11.84%
PRCT
PROCEPT BioRobotics
61.63
-6.71
-9.82%

Integer Holdings Corporate Events

Executive/Board ChangesShareholder Meetings
Integer Holdings Stockholders Approve Key Proposals at Annual Meeting
Neutral
May 28, 2025

At the Annual Meeting on May 21, 2025, Integer Holdings‘ stockholders approved several key proposals. These included the election of ten directors for a one-year term, the ratification of Deloitte & Touche LLP as the independent auditors for fiscal year 2025, approval of executive compensation on an advisory basis, and an amendment to the company’s Restated Certificate of Incorporation to include an officer exculpation provision. These decisions are expected to impact the company’s governance and operational strategies moving forward.

The most recent analyst rating on (ITGR) stock is a Buy with a $152.00 price target. To see the full list of analyst forecasts on Integer Holdings stock, see the ITGR Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Integer Holdings Announces Leadership Transition Plan
Positive
Apr 24, 2025

Integer Holdings Corporation announced a leadership transition plan where Joseph Dziedzic will retire as President and CEO on October 24, 2025, with Payman Khales, the current COO, succeeding him. Dziedzic will continue as a Special Advisor until March 31, 2026, to ensure a smooth transition. This change is part of Integer’s strategy to maintain its growth trajectory in high-growth markets by focusing on innovation and operational excellence. The transition is expected to strengthen Integer’s market position and continue its financial objectives of above-market organic sales growth.

Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Integer Holdings Reports Strong Q1 2025 Performance
Positive
Apr 24, 2025

Integer Holdings Corporation reported a strong start to 2025, with first-quarter sales increasing by 7% to $437 million and a 14% rise in adjusted operating income. Despite a GAAP loss due to debt conversion expenses, the company saw significant growth in its cardio and vascular segment and adjusted net income. Integer completed a $1.0 billion convertible notes offering, which is expected to reduce interest expenses and support future growth, including acquisitions of Precision Coating and VSi Parylene. The company raised its adjusted EPS outlook, reflecting confidence in continued sales and income growth.

Business Operations and StrategyFinancial Disclosures
Integer Holdings Minimizes Impact of New Tariffs
Neutral
Apr 11, 2025

On April 11, 2025, Integer Holdings Corporation announced that the recent tariffs are expected to have an immaterial impact on its 2025 financial results, estimating an effect of $1 to $5 million on full-year adjusted operating income. The company has implemented and planned mitigation actions to address these tariffs, which were announced by the U.S. on April 2, 2025. This announcement reflects the company’s strategic positioning to manage external economic challenges and maintain its operational stability.

Private Placements and FinancingBusiness Operations and Strategy
Integer Holdings Closes $1 Billion Notes Offering
Positive
Mar 19, 2025

On March 18, 2025, Integer Holdings Corporation announced the closing of a $1 billion convertible senior notes offering, which was upsized due to strong investor demand. The transaction is expected to enhance the company’s capitalization structure by creating revolver capacity and reducing interest expenses, making it immediately accretive to 2025 adjusted earnings. The proceeds will be used to pay costs associated with capped call transactions, exchange a portion of existing notes, and repay outstanding borrowings. The offering reflects investor confidence in Integer’s strategy and financial strength, with the capped call transactions mitigating potential dilution of common stock.

Private Placements and FinancingBusiness Operations and Strategy
Integer Holdings Announces Major Credit Agreement Amendment
Neutral
Mar 12, 2025

On March 12, 2025, Integer Holdings Corporation announced a significant amendment to its credit agreement, allowing the issuance of convertible notes up to $1.5 billion and enabling bond hedge and capped call transactions. This move is part of a strategic financial restructuring, including the launch of a $750 million Convertible Senior Notes Offering due 2030, aimed at refinancing existing debt and potentially impacting the company’s stock market dynamics.

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.