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LivaNova PLC (LIVN)
NASDAQ:LIVN
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LivaNova
(NASDAQ:LIVN)
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Rating:63Neutral
Price Target:
$67.00
▲(6.03% Upside)
LivaNova's overall stock score is driven by strong technical momentum and positive earnings call highlights, including robust revenue growth and improved financial metrics. However, profitability concerns and valuation challenges, such as a negative P/E ratio, weigh on the score. The absence of a dividend yield further impacts valuation attractiveness.
Positive Factors
Revenue Growth
Strong revenue growth in key segments like cardiopulmonary and epilepsy indicates effective market strategies and product demand.
Strategic Roadmap
A clear strategic roadmap with ambitious growth targets suggests strong leadership and a focus on long-term value creation.
Cash Generation
Robust cash flow growth supports financial flexibility and potential reinvestment in innovation and expansion.
Negative Factors
Profitability Challenges
Persistent profitability issues highlight operational inefficiencies, potentially hindering long-term financial health.
Component Supply Challenges
Supply chain constraints can limit growth opportunities and affect the company's ability to meet market demand.
Currency and Tariff Impacts
Currency and tariff challenges can erode profitability, affecting the company's competitive position and pricing strategies.
LivaNova (LIVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.32B
Dividend YieldN/A
Average Volume (3M)504.81K
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth8.97%
EPS Growth-1024.86%
CountryUS
Employees2,900
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.11
Shares Outstanding54,605,526
10 Day Avg. Volume476,441
30 Day Avg. Volume504,814
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)1.90
Price to Sales (P/S)2.00
P/FCF Ratio18.48
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue2.00
Enterprise Value/Gross Profit2.91
Enterprise Value/Ebitda-32.35
Forecast
1Y Price Target
$72.50Price Target Upside14.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)4.14
Revenue Forecast (FY)$1.47B
LivaNova Business Overview & Revenue Model
Company DescriptionLivaNova PLC, a medical device company, designs, develops, manufactures, and sells therapeutic solutions worldwide. It operates through three segments: Cardiopulmonary, Neuromodulation, and Advanced Circulatory Support. The Cardiopulmonary segment develops, produces, and sells cardiopulmonary products, including oxygenators, heart-lung machines, autotransfusion systems, perfusion tubing systems, cannulae, connect, and other related products. The Neuromodulation segment designs, develops, and markets VNS Therapy System, an implantable device that delivers vagus nerve stimulation (VNS) therapy for the treatment of drug-resistant epilepsy, difficult-to-treat depression, and obstructive sleep apnea. It is also involved in the development and clinical testing of the VITARIA System for treating heart failure through VNS. The Advanced Circulatory Support segment develops, produces, and sells temporary life support products, such as cardiopulmonary and respiratory support solutions. The company serves perfusionists, neurologists, neurosurgeons, and other physicians, as well as hospitals, other medical institutions, and healthcare providers. It sells its products through direct sales representatives and independent distributors. The company has a research collaboration with Verily to capture clinical biomarkers of depression. LivaNova PLC was founded in 1987 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyLivaNova generates revenue through the sale of its medical devices and therapies in the cardiovascular and neuromodulation sectors. Key revenue streams include the sale of heart valves, perfusion systems, and neuromodulation devices, which are often sold directly to hospitals and healthcare providers. The company also benefits from recurring revenue through the sale of consumables and accessories related to its devices. Additionally, LivaNova engages in strategic partnerships and collaborations with healthcare providers and research institutions, which can enhance its product offerings and expand market reach, further contributing to its earnings.
LivaNova Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
LivaNova's third quarter of 2025 showcased robust organic revenue growth, significant gains in the cardiopulmonary and epilepsy segments, and improved financial metrics. However, challenges remain with component supply constraints affecting expansion and negative impacts from currency and tariff changes. Despite these challenges, the company has raised its full-year guidance, reflecting a positive outlook.Q3-2025 Updates
Positive Updates
Strong Organic Revenue Growth
LivaNova delivered 13% organic revenue growth in the third quarter of 2025, driven by the cardiopulmonary business and solid epilepsy performance across all regions.
Cardiopulmonary Segment Performance
Revenue for the Cardiopulmonary segment increased by 16% versus the third quarter of 2024, with Heart-lung machine revenue growing over 20%.
Epilepsy Segment Growth
Epilepsy revenue increased by 6% versus the third quarter of 2024. Growth in Europe and Rest of World regions increased by 12%, while U.S. epilepsy revenue increased by 5% year-over-year.
Improved Financial Metrics
Adjusted operating income increased to $80 million from $64 million in the third quarter of 2024, and adjusted diluted earnings per share rose to $1.11 from $0.90.
Updated 2025 Guidance
Full-year 2025 revenue growth is now forecasted to be between 8.5% and 9.5% on a constant currency basis and between 9.5% and 10.5% on an organic basis.
Negative Updates
Component Supply Challenges
The cardiopulmonary segment is facing limitations due to third-party component supply, which is affecting rapid expansion despite strong demand for Oxygenator.
Foreign Exchange and Tariffs Impact
Unfavorable currency changes and tariffs have negatively impacted the adjusted gross margin, which decreased from 70% in the third quarter of 2024 to 69%.
PCBA Conversion Costs
The investment in the printed circuit board assembly conversion is expected to increase costs in the fourth quarter, impacting earnings.
Company Guidance
In the third quarter of 2025, LivaNova plc reported a strong financial performance with a 13% organic revenue growth compared to the previous year, driven by robust cardiopulmonary and epilepsy business segments. The Cardiopulmonary segment saw a 16% revenue increase, reaching $203 million, while epilepsy revenue rose by 6%. The company has raised its full-year 2025 cardiopulmonary revenue growth guidance to 12.5%-13.5% and overall organic revenue growth outlook by 50 basis points to 9.5%-10.5%. Adjusted gross margin was slightly decreased to 69%, impacted by currency changes and product mix, while adjusted operating income grew to $80 million, translating to a 23% margin. The adjusted diluted earnings per share was $1.11, and the company reported a strong cash position with $646 million as of September 30. Additionally, the full-year guidance for 2025 now includes revenue growth of 8.5%-9.5% on a constant currency basis, with adjusted diluted earnings per share projected at $3.80-$3.90.LivaNova Financial Statement Overview
Summary
LivaNova's financial performance shows mixed results. While there is positive revenue growth and strong free cash flow generation, profitability is a concern with negative net profit and EBIT margins. The balance sheet is moderately stable with manageable leverage, but inefficiencies are evident with a negative return on equity.Income Statement
LivaNova's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue growth rate is positive at 3.03%, indicating some growth momentum. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -16.12% and a negative EBIT margin of -13.53%. The gross profit margin remains relatively strong at 68.49%, but the negative EBITDA margin of -6.39% highlights operational challenges.45
Neutral
Balance Sheet
The balance sheet reflects moderate stability. The debt-to-equity ratio has improved to 0.41 in the TTM, indicating a manageable level of leverage. However, the return on equity is negative at -17.66%, suggesting inefficiencies in generating returns for shareholders. The equity ratio stands at 45.25%, showing a reasonable level of equity financing.55
Neutral
Cash Flow
Cash flow analysis reveals some positive trends. The free cash flow growth rate is strong at 18.08% in the TTM, and the free cash flow to net income ratio is healthy at 0.76, indicating good cash generation relative to net income. However, the operating cash flow to net income ratio is relatively low at 0.30, suggesting potential issues in converting income into cash.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.35B | 1.25B | 1.15B | 1.02B | 1.04B | 934.24M |
| Gross Profit | 924.02M | 870.87M | 771.25M | 707.23M | 705.99M | 594.76M |
| EBITDA | -83.20M | 202.52M | 38.48M | 30.90M | -6.33M | 6.35M |
| Net Income | -217.47M | 63.23M | 17.55M | -86.25M | -135.82M | -348.82M |
Balance Sheet | ||||||
| Total Assets | 2.56B | 2.51B | 2.43B | 2.29B | 2.20B | 2.40B |
| Cash, Cash Equivalents and Short-Term Investments | 646.08M | 428.86M | 266.50M | 214.17M | 207.99M | 252.83M |
| Total Debt | 486.55M | 676.77M | 640.40M | 580.43M | 286.70M | 709.14M |
| Total Liabilities | 1.40B | 1.19B | 1.15B | 1.09B | 906.31M | 1.29B |
| Stockholders Equity | 1.16B | 1.32B | 1.28B | 1.21B | 1.29B | 1.11B |
Cash Flow | ||||||
| Free Cash Flow | 191.43M | 135.93M | 39.93M | 43.40M | 77.07M | -114.40M |
| Operating Cash Flow | 250.65M | 183.04M | 74.91M | 69.90M | 102.54M | -79.40M |
| Investing Cash Flow | -53.36M | -48.16M | -40.33M | -38.40M | 36.90M | -41.80M |
| Financing Cash Flow | -226.22M | 18.55M | 21.48M | 280.10M | -181.48M | 310.80M |
LivaNova Technical Analysis
Positive
63.19
Price Trends
60.24
Positive
57.33
Positive
50.33
Positive
Market Momentum
0.45
Positive
54.07
Neutral
27.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LIVN, the sentiment is Positive. The current price of 63.19 is above the 20-day moving average (MA) of 62.81, above the 50-day MA of 60.24, and above the 200-day MA of 50.33, indicating a bullish trend. The MACD of 0.45 indicates Positive momentum. The RSI at 54.07 is Neutral, neither overbought nor oversold. The STOCH value of 27.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LIVN.
LivaNova Risk Analysis
LivaNova disclosed 32 risk factors in its most recent earnings report. LivaNova 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
LivaNova Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.85B | 58.04 | 32.48% | ― | 41.20% | 173.53% | |
75 Outperform | $2.01B | 29.83 | 18.31% | ― | 29.47% | 23.24% | |
69 Neutral | $2.70B | 66.17 | 6.54% | ― | 16.81% | 34.90% | |
65 Neutral | $2.97B | 35.70 | 5.18% | ― | 7.81% | -26.32% | |
63 Neutral | $3.32B | -15.76 | -17.63% | ― | 8.97% | -1024.86% | |
58 Neutral | $2.01B | -178.88 | -2.45% | ― | 9.81% | -1067.00% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
LIVN
LivaNova
63.19
14.89
30.83%
AORT
Artivion
43.29
12.57
40.92%
ITGR
Integer Holdings
85.28
-55.72
-39.52%
UFPT
Ufp Technologies
257.36
-7.68
-2.90%
INSP
Inspire Medical Systems
96.47
-81.21
-45.71%
TMDX
TransMedics Group
143.69
86.49
151.21%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.