LivaNova (LIVN) AI Stock Analysis

• Market Cap: $2.98B
• Dividend Yield: N/A
• Average Volume (3M): 689.12K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 0.88
• Revenue Growth: 8.57%
• EPS Growth: -1154.64%
• Country: US
• Employees: 2,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 1.05
• Shares Outstanding: 54,601,074
• 10 Day Avg. Volume: 568,454
• 30 Day Avg. Volume: 689,123
• 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: 0.79
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 2.60
• Enterprise Value/Ebitda: -32.14
• 1Y Price Target: $76.38
• Price Target Upside: 36.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 61 Neutral
• Price Target: $56.00 ▲(0.16% Upside)

LivaNova's overall stock score is driven by strong earnings call performance and positive technical indicators, indicating potential growth. However, profitability challenges and valuation concerns weigh down the score. The legal dispute over environmental liabilities adds an element of risk.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for LivaNova's products, enhancing its market position and supporting long-term business expansion.

Debt Reduction

Reducing debt levels strengthens the balance sheet, providing more financial flexibility and reducing interest expenses, which supports sustainable growth.

Clinical Milestones

Successful clinical results enhance product credibility and can lead to increased adoption, boosting revenue and reinforcing competitive advantage.

Negative Factors

Profitability Challenges

Ongoing profitability issues indicate operational inefficiencies, which could hinder reinvestment in growth and affect long-term financial health.

Legal Dispute

The legal dispute over environmental liabilities poses financial risks and could lead to significant costs, impacting the company's future profitability.

Supply Chain Constraints

Supply chain issues can limit production capacity and sales growth, potentially affecting the company's ability to meet market demand and revenue targets.

LivaNova Business Overview & Revenue Model

Company Description

LivaNova 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 Money

LivaNova generates revenue through the sale of its medical devices and related services. The company has key revenue streams from its cardiovascular segment, which includes products such as heart-lung machines, perfusion products, and cardiac surgery devices. The neuromodulation segment contributes significantly to its earnings through the sale of devices designed for epilepsy treatment and other neurological disorders. Additionally, LivaNova benefits from ongoing partnerships with healthcare providers and institutions that utilize its technologies. The company also engages in research and development initiatives, which may lead to new product launches and expanded market opportunities, further enhancing its revenue potential.

LivaNova Financial Statement Overview

Summary

LivaNova shows moderate revenue growth but struggles with profitability, as indicated by negative net income and EBIT margins. The balance sheet is stable with manageable leverage, yet inefficiencies are evident with a negative return on equity. Cash flow performance is improving, particularly in free cash flow growth, but operational cash generation remains a concern.

Income Statement

LivaNova's income statement shows moderate revenue growth with a 2.66% increase in TTM. However, the company is struggling with profitability, as indicated by a negative net profit margin of -16.14% and a negative EBIT margin of -9.33%. The gross profit margin remains strong at 69.07%, but the negative EBITDA margin of -5.59% highlights operational challenges.

Balance Sheet

The balance sheet reflects a stable equity position with a debt-to-equity ratio of 0.42, indicating manageable leverage. However, the return on equity is negative at -17.66%, suggesting inefficiencies in generating returns from equity. The equity ratio stands at 44.80%, showing a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a positive trend with an 11.39% growth in free cash flow. The operating cash flow to net income ratio is 0.26, indicating some cash generation challenges relative to net income. However, the free cash flow to net income ratio of 0.75 suggests better cash flow management compared to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.31B	1.25B	1.15B	1.02B	1.04B	934.20M
Gross Profit	904.33M	870.87M	771.25M	707.20M	706.00M	618.20M
EBITDA	-73.18M	202.52M	39.02M	30.85M	-6.33M	-225.87M
Net Income	-211.32M	63.23M	17.55M	-86.20M	-135.70M	-343.30M
Balance Sheet
Total Assets	2.51B	2.51B	2.43B	2.29B	2.20B	2.41B
Cash, Cash Equivalents and Short-Term Investments	593.64M	428.86M	266.50M	214.20M	208.00M	252.80M
Total Debt	473.40M	676.77M	640.40M	571.00M	275.40M	697.80M
Total Liabilities	1.38B	1.19B	1.15B	1.09B	906.40M	1.29B
Stockholders Equity	1.12B	1.32B	1.28B	1.21B	1.29B	1.12B
Cash Flow
Free Cash Flow	162.10M	135.93M	39.93M	43.40M	77.00M	-114.40M
Operating Cash Flow	216.59M	183.04M	74.91M	69.90M	102.50M	-79.40M
Investing Cash Flow	-48.82M	-48.16M	-40.33M	-38.40M	36.90M	-41.80M
Financing Cash Flow	-220.13M	18.55M	21.48M	280.10M	-181.50M	310.80M

LivaNova Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 55.91 is below the 20-day moving average (MA) of 56.38, above the 50-day MA of 50.33, and above the 200-day MA of 45.64, indicating a neutral trend. The MACD of 1.33 indicates Positive momentum. The RSI at 56.35 is Neutral, neither overbought nor oversold. The STOCH value of 19.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LIVN.

LivaNova Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMDX	74 Outperform	4.08B	62.62	22.53%	―	48.09%	2410.18%
UFPT	73 Outperform	1.58B	23.37	17.21%	―	40.98%	34.80%
LIVN	61 Neutral	$2.98B	30.62	-17.87%	―	8.57%	-1154.64%
CTKB	54 Neutral	498.72M	-80.04	-1.70%	―	-0.85%	61.31%
IART	50 Neutral	1.15B	-2.36	-48.20%	―	3.53%	-2309.98%
PRCT	50 Neutral	2.07B	-24.43	-21.81%	―	55.71%	24.37%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

LivaNova Corporate Events

LivaNova Appoints Donald Zurbay to Board of Directors

On September 3, 2025, LivaNova PLC appointed Donald Zurbay to its Board of Directors and as a member of the Audit and Compliance Committee, effective September 4, 2025. Mr. Zurbay brings extensive experience from his leadership roles at Patterson Companies and St. Jude Medical, enhancing LivaNova’s strategic direction and governance.

LivaNova Shareholders Approve Key Incentive Plans at AGM

On June 11, 2025, LivaNova PLC held its Annual General Meeting where shareholders approved two key incentive plans: the Second Amended and Restated 2022 Incentive Award Plan and the 2025 Director Incentive Award Plan. These plans, previously approved by the Board, aim to provide equity-based compensation to executives and directors, with a total of 2,500,000 shares allocated for awards. The AGM also saw the election of ten directors and the approval of various resolutions, including the ratification of PricewaterhouseCoopers LLP as the company’s auditor for 2025, reflecting strong shareholder support for the company’s governance and strategic initiatives.