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LivaNova PLC (LIVN)
:LIVN
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LivaNova
(NASDAQ:LIVN)
Rating:61Neutral
Price Target:
$47.00
▲(8.22%Upside)
Positive Factors
Cardiopulmonary Growth
The commitment to expand oxygenator capacity, which represents about 30% of the company's revenue, is expected to enhance the company's ability to supply and support cardiopulmonary growth.
Product Approval
LivaNova received approval for Essenz in China, its second-largest market by install base, and will begin commercialization.
Negative Factors
Epilepsy Segment Risks
The setup for new patients in US epilepsy, with 1Q guide adjusted slightly downward, poses a risk.
Valuation Concerns
A recent downgrade to Peer Perform after a multi-year stint with a positive rating indicates concerns about the stock's valuation and potential risks.
LivaNova (LIVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.40B
Dividend YieldN/A
Average Volume (3M)553.35K
Price to Earnings (P/E)30.6
Beta (1Y)0.80
Revenue Growth7.97%
EPS Growth-592.40%
CountryUS
Employees2,900
SectorHealthcare
Sector Strength40
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.88
Shares Outstanding54,525,692
10 Day Avg. Volume458,143
30 Day Avg. Volume553,350
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)2.30
Price to Sales (P/S)0.00
P/FCF Ratio16.35
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit2.61
Enterprise Value/Ebitda11.81
Forecast
1Y Price Target
$64.14Price Target Upside47.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
LivaNova Business Overview & Revenue Model
Company DescriptionLivaNova PLC is a global medical technology company headquartered in London, England, specializing in the development and provision of innovative therapeutic solutions. The company operates primarily in two sectors: Cardiovascular and Neuromodulation. Its core products include advanced cardiac surgery equipment, heart failure treatment devices, and neuromodulation therapy solutions designed for the treatment of drug-resistant epilepsy and depression. LivaNova is committed to improving patient health and quality of life through its cutting-edge medical devices and technologies.
How the Company Makes MoneyLivaNova generates revenue primarily through the sale of its medical devices and therapies in the Cardiovascular and Neuromodulation sectors. In the Cardiovascular sector, the company earns income from the sale of products such as heart-lung machines, oxygenators, and other cardiac surgery tools used in the treatment of heart diseases. The Neuromodulation sector contributes to revenue through the sale of devices used for Vagus Nerve Stimulation (VNS) therapy, which is employed in the management of epilepsy and treatment-resistant depression. LivaNova's financial performance is bolstered by strategic partnerships, research and development investments, and a robust distribution network that expands its global market reach. Additionally, the company enhances its earnings by engaging in collaborations with healthcare providers and leveraging its innovative technologies to address unmet medical needs.
LivaNova Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 23.52%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth and successful clinical trials, positioning LivaNova well for future growth. However, challenges such as the SNIA litigation liability, limited U.S. Epilepsy revenue growth, and tariff impacts were noted. Despite these challenges, the positive aspects, including revenue growth and clinical successes, outweighed the negatives.Q1-2025 Updates
Positive Updates
Strong Organic Revenue Growth
LivaNova achieved 10% organic revenue growth versus the prior year, driven by the continued success of the Essenz rollout, demand for Cardiopulmonary consumables, and strong neuromodulation performance in the Europe and Rest of World regions.
Cardiopulmonary Segment Performance
Revenue for the Cardiopulmonary segment increased by 15% to $176 million in the quarter, with Heart-lung machine revenue growing approximately 30% versus the prior year period.
OSPREY Trial Success
The OSPREY trial demonstrated a 65% responder rate at 12 months for proximal hypoglossal nerve stimulation therapy, showing rapid and sustained improvement for patients with severe obstructive sleep apnea.
Positive Cash Flow and Cash Position
LivaNova's cash balance increased to $738 million, up from $429 million at year-end 2024, with adjusted free cash flow for the quarter at $20 million.
Updated 2025 Guidance
LivaNova raised its overall organic growth outlook by 100 basis points to between 7% and 8%, reflecting strong first-quarter performance and strategic execution.
Negative Updates
SNIA Litigation Liability
LivaNova recorded a liability of $360 million in the first quarter related to the Italian Supreme Court decision on the SNIA litigation, affecting financial results.
U.S. Epilepsy Revenue Growth Challenge
U.S. Epilepsy revenue growth was limited to 2% year-over-year due to procedure deferrals related to a voluntary field safety notification.
Tariff Impact Concerns
Tariffs are expected to be a small and manageable headwind for LivaNova, with an estimated impact of less than $5 million on adjusted operating income for the year.
Adjusted Gross Margin Decrease
Adjusted gross margin as a percent of net revenue decreased to 70% from 71% in the first quarter of 2024, driven by unfavorable product mix and inflationary headwinds.
Company Guidance
During the first quarter of 2025 earnings call, LivaNova PLC provided updated guidance, reflecting strong operational performance and strategic advancements. The company raised its organic revenue growth outlook to 7% to 8% for the full year, driven by a 10% organic revenue increase in the first quarter, with notable strength in the Cardiopulmonary segment and improved commercial execution in the Global Epilepsy business. The Cardiopulmonary segment saw a 15% revenue increase, driven by a 30% growth in heart-lung machine placements and high demand for oxygenators. The company also discussed the 12-month OSPREY trial data for treating obstructive sleep apnea, with a 65% responder rate, and addressed the $360 million liability related to the SNIA litigation. Despite potential tariff impacts, LivaNova anticipates manageable headwinds. The updated guidance also includes an adjusted diluted EPS range of $3.60 to $3.70, incorporating the SNIA impact and other operational improvements.LivaNova Financial Statement Overview
Summary
LivaNova shows revenue growth and a stable balance sheet, but profitability issues are evident with recent net losses and negative margins. Strong cash flow generation provides a cushion despite these challenges.Income Statement
LivaNova showed moderate revenue growth with a 19.1% increase from 2023 to TTM, and a 2.1% increase from 2024 to TTM. Gross profit margins remained healthy at 69.4% TTM, although net income shifted to a loss of -17.4% margin after a profitable 2024, indicating pressure on profitability. EBIT margin improved to 13.2% TTM, but EBITDA margin turned negative, highlighting operational challenges. Overall, the company displays revenue growth but faces profitability issues.55
Neutral
Balance Sheet
The balance sheet shows a stable equity base with a moderate debt-to-equity ratio of 0.66 TTM. Stockholders' equity decreased from 2023 to TTM, aligning with profitability challenges. Return on equity was negative in TTM due to net losses. The equity ratio was 40.4%, reflecting a balanced capital structure. Overall, the company maintains a stable financial position but needs to address profitability to improve equity returns.60
Neutral
Cash Flow
LivaNova's free cash flow grew by 7.1% from 2024 to TTM, indicating effective cash management despite net losses. The operating cash flow to net income ratio was negative due to losses, but free cash flow to net income was positive, showing strong cash generation relative to earnings. The company's cash flow is stable, with an ability to generate free cash flow despite losses.70
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.25B | 1.15B | 1.02B | 1.04B | 934.20M |
| Gross Profit | 870.87M | 771.25M | 707.20M | 706.00M | 618.20M |
| EBITDA | 202.52M | 39.02M | 30.85M | -6.33M | -225.87M |
| Net Income | 63.23M | 17.55M | -86.20M | -135.70M | -343.30M |
Balance Sheet | |||||
| Total Assets | 2.51B | 2.43B | 2.29B | 2.20B | 2.41B |
| Cash, Cash Equivalents and Short-Term Investments | 428.86M | 266.50M | 214.20M | 208.00M | 252.80M |
| Total Debt | 676.77M | 640.40M | 571.00M | 275.40M | 697.80M |
| Total Liabilities | 1.19B | 1.15B | 1.09B | 906.40M | 1.29B |
| Stockholders Equity | 1.32B | 1.28B | 1.21B | 1.29B | 1.12B |
Cash Flow | |||||
| Free Cash Flow | 135.93M | 39.93M | 43.40M | 77.00M | -114.40M |
| Operating Cash Flow | 183.04M | 74.91M | 69.90M | 102.50M | -79.40M |
| Investing Cash Flow | -48.16M | -40.33M | -38.40M | 36.90M | -41.80M |
| Financing Cash Flow | 18.55M | 21.48M | 280.10M | -181.50M | 310.80M |
LivaNova Technical Analysis
Negative
43.43
Price Trends
44.36
Negative
41.61
Positive
45.98
Negative
Market Momentum
0.13
Positive
40.34
Neutral
4.53
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LIVN, the sentiment is Negative. The current price of 43.43 is below the 20-day moving average (MA) of 45.52, below the 50-day MA of 44.36, and below the 200-day MA of 45.98, indicating a bearish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 40.34 is Neutral, neither overbought nor oversold. The STOCH value of 4.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.78B | 28.01 | 19.36% | ― | 34.43% | 31.90% | |
68 Neutral | $3.95B | 85.02 | 22.99% | ― | 64.43% | ― | |
64 Neutral | $424.31M | ― | -2.91% | ― | -1.86% | -2.01% | |
61 Neutral | $2.40B | 30.62 | -19.69% | ― | 7.97% | -592.40% | |
52 Neutral | $3.22B | ― | -27.62% | ― | 59.36% | 19.87% | |
52 Neutral | $7.53B | 0.20 | -63.81% | 2.31% | 16.15% | 0.40% | |
51 Neutral | $948.87M | ― | -1.85% | ― | 6.19% | -174.69% |
* Healthcare Sector Average
Performance Comparison
LIVN
LivaNova
42.99
-10.11
-19.04%
IART
Integra Lifesciences
12.10
-19.20
-61.34%
UFPT
Ufp Technologies
228.68
-95.40
-29.44%
TMDX
TransMedics Group
115.68
-28.72
-19.89%
CTKB
Cytek Biosciences
3.24
-3.14
-49.22%
PRCT
PROCEPT BioRobotics
58.01
-8.74
-13.09%
LivaNova Corporate Events
Executive/Board ChangesShareholder Meetings
LivaNova Shareholders Approve Key Incentive Plans at AGM
Positive
Jun 11, 2025
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.
The most recent analyst rating on (LIVN) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on LivaNova stock, see the LIVN Stock Forecast page.
Legal Proceedings
LivaNova Faces Legal Dispute Over Environmental Liabilities
Negative
May 21, 2025
LivaNova PLC is currently involved in a legal dispute regarding environmental liabilities inherited through its merger with Sorin. On March 14, 2025, the Italian Supreme Court referred the case back to the Court of Appeal, leading the company to record a liability of €333.3 million. Despite a filing by the Ministry of Ecological Transition challenging this decision, LivaNova intends to defend its position and maintain its current financial guidance for 2025.
The most recent analyst rating on (LIVN) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on LivaNova stock, see the LIVN Stock Forecast page.
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.