Inotiv (NOTV) AI Stock Analysis

• Market Cap: $12.93M
• Dividend Yield: N/A
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.96
• Revenue Growth: 4.54%
• EPS Growth: 47.11%
• Country: US
• Employees: 1,977
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.83
• Shares Outstanding: 34,394,970
• 10 Day Avg. Volume: 429,089
• 30 Day Avg. Volume: 1,202,902
• PEG Ratio: 0.01
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -1.74
• Enterprise Value/Market Cap: 40.87
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 5.68
• Enterprise Value/Ebitda: 21.56
• 1Y Price Target: $1.50
• Price Target Upside: 177.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -2
• Revenue Forecast (FY): $535.62M

• Rating: 44 Neutral
• Price Target: $0.33 ▼(-38.89% Downside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is held down primarily by weak financial quality (ongoing losses, negative cash flow, and high leverage) and the related liquidity/refinancing pressure highlighted on the earnings call. Technicals show only early, short-term improvement within a broader downtrend, while valuation provides limited support due to negative earnings and no dividend. Operational momentum in DSA is a notable positive, but listing-compliance risk and RMS volume weakness add meaningful uncertainty.

Positive Factors

DSA commercial momentum and backlog

Sustained double-digit DSA awards growth and a $145.4M backlog provide multi-quarter revenue visibility. A book-to-bill above 1 and rising awards indicate a growing sales pipeline and higher probability of converting contracted work into durable revenue and margin expansion.

Revenue rebound with positive EBITDA

A near-20% TTM revenue rebound combined with positive EBITDA implies core operations can generate operational profit when scaled. This suggests improving unit economics and operational leverage that can support sustainable cash generation if top-line momentum persists.

Site optimization and RMS services growth

Active site consolidation and transport/fleet optimization reduce fixed costs and improve margins over time. Combined with 13% RMS services growth, these structural efficiency moves should enhance margin sustainability and lower operating drag as optimization completes.

Negative Factors

Very high leverage

A capital structure with debt roughly 3.7x equity sharply limits financial flexibility. High leverage increases interest burden, constrains ability to absorb shocks, and makes the company reliant on refinancing or lender accommodation to fund operations and invest in growth over the coming months.

Negative operating and free cash flow

Persistent cash burn and negative FCF mean the business does not self-fund its growth and capex. This elevates refinancing and liquidity risk, forces reliance on external financing, and limits the company's ability to invest in capacity or weather cyclical downturns without further capital actions.

RMS NHP volume decline pressuring margins

A ~25% structural drop in NHP volumes undermines a core recurring revenue stream and compresses RMS margins. Weakness in a key service line reduces predictability of cash flows, offsets DSA gains, and could prolong margin recovery absent sustained demand or pricing improvements.

Inotiv Business Overview & Revenue Model

Company Description

Inotiv, Inc. provides drug discovery and development services to the pharmaceutical, chemical, and medical device industries; and sells analytical instruments to the pharmaceutical development and contract research industries. It operates through two segments, Contract Research Services and Research Products. The Contract Research Services segment offers screening and pharmacological testing, nonclinical safety testing, formulation development, regulatory compliance, and quality control testing services. This segment provides analytical method development and validation; drug metabolism, bioanalysis, and pharmacokinetics testing to identify and measure drug and metabolite concentrations in complex biological matrices; in vivo sampling services for the continuous monitoring of chemical changes in life; stability testing to ensure the integrity of various solutions used in nonclinical and clinical studies, and post-study analyses; non-clinical toxicology and pathology services; and climate-controlled archiving services for its customers' data and samples. The Research Products segment designs, develops, manufactures, and markets in vivo sampling systems and accessories, including disposables, training, and systems qualification; physiology monitoring tools; liquid chromatography and electrochemistry instruments platforms; analytical products comprising liquid chromatographic and electrochemical instruments with associated accessories; and in vivo sampling products consisting of Culex family of automated in vivo sampling and dosing instruments. The company operates in the United States, rest of North America, the Pacific Rim, Europe, and internationally. It has an agreement with BioVaxys to conduct preclinical toxicity studies for its Covid-T Immunodiagnostic program. The company was formerly known as Bioanalytical Systems, Inc. and changed its name to Inotiv, Inc. in March 2021. Inotiv, Inc. was founded in 1974 and is headquartered in West Lafayette, Indiana.

How the Company Makes Money

Inotiv makes money primarily by selling services and products to research and drug-development customers under contract and through recurring supply relationships. A key revenue stream is contract research services, where customers pay fees for outsourced preclinical/nonclinical studies and related laboratory testing (e.g., study design/execution, safety assessment/toxicology, and analytical/lab support) needed to advance drug and device candidates toward clinical development; pricing is typically based on contracted scope, timelines, and study complexity, and revenue is recognized as work is performed under the underlying customer agreements. Another major stream is sales of research models and related services, where customers purchase laboratory animals/research models and ancillary offerings (such as colony management or associated technical services), often creating repeat purchasing patterns tied to ongoing research programs. Revenue is influenced by overall R&D spending in pharma/biotech and the volume/timing of customer study starts, and the company may also generate income from long-term customer relationships that use Inotiv as a preferred outsourced provider; specific partnership terms or named significant partnerships are null.

Inotiv Financial Statement Overview

Summary

Revenue has rebounded (TTM ~+19.6%) and EBITDA is positive (~5.0% margin), but the company still has meaningful operating and net losses (EBIT margin ~-5.9%, net margin ~-13.4%). The balance sheet is highly leveraged (debt-to-equity ~3.7x) and cash generation remains negative (TTM OCF about -$11.4M; FCF about -$28.7M), limiting financial flexibility.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew ~19.6%, showing a rebound from the prior year decline, and EBITDA is positive (~5.0% margin). However, profitability remains weak with ongoing operating losses (EBIT margin ~-5.9%) and a sizable net loss (net margin ~-13.4%). Gross margin has also compressed versus earlier years, indicating continued pricing/mix or cost headwinds despite the topline recovery.

Balance Sheet

Leverage is elevated: total debt of ~$529M against equity of ~$109M implies very high debt relative to equity (debt-to-equity ~3.7x). Equity has fallen over time and returns on equity are deeply negative, reflecting sustained losses. While the asset base is sizable (~$734M), the capital structure looks stretched and leaves less flexibility if operating performance weakens.

Cash Flow

Cash generation is currently pressured with negative operating cash flow (TTM about -$11.4M) and negative free cash flow (TTM about -$28.7M). Free cash flow has improved versus the prior annual period, but the business is not yet self-funding, and cash burn combined with high leverage increases refinancing and liquidity risk until operating cash flow turns sustainably positive.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Dec 2022	Sep 2021
Income Statement
Total Revenue	514.03M	513.02M	490.74M	572.42M	547.66M	89.61M
Gross Profit	93.02M	65.05M	111.17M	165.44M	157.21M	30.16M
EBITDA	24.52M	24.75M	-26.76M	-26.51M	-273.42M	15.37M
Net Income	-69.37M	-68.63M	-108.44M	-105.14M	-337.26M	10.89M
Balance Sheet
Total Assets	734.34M	771.11M	781.36M	856.53M	962.90M	321.86M
Cash, Cash Equivalents and Short-Term Investments	12.73M	21.74M	21.43M	35.49M	18.52M	138.92M
Total Debt	528.55M	503.63M	445.12M	417.64M	386.49M	174.19M
Total Liabilities	625.31M	635.09M	610.86M	588.04M	603.13M	216.73M
Stockholders Equity	109.02M	136.03M	170.50M	269.15M	360.37M	105.13M
Cash Flow
Free Cash Flow	-28.73M	-27.07M	-29.11M	380.00K	-41.52M	-1.73M
Operating Cash Flow	-11.39M	-10.46M	-6.80M	27.88M	-5.22M	10.75M
Investing Cash Flow	-13.61M	-12.89M	-16.83M	-28.75M	-333.72M	-54.06M
Financing Cash Flow	-888.00K	23.70M	9.68M	15.87M	203.15M	198.83M

Inotiv Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.54
• 50DMA: Negative
• 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 NOTV, the sentiment is Neutral. The current price of 0.54 is above the 20-day moving average (MA) of 0.33, above the 50-day MA of 0.43, and below the 200-day MA of 1.25, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 38.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NOTV.

Inotiv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRPO	56 Neutral	$50.04M	-92.19	-10.07%	―	30.95%	59.67%
BDSX	56 Neutral	$158.62M	-1.46	-302.55%	―	22.29%	31.93%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VNRX	47 Neutral	$27.11M	-3.41	76.82%	―	14.48%	36.83%
TRIB	46 Neutral	$12.86M	-0.95	80.66%	―	-4.35%	-6.31%
NOTV	44 Neutral	$12.93M	-0.17	-44.77%	―	4.54%	47.11%
BNGO	44 Neutral	$11.40M	-0.27	-86.36%	―	-13.84%	88.80%

Inotiv Corporate Events

Inotiv Secures Temporary Waiver on Credit Agreement Liquidity Covenant

On March 9, 2026, Inotiv, Inc. announced that the lenders under its November 5, 2021 Credit Agreement granted a waiver of the minimum liquidity covenant for the liquidity test dates of March 6, 2026 and March 13, 2026. The waiver is narrowly focused on those specific test dates and does not alter any other provisions of the Credit Agreement, suggesting a temporary accommodation from lenders without a broader restructuring of the company’s financing terms.

This targeted waiver may ease short-term compliance pressure on Inotiv while signaling that lenders remain willing to support the company within the existing credit framework. By leaving the rest of the Credit Agreement intact, the arrangement preserves the overall structure and conditions of Inotiv’s borrowing, limiting immediate disruption for stakeholders that depend on the continuity of its financing arrangements.

The most recent analyst rating on (NOTV) stock is a Hold with a $0.36 price target. To see the full list of analyst forecasts on Inotiv stock, see the NOTV Stock Forecast page.

Inotiv gains preliminary approval for derivative settlement agreement

On January 7, 2026, a federal court in the Northern District of Indiana granted preliminary approval to a proposed settlement of consolidated federal and state stockholder derivative actions arising from Inotiv’s 2021 merger with Envigo RMS LLC and related disclosures, with a final approval hearing scheduled for March 18, 2026. Subject to final court approval, the settlement would fully resolve all derivative claims against individual defendants and Inotiv as a nominal defendant, require the company to implement and maintain specified corporate governance measures, and provide a $2.49 million insurance-funded payment for the benefit of the company to be used toward payments to members of a related securities class action, while any attorneys’ fees awarded to plaintiffs’ counsel, up to $2.25 million, are also expected to be paid entirely by insurance and the stipulation includes no admission of liability.

The most recent analyst rating on (NOTV) stock is a Hold with a $0.59 price target. To see the full list of analyst forecasts on Inotiv stock, see the NOTV Stock Forecast page.

Inotiv Receives Nasdaq Notice for Minimum Bid Noncompliance

On December 31, 2025, Inotiv, Inc. received notice from Nasdaq that its common stock was no longer in compliance with the exchange’s Minimum Bid Price Rule, after the shares traded below the $1.00 per share closing bid requirement for 30 consecutive business days, though the notification did not immediately affect the stock’s Nasdaq listing or trading status. The company has until June 29, 2026, to regain compliance—achievable if its stock closes at or above $1.00 for at least 10 consecutive business days—and may qualify for an additional 180-day grace period, and it said it will monitor its share price and evaluate options, while cautioning there is no assurance it will regain or maintain compliance with Nasdaq listing standards, a situation that could have implications for investors if the listing were ultimately at risk.

The most recent analyst rating on (NOTV) stock is a Hold with a $0.53 price target. To see the full list of analyst forecasts on Inotiv stock, see the NOTV Stock Forecast page.