Inotiv (NOTV) AI Stock Analysis

• Market Cap: $26.26M
• Dividend Yield: N/A
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.91
• Revenue Growth: 4.54%
• EPS Growth: 47.11%
• Country: US
• Employees: 1,977
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.25
• Shares Outstanding: 34,367,252
• 10 Day Avg. Volume: 371,853
• 30 Day Avg. Volume: 1,214,925
• PEG Ratio: 0.01
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -1.74
• Enterprise Value/Market Cap: 18.45
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 4.53
• Enterprise Value/Ebitda: 14.68
• 1Y Price Target: $3.00
• Price Target Upside: 275.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -1.8
• Revenue Forecast (FY): $534.45M

• Rating: 45 Neutral
• Price Target: $0.81 ▲(1.13% Upside)

Inotiv's overall stock score reflects significant financial challenges, including negative profitability and high leverage. While there are positive developments in operational execution and cost management, the technical and valuation aspects remain weak. The recent settlement of legal actions and cybersecurity issues further underscore the company's risk profile.

Positive Factors

DSA Revenue Growth

Strong growth in the DSA segment indicates robust demand for Inotiv's services, enhancing long-term revenue potential and market position.

RMS Site Consolidation

Ongoing RMS site consolidation improves cost efficiency, supporting margin sustainability and financial health over the long term.

Improved Cash Position

Enhanced cash generation strengthens Inotiv's balance sheet, providing greater financial flexibility for future investments and growth.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting Inotiv's ability to invest in growth and withstand economic downturns.

Negative Profit Margins

Persistent negative profit margins highlight ongoing challenges in achieving profitability, impacting long-term financial viability.

High Interest Expenses

Rising interest expenses reduce net income and cash flow, constraining Inotiv's ability to reinvest in its business and manage debt effectively.

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 generates revenue primarily through its preclinical and clinical research services, which are billed on a project basis. The company has established various key revenue streams, including contract research services, laboratory services, and consultancy for drug development. Significant partnerships with pharmaceutical and biotechnology companies enhance its revenue potential, as these collaborations often lead to long-term contracts and recurring business. Additionally, Inotiv benefits from an expanding customer base seeking to outsource their research and development needs, which further contributes to its earnings.

Inotiv Financial Statement Overview

Summary

Inotiv's financial performance is challenged by negative profitability margins, high leverage, and weak cash flow generation. Despite revenue growth, the company struggles with financial stability and needs to address these issues to improve its financial health.

Income Statement

Inotiv's income statement shows a mixed performance. The company has experienced revenue growth, but profitability remains a challenge with negative net profit margins and EBIT margins. The gross profit margin has declined over the years, indicating pressure on cost management. Despite revenue growth, the persistent negative net income highlights ongoing profitability issues.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage, which poses a risk to financial stability. Return on equity is negative, reflecting the company's struggles to generate returns for shareholders. The equity ratio is relatively low, suggesting a reliance on debt financing. Overall, the balance sheet shows financial vulnerability due to high leverage and negative returns.

Cash Flow

Cash flow analysis reveals challenges in generating positive free cash flow, with negative growth rates and a high free cash flow to net income ratio. Operating cash flow is negative, indicating difficulties in sustaining operations through internal cash generation. The cash flow position is weak, reflecting the company's struggle to convert revenue into cash effectively.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	513.02M	513.02M	490.74M	572.42M	547.66M	89.61M
Gross Profit	107.04M	65.05M	111.17M	165.44M	157.21M	30.16M
EBITDA	33.01M	55.93M	-26.76M	-26.51M	-273.42M	15.37M
Net Income	-68.63M	-68.63M	-108.44M	-105.14M	-337.26M	10.89M
Balance Sheet
Total Assets	771.11M	771.11M	781.36M	856.53M	962.90M	321.86M
Cash, Cash Equivalents and Short-Term Investments	21.74M	21.74M	21.43M	35.49M	18.52M	138.92M
Total Debt	409.02M	409.02M	445.12M	417.64M	386.49M	174.19M
Total Liabilities	635.09M	635.09M	610.86M	588.04M	603.13M	216.73M
Stockholders Equity	136.03M	136.03M	170.50M	269.15M	360.37M	105.13M
Cash Flow
Free Cash Flow	-27.07M	-27.07M	-29.11M	380.00K	-41.52M	-1.73M
Operating Cash Flow	-10.46M	-10.46M	-6.80M	27.88M	-5.22M	10.75M
Investing Cash Flow	-12.89M	-12.89M	-16.83M	-28.75M	-333.72M	-54.06M
Financing Cash Flow	23.70M	23.70M	9.68M	15.87M	203.15M	198.83M

Inotiv Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOTV, the sentiment is Negative. The current price of 0.8 is below the 20-day moving average (MA) of 0.83, below the 50-day MA of 1.11, and below the 200-day MA of 1.83, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 32.04 is Neutral, neither overbought nor oversold. The STOCH value of 5.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NOTV.

Inotiv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRPO	57 Neutral	$43.75M	-28.82	-9.76%	―	30.95%	59.67%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BDSX	51 Neutral	$62.45M	-1.40	-302.55%	―	22.29%	31.93%
NOTV	45 Neutral	$26.26M	―	-44.77%	―	4.54%	47.11%
VNRX	42 Neutral	$33.03M	-1.07	―	―	14.48%	36.83%
TRIB	40 Underperform	$19.32M	-0.32	―	―	-4.35%	-6.31%
BNGO	40 Underperform	$16.49M	-0.10	-78.22%	―	-13.84%	88.80%

Inotiv Corporate Events

Inotiv Settles Securities Class Action Lawsuit

On September 25, 2025, Inotiv, Inc. agreed to settle a securities class action and two derivative actions to avoid prolonged litigation costs and uncertainties. The settlements, pending court approval, involve a cash payment of $8.75 million funded by insurance and corporate governance changes. Additionally, Inotiv is addressing the impact of a 2025 cybersecurity incident affecting its operations and exploring debt refinancing options with Perella Weinberg Partners.