Inotiv (NOTV) AI Stock Analysis

• Market Cap: $19.53M
• Dividend Yield: N/A
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• 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: 429,089
• 30 Day Avg. Volume: 1,202,902
• 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: 22.38
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 4.08
• Enterprise Value/Ebitda: 13.24
• 1Y Price Target: $3.00
• Price Target Upside: 455.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $0.55 ▲(1.30% Upside)

The score is held down primarily by weak financial performance (losses, high leverage, and weak cash flow) and bearish technicals. A more positive earnings update (DSA momentum, improving cash generation) provides some support, but valuation is difficult due to losses and corporate events include a notable Nasdaq compliance risk.

Positive Factors

DSA Revenue Momentum

Sustained double-digit DSA growth and a materially higher award flow underpin a structurally stronger, higher-demand segment. Improved backlog conversion signals durable revenue visibility, supports better utilization of lab capacity, and can drive margin recovery over multiple quarters.

RMS Site Consolidation Cost Savings

Ongoing RMS consolidation reduces fixed costs and duplicative overhead, improving long-term operating leverage. Realized facility closures and expected annual savings should sustainably lift adjusted margins and competitiveness while lowering per-project break-even levels.

Improved Cash Generation and Adjusted EBITDA

Recent quarter cash generation and near-doubling of adjusted EBITDA indicate operational improvements and better working-capital execution. Stronger internal cash flows enhance liquidity, support capital spending for prioritized investments, and provide a pathway to reduce external financing over time.

Negative Factors

High Financial Leverage

Elevated leverage structurally increases interest burden and refinancing risk, constraining strategic flexibility. Heavy debt limits the company's ability to fund organic growth or acquisitions, raises covenant/default sensitivity, and amplifies downside during revenue or margin pressure.

Weak Cash Flow Conversion

Persistent negative operating cash flow and poor free-cash conversion undermine self-funded growth and debt repayment capacity. Reliance on external capital to bridge operations increases dilution or refinancing needs and weakens resilience to cyclical demand shifts in CRO services.

High Interest Expense and Operating Loss

Large interest costs—driven by second-lien notes—and ongoing operating losses structurally depress net income and free cash flow. This burden reduces funds available for reinvestment, delays deleveraging, and makes sustained profitability dependent on material margin improvement or liability restructuring.

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

Weak overall fundamentals: profitability remains negative with pressured margins, the balance sheet shows high leverage and negative returns, and cash flow quality is poor with difficulty generating sustained positive operating/free cash flow.

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: 0.54
• 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 Negative. The current price of 0.54 is below the 20-day moving average (MA) of 0.61, below the 50-day MA of 0.78, and below the 200-day MA of 1.60, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 38.00 is Neutral, neither overbought nor oversold. The STOCH value of 36.40 is Neutral, 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	56 Neutral	$41.17M	-28.15	-9.76%	―	30.95%	59.67%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BDSX	50 Neutral	$62.69M	-1.47	-302.55%	―	22.29%	31.93%
VNRX	49 Neutral	$36.01M	-1.29	―	―	14.48%	36.83%
NOTV	43 Neutral	$19.53M	-0.26	-44.77%	―	4.54%	47.11%
TRIB	41 Neutral	$12.82M	-0.29	―	―	-4.35%	-6.31%
BNGO	40 Underperform	$15.26M	-0.10	-78.22%	―	-13.84%	88.80%

Inotiv Corporate Events

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.