Inotiv (NOTV) AI Stock Analysis

• Market Cap: $71.28M
• Dividend Yield: N/A
• Average Volume (3M): 399.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.86
• Revenue Growth: -13.09%
• EPS Growth: -15.29%
• Country: US
• Employees: 1,977
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.51
• Shares Outstanding: 34,352,978
• 10 Day Avg. Volume: 425,329
• 30 Day Avg. Volume: 399,582
• PEG Ratio: -0.18
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -1.51
• Enterprise Value/Market Cap: 7.04
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 4.78
• Enterprise Value/Ebitda: 88.76
• 1Y Price Target: $5.50
• Price Target Upside: 180.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 45 Neutral
• Price Target: $2.00 ▲(2.04% Upside)

Inotiv's overall stock score is primarily impacted by its poor financial performance, characterized by high leverage and negative cash flows. Technical indicators also suggest a bearish trend. While the earnings call showed some positive revenue growth, ongoing challenges and a negative P/E ratio weigh heavily on the stock's attractiveness. The recent SEC clearance is a positive but minor factor in the overall assessment.

Positive Factors

Financial Performance

AEBITDA exceeded expectations, indicating financial performance is stronger than anticipated.

Revenue Growth

Discovery orders increased by 16%, marking the first growth in this area in two years, which is expected to drive overall growth.

Negative Factors

Market Demand

A material change in research model demand would impact Inotiv’s business.

Inotiv Business Overview & Revenue Model

Company Description

Inotiv, Inc. (NASDAQ: NOTV) is a contract research organization (CRO) that provides nonclinical and analytical drug discovery and development services. The company operates in the pharmaceutical, biotechnology, and medical device sectors, offering a range of services including toxicology, pathology, pharmacology, and analytical chemistry. Inotiv is focused on helping its clients accelerate their R&D timelines by delivering high-quality data and insights that support decision-making throughout the drug development process.

How the Company Makes Money

Inotiv generates revenue through its comprehensive suite of research and development services tailored for the pharmaceutical, biotechnology, and medical device industries. The company's key revenue streams include fees from contract research services, where clients pay for specific studies and analyses related to drug discovery and development. Additionally, Inotiv benefits from long-term partnerships and collaborations with its clients, ensuring a steady flow of projects and income. The company’s ability to offer specialized, high-demand services in toxicology, pathology, and analytical chemistry further enhances its revenue potential by meeting the critical needs of its clients in the drug development pipeline.

Inotiv Financial Statement Overview

Summary

Inotiv faces significant financial challenges with consistent revenue declines and operating losses. High leverage and negative cash flows further complicate the financial outlook, demanding strategic interventions to stabilize the business.

Income Statement

Inotiv's revenue has shown significant volatility, with a sharp decline from 2023 TTM levels. The company has been consistently operating at a net loss, with negative EBIT and EBITDA margins indicating operational inefficiencies. Revenue growth is negative, reflecting a challenging market environment or strategic missteps.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio that has improved but remains concerning. Equity has been shrinking, and the company faces potential risks if liabilities continue to outweigh assets. However, the reduction in total debt is a positive sign of deleveraging efforts.

Cash Flow

Cash flow analysis shows negative free cash flow and operating cash flow, indicating potential liquidity issues. The operating cash flow to net income ratio is unfavorable, highlighting inefficiencies in converting revenue into cash. Free cash flow remains negative, reflecting capital expenditure challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	480.40M	490.74M	572.42M	547.66M	89.61M	60.47M
Gross Profit	105.05M	111.17M	165.44M	157.21M	30.16M	18.24M
EBITDA	5.65M	-26.76M	-26.51M	-273.42M	15.37M	1.03M
Net Income	-87.47M	-108.44M	-105.14M	-337.26M	10.89M	-4.68M
Balance Sheet
Total Assets	765.97M	781.36M	856.53M	962.90M	321.86M	61.59M
Cash, Cash Equivalents and Short-Term Investments	19.30M	21.43M	35.49M	18.52M	138.92M	1.41M
Total Debt	451.59M	445.12M	417.64M	386.49M	174.19M	36.41M
Total Liabilities	608.27M	610.86M	588.04M	603.13M	216.73M	54.00M
Stockholders Equity	157.69M	170.50M	269.15M	360.37M	105.13M	7.60M
Cash Flow
Free Cash Flow	-54.14M	-29.11M	380.00K	-41.52M	-1.73M	-4.91M
Operating Cash Flow	-34.49M	-6.80M	27.88M	-5.22M	10.75M	1.29M
Investing Cash Flow	-18.11M	-16.83M	-28.75M	-333.72M	-54.06M	-10.13M
Financing Cash Flow	39.26M	9.68M	15.87M	203.15M	198.83M	9.64M

Inotiv Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.96
• 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 1.96 is below the 20-day moving average (MA) of 2.02, below the 50-day MA of 2.18, and below the 200-day MA of 2.89, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.36 is Neutral, neither overbought nor oversold. The STOCH value of 42.85 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
MDXH	53 Neutral	$123.25M	―	-1552.23%	―	22.56%	41.55%
BNR	51 Neutral	$69.41M	―	-37.15%	―	-0.26%	60.09%
BDSX	48 Neutral	$57.16M	―	-1454.41%	―	35.76%	47.48%
VNRX	47 Neutral	$69.46M	―	138.92%	―	64.15%	41.65%
Sector *	47 Neutral	C$188.09M	-2.68	-23.77%	3.19%	17.01%	2.49%
DRIO	46 Neutral	$23.48M	―	-42.58%	―	47.21%	48.56%
NOTV	45 Neutral	$71.28M	―	-48.46%	―	-13.09%	-15.29%

Inotiv Corporate Events

Inotiv Cleared by SEC in Importation Probe

Inotiv, Inc. was investigated by the SEC regarding its importation practices of non-human primates from Asia, specifically concerning compliance with the U.S. Foreign Corrupt Practices Act. The investigation, which began with a voluntary request in May 2023, concluded on June 2, 2025, with the SEC’s Division of Enforcement deciding not to recommend any enforcement action against the company.

The most recent analyst rating on (NOTV) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Inotiv stock, see the NOTV Stock Forecast page.

Inotiv Hosts 2025 Investor Day, Highlights Strategic Plans

On May 29, 2025, Inotiv, Inc. hosted its 2025 Investor Day, highlighting its strategic plans and addressing current challenges in the preclinical industry. The company discussed the potential impacts of US-imposed trade tariffs, proposed NIH funding cuts, and the FDA’s recent announcement to reduce animal testing. Inotiv emphasized its commitment to New Approach Methodologies (NAMs), which include computational toxicology and cell culture techniques, to support the development of safe therapies. These initiatives are expected to enhance Inotiv’s industry positioning and provide value to stakeholders by addressing evolving regulatory and market demands.

The most recent analyst rating on (NOTV) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Inotiv stock, see the NOTV Stock Forecast page.