Inotiv (NOTV) AI Stock Analysis

• Market Cap: $47.07M
• Dividend Yield: N/A
• Average Volume (3M): 478.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: 0.85%
• EPS Growth: 29.83%
• Country: US
• Employees: 1,977
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.51
• Shares Outstanding: 34,355,250
• 10 Day Avg. Volume: 567,636
• 30 Day Avg. Volume: 478,287
• 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: 10.72
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 4.86
• Enterprise Value/Ebitda: 24.40
• 1Y Price Target: $3.50
• Price Target Upside: 155.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 44 Neutral
• Price Target: $2.00 ▲(45.99% Upside)

Inotiv's overall stock score is primarily impacted by its financial performance, which is under pressure due to high leverage and negative profitability. Technical analysis indicates a bearish trend, and valuation metrics are weak with a negative P/E ratio. The earnings call provided some positive insights with revenue growth and improved EBITDA, but challenges remain with net losses and cash flow issues. The cybersecurity incident adds further uncertainty to the company's operational stability.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Inotiv's services, enhancing its market position and potential for future profitability.

Improved EBITDA

Significant improvement in EBITDA suggests better operational efficiency and cost management, supporting long-term financial health.

SEC Investigation Conclusion

The conclusion of the SEC investigation without action removes a major regulatory overhang, allowing Inotiv to focus on strategic growth.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting Inotiv's ability to invest in growth opportunities and manage economic downturns.

Cybersecurity Incident

The cybersecurity breach poses ongoing operational risks and could affect client trust, impacting Inotiv's long-term business continuity.

Cash Flow Challenges

Negative cash flow from operations indicates liquidity issues, which could hinder Inotiv's ability to sustain operations and fund future growth.

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 laboratory services and research offerings, which include preclinical testing, toxicology, and pathology services. The company operates on a fee-for-service model where clients pay for the services rendered during the research process. Key revenue streams include contract research agreements with pharmaceutical and biotech companies, as well as sales of laboratory equipment and supplies. Additionally, Inotiv benefits from partnerships and collaborations with academic institutions and other research organizations, which can lead to joint ventures and shared projects that further enhance its revenue opportunities. The company's growth is also supported by its strategic acquisitions, expanding its capabilities and client base within the life sciences sector.

Inotiv Financial Statement Overview

Summary

Inotiv is facing financial challenges across all verticals. While there is some revenue growth, profitability and cash flow remain significant concerns. High leverage and negative returns on equity further exacerbate the financial risk. The company needs to focus on improving operational efficiency and managing debt to enhance financial health.

Income Statement

Inotiv's income statement shows a mixed performance. The company has experienced a positive revenue growth rate of 5.18% in the TTM, indicating some recovery. However, profitability remains a concern with negative net profit and EBIT margins, suggesting ongoing operational challenges. The gross profit margin has decreased compared to previous years, highlighting pressure on cost management.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio of 3.10, which poses a risk in terms of financial stability. The return on equity is negative, indicating that the company is not generating sufficient returns for shareholders. The equity ratio is also low, suggesting limited asset backing by equity.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating cash flow issues. The free cash flow to net income ratio is positive, but this is due to negative net income, which is not a positive indicator.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	505.30M	490.74M	572.42M	547.66M	89.61M	60.47M
Gross Profit	103.91M	111.17M	165.44M	157.21M	30.16M	18.24M
EBITDA	20.68M	-26.76M	-26.51M	-273.42M	15.37M	1.03M
Net Income	-78.96M	-108.44M	-105.14M	-337.26M	10.89M	-4.68M
Balance Sheet
Total Assets	759.74M	781.36M	856.53M	962.90M	321.86M	61.59M
Cash, Cash Equivalents and Short-Term Investments	6.21M	21.43M	35.49M	18.52M	138.92M	1.41M
Total Debt	15.05M	445.12M	417.64M	386.49M	174.19M	36.41M
Total Liabilities	615.95M	610.86M	588.04M	603.13M	216.73M	54.00M
Stockholders Equity	143.78M	170.50M	269.15M	360.37M	105.13M	7.60M
Cash Flow
Free Cash Flow	-46.37M	-29.11M	380.00K	-41.52M	-1.73M	-4.91M
Operating Cash Flow	-27.13M	-6.80M	27.88M	-5.22M	10.75M	1.29M
Investing Cash Flow	-17.66M	-16.83M	-28.75M	-333.72M	-54.06M	-10.13M
Financing Cash Flow	36.65M	9.68M	15.87M	203.15M	198.83M	9.64M

Inotiv Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1.37 is below the 20-day moving average (MA) of 1.56, below the 50-day MA of 1.80, and below the 200-day MA of 2.76, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 36.89 is Neutral, neither overbought nor oversold. The STOCH value of 30.82 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	57 Neutral	204.92M	-4.73	-256.51%	―	22.56%	41.62%
BNR	51 Neutral	92.82M	-4.60	-59.68%	―	5.33%	75.52%
VNRX	47 Neutral	73.16M	-2.79	73.31%	―	35.10%	39.15%
DRIO	45 Neutral	15.84M	-0.33	-59.36%	―	41.79%	18.45%
NOTV	44 Neutral	$47.07M	―	-48.46%	―	0.85%	29.83%
BDSX	42 Neutral	57.04M	-1.27	-3609.67%	―	25.70%	39.25%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Inotiv Corporate Events

Inotiv Faces Cybersecurity Incident Disrupting Operations

On August 8, 2025, Inotiv, Inc. experienced a cybersecurity incident where unauthorized access led to the encryption of certain systems and data. The company has taken steps to contain and assess the situation by engaging cybersecurity specialists and notifying law enforcement. The incident has disrupted business operations, impacting access to networks and internal applications. Inotiv is implementing a business continuity strategy to mitigate disruptions, but the timeline for full restoration remains uncertain. The investigation is ongoing, and the full impact on operations and finances is yet to be determined.