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Icu Medical (ICUI)
NASDAQ:ICUI
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ICU Medical
(NASDAQ:ICUI)
53Neutral
Positive Factors
Financial Performance
ICUI's 4Q24 revenue, EBITDA, and EPS beat consensus.
Strategic Partnerships
The joint venture with Otsuka Pharma Factory boosts ICUI's organic sales growth and reduces debt and interest expenses.
Negative Factors
Market Competition
Proprietary survey and channel checks suggest ICUI is unlikely to take material market share from competitors BDX or BAX.
ICU Medical (ICUI) vs. S&P 500 (SPY)
Market Cap
$3.19B
Dividend YieldN/A
Average Volume (3M)245.23K
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth5.28%
EPS Growth-292.14%
CountryUS
Employees14,000
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-4.83
Shares Outstanding24,519,000
10 Day Avg. Volume355,078
30 Day Avg. Volume245,226
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.46
Price to Cash Flow (P/CF)21.70
P/FCF Ratio27.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$197.00Price Target Upside41.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
ICU Medical Business Overview & Revenue Model
Company DescriptionICU Medical, Inc. (ICUI) is a leading manufacturer and supplier of innovative medical devices and systems for infusion therapy, oncology, and critical care applications. The company is headquartered in San Clemente, California, and operates globally, providing products like intravenous (IV) therapy systems, needle-free connectors, IV solutions, and closed system transfer devices. ICU Medical focuses on improving patient outcomes by delivering high-quality, reliable medical technology solutions.
How the Company Makes MoneyICU Medical generates revenue primarily through the sale of its medical devices and systems, which are designed for use in hospitals, outpatient clinics, and home healthcare settings. The company's key revenue streams include the sales of infusion therapy systems, which comprise IV sets and solutions, needle-free connectors, and related accessories. Additionally, ICU Medical earns income from its oncology systems, which offer closed system transfer devices to safely handle hazardous drugs. The company also benefits from strategic partnerships and long-term contracts with healthcare providers and institutions that ensure a consistent demand for its products. By focusing on innovation and quality, ICU Medical maintains a strong market presence and competitive edge in the medical technology industry.
ICU Medical Financial Statement Overview
Summary
ICU Medical shows solid revenue growth and strong cash flow generation, but faces profitability challenges with negative net income impacting overall financial health. The balance sheet is well-managed with reasonable leverage.Income Statement
ICU Medical has shown a modest revenue growth of 5.45% from 2023 to 2024, with a Gross Profit Margin standing at 34.61% in 2024. However, the company is struggling with profitability as evidenced by a negative Net Profit Margin of -4.94% in 2024, down from -1.31% in 2023. The EBIT Margin at 1.80% indicates operational challenges, although there is slight improvement. Overall, the income statement reflects moderate revenue growth but significant challenges in achieving profitability.54
Neutral
Balance Sheet
The balance sheet of ICU Medical is relatively strong with a Debt-to-Equity ratio of 0.81, showing manageable leverage. The company's Equity Ratio is 46.73%, indicating a balanced capital structure. However, Return on Equity (ROE) is negative at -5.99% due to negative net income, indicating poor profitability. While the company maintains a stable asset base, the negative ROE highlights a need for improved financial performance.68
Positive
Cash Flow
ICU Medical's cash flow position reflects a positive trajectory with a significant increase in Free Cash Flow from $72.53 million in 2023 to $124.66 million in 2024, representing a growth rate of 71.85%. The Operating Cash Flow to Net Income Ratio is negative due to negative net income, but Operating Cash Flow remains positive at $204 million. The cash flow statement illustrates strong cash generation capacity despite profitability issues.61
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.38B | 2.26B | 2.28B | 1.32B | 1.27B | Gross Profit |
| 824.78M | 739.87M | 697.76M | 491.49M | 461.50M | EBIT |
| 42.96M | 22.82M | -8.70M | 52.38M | 41.81M | EBITDA |
| 42.96M | 253.20M | 191.55M | 223.46M | 194.09M | Net Income Common Stockholders |
| -117.69M | -29.66M | -74.29M | 103.14M | 86.87M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 308.57M | 254.72M | 213.01M | 567.25M | 410.78M | Total Assets |
| 4.20B | 4.38B | 4.52B | 1.88B | 1.76B | Total Debt |
| 1.58B | 1.70B | 1.65B | 45.05M | 52.15M | Net Debt |
| 1.27B | 1.45B | 1.44B | -507.78M | -343.95M | Total Liabilities |
| 2.24B | 2.26B | 2.43B | 264.71M | 261.43M | Stockholders Equity |
| 1.97B | 2.12B | 2.09B | 1.62B | 1.50B |
| Cash Flow | Free Cash Flow | |||
| 124.66M | 72.53M | -161.46M | 186.37M | 122.36M | Operating Cash Flow |
| 204.03M | 166.20M | -62.13M | 267.54M | 222.75M | Investing Cash Flow |
| -88.96M | -87.95M | -1.91B | -90.69M | -98.14M | Financing Cash Flow |
| -55.80M | -35.98M | 1.64B | -16.87M | -40.00K |
ICU Medical Technical Analysis
Negative
138.99
Price Trends
157.83
Negative
163.06
Negative
152.36
Negative
Market Momentum
-6.38
Positive
36.92
Neutral
26.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICUI, the sentiment is Negative. The current price of 138.99 is below the 20-day moving average (MA) of 151.25, below the 50-day MA of 157.83, and below the 200-day MA of 152.36, indicating a bearish trend. The MACD of -6.38 indicates Positive momentum. The RSI at 36.92 is Neutral, neither overbought nor oversold. The STOCH value of 26.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ICUI.
ICU Medical Risk Analysis
ICU Medical disclosed 40 risk factors in its most recent earnings report. ICU Medical reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ICU Medical Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $22.75B | 49.36 | 9.61% | 0.96% | -0.17% | -17.34% | |
73 Outperform | $65.31B | 38.13 | 6.92% | 1.69% | 5.89% | 42.05% | |
72 Outperform | $22.03B | 24.36 | 7.24% | 0.87% | 3.84% | -9.29% | |
67 Neutral | $14.72B | 20.76 | 15.78% | ― | 1.75% | 50.25% | |
54 Neutral | $18.71B | 136.07 | -9.24% | 2.52% | -14.00% | -184.82% | |
53 Neutral | $3.19B | ― | -5.76% | ― | 5.28% | -292.14% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
ICUI
ICU Medical
138.99
38.15
37.83%
BAX
Baxter International
35.85
-5.93
-14.19%
BDX
Becton Dickinson
224.92
-8.81
-3.77%
HOLX
Hologic
62.59
-13.05
-17.25%
STE
Steris
228.06
-3.45
-1.49%
ZBH
Zimmer Biomet Holdings
107.34
-19.78
-15.56%
ICU Medical Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -7.19% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
ICU Medical's earnings call presented a mixed picture. While the company experienced strong revenue growth and made significant progress in quality remediation and strategic partnerships, it faced challenges with declining gross margins, currency fluctuations, and potential tariff impacts. Operational adjustments were necessary due to the IV Solutions crisis, although the company managed to stabilize the situation.Highlights
Strong Revenue Growth in Q4
ICU Medical reported Q4 revenue of $622 million, growing 9% on a constant currency basis or 8% reported, aided by a temporary shortage in IV Solutions. All three reporting segments experienced year-over-year growth.
Record Performance in Vital Care Segment
Vital Care segment grew 16% on a constant currency and reported basis, driven by a national shortage in IV Solutions. The shortage environment is expected to normalize midway through Q1 of 2025.
Significant Improvement in Adjusted EBITDA
Adjusted EBITDA for Q4 increased by 22% to $106 million, compared to $86 million in the previous year.
Positive Progress on Quality Remediation
ICU Medical achieved a successful FDA inspection at the site underpinning their warning letter, indicating progress in quality remediation efforts.
Strategic Joint Venture with Otsuka
ICU Medical announced a joint venture with Otsuka Pharmaceutical Factory to enhance the IV Solutions product line, expected to close in Q2 2025.
Lowlights
Gross Margin Decline
Gross margins were down slightly sequentially due to a higher mix of IV Solutions, which have a lower gross margin profile.
Currency Headwinds
Currency fluctuations posed a headwind in Q4, with the U.S. dollar weaker in selling geographies compared to earlier in 2024.
Operational Challenges Due to IV Solutions Crisis
The crisis in IV Solutions required significant operational adjustments, including scaling up production and logistics, which presented challenges despite eventual stabilization.
Potential Tariff Impacts
The guidance excludes potential impacts from new tariffs, which could be material as approximately a third of global revenues are from products manufactured in Mexico and distributed through the U.S. supply chain.
Company Guidance
During the ICU Medical, Inc. Fourth Quarter 2024 Earnings Conference Call held on February 27, 2025, the company provided guidance for 2025, projecting consolidated adjusted revenue growth on a constant currency basis in the low-to-mid single-digit range. They anticipated adjusted gross margin to rise to 37%-38%, compared to 36% in 2024. Adjusted operating expenses were expected to be around 24% of revenue, reflecting a 3% increase from the previous year. Net interest expense was forecasted at approximately $95 million, with an adjusted tax rate around 25%. Diluted shares outstanding were estimated at 24.7 million. The company projected adjusted EBITDA between $395 million and $425 million, and adjusted EPS between $6.55 and $7.25. ICU Medical also discussed the impact of their joint venture transaction with Otsuka Pharmaceutical Factory, expected to close in the second quarter of 2025, which would deconsolidate the IV Solutions business and result in a reduction of $350 million in adjusted revenue and $25 million in adjusted EBITDA annually.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.