ICU Medical (ICUI) AI Stock Analysis

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ICU Medical

(NASDAQ:ICUI)

53Neutral

ICU Medical's overall stock score reflects a mixed financial position with strengths in revenue growth and cash flow generation, balanced by challenges in profitability and valuation. Technical analysis indicates bearish momentum, contributing to the lower score despite positive strategic initiatives highlighted in the earnings call.

Positive Factors

Earnings and financial performance

ICUI is expected to achieve the top end of its full-year 2024 guidance, reflecting confidence in earnings improvement.

Market position and growth opportunities

ICUI is a leading player in the infusion pumps and critical care products market, which is growing and offers share gain opportunities.

Partnership and collaboration

ICUI's partnership with Otsuka is expected to boost both revenue growth and margin profile, supporting a higher valuation.

Negative Factors

Competitive dynamics

Proprietary survey and channel checks suggest ICUI is unlikely to take material market share from competitors BDX or BAX.

Tariff risks

Tariff risk exists with ICUI importing a substantial amount of product from Mexico to the U.S., but there are potential remedies to mitigate the impact.

Valuation concerns

ICUI shares are trading at a premium with limited upside potential to consensus estimates for the years 2024 to 2026.

ICU Medical (ICUI) vs. S&P 500 (SPY)

Market Cap

$3.41B

Dividend YieldN/A

Average Volume (3M)344.33K

Price to Earnings (P/E)―

Beta (1Y)0.97

Revenue Growth5.28%

EPS Growth-292.14%

CountryUS

Employees15,000

SectorHealthcare

Sector Strength70

IndustryMedical - Instruments & Supplies

Share Statistics

EPS (TTM)-4.83

Shares Outstanding24,610,150

10 Day Avg. Volume417,701

30 Day Avg. Volume344,332

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)1.51

Price to Cash Flow (P/CF)22.40

P/FCF Ratio28.20

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$197.00

Price Target Upside38.10% 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

Neutral

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price142.65

Price Trends

50DMA

149.07

Negative

100DMA

155.54

Negative

200DMA

156.17

Negative

Market Momentum

MACD

-2.41

Negative

RSI

38.37

Neutral

STOCH

19.00

Positive

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 142.65 is below the 20-day moving average (MA) of 144.14, below the 50-day MA of 149.07, and below the 200-day MA of 156.17, indicating a bearish trend. The MACD of -2.41 indicates Negative momentum. The RSI at 38.37 is Neutral, neither overbought nor oversold. The STOCH value of 19.00 is Positive, 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 39 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 (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOLX	71 Outperform	$12.83B	18.30	15.78%	―	1.75%	50.25%
HAE	70 Outperform	$2.98B	23.63	14.06%	―	8.14%	2.55%
TFX	68 Neutral	$5.77B	87.24	1.61%	1.05%	2.45%	-80.87%
MASI	55 Neutral	$8.19B	116.65	-25.23%	―	2.26%	-467.23%
ICUI	53 Neutral	$3.41B	―	-5.76%	―	5.28%	-292.14%
Sector *	48 Neutral	$6.25B	1.14	-46.26%	2.69%	19.24%	1.75%
QDEL	45 Neutral	$1.95B	―	-50.74%	―	-7.03%	-20233.78%

* Healthcare Sector Average

Performance Comparison

ICUI

ICU Medical

142.65

45.55

46.91%

HAE

Haemonetics

60.04

-24.84

-29.26%

HOLX

Hologic

57.85

-19.69

-25.39%

MASI

Masimo

153.90

15.79

11.43%

QDEL

QuidelOrtho

26.91

-14.54

-35.08%

TFX

Teleflex

129.89

-79.22

-37.88%

ICU Medical Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: -4.74% | 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.