LivaNova (LIVN) AI Stock Analysis

• Market Cap: $1.85B
• Dividend Yield: N/A
• Average Volume (3M): 829.86K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.90
• Revenue Growth: 8.33%
• EPS Growth: 256.54%
• Country: US
• Employees: 2,900
• Sector: Healthcare
• Sector Strength: 70
• Industry: Medical - Devices
• EPS (TTM): 1.15
• Shares Outstanding: 54,351,765
• 10 Day Avg. Volume: 972,306
• 30 Day Avg. Volume: 829,862
• PEG Ratio: 0.12
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.71
• Price to Cash Flow (P/CF): 6.80
• P/FCF Ratio: 7.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $60.57
• Price Target Upside: 78.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

LivaNova's overall stock score reflects a mixed outlook. While there is strong revenue growth and improving operational cash flows, profitability remains a concern due to high leverage and fluctuating net income. Technical analysis indicates bearish trends, and the stock appears overvalued based on its P/E ratio. The recent legal liability further complicates the financial outlook, suggesting caution for investors.

Positive Factors

Core Business Growth

Multiple drivers in the core business support durable 6-7% organic growth.

Liability Management

LIVN expects to record a liability of ~$363M, which is lower than the ~$493M initially disclosed, improving its financial position.

Market Share and Competition

Getinge's decision to divest its surgical perfusion business could be a modest positive for LIVN, which already has a significant market share in this area.

Negative Factors

Competition Risk

Potential competition risk is anticipated from NeuroPace's responsive neurostimulation technology, which could impact a significant portion of the company's volume.

Epilepsy Segment Performance

There are execution issues affecting the global epilepsy market, with significant personnel changes and a decline in performance.

Litigation Overhang

The company continues to face the overhang of outstanding litigation (SNIA).

LivaNova Business Overview & Revenue Model

Company Description

LivaNova PLC is a global medical technology company headquartered in London, United Kingdom. The company operates in the healthcare sector, primarily focusing on the development and manufacturing of innovative therapeutic solutions. LivaNova's core product offerings are centered around cardiovascular and neuromodulation technologies, including devices for cardiac surgery, cardiac rhythm management, and the treatment of epilepsy and other neurological disorders.

How the Company Makes Money

LivaNova generates revenue through the sale of its medical devices and related services. The company's key revenue streams include its Cardiovascular segment, which offers products like heart-lung machines, oxygenators, and heart valve replacement products used in cardiac surgery. Additionally, the Neuromodulation segment provides devices that deliver electrical impulses to nerve centers, primarily focusing on the treatment of drug-resistant epilepsy and depression. LivaNova's earnings are also supported by strategic partnerships, research and development collaborations, and long-term contracts with healthcare providers and institutions. These partnerships and contracts help in expanding the company's product reach and adoption in key markets globally.

LivaNova Financial Statement Overview

Summary

LivaNova's financial performance indicates recovery with steady revenue growth and improving cash flows. However, the company's profitability remains a concern due to fluctuating net income and high leverage, posing potential risks. Continued focus on operational efficiency and debt management will be crucial for long-term stability.

Income Statement

LivaNova has demonstrated a consistent recovery in revenue from 2020 to 2024, with a notable revenue growth rate of approximately 9% from 2023 to 2024. The gross profit margin has been stable around 68-70% in recent years. However, net profit margins are low, with significant fluctuations and a net loss in several years, indicating challenges in maintaining profitability. The positive EBIT and EBITDA margins in 2024 suggest improvements in operational efficiency.

Balance Sheet

LivaNova's balance sheet shows a high debt-to-equity ratio, indicating reliance on debt financing, which may pose financial risk. The equity ratio has been declining, reflecting decreased shareholder equity over time. Despite these concerns, the company has managed to maintain a positive cash position, which provides some liquidity buffer.

Cash Flow

LivaNova has shown strong growth in operating and free cash flows, with operating cash flow to net income ratio improving significantly. The free cash flow growth has been positive, suggesting better cash management. However, the historical volatility in cash flows highlights the need for continued focus on consistent cash generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.25B	1.15B	1.02B	1.04B	934.20M
	Gross Profit
870.87M	771.25M	707.20M	706.00M	618.20M
	EBIT
129.05M	-68.50M	52.70M	-900.00K	-42.80M
	EBITDA
202.52M	39.02M	30.85M	-6.33M	-225.87M
	Net Income Common Stockholders
63.23M	17.55M	-86.20M	-135.70M	-343.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
428.86M	266.50M	214.20M	208.00M	252.80M
	Total Assets
2.51B	2.43B	2.29B	2.20B	2.41B
	Total Debt
676.77M	640.40M	571.00M	275.40M	697.80M
	Net Debt
247.91M	373.90M	356.80M	67.40M	445.00M
	Total Liabilities
1.19B	1.15B	1.09B	906.40M	1.29B
	Stockholders Equity
1.32B	1.28B	1.21B	1.29B	1.12B
Cash Flow		Free Cash Flow
135.93M	39.93M	43.40M	77.00M	-114.40M
	Operating Cash Flow
183.04M	74.91M	69.90M	102.50M	-79.40M
	Investing Cash Flow
-48.16M	-40.33M	-38.40M	36.90M	-41.80M
	Financing Cash Flow
18.55M	21.48M	280.10M	-181.50M	310.80M

LivaNova Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.96
• 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 LIVN, the sentiment is Negative. The current price of 33.96 is below the 20-day moving average (MA) of 38.29, below the 50-day MA of 41.95, and below the 200-day MA of 48.17, indicating a bearish trend. The MACD of -2.05 indicates Positive momentum. The RSI at 30.70 is Neutral, neither overbought nor oversold. The STOCH value of 29.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LIVN.

LivaNova Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMDX	70 Outperform	$2.71B	79.77	19.39%	―	82.74%	―
UFPT	67 Neutral	$1.61B	27.57	18.76%	―	26.08%	30.54%
PRCT	63 Neutral	$2.85B	―	-26.77%	―	64.84%	21.67%
LIVN	56 Neutral	$1.85B	29.58	4.87%	―	8.33%	256.54%
CTKB	55 Neutral	$475.24M	―	-1.53%	―	3.85%	49.09%
IART	52 Neutral	$1.31B	―	-0.44%	―	4.47%	-110.70%
Sector *	48 Neutral	$6.36B	1.19	-46.31%	2.67%	19.41%	1.23%

LivaNova Corporate Events

LivaNova Faces €333 Million Liability Ruling

LivaNova PLC, through a merger with Sorin, has been involved in a civil action regarding environmental liabilities linked to SNIA, Sorin’s former parent company. On March 14, 2025, the Italian Supreme Court ruled that LivaNova could be held liable for certain liabilities but not for others previously approved by the Court of Appeal of Milan. As a result, LivaNova expects to record a liability of approximately €333 million for the first quarter of 2025, which it can cover with its existing resources.