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LivaNova PLC (LIVN)
NASDAQ:LIVN
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LivaNova
(NASDAQ:LIVN)
54Neutral
Positive Factors
Market Share
LIVN has increased its market share in oxygenators and continues to see strong demand and momentum.
Product Innovation
LIVN is benefiting from its Essenz new product cycle with strong sales growth in the heart-lung machine market.
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 Concerns
The company continues to face the overhang of outstanding litigation (SNIA).
LivaNova (LIVN) vs. S&P 500 (SPY)
Market Cap
$2.01B
Dividend YieldN/A
Average Volume (3M)713.84K
Price to Earnings (P/E)32.2
Beta (1Y)1.21
Revenue Growth8.33%
EPS Growth256.54%
CountryUS
Employees2,900
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)1.15
Shares Outstanding54,351,765
10 Day Avg. Volume979,260
30 Day Avg. Volume713,838
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)N/A
Price to Sales (P/S)1.61
Price to Cash Flow (P/CF)6.40
P/FCF Ratio7.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$63.57Price Target Upside71.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
LivaNova Business Overview & Revenue Model
Company DescriptionLivaNova 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 MoneyLivaNova 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 shows signs of recovery with steady revenue growth and improving cash flows. However, profitability remains a concern due to fluctuating net income and high leverage, posing potential risks.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.65
Positive
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.50
Neutral
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.70
Positive
| 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
Negative
37.02
Price Trends
46.38
Negative
48.86
Negative
50.24
Negative
Market Momentum
-2.50
Positive
32.44
Neutral
14.46
Positive
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 37.02 is below the 20-day moving average (MA) of 43.78, below the 50-day MA of 46.38, and below the 200-day MA of 50.24, indicating a bearish trend. The MACD of -2.50 indicates Positive momentum. The RSI at 32.44 is Neutral, neither overbought nor oversold. The STOCH value of 14.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LIVN.
LivaNova Risk Analysis
LivaNova disclosed 33 risk factors in its most recent earnings report. LivaNova reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LivaNova Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $141.23B | 48.87 | 15.26% | 0.85% | 10.23% | -5.74% | |
78 Outperform | $138.91B | 75.45 | 9.03% | ― | 17.60% | 16.84% | |
77 Outperform | $120.30B | 28.72 | 8.42% | 2.97% | 2.72% | 4.48% | |
72 Outperform | $22.03B | 24.36 | 7.24% | 0.87% | 3.84% | -9.29% | |
68 Neutral | $40.29B | 28.76 | 17.17% | ― | -4.67% | 3.34% | |
54 Neutral | $2.01B | 32.24 | 4.87% | ― | 8.33% | 256.54% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
LIVN
LivaNova
39.06
-12.92
-24.86%
BSX
Boston Scientific
95.52
28.03
41.53%
EW
Edwards Lifesciences
68.39
-22.52
-24.77%
MDT
Medtronic
93.28
10.37
12.51%
SYK
Stryker
365.29
10.18
2.87%
ZBH
Zimmer Biomet Holdings
107.34
-19.78
-15.56%
LivaNova Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -25.21% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance with significant growth in key segments and positive clinical milestones. However, challenges in the epilepsy segment and uncertainties regarding SNIA litigation and tax rate increases were noted.Highlights
Strong Organic Revenue Growth
LivaNova delivered 11% organic revenue growth in 2024, marking the second consecutive year of double-digit organic growth.
Clinical Milestones Achievement
Clinical milestones achieved in obstructive sleep apnea, difficult-to-treat depression, and VNS therapy for epilepsy, including the successful OSPREY clinical study.
Cardiopulmonary Segment Performance
Cardiopulmonary revenue was $182 million in Q4, up 11% versus Q4 2023. Full-year cardiopulmonary revenue grew 14% to $684 million.
Adjusted Operating Income Growth
Achieved 41% growth in adjusted operating income and 21% growth in adjusted diluted earnings per share.
Free Cash Flow Improvement
Delivered $163 million in adjusted free cash flow for 2024, representing a 70% increase from the prior year.
Innovation and Product Development
Continued progress in innovation pipeline with new product launches like ProtekDuo Plus and focus on enhancing epilepsy and cardiopulmonary portfolios.
Lowlights
Epilepsy Revenue Challenges
Epilepsy revenue in Europe and rest of the world declined by 9% in Q4 versus the prior year due to execution issues.
SNIA Litigation Uncertainty
Pending decision from the Italian Supreme Court regarding SNIA litigation, with potential financial implications not included in 2025 guidance.
Higher Effective Tax Rate Impact
Adjusted effective tax rate increased to 20% in Q4 2024, negatively impacting EPS compared to the prior year.
Company Guidance
During LivaNova's earnings call, the company provided guidance for 2025, highlighting expected revenue growth between 5% and 6% on a constant-currency basis and between 6% and 7% on an organic basis. They anticipate a foreign currency headwind of 1.5% to 2%. For the cardiopulmonary segment, LivaNova forecasts revenue growth of 7% to 8%, driven by the expanded capacity and new market launches for the Essenz heart-lung machine. In the epilepsy segment, they expect global revenue to grow by 4% to 5%, with a mid-single-digit growth rate for U.S. new patient implants. The company also projects an adjusted effective tax rate of approximately 24% and adjusted diluted earnings per share in the range of $3.65 to $3.75. Adjusted free cash flow is expected to be between $135 million and $155 million, accounting for increased capital spending, particularly in IT infrastructure and cardiopulmonary capacity expansion.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.