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LivaNova PLC LIVN

Morningstar Rating
$55.02 +1.01 (1.87%)
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Company Report

LivaNova's Exit From Advanced Circulatory Support Leaves Focus on Its Two Principal Businesses

As a smaller medical-device firm, LivaNova follows the same innovation strategy that has been successful for many larger competitors, including Medtronic and Boston Scientific. With this approach, manufacturers can create differentiated products that are not entirely interchangeable and, with each iteration of the technology, can eke out a pricing premium. The success of this strategy hinges on two factors. First, firms must be able to generate meaningful innovation. This usually happens through internal research and development, potentially augmented with acquisition of emerging technologies. Very rarely have we seen medical technology firms succeed solely on acquisition of technology. Second, successful commercialization also depends on a salesforce that has built strong relationships with the practitioners making the brand choice.

Price vs Fair Value

LIVN is trading at a 2% premium.
Price
$54.01
Fair Value
$71.00
Uncertainty
High
1-Star Price
$32.76
5-Star Price
$43.60
Economic Moat
Ttqrk
Capital Allocation
Jlnj

Bulls Say, Bears Say

Bulls

LivaNova continues to enjoy a large footprint in the heart-lung machine market, which comes with the sale of consumable oxygenators.

Bears

We think LivaNova has less bandwidth or infrastructure than larger competitors to integrate and optimize innovation following the acquisition of new technology.

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News

Trading Information

Previous Close Price
$54.01
Day Range
$53.5855.39
52-Week Range
$42.7559.86
Bid/Ask
$55.20 / $59.99
Market Cap
$2.97 Bil
Volume/Avg
661,198 / 691,569

Key Statistics

Price/Earnings (Normalized)
20.01
Price/Sales
2.59
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

UK-based LivaNova was born of a combination between Cyberonics in the us and Sorin in Italy. The medical-device firm is primarily focused on cardiovascular and cardiopulmonary solutions (with surgical heart valves, heart-lung machines, and oxygenation equipment) as well as neuromodulation devices for treatment-resistant epilepsy and depression. Following the merger, LivaNova divested its cardiac rhythm management and heart valve businesses. It derives roughly half of its revenue from the us market, another 21% from Europe, and the remainder from the rest of the world.
Sector
Healthcare
Industry
Medical Devices
Stock Style Box
Small Core
Total Number of Employees
2,900

Competitors

Valuation

Metric
LIVN
GETI B
MDT
Price/Earnings (Normalized)
20.0126.3614.64
Price/Book Value
2.321.952.03
Price/Sales
2.591.963.26
Price/Cash Flow
27.2313.8214.42
Price/Earnings
LIVN
GETI B
MDT

Financial Strength

Metric
LIVN
GETI B
MDT
Quick Ratio
1.501.001.46
Current Ratio
2.951.692.30
Interest Coverage
−0.759.138.86
Quick Ratio
LIVN
GETI B
MDT

Profitability

Metric
LIVN
GETI B
MDT
Return on Assets (Normalized)
4.73%4.79%7.75%
Return on Equity (Normalized)
8.94%8.20%13.75%
Return on Invested Capital (Normalized)
7.54%7.34%9.87%
Return on Assets
LIVN
GETI B
MDT
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