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LivaNova PLC LIVN

Morningstar Rating
$60.04 +0.44 (0.74%)
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Company Report

Livanova Earnings: Preliminary Osprey Trial Data Provides Hope for New Sleep Apnea Product in 2026

Narrow-moat Livanova posted first-quarter results that exceeded our expectations on the topline but were consistent with our profitability projections. We continue to hold more tempered views for slower growth in the second half of 2024, which is consistent with management's comments and, as a result, our fair value estimate is unchanged. Though quarterly revenue grew strongly at 12% year over year, below-the-line charges pushed earnings down. Considering that new CEO Vladimir Makatsaria is eager to demonstrate positive results now that he's leading the charge, we wouldn't be surprised if above-market growth could extend through the second quarter, aided by the regulatory and supply issues with oxygenators from competitors. If competitive oxygenators are able to return to the market in the second half of 2024, as expected, we anticipate Livanova's cardiopulmonary business could see noticeable moderation.

Price vs Fair Value

LIVN is trading within a range we consider fairly valued.
Price
$59.60
Fair Value
$21.00
Uncertainty
High
1-Star Price
$59.89
5-Star Price
$23.10
Economic Moat
Cxrhks
Capital Allocation
Sqkr

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
$59.60
Day Range
$59.3660.17
52-Week Range
$42.7564.48
Bid/Ask
$59.48 / $60.46
Market Cap
$3.25 Bil
Volume/Avg
471,326 / 722,631

Key Statistics

Price/Earnings (Normalized)
21.85
Price/Sales
2.75
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)
21.8521.8915.16
Price/Book Value
2.661.622.14
Price/Sales
2.751.633.37
Price/Cash Flow
23.7411.4815.00
Price/Earnings
LIVN
GETI B
MDT

Financial Strength

Metric
LIVN
GETI B
MDT
Quick Ratio
1.651.001.46
Current Ratio
3.171.692.30
Interest Coverage
−1.449.138.86
Quick Ratio
LIVN
GETI B
MDT

Profitability

Metric
LIVN
GETI B
MDT
Return on Assets (Normalized)
4.35%4.79%7.75%
Return on Equity (Normalized)
8.32%8.20%13.75%
Return on Invested Capital (Normalized)
7.12%7.34%9.87%
Return on Assets
LIVN
GETI B
MDT
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