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LivaNova PLC (LIVN)
NASDAQ:LIVN
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LivaNova
(NASDAQ:LIVN)
Rating:63Neutral
Price Target:
$47.00
▲(8.27%Upside)
Positive Factors
Competitive Data
More competitive data on sleep apnea adds confidence in the company's potential growth in this segment.
Organic Growth
Organic revenue growth improved to 10.4% in 1Q25 from 6.8% in 4Q24.
Product Expansion
Commitment to expand oxygenator capacity affirmed into next year which could produce 'step change' in ability to supply, adding confidence to Cardiopulmonary growth trajectory.
Negative Factors
Epilepsy Business Risks
There is a key risk associated with the setup for new patients in US epilepsy, with some derisking of the outlook due to a slight downward adjustment in the 1Q guide.
Share Performance
LIVN shares are underperforming compared to the Russell 2000, with a decline of 16%.
Valuation Concerns
A recent downgrade to Peer Perform after a multi-year stint with a positive rating indicates concerns about the stock's valuation and potential risks.
LivaNova (LIVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.37B
Dividend YieldN/A
Average Volume (3M)829.07K
Price to Earnings (P/E)30.6
Beta (1Y)0.85
Revenue Growth7.97%
EPS Growth-592.40%
CountryUS
Employees2,900
SectorHealthcare
Sector Strength42
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.88
Shares Outstanding54,525,692
10 Day Avg. Volume564,782
30 Day Avg. Volume829,074
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)1.82
Price to Sales (P/S)0.00
P/FCF Ratio17.67
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue0.54
Enterprise Value/Gross Profit3.03
Enterprise Value/Ebitda9.76
Forecast
1Y Price Target
$63.00Price Target Upside45.13% 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, England, specializing in the development and provision of innovative therapeutic solutions. The company operates primarily in two sectors: Cardiovascular and Neuromodulation. Its core products include advanced cardiac surgery equipment, heart failure treatment devices, and neuromodulation therapy solutions designed for the treatment of drug-resistant epilepsy and depression. LivaNova is committed to improving patient health and quality of life through its cutting-edge medical devices and technologies.
How the Company Makes MoneyLivaNova generates revenue primarily through the sale of its medical devices and therapies in the Cardiovascular and Neuromodulation sectors. In the Cardiovascular sector, the company earns income from the sale of products such as heart-lung machines, oxygenators, and other cardiac surgery tools used in the treatment of heart diseases. The Neuromodulation sector contributes to revenue through the sale of devices used for Vagus Nerve Stimulation (VNS) therapy, which is employed in the management of epilepsy and treatment-resistant depression. LivaNova's financial performance is bolstered by strategic partnerships, research and development investments, and a robust distribution network that expands its global market reach. Additionally, the company enhances its earnings by engaging in collaborations with healthcare providers and leveraging its innovative technologies to address unmet medical needs.
LivaNova Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 23.46%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth and successful clinical trials, positioning LivaNova well for future growth. However, challenges such as the SNIA litigation liability, limited U.S. Epilepsy revenue growth, and tariff impacts were noted. Despite these challenges, the positive aspects, including revenue growth and clinical successes, outweighed the negatives.Q1-2025 Updates
Positive Updates
Strong Organic Revenue Growth
LivaNova achieved 10% organic revenue growth versus the prior year, driven by the continued success of the Essenz rollout, demand for Cardiopulmonary consumables, and strong neuromodulation performance in the Europe and Rest of World regions.
Cardiopulmonary Segment Performance
Revenue for the Cardiopulmonary segment increased by 15% to $176 million in the quarter, with Heart-lung machine revenue growing approximately 30% versus the prior year period.
OSPREY Trial Success
The OSPREY trial demonstrated a 65% responder rate at 12 months for proximal hypoglossal nerve stimulation therapy, showing rapid and sustained improvement for patients with severe obstructive sleep apnea.
Positive Cash Flow and Cash Position
LivaNova's cash balance increased to $738 million, up from $429 million at year-end 2024, with adjusted free cash flow for the quarter at $20 million.
Updated 2025 Guidance
LivaNova raised its overall organic growth outlook by 100 basis points to between 7% and 8%, reflecting strong first-quarter performance and strategic execution.
Negative Updates
SNIA Litigation Liability
LivaNova recorded a liability of $360 million in the first quarter related to the Italian Supreme Court decision on the SNIA litigation, affecting financial results.
U.S. Epilepsy Revenue Growth Challenge
U.S. Epilepsy revenue growth was limited to 2% year-over-year due to procedure deferrals related to a voluntary field safety notification.
Tariff Impact Concerns
Tariffs are expected to be a small and manageable headwind for LivaNova, with an estimated impact of less than $5 million on adjusted operating income for the year.
Adjusted Gross Margin Decrease
Adjusted gross margin as a percent of net revenue decreased to 70% from 71% in the first quarter of 2024, driven by unfavorable product mix and inflationary headwinds.
Company Guidance
During the first quarter of 2025 earnings call, LivaNova PLC provided updated guidance, reflecting strong operational performance and strategic advancements. The company raised its organic revenue growth outlook to 7% to 8% for the full year, driven by a 10% organic revenue increase in the first quarter, with notable strength in the Cardiopulmonary segment and improved commercial execution in the Global Epilepsy business. The Cardiopulmonary segment saw a 15% revenue increase, driven by a 30% growth in heart-lung machine placements and high demand for oxygenators. The company also discussed the 12-month OSPREY trial data for treating obstructive sleep apnea, with a 65% responder rate, and addressed the $360 million liability related to the SNIA litigation. Despite potential tariff impacts, LivaNova anticipates manageable headwinds. The updated guidance also includes an adjusted diluted EPS range of $3.60 to $3.70, incorporating the SNIA impact and other operational improvements.LivaNova Financial Statement Overview
Summary
LivaNova 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. 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.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
Positive
43.41
Price Trends
39.37
Positive
42.40
Positive
46.35
Negative
Market Momentum
1.17
Positive
56.88
Neutral
43.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LIVN, the sentiment is Positive. The current price of 43.41 is above the 20-day moving average (MA) of 42.92, above the 50-day MA of 39.37, and below the 200-day MA of 46.35, indicating a neutral trend. The MACD of 1.17 indicates Positive momentum. The RSI at 56.88 is Neutral, neither overbought nor oversold. The STOCH value of 43.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LIVN.
LivaNova Risk Analysis
LivaNova disclosed 32 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 3 New Risks
1.
LivaNova's research and development efforts rely upon investments and investment collaborations, and the Company cannot guarantee that any previous or future investments or investment collaborations will be successful. Q4, 2024
2.
The continuing development of many of LivaNova's products depends upon the Company maintaining appropriate working relationships with healthcare professionals. Q4, 2024
3.
Global healthcare policy changes may have a material adverse effect on LivaNova's business, results of operations, financial condition, and cash flows. Q4, 2024
LivaNova Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.79B | 28.44 | 19.36% | ― | 34.43% | 31.90% | |
78 Outperform | $4.30B | 93.43 | 22.99% | ― | 64.43% | ― | |
63 Neutral | $2.37B | 30.62 | -19.69% | ― | 7.97% | -592.40% | |
61 Neutral | $358.45M | ― | -2.91% | ― | -1.86% | -2.01% | |
56 Neutral | $3.21B | ― | -27.62% | ― | 59.36% | 19.87% | |
53 Neutral | $5.24B | 3.28 | -44.98% | 2.81% | 16.82% | -0.32% | |
52 Neutral | $957.42M | ― | -1.85% | ― | 6.19% | -174.69% |
* Healthcare Sector Average
Performance Comparison
LIVN
LivaNova
43.41
-17.09
-28.25%
IART
Integra Lifesciences
12.32
-19.29
-61.02%
UFPT
Ufp Technologies
232.20
-19.29
-7.67%
TMDX
TransMedics Group
123.94
-10.54
-7.84%
CTKB
Cytek Biosciences
2.83
-2.59
-47.79%
PRCT
PROCEPT BioRobotics
57.94
-9.35
-13.90%
LivaNova Corporate Events
Legal Proceedings
LivaNova Faces Legal Dispute Over Environmental Liabilities
Negative
May 21, 2025
LivaNova PLC is currently involved in a legal dispute regarding environmental liabilities inherited through its merger with Sorin. On March 14, 2025, the Italian Supreme Court referred the case back to the Court of Appeal, leading the company to record a liability of €333.3 million. Despite a filing by the Ministry of Ecological Transition challenging this decision, LivaNova intends to defend its position and maintain its current financial guidance for 2025.
The most recent analyst rating on (LIVN) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on LivaNova stock, see the LIVN Stock Forecast page.
Legal Proceedings
LivaNova Faces €333 Million Liability Ruling
Negative
Mar 17, 2025
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.
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.