Education
About Us
Working with TipRanks
Follow Us
Inotiv (NOTV)
NASDAQ:NOTV
Top Page
Inotiv
(NASDAQ:NOTV)
50Neutral
Positive Factors
Financial Performance
AEBITDA exceeded expectations, indicating financial performance is stronger than anticipated.
Liquidity and Financing
The recent financing reduces liquidity risk and could significantly improve the company's financial position and long-term strategy.
Market Demand
Discovery orders increased by 16%, marking the first growth in this area in two years, which is expected to drive overall growth.
Negative Factors
Debt Levels
The company still needs to de-lever its balance sheet as it has $393M of debt.
Research Model Demand
A material change in research model demand would impact Inotiv’s business.
Inotiv (NOTV) vs. S&P 500 (SPY)
Market Cap
$59.61M
Dividend YieldN/A
Average Volume (3M)879.61K
Price to Earnings (P/E)―
Beta (1Y)1.55
Revenue Growth-13.09%
EPS Growth-15.29%
CountryUS
Employees1,977
SectorHealthcare
Sector Strength46
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.44
Shares Outstanding33,869,270
10 Day Avg. Volume338,591
30 Day Avg. Volume879,613
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap8.75
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.69
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.75Price Target Upside91.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Inotiv Business Overview & Revenue Model
Company DescriptionInotiv, Inc. is a contract research organization (CRO) that provides a range of nonclinical and analytical drug discovery and development services to pharmaceutical, biotechnology, and medical device companies. Operating primarily in the preclinical sector, Inotiv offers services such as toxicology, pharmacology, metabolism, bioanalysis, and consulting services to support clients in the development of new drugs and therapies.
How the Company Makes MoneyInotiv makes money through its comprehensive suite of contract research services offered to pharmaceutical, biotechnology, and medical device companies. The company's revenue model is primarily based on fee-for-service contracts, where clients pay for specific preclinical research services, including toxicology studies, pharmacokinetics, pharmacodynamics, and safety assessments. Key revenue streams include long-term research projects, short-term studies, and consulting services tailored to client needs. Inotiv's earnings are significantly influenced by the demand for drug discovery and development services, strategic partnerships with industry players, and its ability to deliver high-quality, reliable research outcomes that expedite the drug development process for its clients.
Inotiv Financial Statement Overview
Summary
Inotiv faces significant financial headwinds, marked by declining revenues, persistent losses, and negative cash flow trends. While there has been some reduction in leverage, ongoing profitability and liquidity issues require strategic attention to stabilize and improve financial performance.Income Statement
Inotiv's recent performance reveals a challenging financial trajectory, with declining revenue and persistent losses. The TTM data shows a negative net profit margin of -25.9% and a gross profit margin of 38.6%, indicating pressure on profitability. Revenue growth has also been negative, reflecting a 17.9% decrease in the latest annual report. These indicators point to difficulties in maintaining top-line growth and controlling costs.35
Negative
Balance Sheet
The balance sheet reflects significant financial leverage with a debt-to-equity ratio of 0.07 in the TTM period, which, while improved, indicates a history of high leverage. The equity ratio stands at 22.0%, suggesting potential risks if liabilities continue to rise. The return on equity remains negative, highlighting ongoing profitability challenges.45
Neutral
Cash Flow
Cash flow analysis indicates negative operating cash flow and free cash flow, underscoring liquidity pressures. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, both pointing to cash generation issues. The company's financing strategy has relied on external funding, which poses sustainability concerns.40
Negative
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 490.74M | 572.42M | 547.66M | 89.61M | 60.47M | Gross Profit |
| 111.17M | 165.44M | 157.21M | 30.16M | 18.24M | EBIT |
| -86.41M | -81.46M | -27.45M | 1.53M | -3.06M | EBITDA |
| -26.76M | -26.51M | -273.42M | 15.37M | 1.03M | Net Income Common Stockholders |
| -108.44M | -105.14M | -337.26M | 10.89M | -4.68M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 21.43M | 35.49M | 18.52M | 138.92M | 1.41M | Total Assets |
| 781.36M | 856.53M | 962.90M | 321.86M | 61.59M | Total Debt |
| 445.12M | 417.64M | 386.49M | 174.19M | 36.41M | Net Debt |
| 423.69M | 382.15M | 367.98M | 35.27M | 35.01M | Total Liabilities |
| 610.86M | 588.04M | 603.13M | 216.73M | 54.00M | Stockholders Equity |
| 170.50M | 269.15M | 360.37M | 105.13M | 7.60M |
| Cash Flow | Free Cash Flow | |||
| -29.11M | 380.00K | -41.52M | -1.73M | -4.91M | Operating Cash Flow |
| -6.80M | 27.88M | -5.22M | 10.75M | 1.29M | Investing Cash Flow |
| -16.83M | -28.75M | -333.72M | -54.06M | -10.13M | Financing Cash Flow |
| 9.68M | 15.87M | 203.15M | 198.83M | 9.64M |
Inotiv Technical Analysis
Negative
1.96
Price Trends
2.31
Negative
3.32
Negative
2.73
Negative
Market Momentum
-0.09
Negative
47.15
Neutral
61.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOTV, the sentiment is Negative. The current price of 1.96 is above the 20-day moving average (MA) of 1.84, below the 50-day MA of 2.31, and below the 200-day MA of 2.73, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 61.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NOTV.
Inotiv Risk Analysis
Inotiv disclosed 41 risk factors in its most recent earnings report. Inotiv 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
Inotiv Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $5.15B | 3.56 | -42.52% | 2.83% | 14.56% | -0.53% | |
51 Neutral | $84.15M | ― | -345.31% | ― | 28.29% | 23.11% | |
50 Neutral | $59.61M | ― | -56.93% | ― | -13.09% | -15.29% | |
49 Neutral | $29.11M | ― | -46.09% | ― | 32.86% | 60.00% | |
40 Underperform | $65.62M | ― | -337.30% | ― | 45.30% | 45.67% | |
39 Underperform | $26.69M | ― | -51.22% | ― | -5.72% | 48.12% | |
29 Underperform | $50.39M | ― | 138.92% | ― | 59.10% | 37.59% |
* Healthcare Sector Average
Performance Comparison
NOTV
Inotiv
1.96
-2.21
-53.00%
VNRX
VolitionRX
0.50
-0.38
-43.18%
DRIO
DarioHealth
0.75
-1.00
-57.14%
MDXH
MDxHealth
1.87
-1.03
-35.52%
BNR
Burning Rock Biotech
2.32
-5.73
-71.18%
BDSX
Biodesix
0.37
-1.15
-75.66%
Inotiv Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q2-2025)
| % Change Since: -2.49%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive sentiment with significant revenue growth and improved operating margins, particularly in the RMS segment. However, challenges remain in the DSA segment with revenue decline and margin deterioration. The company's strategic initiatives and settlements have contributed positively to its financial position.Q2-2025 Updates
Positive Updates
Revenue Growth
For the second quarter of fiscal 2025, total revenue was $124.3 million, a year-over-year increase of $5.3 million or 4.4%. This was mainly due to an increase in RMS segment revenue of $6.6 million.
RMS Segment Performance
RMS segment revenue increased by 9.1% compared to Q2 of fiscal 2024, primarily due to higher NHP volumes sold.
Improved Operating Margins
RMS operating margins improved and were the strongest since Q1 of fiscal year 2024.
Settlement and Financial Position
The company settled a litigation case for approximately $7.6 million, improving financial resources.
Positive Book-to-Bill Ratio
DSA quoting and awards remained in line with the last nine months, with a book-to-bill ratio of 1.01:1 in Q2 of fiscal 2025.
Optimized RMS Site Plan
The refined RMS site optimization plan is expected to result in net annual savings of $6 million to $7 million.
Negative Updates
DSA Segment Revenue Decline
DSA revenue in fiscal Q2 was $45.3 million, a decrease from $46.6 million in Q2 of fiscal year 2024, primarily driven by a decrease in general toxicology services revenue.
DSA Margin Deterioration
DSA margins have deteriorated over the last two quarters due to higher cost base NHPs, increased overtime, labor costs, utility costs, and operating supplies.
Higher Interest Expense
Interest expense in Q2 of fiscal 2025 increased to $13.4 million from $11.1 million in Q2 of 2024, primarily due to interest on second lien notes issued in September 2024.
Company Guidance
During the Inotiv Second Quarter Fiscal 2025 Earnings Call, management provided guidance with several key metrics. Total revenue for the quarter was $124.3 million, an increase from $119.9 million in Q1 of fiscal 2025 and $119 million in Q2 of fiscal 2024, marking a year-over-year rise of 4.4%. This growth was primarily driven by a $6.6 million increase in the RMS segment, partially offset by a $1.3 million decrease in the DSA segment. Adjusted EBITDA for the quarter was $8 million, representing 6.4% of total revenue, compared to $3.1 million or 2.6% in the prior year period. The RMS operating margins improved significantly, with non-GAAP operating income reaching $15.6 million or 12.5% of total revenue. The company anticipates net annual savings of $6 million to $7 million from its revised RMS site optimization plan, which involves a capital investment of approximately $6.5 million. Despite some challenges in the DSA segment, including higher costs, the book-to-bill ratio remained at 1.01:1, with new orders 27% ahead of Q2 fiscal 2024. Management expects continued revenue and adjusted EBITDA growth over the next two quarters of fiscal 2025.Inotiv Corporate Events
Executive/Board ChangesShareholder Meetings
Inotiv Shareholders Approve Key Governance Decisions
Neutral
Mar 13, 2025
On March 13, 2025, Inotiv held its annual meeting of shareholders, where key decisions were made regarding the company’s governance and operational strategies. Two Class I board members were elected for a three-year term, Ernst & Young LLP was ratified as the independent auditor for fiscal 2025, and the compensation of named executive officers was approved. Additionally, shareholders voted to hold advisory votes on executive compensation every three years, and the 2024 Plan Amendment was approved.
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.