Inotiv (NOTV) AI Stock Analysis

• Market Cap: $89.32M
• Dividend Yield: N/A
• Average Volume (3M): 525.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: -13.09%
• EPS Growth: -15.29%
• Country: US
• Employees: 1,977
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.44
• Shares Outstanding: 34,352,978
• 10 Day Avg. Volume: 670,944
• 30 Day Avg. Volume: 525,485
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.54
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 0.76
• Enterprise Value/Ebitda: -1.43
• 1Y Price Target: $3.75
• Price Target Upside: 44.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: $3.00 ▲(15.38%Upside)

Inotiv's financial performance is the most significant factor, with persistent challenges in revenue, profitability, and cash flow. Technical analysis reflects some positive momentum, but valuation concerns due to ongoing losses and no dividend yield weigh heavily. The earnings call highlighted positive developments, but issues in certain segments persist.

Positive Factors

Demand

Discovery orders increased by 16%, marking the first growth in this area in two years, which is expected to drive overall growth.

Earnings

AEBITDA exceeded expectations, indicating financial performance is stronger than anticipated.

Liquidity

The recent financing reduces liquidity risk and could significantly improve the company's financial position and long-term strategy.

Negative Factors

Debt

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 Business Overview & Revenue Model

Company Description

Inotiv, Inc. provides drug discovery and development services to the pharmaceutical, chemical, and medical device industries; and sells analytical instruments to the pharmaceutical development and contract research industries. It operates through two segments, Contract Research Services and Research Products. The Contract Research Services segment offers screening and pharmacological testing, nonclinical safety testing, formulation development, regulatory compliance, and quality control testing services. This segment provides analytical method development and validation; drug metabolism, bioanalysis, and pharmacokinetics testing to identify and measure drug and metabolite concentrations in complex biological matrices; in vivo sampling services for the continuous monitoring of chemical changes in life; stability testing to ensure the integrity of various solutions used in nonclinical and clinical studies, and post-study analyses; non-clinical toxicology and pathology services; and climate-controlled archiving services for its customers' data and samples. The Research Products segment designs, develops, manufactures, and markets in vivo sampling systems and accessories, including disposables, training, and systems qualification; physiology monitoring tools; liquid chromatography and electrochemistry instruments platforms; analytical products comprising liquid chromatographic and electrochemical instruments with associated accessories; and in vivo sampling products consisting of Culex family of automated in vivo sampling and dosing instruments. The company operates in the United States, rest of North America, the Pacific Rim, Europe, and internationally. It has an agreement with BioVaxys to conduct preclinical toxicity studies for its Covid-T Immunodiagnostic program. The company was formerly known as Bioanalytical Systems, Inc. and changed its name to Inotiv, Inc. in March 2021. Inotiv, Inc. was founded in 1974 and is headquartered in West Lafayette, Indiana.

How the Company Makes Money

Inotiv 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 challenges, including consistent revenue declines, operating losses, high leverage, and negative cash flows. These factors indicate operational inefficiencies and demand strategic interventions.

Income Statement

Inotiv's revenue has shown significant volatility, with a sharp decline from 2023 TTM levels. The company has been consistently operating at a net loss, with negative EBIT and EBITDA margins indicating operational inefficiencies. Revenue growth is negative, reflecting a challenging market environment or strategic missteps.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio that has improved but remains concerning. Equity has been shrinking, and the company faces potential risks if liabilities continue to outweigh assets. However, the reduction in total debt is a positive sign of deleveraging efforts.

Cash Flow

Cash flow analysis shows negative free cash flow and operating cash flow, indicating potential liquidity issues. The operating cash flow to net income ratio is unfavorable, highlighting inefficiencies in converting revenue into cash. Free cash flow remains negative, reflecting capital expenditure challenges.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
480.40M	490.74M	572.42M	547.66M	89.61M	60.47M
	Gross Profit
105.05M	111.17M	165.44M	157.21M	30.16M	18.24M
	EBIT
-52.36M	-86.41M	-81.46M	-27.45M	1.53M	-3.06M
	EBITDA
5.65M	-26.76M	-26.51M	-273.42M	15.37M	1.03M
	Net Income Common Stockholders
-87.47M	-108.44M	-105.14M	-337.26M	10.89M	-4.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.70M	21.43M	35.49M	18.52M	138.92M	1.41M
	Total Assets
815.38M	781.36M	856.53M	962.90M	321.86M	61.59M
	Total Debt
429.26M	445.12M	417.64M	386.49M	174.19M	36.41M
	Net Debt
396.57M	423.69M	382.15M	367.98M	35.27M	35.01M
	Total Liabilities
608.22M	610.86M	588.04M	603.13M	216.73M	54.00M
	Stockholders Equity
207.16M	170.50M	269.15M	360.37M	105.13M	7.60M
Cash Flow		Free Cash Flow
-54.14M	-29.11M	380.00K	-41.52M	-1.73M	-4.91M
	Operating Cash Flow
-34.49M	-6.80M	27.88M	-5.22M	10.75M	1.29M
	Investing Cash Flow
-18.11M	-16.83M	-28.75M	-333.72M	-54.06M	-10.13M
	Financing Cash Flow
39.26M	9.68M	15.87M	203.15M	198.83M	9.64M

Inotiv Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOTV, the sentiment is Positive. The current price of 2.6 is above the 20-day moving average (MA) of 2.19, above the 50-day MA of 2.16, and below the 200-day MA of 2.77, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 58.71 is Neutral, neither overbought nor oversold. The STOCH value of 71.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NOTV.

Inotiv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDXH	55 Neutral	$104.19M	―	-1552.23%	―	25.46%	21.83%
DRIO	55 Neutral	$31.79M	―	-42.58%	―	47.21%	48.56%
Sector *	53 Neutral	$5.22B	3.32	-45.04%	2.83%	16.81%	-0.27%
NOTV	52 Neutral	$89.32M	―	-47.95%	―	-13.09%	-15.29%
VNRX	45 Neutral	$51.82M	―	138.92%	―	64.15%	41.65%
BDSX	41 Neutral	$44.26M	―	-1454.41%	―	35.76%	47.48%
BNR	39 Underperform	$33.36M	―	-51.22%	―	-5.72%	48.12%

Inotiv Corporate Events

Inotiv Hosts 2025 Investor Day, Highlights Strategic Plans

On May 29, 2025, Inotiv, Inc. hosted its 2025 Investor Day, highlighting its strategic plans and addressing current challenges in the preclinical industry. The company discussed the potential impacts of US-imposed trade tariffs, proposed NIH funding cuts, and the FDA’s recent announcement to reduce animal testing. Inotiv emphasized its commitment to New Approach Methodologies (NAMs), which include computational toxicology and cell culture techniques, to support the development of safe therapies. These initiatives are expected to enhance Inotiv’s industry positioning and provide value to stakeholders by addressing evolving regulatory and market demands.

The most recent analyst rating on (NOTV) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Inotiv stock, see the NOTV Stock Forecast page.

Inotiv Shareholders Approve Key Governance Decisions

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.