Inotiv (NOTV) AI Stock Analysis

• Market Cap: $46.38M
• Dividend Yield: N/A
• Average Volume (3M): 404.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: 0.85%
• EPS Growth: 29.83%
• Country: US
• Employees: 1,977
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.51
• Shares Outstanding: 34,355,250
• 10 Day Avg. Volume: 338,502
• 30 Day Avg. Volume: 404,816
• PEG Ratio: -0.18
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -1.51
• Enterprise Value/Market Cap: 10.88
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 4.86
• Enterprise Value/Ebitda: 24.40
• 1Y Price Target: $5.00
• Price Target Upside: 270.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 41 Neutral
• Price Target: $1.50 ▲(11.11% Upside)

Inotiv's overall stock score is primarily impacted by its weak financial performance and valuation. The company faces significant financial challenges, including high leverage and negative profitability. Technical analysis indicates bearish momentum, further contributing to the low score. The absence of a dividend yield and negative P/E ratio reflect poor valuation metrics.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market demand and effective service offerings, supporting long-term business sustainability and potential for further market penetration.

Segment Performance

Growth in key segments suggests robust demand for Inotiv's specialized services, enhancing its competitive position and reinforcing its business model's strength.

EBITDA Improvement

Significant EBITDA improvement reflects better operational efficiency and cost management, which are crucial for long-term profitability and financial health.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, limiting flexibility and increasing vulnerability to economic downturns, which can impact long-term growth and sustainability.

Cash Flow Challenges

Negative cash flow from operations indicates potential liquidity issues, which could hinder the company's ability to invest in growth opportunities and meet financial obligations.

Profitability Concerns

Ongoing profitability issues suggest challenges in cost management and pricing power, which could affect long-term financial performance and shareholder value.

Inotiv Business Overview & Revenue Model

Company Description

Inotiv, Inc. is a leading provider of research tools and services for the pharmaceutical and biotechnology industries, specializing in preclinical and clinical drug development. The company operates primarily in the biotechnology sector, offering a range of services including laboratory animal services, pathology, and other related research services. Inotiv focuses on enhancing drug discovery and development processes through its integrated solutions, which aim to improve the efficiency and effectiveness of research for its clients.

How the Company Makes Money

Inotiv generates revenue primarily through its laboratory services and research offerings, which include preclinical testing, toxicology, and pathology services. The company operates on a fee-for-service model where clients pay for the services rendered during the research process. Key revenue streams include contract research agreements with pharmaceutical and biotech companies, as well as sales of laboratory equipment and supplies. Additionally, Inotiv benefits from partnerships and collaborations with academic institutions and other research organizations, which can lead to joint ventures and shared projects that further enhance its revenue opportunities. The company's growth is also supported by its strategic acquisitions, expanding its capabilities and client base within the life sciences sector.

Inotiv Financial Statement Overview

Summary

Inotiv is facing financial challenges across all verticals. While there is some revenue growth, profitability and cash flow remain significant concerns. High leverage and negative returns on equity further exacerbate the financial risk. The company needs to focus on improving operational efficiency and managing debt to enhance financial health.

Income Statement

Inotiv's income statement shows a mixed performance. The company has experienced a positive revenue growth rate of 5.18% in the TTM, indicating some recovery. However, profitability remains a concern with negative net profit and EBIT margins, suggesting ongoing operational challenges. The gross profit margin has decreased compared to previous years, highlighting pressure on cost management.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio of 3.10, which poses a risk in terms of financial stability. The return on equity is negative, indicating that the company is not generating sufficient returns for shareholders. The equity ratio is also low, suggesting limited asset backing by equity.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating cash flow issues. The free cash flow to net income ratio is positive, but this is due to negative net income, which is not a positive indicator.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	505.30M	490.74M	572.42M	547.66M	89.61M	60.47M
Gross Profit	103.91M	111.17M	165.44M	157.21M	30.16M	18.24M
EBITDA	20.68M	-26.76M	-26.51M	-273.42M	15.37M	1.03M
Net Income	-78.96M	-108.44M	-105.14M	-337.26M	10.89M	-4.68M
Balance Sheet
Total Assets	759.74M	781.36M	856.53M	962.90M	321.86M	61.59M
Cash, Cash Equivalents and Short-Term Investments	6.21M	21.43M	35.49M	18.52M	138.92M	1.41M
Total Debt	15.05M	445.12M	417.64M	386.49M	174.19M	36.41M
Total Liabilities	615.95M	610.86M	588.04M	603.13M	216.73M	54.00M
Stockholders Equity	143.78M	170.50M	269.15M	360.37M	105.13M	7.60M
Cash Flow
Free Cash Flow	-46.37M	-29.11M	380.00K	-41.52M	-1.73M	-4.91M
Operating Cash Flow	-27.13M	-6.80M	27.88M	-5.22M	10.75M	1.29M
Investing Cash Flow	-17.66M	-16.83M	-28.75M	-333.72M	-54.06M	-10.13M
Financing Cash Flow	36.65M	9.68M	15.87M	203.15M	198.83M	9.64M

Inotiv Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.35
• 50DMA: Negative
• 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 Negative. The current price of 1.35 is below the 20-day moving average (MA) of 1.41, below the 50-day MA of 1.52, and below the 200-day MA of 2.39, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 43.73 is Neutral, neither overbought nor oversold. The STOCH value of 34.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NOTV.

Inotiv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRPO	55 Neutral	$34.12M	-18.12	-14.76%	―	27.05%	55.03%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VNRX	43 Neutral	$50.28M	―	―	―	35.10%	39.15%
NOTV	41 Neutral	$46.38M	-0.52	-48.46%	―	0.85%	29.83%
BNGO	41 Neutral	$18.73M	-0.04	-118.26%	―	-25.02%	85.08%
BDSX	41 Neutral	$52.96M	―	-219.68%	―	25.70%	39.25%
TRIB	41 Neutral	$16.25M	-0.32	―	―	-4.40%	-6.31%

Inotiv Corporate Events

Inotiv Settles Securities Class Action Lawsuit

On September 25, 2025, Inotiv, Inc. agreed to settle a securities class action and two derivative actions to avoid prolonged litigation costs and uncertainties. The settlements, pending court approval, involve a cash payment of $8.75 million funded by insurance and corporate governance changes. Additionally, Inotiv is addressing the impact of a 2025 cybersecurity incident affecting its operations and exploring debt refinancing options with Perella Weinberg Partners.

The most recent analyst rating on (NOTV) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Inotiv stock, see the NOTV Stock Forecast page.

Inotiv Faces Cybersecurity Incident Disrupting Operations

On August 8, 2025, Inotiv, Inc. experienced a cybersecurity incident where unauthorized access led to the encryption of certain systems and data. The company has taken steps to contain and assess the situation by engaging cybersecurity specialists and notifying law enforcement. The incident has disrupted business operations, impacting access to networks and internal applications. Inotiv is implementing a business continuity strategy to mitigate disruptions, but the timeline for full restoration remains uncertain. The investigation is ongoing, and the full impact on operations and finances is yet to be determined.

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, Inc. Balances Growth and Challenges in Q3 Earnings Call

Inotiv, Inc. Reports Balanced Sentiment Amid Revenue Growth and Challenges

Inotiv, Inc. Reports Strong Q3 2025 Revenue Growth

Inotiv, Inc. is a prominent contract research organization that provides nonclinical and analytical drug discovery and development services, as well as research models and related products, primarily serving the pharmaceutical and biotechnology industries. The company is recognized for its commitment to enhancing drug and medical device development efficiency while reducing costs.