LIVANOVA PLC (LIVN) Stock Fundamental Analysis
NASDAQ:LIVN - Nasdaq - GB00BYMT0J19 - Common Stock - Currency: USD
LIVN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 187 industry peers in the Health Care Equipment & Supplies industry. LIVN has a medium profitability rating, but doesn't score so well on its financial health evaluation. LIVN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
LIVN had positive earnings in the past year.
LIVN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: LIVN reported negative net income in multiple years.
Of the past 5 years LIVN 4 years had a positive operating cash flow.
1.2 Ratios
LIVN's Return On Assets of -8.68% is fine compared to the rest of the industry. LIVN outperforms 63.10% of its industry peers.
LIVN has a Return On Equity of -21.48%. This is comparable to the rest of the industry: LIVN outperforms 59.89% of its industry peers.
LIVN has a Return On Invested Capital of 7.08%. This is amongst the best in the industry. LIVN outperforms 83.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LIVN is below the industry average of 7.89%.
The last Return On Invested Capital (7.08%) for LIVN is above the 3 year average (3.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.68% | ||
| ROE | -21.48% | ||
| ROIC | 7.08% |
ROA(3y)-0.17%
ROA(5y)-4.24%
ROE(3y)-0.33%
ROE(5y)-8.58%
ROIC(3y)3.45%
ROIC(5y)N/A
1.3 Margins
LIVN's Operating Margin of 14.08% is amongst the best of the industry. LIVN outperforms 82.89% of its industry peers.
In the last couple of years the Operating Margin of LIVN has grown nicely.
The Gross Margin of LIVN (69.33%) is better than 78.61% of its industry peers.
In the last couple of years the Gross Margin of LIVN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.08% | ||
| PM (TTM) | N/A | ||
| GM | 69.33% |
OM growth 3Y41.76%
OM growth 5Y18.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.63%
GM growth 5Y0.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LIVN is destroying value.
Compared to 1 year ago, LIVN has more shares outstanding
The number of shares outstanding for LIVN has been increased compared to 5 years ago.
LIVN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.25, we must say that LIVN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.25, LIVN perfoms like the industry average, outperforming 52.41% of the companies in the same industry.
LIVN has a debt to FCF ratio of 4.32. This is a neutral value as LIVN would need 4.32 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.32, LIVN belongs to the top of the industry, outperforming 84.49% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that LIVN is somewhat dependend on debt financing.
LIVN has a Debt to Equity ratio of 0.53. This is in the lower half of the industry: LIVN underperforms 62.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.32 | ||
| Altman-Z | 1.25 |
ROIC/WACC0.85
WACC8.34%
2.3 Liquidity
A Current Ratio of 1.58 indicates that LIVN should not have too much problems paying its short term obligations.
The Current ratio of LIVN (1.58) is worse than 74.33% of its industry peers.
A Quick Ratio of 1.37 indicates that LIVN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.37, LIVN is not doing good in the industry: 65.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.18% over the past year.
LIVN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.82% yearly.
The Revenue has been growing slightly by 7.62% in the past year.
Measured over the past years, LIVN shows a small growth in Revenue. The Revenue has been growing by 2.94% on average per year.
EPS 1Y (TTM)13.18%
EPS 3Y16.71%
EPS 5Y1.82%
EPS Q2Q%20.55%
Revenue 1Y (TTM)7.62%
Revenue growth 3Y6.58%
Revenue growth 5Y2.94%
Sales Q2Q%7.46%
3.2 Future
LIVN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.91% yearly.
LIVN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.22% yearly.
EPS Next Y10.36%
EPS Next 2Y9.36%
EPS Next 3Y9.38%
EPS Next 5Y10.91%
Revenue Next Year6.61%
Revenue Next 2Y6.18%
Revenue Next 3Y6.03%
Revenue Next 5Y4.22%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.11, the valuation of LIVN can be described as correct.
Based on the Price/Earnings ratio, LIVN is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.45, LIVN is valued rather cheaply.
The Price/Forward Earnings ratio is 11.45, which indicates a very decent valuation of LIVN.
Based on the Price/Forward Earnings ratio, LIVN is valued cheaply inside the industry as 89.30% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LIVN to the average of the S&P500 Index (21.90), we can say LIVN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.11 | ||
| Fwd PE | 11.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LIVN indicates a rather cheap valuation: LIVN is cheaper than 89.84% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LIVN is valued cheaper than 88.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.29 | ||
| EV/EBITDA | 10.84 |
4.3 Compensation for Growth
LIVN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
LIVN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.27
PEG (5Y)7.22
EPS Next 2Y9.36%
EPS Next 3Y9.38%
5. Dividend
5.1 Amount
No dividends for LIVN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
46.13
+0.05 (+0.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.41%
Inst Owner Change1.84%
Ins Owners0.23%
Ins Owner Change6.44%
Market Cap2.52B
Analysts83.75
Price Target64.03 (38.8%)
Short Float %4.09%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.13%
Min EPS beat(2)-0.89%
Max EPS beat(2)13.16%
EPS beat(4)3
Avg EPS beat(4)12.96%
Min EPS beat(4)-0.89%
Max EPS beat(4)23.08%
EPS beat(8)7
Avg EPS beat(8)20.5%
EPS beat(12)11
Avg EPS beat(12)15.38%
EPS beat(16)14
Avg EPS beat(16)18.48%
Revenue beat(2)1
Avg Revenue beat(2)0.06%
Min Revenue beat(2)-2.64%
Max Revenue beat(2)2.76%
Revenue beat(4)3
Avg Revenue beat(4)1.65%
Min Revenue beat(4)-2.64%
Max Revenue beat(4)3.78%
Revenue beat(8)7
Avg Revenue beat(8)3.42%
Revenue beat(12)10
Avg Revenue beat(12)3.01%
Revenue beat(16)13
Avg Revenue beat(16)2.77%
PT rev (1m)3.48%
PT rev (3m)0.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.44%
EPS NY rev (1m)0%
EPS NY rev (3m)1.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)2.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.11 | ||
| Fwd PE | 11.45 | ||
| P/S | 1.97 | ||
| P/FCF | 17.29 | ||
| P/OCF | 12.77 | ||
| P/B | 2.43 | ||
| P/tB | 70.28 | ||
| EV/EBITDA | 10.84 |
EPS(TTM)3.52
EY7.63%
EPS(NY)4.03
Fwd EY8.74%
FCF(TTM)2.67
FCFY5.79%
OCF(TTM)3.61
OCFY7.83%
SpS23.39
BVpS18.97
TBVpS0.66
PEG (NY)1.27
PEG (5Y)7.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.68% | ||
| ROE | -21.48% | ||
| ROCE | 9.88% | ||
| ROIC | 7.08% | ||
| ROICexc | 11.92% | ||
| ROICexgc | 160.32% | ||
| OM | 14.08% | ||
| PM (TTM) | N/A | ||
| GM | 69.33% | ||
| FCFM | 11.41% |
ROA(3y)-0.17%
ROA(5y)-4.24%
ROE(3y)-0.33%
ROE(5y)-8.58%
ROIC(3y)3.45%
ROIC(5y)N/A
ROICexc(3y)4.13%
ROICexc(5y)N/A
ROICexgc(3y)10.29%
ROICexgc(5y)N/A
ROCE(3y)4.82%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y4.42%
ROICexc growth 3Y38.42%
ROICexc growth 5Y24.6%
OM growth 3Y41.76%
OM growth 5Y18.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.63%
GM growth 5Y0.8%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.32 | ||
| Debt/EBITDA | 2.47 | ||
| Cap/Depr | 121.59% | ||
| Cap/Sales | 4.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 1.25 |
F-Score6
WACC8.34%
ROIC/WACC0.85
Cap/Depr(3y)78.91%
Cap/Depr(5y)67.73%
Cap/Sales(3y)3.13%
Cap/Sales(5y)3.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.18%
EPS 3Y16.71%
EPS 5Y1.82%
EPS Q2Q%20.55%
EPS Next Y10.36%
EPS Next 2Y9.36%
EPS Next 3Y9.38%
EPS Next 5Y10.91%
Revenue 1Y (TTM)7.62%
Revenue growth 3Y6.58%
Revenue growth 5Y2.94%
Sales Q2Q%7.46%
Revenue Next Year6.61%
Revenue Next 2Y6.18%
Revenue Next 3Y6.03%
Revenue Next 5Y4.22%
EBIT growth 1Y99.93%
EBIT growth 3Y51.09%
EBIT growth 5Y22.46%
EBIT Next Year36.43%
EBIT Next 3Y16.23%
EBIT Next 5Y-1.76%
FCF growth 1Y305.72%
FCF growth 3Y20.82%
FCF growth 5YN/A
OCF growth 1Y203.79%
OCF growth 3Y21.3%
OCF growth 5YN/A