Integer Holdings Corp (NYSE:ITGR) Presents a Strong Value Case with Undervalued Metrics

For investors looking for opportunities in undervalued companies, the "Decent Value" screening approach provides a systematic way to find stocks trading below their inherent worth while keeping acceptable fundamental traits. This method selects for companies with good valuation metrics, typically scoring above 7 on valuation ratings, while also needing acceptable scores in profitability, financial health, and growth. The thinking comes from value investing ideas set by Benjamin Graham, where investors look for securities priced at a discount to their inherent value while having enough fundamental quality to offer a margin of safety.

Valuation Metrics

Integer Holdings Corp (NYSE:ITGR) presents a strong valuation case, scoring 8 out of 10 in this group based on ChartMill's fundamental review. The company trades at notable discounts when measured against both industry competitors and wider market indices:

• P/E ratio of 12.15 versus industry average of 26.04 and S&P 500 average of 27.67
• Forward P/E of 10.17 compared to S&P 500 average of 23.33
• Enterprise Value to EBITDA ratio cheaper than 88% of industry competitors
• Price/Free Cash Flow ratio lower than 85% of industry peers

These valuation metrics are especially significant for value investors as they suggest the stock could be trading below its inherent value. The discounted multiples offer that important margin of safety, a key part of value investing, while the forward P/E ratio indicates the market may not have fully accounted for the company's growth potential.

Financial Health Assessment

Integer Holdings shows acceptable financial health with a rating of 5 out of 10. While not outstanding, the company keeps adequate stability for value investors looking for reliable operations:

• Current ratio of 3.41 indicates strong short-term liquidity
• Quick ratio of 2.18 shows good immediate financial flexibility
• Debt-to-equity ratio of 0.72 suggests moderate leverage compared to industry standards
• Altman-Z score of 2.26 places the company in the stable zone with limited bankruptcy risk

For value investors, financial health acts as a protective cushion. Companies with sound balance sheets can endure economic declines and continue operating while waiting for the market to acknowledge their inherent value. Integer's liquidity measures give confidence that the company can fulfill its duties during possible times of market undervaluation.

Profitability Profile

The company receives a profitability rating of 6 out of 10, showing capable operational efficiency:

• Return on invested capital of 6.33% outperforms 82% of industry peers
• Operating margin of 13.35% exceeds 81% of competitors
• Profit margin of 4.61% ranks in the top quartile of the industry
• Positive earnings and operating cash flow maintained over past five years

Profitability is important in value investing because it confirms the company's business model and implies the undervaluation could be short-term. Good margins and returns on capital suggest that Integer has competitive strengths that may lead to future price increases as the market adjusts its valuation.

Growth Trajectory

With a growth rating of 5 out of 10, Integer shows respectable expansion:

• Revenue growth of 10.35% in the past year
• EPS growth of 15.59% over the same period
• Expected EPS growth of 12.73% annually going forward
• Accelerating EPS growth trend from historical levels

Growth factors add to value investing by supplying catalysts that could start price discovery. While strict value investors may focus on deep discounts, the mix of reasonable growth with undervaluation can result in better returns as both multiple expansion and earnings growth add to share price gains.

Investment Considerations

The fundamental review of Integer Holdings shows a company trading at discounted valuations while keeping operational ability across main financial areas. The complete fundamental report gives more detailed views into these metrics and their meaning for long-term investors.

Value investors usually look for such situations where the market has missed a company's fundamental strengths, creating a possible difference between price and inherent value. Integer's mix of valuation discounts, steady financial health, consistent profitability, and moderate growth fits well with value investing standards that focus on buying quality businesses at sensible prices.

For investors curious about similar opportunities, more screening results using the "Decent Value" method can be found using this customized stock screener, which frequently updates with companies meeting these specific fundamental criteria.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any security. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance does not guarantee future results.