LIVANOVA PLC (LIVN) Stock Fundamental Analysis
NASDAQ:LIVN - Nasdaq - GB00BYMT0J19 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to LIVN. LIVN was compared to 189 industry peers in the Health Care Equipment & Supplies industry. LIVN has only an average score on both its financial health and profitability. LIVN is valued quite cheap, while showing a decent growth score. This is a good combination! This makes LIVN very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year LIVN was profitable.
In the past year LIVN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: LIVN reported negative net income in multiple years.
LIVN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.52%, LIVN is doing good in the industry, outperforming 76.19% of the companies in the same industry.
LIVN has a better Return On Equity (4.79%) than 78.84% of its industry peers.
With a decent Return On Invested Capital value of 5.49%, LIVN is doing good in the industry, outperforming 79.37% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LIVN is below the industry average of 7.71%.
The 3 year average ROIC (3.45%) for LIVN is below the current ROIC(5.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 4.79% | ||
| ROIC | 5.49% |
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 has a Profit Margin of 5.04%. This is in the better half of the industry: LIVN outperforms 76.72% of its industry peers.
LIVN has a Operating Margin of 12.93%. This is amongst the best in the industry. LIVN outperforms 80.42% of its industry peers.
In the last couple of years the Operating Margin of LIVN has grown nicely.
Looking at the Gross Margin, with a value of 69.48%, LIVN is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
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 | 12.93% | ||
| PM (TTM) | 5.04% | ||
| GM | 69.48% |
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
LIVN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for LIVN has been increased compared to 1 year ago.
LIVN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, LIVN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.57, we must say that LIVN is in the distress zone and has some risk of bankruptcy.
LIVN has a Altman-Z score (1.57) which is in line with its industry peers.
LIVN has a debt to FCF ratio of 4.62. This is a neutral value as LIVN would need 4.62 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.62, LIVN belongs to the top of the industry, outperforming 82.01% of the companies in the same industry.
LIVN has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.42, LIVN perfoms like the industry average, outperforming 44.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 4.62 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.67
WACC8.19%
2.3 Liquidity
LIVN has a Current Ratio of 2.87. This indicates that LIVN is financially healthy and has no problem in meeting its short term obligations.
LIVN's Current ratio of 2.87 is in line compared to the rest of the industry. LIVN outperforms 53.44% of its industry peers.
LIVN has a Quick Ratio of 2.50. This indicates that LIVN is financially healthy and has no problem in meeting its short term obligations.
LIVN's Quick ratio of 2.50 is in line compared to the rest of the industry. LIVN outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.5 |
3. Growth
3.1 Past
LIVN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.93%, which is quite good.
Measured over the past 5 years, LIVN shows a small growth in Earnings Per Share. The EPS has been growing by 1.82% on average per year.
LIVN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.66%.
LIVN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.94% yearly.
EPS 1Y (TTM)19.93%
EPS 3Y16.71%
EPS 5Y1.82%
EPS Q2Q%-6.9%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y6.58%
Revenue growth 5Y2.94%
Sales Q2Q%3.77%
3.2 Future
The Earnings Per Share is expected to grow by 10.69% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.22% on average over the next years.
EPS Next Y7.69%
EPS Next 2Y8.27%
EPS Next 3Y8.73%
EPS Next 5Y10.69%
Revenue Next Year4.33%
Revenue Next 2Y4.91%
Revenue Next 3Y5.02%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.91, the valuation of LIVN can be described as reasonable.
Based on the Price/Earnings ratio, LIVN is valued cheaply inside the industry as 93.65% of the companies are valued more expensively.
LIVN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.18.
A Price/Forward Earnings ratio of 10.13 indicates a reasonable valuation of LIVN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LIVN indicates a rather cheap valuation: LIVN is cheaper than 95.77% of the companies listed in the same industry.
LIVN is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LIVN is valued cheaper than 88.89% of the companies in the same industry.
LIVN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LIVN is cheaper than 91.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.71 | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LIVN may justify a higher PE ratio.
PEG (NY)1.42
PEG (5Y)6.01
EPS Next 2Y8.27%
EPS Next 3Y8.73%
5. Dividend
5.1 Amount
LIVN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.78
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners104.09%
Inst Owner Change-1.12%
Ins Owners0.23%
Ins Owner Change3.16%
Market Cap2.00B
Analysts81.25
Price Target61.88 (68.24%)
Short Float %3.03%
Short Ratio2.06
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)11.1%
Min EPS beat(2)-0.89%
Max EPS beat(2)23.08%
EPS beat(4)3
Avg EPS beat(4)21.44%
Min EPS beat(4)-0.89%
Max EPS beat(4)47.07%
EPS beat(8)7
Avg EPS beat(8)19.78%
EPS beat(12)10
Avg EPS beat(12)14.06%
EPS beat(16)14
Avg EPS beat(16)25.41%
Revenue beat(2)1
Avg Revenue beat(2)0.57%
Min Revenue beat(2)-2.64%
Max Revenue beat(2)3.78%
Revenue beat(4)3
Avg Revenue beat(4)1.89%
Min Revenue beat(4)-2.64%
Max Revenue beat(4)3.78%
Revenue beat(8)7
Avg Revenue beat(8)3.83%
Revenue beat(12)10
Avg Revenue beat(12)2.92%
Revenue beat(16)13
Avg Revenue beat(16)2.88%
PT rev (1m)-3.19%
PT rev (3m)-13.83%
EPS NQ rev (1m)0.62%
EPS NQ rev (3m)-4.97%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-2.02%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 10.13 | ||
| P/S | 1.59 | ||
| P/FCF | 14.71 | ||
| P/OCF | 10.92 | ||
| P/B | 1.51 | ||
| P/tB | 6 | ||
| EV/EBITDA | 10.75 |
EPS(TTM)3.37
EY9.16%
EPS(NY)3.63
Fwd EY9.87%
FCF(TTM)2.5
FCFY6.8%
OCF(TTM)3.37
OCFY9.16%
SpS23.06
BVpS24.29
TBVpS6.13
PEG (NY)1.42
PEG (5Y)6.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 4.79% | ||
| ROCE | 7.67% | ||
| ROIC | 5.49% | ||
| ROICexc | 6.89% | ||
| ROICexgc | 16.63% | ||
| OM | 12.93% | ||
| PM (TTM) | 5.04% | ||
| GM | 69.48% | ||
| FCFM | 10.84% |
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-Score8
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 4.62 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 111.32% | ||
| Cap/Sales | 3.76% | ||
| Interest Coverage | 4.17 | ||
| Cash Conversion | 89.54% | ||
| Profit Quality | 214.97% | ||
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.5 | ||
| Altman-Z | 1.57 |
F-Score8
WACC8.19%
ROIC/WACC0.67
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)19.93%
EPS 3Y16.71%
EPS 5Y1.82%
EPS Q2Q%-6.9%
EPS Next Y7.69%
EPS Next 2Y8.27%
EPS Next 3Y8.73%
EPS Next 5Y10.69%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y6.58%
Revenue growth 5Y2.94%
Sales Q2Q%3.77%
Revenue Next Year4.33%
Revenue Next 2Y4.91%
Revenue Next 3Y5.02%
Revenue Next 5Y4.22%
EBIT growth 1Y184.61%
EBIT growth 3Y51.09%
EBIT growth 5Y22.46%
EBIT Next Year28.1%
EBIT Next 3Y15.24%
EBIT Next 5Y-1.76%
FCF growth 1Y240.4%
FCF growth 3Y20.82%
FCF growth 5YN/A
OCF growth 1Y144.33%
OCF growth 3Y21.3%
OCF growth 5YN/A