DB:LIA

Stock Analysis Report

Executive Summary

LivaNova PLC, a medical device company, designs, develops, manufactures, and sells therapeutic solutions worldwide.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has LivaNova's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LIA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.2%

LIA

-4.9%

DE Medical Equipment

-6.8%

DE Market


1 Year Return

-28.2%

LIA

22.4%

DE Medical Equipment

6.5%

DE Market

Return vs Industry: LIA underperformed the German Medical Equipment industry which returned 22.4% over the past year.

Return vs Market: LIA underperformed the German Market which returned 6.5% over the past year.


Shareholder returns

LIAIndustryMarket
7 Day-6.2%-4.9%-6.8%
30 Day-3.9%-7.4%-3.7%
90 Day-20.8%-4.8%-3.6%
1 Year-28.2%-28.2%24.3%22.4%9.8%6.5%
3 Year28.3%28.3%121.6%115.8%6.8%-2.6%
5 Year-2.8%-2.8%252.5%235.1%12.5%-2.9%

Price Volatility Vs. Market

How volatile is LivaNova's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is LivaNova undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LIA (€61) is trading below our estimate of fair value (€222.09)

Significantly Below Fair Value: LIA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LIA is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: LIA is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LIA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LIA is good value based on its PB Ratio (2x) compared to the DE Medical Equipment industry average (5.3x).


Next Steps

Future Growth

How is LivaNova forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

46.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LIA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: LIA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LIA's is expected to become profitable in the next 3 years.

Revenue vs Market: LIA's revenue (4.9% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: LIA's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LIA's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has LivaNova performed over the past 5 years?

-54.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIA is currently unprofitable.

Growing Profit Margin: LIA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LIA is unprofitable, and losses have increased over the past 5 years at a rate of -54.3% per year.

Accelerating Growth: Unable to compare LIA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LIA is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (17%).


Return on Equity

High ROE: LIA has a negative Return on Equity (-14.82%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LivaNova's financial position?


Financial Position Analysis

Short Term Liabilities: LIA's short term assets ($546.8M) exceed its short term liabilities ($469.2M).

Long Term Liabilities: LIA's short term assets ($546.8M) exceed its long term liabilities ($545.5M).


Debt to Equity History and Analysis

Debt Level: LIA's debt to equity ratio (22.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if LIA's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: LIA has a low level of unsold assets or inventory.

Debt Coverage by Assets: LIA's debt is covered by short term assets (assets are 1.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LIA has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: LIA has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is LivaNova's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.4%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate LIA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LIA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LIA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LIA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LIA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Damien McDonald (54yo)

3.1yrs

Tenure

US$7,112,628

Compensation

Mr. Damien McDonald is the Chief Executive Officer and an Executive Director of LivaNova PLC. since January 1, 2017. Mr. McDonald served as Chief Operating Officer of LivaNova from October 3, 2016 through  ...


CEO Compensation Analysis

Compensation vs Market: Damien's total compensation ($USD7.11M) is above average for companies of similar size in the German market ($USD2.69M).

Compensation vs Earnings: Damien's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Damien McDonald
CEO & Director3.1yrsUS$7.11m0.13% $3.7m
Thad Huston
Chief Financial Officer2.8yrsUS$2.97m0.033% $932.0k
Douglas Manko
Chief Accounting Officer3.6yrsUS$885.49k0.0049% $135.6k
Keyna Skeffington
General Counsel & Senior VP2.7yrsUS$1.62m0.0034% $96.0k
Melissa Farina
Vice President of Investor Relations0yrsno datano data
Deanna Wilke
Director of Corporate Communications0yrsno datano data
Matthew Dodds
Senior Vice President of Corporate Development2.1yrsno datano data
Trui Hebbelinck
Chief Human Resources Officer0.9yrsno datano data
Pritpal Shinmar
Senior Vice President of Global Market Access4.3yrsno datano data
Bryan Olin
Senior Vice President of Clinical0yrsno datano data

2.8yrs

Average Tenure

53yo

Average Age

Experienced Management: LIA's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Damien McDonald
CEO & Director3.1yrsUS$7.11m0.13% $3.7m
Hugh Morrison
Independent Director13.3yrsUS$256.00k0.0031% $87.6k
Arthur L. Rosenthal
Independent Director13.1yrsUS$240.00k0.038% $1.1m
William Kozy
Independent Director1.7yrsUS$173.45k0.0033% $90.9k
Sharon O'Kane
Independent Director4.3yrsUS$235.00k0.0087% $243.8k
Alfred Novak
Independent Director13.1yrsUS$243.00k0.020% $551.5k
Stacy Seng
Independent Director0.7yrsno datano data
Andrea Saia
Non-Executive Director3.6yrsUS$235.00k0.0062% $172.7k
Daniel Moore
Chairman4.4yrsUS$369.94k0.064% $1.8m
Francesco Bianchi
Independent Director4.3yrsUS$243.00k0.0031% $87.6k

4.3yrs

Average Tenure

62yo

Average Age

Experienced Board: LIA's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

LivaNova PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LivaNova PLC
  • Ticker: LIA
  • Exchange: DB
  • Founded: 1987
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$3.035b
  • Listing Market Cap: US$2.790b
  • Shares outstanding: 48.40m
  • Website: https://www.livanova.com

Number of Employees


Location

  • LivaNova PLC
  • 20 Eastbourne Terrace
  • Paddington
  • London
  • Greater London
  • W2 6LG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LIVNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1993
LIADB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1993

Biography

LivaNova PLC, a medical device company, designs, develops, manufactures, and sells therapeutic solutions worldwide. It operates in two segments, Cardiovascular (CV”) and Neuromodulation (NM). The CV segment develops, produces, and sells cardiopulmonary products, including heart-lung machines, oxygenators, perfusion tubing sets, cannulae, and accessories, as well as related equipment and disposables for autotransfusion and autologous blood washing for neonatal, pediatric, and adult patients. It also provides surgical tissue and mechanical valve replacements, and repair products for damaged or diseased heart valves, such as self-anchoring tissue heart, tissue heart, and mechanical heart valves, as well as heart valve repair products; and temporary extracorporeal cardiopulmonary life support solutions for critically ill patients. The NM segment designs, develops, and markets VNS Therapy System, an implantable device that delivers vagus nerve stimulation (VNS) therapy for the treatment of drug-resistant epilepsy, treatment-resistant depression, and obstructive sleep apnea. It is also involved in the development and clinical testing of the VITARIA System for treating heart failure through VNS. The company serves perfusionists, neurologists, neurosurgeons, and other physicians, as well as hospitals, other medical institutions, and healthcare providers. It sells its products through direct sales representatives and independent distributors. The company was founded in 1987 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 23:28
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.