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IART

Integra LifeSciences Holdings NasdaqGS:IART Stock Report

Last Price

US$43.21

Market Cap

US$3.6b

7D

-1.5%

1Y

-38.7%

Updated

28 Sep, 2022

Data

Company Financials +
IART fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance1/6
Financial Health3/6
Dividends0/6

IART Stock Overview

Integra LifeSciences Holdings Corporation develops, manufactures, and markets surgical implants and medical instruments for use in neurosurgery, extremity reconstruction, and general surgery.

Integra LifeSciences Holdings Corporation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Integra LifeSciences Holdings
Historical stock prices
Current Share PriceUS$43.21
52 Week HighUS$74.98
52 Week LowUS$41.87
Beta1.12
1 Month Change-10.33%
3 Month Change-20.03%
1 Year Change-38.67%
3 Year Change-26.25%
5 Year Change-16.54%
Change since IPO834.27%

Recent News & Updates

Sep 13

Integra LifeSciences: Wide Dislocation In Fundamentals Vs. Market Value

Summary Investors have punished Integra LifeSciences in FY22, most recently following the recall of its CereLink monitors. The market priced in the downside swiftly and with deep effect, helping shares find a 52-week low. There's now a wide dislocation in measures of corporate value and the company's market value, creating an alpha opportunity. We remain long IART since FY20 and here I rate it a hold with a $53 December 2022 price target. Investment Summary Following an extended period of downside Integra LifeSciences Holdings Corporation (NASDAQ:IART) looks to have found a bottom with shares having bounced from 52-week lows last week. Despite its CereLink recall last month little of fundamental value has changed for IART, especially as it hasn't drifted far from converting on its long-term pipeline. Moreover, punishment it copped secondary to the news has created a pricing asymmetry with the potential for shares to re-rate to the upside in my estimation. We have been long IART since FY20 and have had to revisit the position with serious thought in FY22, although on this most recent inspection, the dislocation in market value to drivers of corporate value is too wide to ignore in this instance. I rate IART a buy on a $53 December 2022 price target. CereLink recall remains key overhang Around 1 month ago in August the company, along with the FDA and respective authorities outside of the US, initiated an "immediate voluntary global product removal of all CereLink intracranial pressure monitors". The recall came as a result of user reports the device may display readings of patient intracranial pressure ("ICP") that are out of range. There are purportedly 105 global complaints associated with the recall [as of July 31] whereas the FDA says it is aware of approximately 68 medical device reports ("MDRs") concerning the issue - including 1 death. Following the reports, Integra sent a letter to customers on 23 August to immediately stop using the CereLink ICP and switch to alternate monitoring systems for new patients. According to the FDA's summarized report on the issue: "The patient death reported in the MDR described a malfunctioning CereLink ICP Monitor during use in a critically injured patient, which was mitigated by replacing the ICP sensor. The cause of patient death was determined by Integra to be unrelated to the CereLink ICP Monitor malfunction." Integra echoed this sentiment in its response to the issue, stating the malfunction is likely due to the "external environment", or similar. It noted: "The Company believes that the out-of-range readings are principally caused by electrical interference from the external environment and/or interference from a component on the circuit board of the monitor. These out-of-range readings have occurred at a low incidence rate and at a limited number of sites; however, out of an abundance of caution, the Company has decided to remove all CereLink monitors from the field." This is a stark contrast to language used on the Q2 earnings call back in July, where management were optimistic on the launch curve of the product. Three things we had noted from the call, regarding IART's initiatives/expenses on the segment: IART had set out its "multi-year global growth trajectory for CereLink" by this point. It had expanded the salesforce with a new focus on new acquisition, ACell [acquired in Jan 2021]. It added >200 new ACell users in Q2. Therefore 1 from 3 of these initiatives is now presenting with a far higher execution risk than before. Naturally, investors didn't/haven't take[n] kindly to the news, pushing the IART share price to its 52-week low by last week of trade. However, the reactivity and resulting price distribution was more a continuation of a downtrend that's been in situ since September 2021. Hence why I estimate the stock found and then reversed off the 52-week in such relatively quick succession, as seen in Exhibit 1. Presume that IART has now in fact completed the entire run of this downside move, seen below - the question then turns to whether it can retrace [if any] a good percentage of the gains, and at what speed. Shares have traded back up to the longer-term support level, and with respect to price action, the next price target on the fib is at $52, whereas 50% of the move is ~$61.50. We'd need to see a reversal in the trend indicators shown before as well [on balance volume and momentum] in order to somewhat validate the move, it were to surge towards these levels. There's been heavy mean reversion activity across the period show, and the IART share price is currently retracing back towards the mean, as seen below. Exhibit 2 demonstrates that the current distribution of pricing is also a key zone for IART based on historical data. Exhibit 1. IART 12-month price action - downside move has been in situ since Sep FY21' Investors priced in the CereLink news swiftly and the debate is now centred around the disconnect in fundamentals to share price Question is, is the entire move now completed? Or are we in a period of mean reversion? Long-term trend indicators must also be supportive to indicate a breakout above these levels Note: Daily bars shown with momentum [14] & On balance volume [OBV]. Fibonacci retracement drawn from high of Sep FY21' to low of Sep FY22'; approximately 12 months of price action. (Data: HB Insights; Refinitiv Eikon) Exhibit 2. $49-$50 price levels also appear to be key long-term support levels for IART and it is currently testing this relationship with force at present Data: Refinitiv Eikon Nevertheless, the CereLink issue remains a key overhang for the IART share price looking ahead. The market isn't playing ball any more with even a whisper of negative news being priced in to the downside swiftly and with deep effect. Fundamentals remain unchanged The investment opportunity remains at large in IART, I estimate, based on the fact fundamentals remain relatively unchanged following the decision. Whilst the market has done a good job at recognizing risk and pricing it in, there's a firm case to suggest investors will also recognize the pricing asymmetry this has subsequently caused. The following series of charts helps display the key features in the investment debate with great effect.

Sep 06
Is It Time To Consider Buying Integra LifeSciences Holdings Corporation (NASDAQ:IART)?

Is It Time To Consider Buying Integra LifeSciences Holdings Corporation (NASDAQ:IART)?

Integra LifeSciences Holdings Corporation ( NASDAQ:IART ), is not the largest company out there, but it saw significant...

Aug 31

FDA labels recall of intracranial pressure monitors by Integra as most serious

The U.S. Food and Drug Administration (FDA) on Wednesday classified the recall of several hundred intracranial pressure monitors by Integra LifeSciences (NASDAQ:IART) as the most serious type. Integra (IART) in June recalled 388 CereLink ICP Monitors in the U.S. distributed between June 2021 to May 2022. The CereLink device monitors pressure in brain tissue and the cranium, which is used to track the health of patients with head injuries, stroke and other conditions. IART recalled the CereLink monitors after reports that the device could potentially display incorrect values for a patient's intracranial pressure and show out-of-range readings. The FDA on Wednesday classified the recall as a Class I recall, the most serious type as per its rules. The agency said it was aware of at least 68 medical device reports related to this issue, including reports of patient injury and one patient death. Integra (IART) determined that the death was unrelated to the monitor's malfunction.

Aug 24

Integra Lifesciences voluntarily recalls pressure monitors, lowers revenue, profit guidance

Integra LifeSciences Holdings (NASDAQ:IART) said the U.S. Food and Drug Administration and other regulatory authorities outside the United States, initiated a voluntary global removal of all CereLink intracranial pressure monitors as customers reported that the monitors pressure readings were out of range. As a result of the voluntary action, the company cuts its third quarter and full-year revenue and profit guidance. The company believes that the out-of-range readings were caused by electrical interference from the external environment and/or interference from a component on the circuit board of the monitor. The company said these out-of-range readings have occurred at a low incidence rate and at a limited number of sites, and it had decided to remove all CereLink monitors from the field. The company now expects third quarter revenue to be between $374M to $382M ($387.79M consensus) from prior guidance of $383M to $391M. Q3 Profit to be between $0.69 to $0.73 from earlier guidance of $78 to $0.82. ($0.80 consensus) The company sees full year revenue to be between $1.548B to $1.566B from a range of $1.557B to $1.575B vs consensus estimate of $1.57B.  Full year profit guidance to a range of $3.12 to $3.20 from $3.21 to $3.29 vs consensus estimate of $3.24. (IART) stock is down 4.3%.

Aug 23
Returns At Integra LifeSciences Holdings (NASDAQ:IART) Appear To Be Weighed Down

Returns At Integra LifeSciences Holdings (NASDAQ:IART) Appear To Be Weighed Down

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'll...

Shareholder Returns

IARTUS Medical EquipmentUS Market
7D-1.5%-2.2%-2.0%
1Y-38.7%-30.1%-20.3%

Return vs Industry: IART underperformed the US Medical Equipment industry which returned -31.4% over the past year.

Return vs Market: IART underperformed the US Market which returned -22.1% over the past year.

Price Volatility

Is IART's price volatile compared to industry and market?
IART volatility
IART Average Weekly Movement3.8%
Medical Equipment Industry Average Movement8.6%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: IART is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: IART's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19893,800Jan De Wittehttps://www.integralife.com

Integra LifeSciences Holdings Corporation develops, manufactures, and markets surgical implants and medical instruments for use in neurosurgery, extremity reconstruction, and general surgery. It operates in two segments, Codman Specialty Surgical and Tissue Technologies. The company offers neurosurgery and neuro critical care products, including tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, intracranial monitoring equipment, and cranial stabilization equipment; and surgical headlamps and instrumentation, as well as asset management software and support, and after-market services.

Integra LifeSciences Holdings Corporation Fundamentals Summary

How do Integra LifeSciences Holdings's earnings and revenue compare to its market cap?
IART fundamental statistics
Market CapUS$3.61b
Earnings (TTM)US$166.30m
Revenue (TTM)US$1.57b

21.7x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IART income statement (TTM)
RevenueUS$1.57b
Cost of RevenueUS$570.60m
Gross ProfitUS$996.24m
Other ExpensesUS$829.94m
EarningsUS$166.30m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.99
Gross Margin63.58%
Net Profit Margin10.61%
Debt/Equity Ratio93.4%

How did IART perform over the long term?

See historical performance and comparison