Stock Analysis

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

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NasdaqGS:IART
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Integra LifeSciences Holdings Corporation (NASDAQ:IART), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$62.64 and falling to the lows of US$47.34. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Integra LifeSciences Holdings' current trading price of US$47.34 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Integra LifeSciences Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Integra LifeSciences Holdings

What's The Opportunity In Integra LifeSciences Holdings?

Great news for investors – Integra LifeSciences Holdings is still trading at a fairly cheap price according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 23.77x is currently well-below the industry average of 33.46x, meaning that it is trading at a cheaper price relative to its peers. What’s more interesting is that, Integra LifeSciences Holdings’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Integra LifeSciences Holdings?

earnings-and-revenue-growth
NasdaqGS:IART Earnings and Revenue Growth September 6th 2022

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by a double-digit 16% over the next couple of years, the outlook is positive for Integra LifeSciences Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? Since IART is currently trading below the industry PE ratio, it may be a great time to increase your holdings in the stock. With an optimistic profit outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on IART for a while, now might be the time to make a leap. Its buoyant future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy IART. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example, we've found that Integra LifeSciences Holdings has 3 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

If you are no longer interested in Integra LifeSciences Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

What are the risks and opportunities for Integra LifeSciences Holdings?

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

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Rewards

  • Trading at 21.7% below our estimate of its fair value

  • Earnings are forecast to grow 9.67% per year

Risks

  • Debt is not well covered by operating cash flow

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Share Price

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Further research on
Integra LifeSciences Holdings

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About NasdaqGS:IART

Integra LifeSciences Holdings

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

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation4
Future Growth1
Past Performance2
Financial Health3
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Good value with mediocre balance sheet.