NasdaqGS:IART

Stock Analysis Report

Integra LifeSciences Holdings

Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Integra LifeSciences Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

14.9%

IART

11.3%

US Medical Equipment

5.3%

US Market


1 Year Return

-18.5%

IART

-4.5%

US Medical Equipment

-10.7%

US Market

Return vs Industry: IART underperformed the US Medical Equipment industry which returned -4.5% over the past year.

Return vs Market: IART underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

IARTIndustryMarket
7 Day14.9%11.3%5.3%
30 Day-15.2%-8.5%-13.6%
90 Day-23.0%-15.6%-19.8%
1 Year-18.5%-18.5%-3.8%-4.5%-8.9%-10.7%
3 Year8.7%8.7%47.0%43.0%15.5%8.0%
5 Year60.8%45.4%78.8%60.2%35.2%20.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Integra LifeSciences Holdings undervalued compared to its fair value and its price relative to the market?

32.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IART ($44.58) is trading below our estimate of fair value ($65.85)

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


Price To Earnings Ratio

PE vs Industry: IART is poor value based on its PE Ratio (76x) compared to the Medical Equipment industry average (39x).

PE vs Market: IART is poor value based on its PE Ratio (76x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: IART is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: IART is good value based on its PB Ratio (2.7x) compared to the US Medical Equipment industry average (3x).


Next Steps

Future Growth

How is Integra LifeSciences Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

36.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IART's forecast earnings growth (36.3% per year) is above the savings rate (1.7%).

Earnings vs Market: IART's earnings (36.3% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IART's revenue (4.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: IART's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IART's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has Integra LifeSciences Holdings performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IART has a large one-off loss of $161.6M impacting its December 31 2019 financial results.

Growing Profit Margin: IART's current net profit margins (3.3%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: IART's earnings have grown by 19.8% per year over the past 5 years.

Accelerating Growth: IART's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IART had negative earnings growth (-17.4%) over the past year, making it difficult to compare to the Medical Equipment industry average (1%).


Return on Equity

High ROE: IART's Return on Equity (3.5%) is considered low.


Next Steps

Financial Health

How is Integra LifeSciences Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: IART's short term assets ($858.2M) exceed its short term liabilities ($331.3M).

Long Term Liabilities: IART's short term assets ($858.2M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: IART's debt to equity ratio (98.3%) is considered high.

Reducing Debt: IART's debt to equity ratio has increased from 89.6% to 98.3% over the past 5 years.

Debt Coverage: IART's debt is not well covered by operating cash flow (16.6%).

Interest Coverage: IART's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet

Inventory Level: IART has a high level of physical assets or inventory.

Debt Coverage by Assets: IART's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Integra LifeSciences Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate IART'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 IART's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IART'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 IART's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Pete Arduini (54yo)

8.25s

Tenure

US$7,647,812

Compensation

Mr. Peter J. Arduini, also known as Pete, has been Chief Executive Officer and President at Derma Sciences, Inc. since February 2017. Mr. Arduini has been the Chief Executive Officer of Integra LifeScience ...


CEO Compensation Analysis

Compensation vs Market: Pete's total compensation ($USD7.65M) is above average for companies of similar size in the US market ($USD5.53M).

Compensation vs Earnings: Pete's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Arduini
President8.25yrsUS$7.65m0.26% $9.7m
Glenn Coleman
COO & Corporate VP of International0.83yrUS$2.29m0.060% $2.3m
Eric Schwartz
Corporate VP1.42yrsUS$1.14m0.039% $1.5m
Daniel Reuvers
Corporate VP & President of Specialty Surgical Solutions3.33yrsUS$1.82m0.051% $1.9m
Robert Davis
Corporate VP and President of Orthopedics & Tissue Technologies7.33yrsUS$1.37m0.053% $2.0m
Richard Caruso
Founder and Chairman Emeritus2.92yrsUS$37.50k0.16% $6.0m
Carrie Anderson
Corporate VP0.83yrno data0.043% $1.6m
Jeffrey Mosebrook
VP, Principal Accounting Officer & Corporate Controller2.5yrsno data0.0094% $355.3k
Kenneth Burhop
Corporate VP & Chief Scientific Officer6.17yrsno data0.018% $674.4k
William Compton
Chief Information Officer & Senior VPno datano datano data

3.3yrs

Average Tenure

54yo

Average Age

Experienced Management: IART's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Arduini
President8.25yrsUS$7.65m0.26% $9.7m
Richard Caruso
Founder and Chairman Emeritus2.92yrsUS$37.50k0.16% $6.0m
Raymond Murphy
Independent Director11yrsUS$282.58k0.083% $3.1m
Donald Morel
Independent Director6.67yrsUS$270.03k0.052% $2.0m
Christian Schade
Independent Director14.25yrsUS$280.03k0.044% $1.7m
Stuart Essig
Chairman8.25yrsUS$370.07k2.41% $90.8m
Barbara Hill
Presiding Director1.58yrsUS$275.14k0.081% $3.1m
Keith N. Bradley
Independent Director28.25yrsUS$275.08k0.053% $2.0m
Rhonda Ballintyn
Independent Director1.25yrsno data0.012% $436.8k
Lloyd Howell
Independent Director7.08yrsUS$265.08k0.047% $1.8m

7.7yrs

Average Tenure

61.5yo

Average Age

Experienced Board: IART's board of directors are considered experienced (7.7 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 been diluted in the past year, with total shares outstanding growing by 3.4%.


Top Shareholders

Company Information

Integra LifeSciences Holdings Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Integra LifeSciences Holdings Corporation
  • Ticker: IART
  • Exchange: NasdaqGS
  • Founded: 1989
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$3.772b
  • Shares outstanding: 84.44m
  • Website: https://www.integralife.com

Number of Employees


Location

  • Integra LifeSciences Holdings Corporation
  • 1100 Campus Road
  • Princeton
  • New Jersey
  • 8540
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IARTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1995
IL3DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1995
IL3BRSE (Berne Stock Exchange)YesCommon StockCHCHFAug 1995

Biography

Integra LifeSciences Holdings Corporation develops, manufactures, and markets surgical implants and medical instruments for use in neurosurgery, extremity reconstruction, orthopedics, and general surgery. It operates in two segments, Codman Specialty Surgical, and Orthopedics and Tissue Technologies. The company offers neurosurgery and neuro critical care products, including tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, hydrocephalus management systems, intracranial monitoring equipment, and cranial stabilization equipment; and surgical headlamps and instrumentation, as well as asset management software and support, and after-market services. It also sells approximately 40,000 instrument patterns, and surgical and lighting products to hospitals and surgery centers, as well as dental, podiatry, and veterinary offices. In addition, the company provides regenerative technology products for the treatment of acute and chronic wounds; and surgical tissue repair products for hernia repair, peripheral nerve repair and protection, and tendon repair. Further, it sells hardware products, such as bone and joint fixation, and joint replacement devices; and implants and instruments, which provide for the orthopedic reconstruction of bone in the hand, wrist, elbow, and shoulder, as well as the foot, ankle, and leg below the knee in the extremity bone and joint reconstruction procedures. The company offers its products directly through various sales forces and other distribution channels to the hospitals, integrated health networks, group purchasing organizations, clinicians, surgery centers, and health care providers in the United States, Europe, Asia Pacific, and internationally. Integra LifeSciences Holdings Corporation was founded in 1989 and is headquartered in Princeton, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 05:28
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.