NasdaqGS:LIVN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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: LIVN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.5%

LIVN

1.8%

US Medical Equipment

0.5%

US Market


1 Year Return

-19.7%

LIVN

23.3%

US Medical Equipment

16.1%

US Market

Return vs Industry: LIVN underperformed the US Medical Equipment industry which returned 23.3% over the past year.

Return vs Market: LIVN underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

LIVNIndustryMarket
7 Day2.5%1.8%0.5%
30 Day8.9%4.3%3.9%
90 Day4.6%2.8%6.6%
1 Year-19.7%-19.7%24.3%23.3%18.7%16.1%
3 Year79.3%79.3%88.6%82.9%47.2%37.7%
5 Year46.8%46.8%116.3%92.9%61.5%43.7%

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

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: LIVN ($78.92) is trading below our estimate of fair value ($182.81)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LIVN is good value based on its PB Ratio (2.6x) compared to the US Medical Equipment industry average (3.8x).


Next Steps

Future Growth

How is LivaNova forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

45.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LIVN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

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

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

Revenue vs Market: LIVN's revenue (5.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LIVN's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LIVN'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: LIVN has large one-off items impacting its financial results.

Growing Profit Margin: LIVN is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: LIVN is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (28.3%).


Return on Equity

High ROE: LIVN 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: LIVN's short term assets ($546.8M) exceeds its short term liabilities ($469.2M)

Long Term Liabilities: LIVN's short term assets ($546.8M) exceeds its long term liabilities (545.5M)


Debt to Equity History and Analysis

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

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

Debt Coverage: LIVN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: LIVN is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

What is the CEO of LivaNova's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Damien McDonald (54yo)

2.8yrs

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 ($USD7.11M) is above average for companies of similar size in the US market ($USD5.09M).

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


Management Age and Tenure

2.7yrs

Average Tenure

55yo

Average Age

Experienced Management: LIVN's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

62yo

Average Age

Experienced Board: LIVN's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$91,82210 May 19
Alfred Novak
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,300
Max PriceUS$70.63
BuyUS$72,80606 May 19
William Kozy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$72.81
SellUS$48,58013 Dec 18
Alfred Novak
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$97.16

Ownership Breakdown

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


Management Team

  • Keyna Skeffington (56yo)

    General Counsel & Senior VP

    • Tenure: 2.4yrs
    • Compensation: US$1.62m
  • Matt Dodds

    Senior Vice President of Corporate Development

    • Tenure: 1.8yrs
  • Douglas Manko (45yo)

    Chief Accounting Officer

    • Tenure: 3.3yrs
    • Compensation: US$885.49k
  • Ed Andrle (62yo)

    General Manager of Neuromodulation

    • Tenure: 4.1yrs
  • Pritpal Shinmar (62yo)

    Senior Vice President of Global Market Access

    • Tenure: 4.1yrs
  • Damien McDonald (54yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$7.11m
  • Thad Huston (49yo)

    Chief Financial Officer

    • Tenure: 2.5yrs
    • Compensation: US$2.97m
  • Melissa Farina

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Trui Hebbelinck

    Chief Human Resources Officer

    • Tenure: 0.7yrs
  • Deanna Wilke

    Director of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Hugh Morrison (72yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$256.00k
  • Art Rosenthal (72yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$240.00k
  • Bill Kozy (67yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$173.45k
  • Sharon O'Kane (51yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$235.00k
  • Al Novak (71yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$243.00k
  • Stacy Seng (55yo)

    Independent Director

    • Tenure: 0.4yrs
  • Andrea Saia (61yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: US$235.00k
  • Dan Moore (58yo)

    Chairman

    • Tenure: 4.2yrs
    • Compensation: US$369.94k
  • Francesco Bianchi (63yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$243.00k
  • Damien McDonald (54yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$7.11m

Company Information

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


Key Information

  • Name: LivaNova PLC
  • Ticker: LIVN
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$3.820b
  • 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 segmen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 00:32
End of Day Share Price2019/11/20 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.