company background image
NUVA

NuVasive NasdaqGS:NUVA Stock Report

Last Price

US$44.44

Market Cap

US$2.3b

7D

-0.4%

1Y

-28.5%

Updated

28 Sep, 2022

Data

Company Financials +
NUVA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends0/6

NUVA Stock Overview

NuVasive, Inc., a medical technology company, develops, manufactures, and sells procedural solutions for spine surgery.

NuVasive, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NuVasive
Historical stock prices
Current Share PriceUS$44.44
52 Week HighUS$63.46
52 Week LowUS$41.33
Beta1.18
1 Month Change2.02%
3 Month Change-9.60%
1 Year Change-28.53%
3 Year Change-28.01%
5 Year Change-20.26%
Change since IPO289.83%

Recent News & Updates

Sep 22
Calculating The Intrinsic Value Of NuVasive, Inc. (NASDAQ:NUVA)

Calculating The Intrinsic Value Of NuVasive, Inc. (NASDAQ:NUVA)

Does the September share price for NuVasive, Inc. ( NASDAQ:NUVA ) reflect what it's really worth? Today, we will...

Sep 01
Capital Allocation Trends At NuVasive (NASDAQ:NUVA) Aren't Ideal

Capital Allocation Trends At NuVasive (NASDAQ:NUVA) Aren't Ideal

When we're researching a company, it's sometimes hard to find the warning signs, but there are some financial metrics...

Aug 17

NuVasive Likely Undervalued, But It's Hard To Find Catalysts

NuVasive modestly exceeded topline expectations for Q2, but core U.S. growth is still soft, particularly when factoring in the above-average growth of the cervical disc business. In a challenging spine care market, NuVasive looks at risk of "drifting", with neither the above-average revenue growth nor strong core margins that med-tech investors often seek. NuVasive isn't beyond hope - the cervical franchise looks strong, Pulse is still a long-term opportunity, and NUVA still has good overall share, but it needs to be more dynamic. The shares are undervalued below the mid-$60s, but the stock badly needs a catalyst to get investors excited about the name again. Valuation alone doesn't move stocks - expensive stocks don't fall just because they're expensive, and cheap stocks don't rise just because investors suddenly decide they're too cheap. In most cases, it requires some sort of driver or catalyst to get investors to reconsider a name, and that's a challenge for NuVasive (NUVA) today. The shares of this spine-focused medical device company do look undervalued today, but they've looked undervalued for a while. Although the shares have slightly outperformed the broader medical device space since my last update and outperformed names like Alphatec (ATEC) and SeaSpine (SPNE) while recently starting to lag Globus (GMED), they still haven't done anything to celebrate over the last five years. NuVasive is salvageable, but the company's management needs to offer more than what is apparent today - investors need to have a reason to believe in growth drivers beyond the cervical portfolio and that long-awaited margin improvement will actually materialize. While this could happen, there's a real risk that "okay, but not great" growth and margins keep a lid on the share price performance at NuVasive. Second Quarter Results - A Little Better On The Topline, But Not Really Great Overall NuVasive's second quarter was, at best, "mixed" and not really the sort of quarter that's going to shift sentiment in a meaningfully positive way. Revenue rose 8% and beat expectations by close to 2%. U.S. spine ("Hardware") revenue rose 3% on improved case volumes, and that was better than the declines at Johnson & Johnson (JNJ) and Stryker (SYK) and on pace with Globus, but with the cervical portfolio growing more than 20%, there's still weakness in the core portfolio. U.S. Surgical revenue rose 6%, with improved Pulse sales offsetting a year-over-year decline in biologics, while international sales rose more than 20% in constant currency. Gross margin declined 120bp to 72.4%, missing by 80bp, and the med-tech sector is still seeing noticeable negative impacts from supply chain issues (components, shipping, et al.). Operating income declined 1%, missing by 3%, and operating margin fell 80bp to 13.1%, missing by more than 30bp. Management basically held the line on guidance, though hitting the full year target of 9% to 11% constant currency growth is going to require acceleration from here. Ongoing post-pandemic normalization and some new product introductions can support that acceleration, but the overall U.S. spine market isn't looking especially robust right now. Waiting For Something To Disrupt The Business (In A Good Way) It's been a long, frustrating wait for real momentum in NuVasive's business, and it does explain, at least in part, why these shares have been a laggard over the longer term (five-year, 10-year, and 15-year comparisons to the sector). Revenue growth over the last 15 years hasn't been bad (around 15% a year), but that growth has slowed considerably in the last five years (to the low single digits). Salesforce defections have been a recurrent problem over the years, and relative to companies like Globus, I think you can argue that NuVasive has under-innovated, and that's taking a toll on core franchises like the lateral interbody fusion business. The company was also certainly slow to recognize the importance of robotics, and with the Pulse robotic system no longer expected to achieve first-in-human use this year, that timeline is slipping further. NuVasive has also struggled to hit even its revised operating margin targets. Where the company once talked about the possibility of 25% or better operating margins (some rivals have achieved high-20%s for margins), more recently the goal has been on the order of 20%, but the company is still well short of that - operating margin was just over 13% in the second quarter, and the most bullish sell-side projections I've seen don't call for 20% margins at any point over the next five years. On the positive side, the company's cervical disc business is growing well, and I still see strong growth potential here, as NuVasive's discs are the only ones clinically proven to produce better outcomes than fusion surgery. I also believe the full Pulse platform (not just the robotic aspect, but the planning, neuromonitoring, imaging, and navigation capabilities) can be a significant growth driver, with an addressable market opportunity of around $1.5B (against expected total revenue of around $1.2B in FY'22).

Aug 11
Does NuVasive (NASDAQ:NUVA) Have A Healthy Balance Sheet?

Does NuVasive (NASDAQ:NUVA) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

NUVAUS Medical EquipmentUS Market
7D-0.4%-2.2%-2.0%
1Y-28.5%-30.1%-20.3%

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

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

Price Volatility

Is NUVA's price volatile compared to industry and market?
NUVA volatility
NUVA Average Weekly Movement5.0%
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: NUVA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NUVA's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19972,900Chris Barryhttps://www.nuvasive.com

NuVasive, Inc., a medical technology company, develops, manufactures, and sells procedural solutions for spine surgery. It provides surgical access instruments, including Maxcess integrated split-blade retractor system that enable less-invasive surgical techniques by minimizing soft tissue disruption during spine surgery; specialized spinal implants to advance spinal fusion by enhancing the osseointegration and biomechanical properties of implant materials, including porous titanium and porous polyetheretherketone; and fixation system that facilitates the preservation and restoration of patient alignment. The company also offers cervical total disc replacement technology for cervical spinal fusion surgery; neuromonitoring systems, which use proprietary software-driven nerve detection and avoidance technology, and its intraoperative neuromonitoring services and support; and Pulse platform, a software ecosystem that integrates multiple hardware technologies into a single, condensed footprint in the operating room.

NuVasive, Inc. Fundamentals Summary

How do NuVasive's earnings and revenue compare to its market cap?
NUVA fundamental statistics
Market CapUS$2.31b
Earnings (TTM)-US$40.07m
Revenue (TTM)US$1.17b

2.0x

P/S Ratio

-57.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NUVA income statement (TTM)
RevenueUS$1.17b
Cost of RevenueUS$337.04m
Gross ProfitUS$837.08m
Other ExpensesUS$877.15m
Earnings-US$40.07m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.77
Gross Margin71.29%
Net Profit Margin-3.41%
Debt/Equity Ratio107.5%

How did NUVA perform over the long term?

See historical performance and comparison