NuVasive, Inc.

NasdaqGS:NUVA Stock Report

Market Cap: US$2.1b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

NuVasive Past Earnings Performance

Past criteria checks 1/6

NuVasive's earnings have been declining at an average annual rate of -33%, while the Medical Equipment industry saw earnings growing at 9.1% annually. Revenues have been growing at an average rate of 2.1% per year. NuVasive's return on equity is 3.2%, and it has net margins of 2.3%.

Key information

-33.00%

Earnings growth rate

-33.18%

EPS growth rate

Medical Equipment Industry Growth8.90%
Revenue growth rate2.10%
Return on equity3.19%
Net Margin2.32%
Last Earnings Update30 Jun 2023

Recent past performance updates

Recent updates

Analysis Article • Apr 18

Is NuVasive (NASDAQ:NUVA) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Analysis Article • Jan 24

What Does NuVasive, Inc.'s (NASDAQ:NUVA) Share Price Indicate?

While NuVasive, Inc. ( NASDAQ:NUVA ) might not be the most widely known stock at the moment, it saw a significant share...
Analysis Article • Dec 31

NuVasive, Inc.'s (NASDAQ:NUVA) Intrinsic Value Is Potentially 48% Above Its Share Price

Key Insights NuVasive's estimated fair value is US$60.8 based on 2 Stage Free Cash Flow to Equity Current share price...
Analysis Article • Dec 05

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

When it comes to investing, there are some useful financial metrics that can warn us when a business is potentially in...
Analysis Article • Nov 13

These 4 Measures Indicate That NuVasive (NASDAQ:NUVA) Is Using Debt Reasonably Well

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Analysis Article • Sep 22

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...
Analysis Article • Sep 01

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...
Seeking Alpha • 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).
Analysis Article • Aug 11

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...
Seeking Alpha • Aug 03

NuVasive Non-GAAP EPS of $0.47 misses by $0.09, revenue of $310.5M beats by $4.12M

NuVasive press release (NASDAQ:NUVA): Q2 Non-GAAP EPS of $0.47 misses by $0.09. Revenue of $310.5M (+5.3% Y/Y) beats by $4.12M.
Seeking Alpha • Jun 13

NuVasive: Industry Tailwinds More Than Fairly Priced

NuVasive has solid underpinnings as a potentially defensive play, with strengthening platform economics. Industry tailwinds also apply to the company, although it needs an above market growth pattern to adequately reward shareholders. We've priced NUVA at $49–$53 noting the stock may be fully priced at its current levels.
Analysis Article • Jun 01

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

In this article we are going to estimate the intrinsic value of NuVasive, Inc. ( NASDAQ:NUVA ) by estimating the...
Analysis Article • May 11

Investors Could Be Concerned With NuVasive's (NASDAQ:NUVA) Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Typically, we'll want...
Analysis Article • Apr 20

NuVasive (NASDAQ:NUVA) Has A Pretty Healthy Balance Sheet

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Analysis Article • Mar 30

At US$56.32, Is NuVasive, Inc. (NASDAQ:NUVA) Worth Looking At Closely?

NuVasive, Inc. ( NASDAQ:NUVA ), is not the largest company out there, but it saw a double-digit share price rise of...
Seeking Alpha • Mar 01

NuVasive's Turnaround Story Needs A Boost From Better Results

NuVasive managed a modest beat in Q4'21 and the initial guide for 2022 was okay, but the company needs to start showing clear evidence of market share regrowth. The core technology platform, including X360, is sound and newer opportunities like Simplify and Pulse can add meaningfully to revenue growth, but execution is a key unknown. Weak margins have challenged NuVasive for years, and this remains an important driver of earnings/cash flow and sentiment. NuVasive looks undervalued, but sentiment won't shift until the share losses reverse to share gains and there's evidence of positive operating leverage.
Analysis Article • Dec 28

Investors Could Be Concerned With NuVasive's (NASDAQ:NUVA) Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...
Analysis Article • Dec 02

Should You Think About Buying NuVasive, Inc. (NASDAQ:NUVA) Now?

NuVasive, Inc. ( NASDAQ:NUVA ), might not be a large cap stock, but it saw significant share price movement during...
Analysis Article • Nov 11

NuVasive (NASDAQ:NUVA) Has A Pretty Healthy Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...
Analysis Article • Oct 21

NuVasive, Inc. (NASDAQ:NUVA) Shares Could Be 32% Below Their Intrinsic Value Estimate

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of NuVasive, Inc...
Analysis Article • Sep 29

Be Wary Of NuVasive (NASDAQ:NUVA) And Its Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want...
Analysis Article • Aug 18

At US$59.79, Is It Time To Put NuVasive, Inc. (NASDAQ:NUVA) On Your Watch List?

NuVasive, Inc. ( NASDAQ:NUVA ), is not the largest company out there, but it saw significant share price movement...
Seeking Alpha • Aug 12

NuVasive Still Getting No Love With COVID-19 And Competitive Worries

NuVasive produced its second straight quarter with a double-digit operating income beat, but in-line guidance and fears of renewed COVID-19 lockdowns seem to be weighing on the shares. New product innovation appears to be driving revenue growth, with Modulus and the cervical portfolio performing well, and Pulse about to launch. COVID-19 remains a clear short-term risk, but I believe NuVasive's opportunity to regain share and drive operating leverage is undervalued today.
Analysis Article • Jul 27

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

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Analysis Article • Jun 17

Are Investors Undervaluing NuVasive, Inc. (NASDAQ:NUVA) By 21%?

Today we will run through one way of estimating the intrinsic value of NuVasive, Inc. ( NASDAQ:NUVA ) by taking the...
Analysis Article • May 30

Some Investors May Be Worried About NuVasive's (NASDAQ:NUVA) Returns On Capital

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
Analysis Article • May 12

Why We Think NuVasive, Inc.'s (NASDAQ:NUVA) CEO Compensation Is Not Excessive At All

The share price of NuVasive, Inc. ( NASDAQ:NUVA ) has increased significantly over the past few years. However, the...
Analysis Article • Mar 30

Is NuVasive (NASDAQ:NUVA) Using Too Much Debt?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Analysis Article • Mar 09

Is Now The Time To Look At Buying NuVasive, Inc. (NASDAQ:NUVA)?

NuVasive, Inc. ( NASDAQ:NUVA ), might not be a large cap stock, but it received a lot of attention from a substantial...
Analysis Article • Feb 16

Need To Know: NuVasive, Inc. (NASDAQ:NUVA) Insiders Have Been Buying Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On...
Analysis Article • Jan 26

A Look At The Fair Value Of NuVasive, Inc. (NASDAQ:NUVA)

How far off is NuVasive, Inc. ( NASDAQ:NUVA ) from its intrinsic value? Using the most recent financial data, we'll...
Analysis Article • Jan 05

What Type Of Returns Would NuVasive's(NASDAQ:NUVA) Shareholders Have Earned If They Purchased Their SharesYear Ago?

NuVasive, Inc. ( NASDAQ:NUVA ) shareholders should be happy to see the share price up 11% in the last month. But in...

Revenue & Expenses Breakdown

How NuVasive makes and spends money. Based on latest reported earnings, on an LTM basis.

Earnings and Revenue History

NasdaqGS:NUVA Revenue, expenses and earnings (USD Millions)
DateRevenueEarningsG+A ExpensesR&D Expenses
30 Jun 231,22628653102
31 Mar 231,21920650100
31 Dec 221,2024063499
30 Sep 221,199-2063698
30 Jun 221,174-4062898
31 Mar 221,159-3762494
31 Dec 211,139-6461093
30 Sep 211,129-2659489
30 Jun 211,153259486
31 Mar 211,062-5056384
31 Dec 201,051-3754780
30 Sep 201,069-956377
30 Jun 201,065-457075
31 Mar 201,1536159673
31 Dec 191,1686561172
30 Sep 191,1464859370
30 Jun 191,1275258167
31 Mar 191,1164957465
31 Dec 181,1021257662
30 Sep 181,0852456857
30 Jun 181,0604155355
31 Mar 181,0384254653
31 Dec 171,0278254050
30 Sep 171,0276454751
30 Jun 171,0193555450
31 Mar 179965354950
31 Dec 169623753448
30 Sep 169064251044
30 Jun 168675148940
31 Mar 168343146837
31 Dec 158116645736
30 Sep 158006245437
30 Jun 157904745737
31 Mar 157773346038
31 Dec 14762-1745737
30 Sep 14749-1845736
30 Jun 14728-944634
31 Mar 14703-1143332
31 Dec 13685842032
30 Sep 13660-140333
30 Jun 13639-638933
31 Mar 13628337735
31 Dec 12620337235
30 Sep 12605-436834

Quality Earnings: NUVA has a large one-off loss of $16.9M impacting its last 12 months of financial results to 30th June, 2023.

Growing Profit Margin: NUVA became profitable in the past.

Free Cash Flow vs Earnings Analysis

Past Earnings Growth Analysis

Earnings Trend: NUVA's earnings have declined by 33% per year over the past 5 years.

Accelerating Growth: NUVA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NUVA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Medical Equipment industry (3.7%).

Return on Equity

High ROE: NUVA's Return on Equity (3.2%) is considered low.

Return on Assets

Return on Capital Employed

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/09/02 14:23
End of Day Share Price 2023/08/31 00:00
Earnings2023/06/30
Annual Earnings2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

NuVasive, Inc. is covered by 28 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullArgus Research Company
Jeffrey JohnsonBaird
Adam FeinsteinBarclays