Invacare (NYSE:IVC) - Share price, News & Analysis

Q: What is the Fair Price of IVC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

IVC ($1.36) is trading below our estimate of [[fair value]] ($9.56)

IVC fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

IVC Stock Overview

Invacare Corporation, together with its subsidiaries, designs, manufactures, distributes, and exports medical equipment for use in home health care, retail, and extended care markets worldwide.

Rewards

Trading at 85.8% below our estimate of its fair value

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Volatile share price over the past 3 months

Does not have a meaningful market cap ($48M)

Invacare Competitors

Eargo

NasdaqGS:EAR

US$32.2m

Sonendo

NYSE:SONX

US$45.7m

ReWalk Robotics

NasdaqCM:RWLK

US$57.6m

Trinity Biotech

NasdaqGS:TRIB

US$45.8m

Price History & Performance

Summary of all time highs, changes and price drops for Invacare
Historical stock prices
Current Share Price	US$1.36
52 Week High	US$8.83
52 Week Low	US$0.80
Beta	0.85
1 Month Change	44.68%
3 Month Change	-3.55%
1 Year Change	-83.15%
3 Year Change	-73.75%
5 Year Change	-89.62%
Change since IPO	-48.80%

Shareholder Returns

	IVC	US Medical Equipment	US Market
7D	-5.6%	3.4%	1.6%
1Y	-83.1%	-24.5%	-20.8%

Return vs Industry: IVC underperformed the US Medical Equipment industry which returned -25.7% over the past year.

Return vs Market: IVC underperformed the US Market which returned -20.4% over the past year.

Price Volatility

Is IVC's price volatile compared to industry and market?
IVC volatility
IVC Average Weekly Movement	14.0%
Medical Equipment Industry Average Movement	10.4%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: IVC is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: IVC's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
1885	3,000	Matt Monaghan	https://www.invacare.com

Invacare Corporation, together with its subsidiaries, designs, manufactures, distributes, and exports medical equipment for use in home health care, retail, and extended care markets worldwide. The company offers mobility and seating products, such as power wheelchairs under the Invacare TDX brand; custom manual wheelchairs under the Invacare, Invacare Top End, and Küschall brand names; and seating and positioning products under the Invacare brand, as well as custom molded seat modules under the PinDot brand. It also provides lifestyle products, including pressure relieving overlays and mattress systems under the Invacare Softform and microAIR brands; safe patient handling products under the Birdie, Evo, and ISA brands; residential and institutional care beds and bed accessories, and manual wheelchairs under the Invacare brand name; and personal care products.

Invacare Fundamentals Summary

How do Invacare's earnings and revenue compare to its market cap?
IVC fundamental statistics
Market Cap	US$48.48m
Earnings (TTM)	-US$55.72m
Revenue (TTM)	US$877.24m

0.1x

P/S Ratio

-0.9x

P/E Ratio

Is IVC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IVC income statement (TTM)
Revenue	US$877.24m
Cost of Revenue	US$645.05m
Gross Profit	US$232.20m
Other Expenses	US$287.91m
Earnings	-US$55.72m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-1.56
Gross Margin	26.47%
Net Profit Margin	-6.35%
Debt/Equity Ratio	164.7%

How did IVC perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is IVC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IVC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for IVC. This is calculated by dividing IVC's market cap by their current preferred multiple.
What is IVC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$48.48m

IVC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	24.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does IVC's PS Ratio compare to its peers?

IVC PS Ratio vs Peers

The above table shows the PS ratio for IVC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	3.5x
EAR Eargo	1.7x	15.8%	US$32.2m
SONX Sonendo	1.3x	36.2%	US$45.7m
RWLK ReWalk Robotics	10.4x	37.2%	US$57.6m
TRIB Trinity Biotech	0.5x	0.6%	US$45.8m
IVC Invacare	0.06x	2.5%	US$48.5m

Forward PS

Price-To-Sales vs Peers: IVC is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (3.5x).

Price to Earnings Ratio vs Industry

How does IVC's PE Ratio compare vs other companies in the US Medical Equipment Industry?

Price-To-Sales vs Industry: IVC is good value based on its Price-To-Sales Ratio (0.1x) compared to the US Medical Equipment industry average (3.8x)

Price to Sales Ratio vs Fair Ratio

What is IVC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IVC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.06x
Fair PS Ratio	0.6x

Price-To-Sales vs Fair Ratio: IVC is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).

Share Price vs Fair Value

What is the Fair Price of IVC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IVC ($1.36) is trading below our estimate of fair value ($9.56)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Invacare forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

65.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: IVC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: IVC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: IVC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: IVC's revenue (2.5% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: IVC's revenue (2.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if IVC's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Invacare performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

10.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IVC is currently unprofitable.

Growing Profit Margin: IVC is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: IVC is unprofitable, but has reduced losses over the past 5 years at a rate of 10.5% per year.

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

Earnings vs Industry: IVC is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (12.9%).

Return on Equity

High ROE: IVC has a negative Return on Equity (-29.43%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Invacare's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: IVC's short term assets ($350.5M) exceed its short term liabilities ($233.2M).

Long Term Liabilities: IVC's short term assets ($350.5M) do not cover its long term liabilities ($444.8M).

Debt to Equity History and Analysis

Debt Level: IVC's net debt to equity ratio (137.1%) is considered high.

Reducing Debt: IVC's debt to equity ratio has increased from 36.9% to 164.7% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: IVC has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if IVC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

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Dividend

What is Invacare current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate IVC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IVC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IVC's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: IVC is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as IVC has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure

CEO

Matt Monaghan (53 yo)

7.17yrs

Tenure

US$5,993,236

Compensation

Mr. Matthew E. Monaghan, also known as Matt, has been the Chief Executive Officer and President of Invacare Corporation since April 01, 2015 and has been its Chairman of the Board since May 14, 2015. Mr. M...

CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD5.99M) is above average for companies of similar size in the US market ($USD759.63K).

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

Leadership Team

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

Board Members

Experienced Board: IVC's board of directors are considered experienced (4.8 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31