One-glance verdict
Undervalued
$121.80 our estimate vs market $78.51
Wall Street consensus: $89.10 (-26.8% lower than our fair-value estimate)
36% below our estimate, below the bear case
Fundamentals snapshot
LivaNova PLC
LIVN · NMS · Healthcare · Medical Devices
Current price
$78.51
52-week range
$48.82 - $85.76
Market cap
$4.31B
Balance sheet
Healthy
4.05x Stretched
Net cash $164.67M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 6.0% last year.
- Reward Returns 15.4% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 8/10 years.
- Risk Insider ownership is only 0.4% (peer median: 1.2%).
What this company does
LivaNova PLC
LivaNova is a medical technology company that creates devices for complex health problems in two main areas. It generates most of its revenue (the total money a company brings in from sales) from products used in heart surgery, like heart-lung machines, and from implantable devices that stimulate nerves to treat conditions such as severe epilepsy. Because these products are used in critical medical procedures, their effectiveness and adoption by hospitals are key to the company's success.
How the company got here
LivaNova was formed in 2015 through the merger of two companies with deep roots in medical technology: Sorin, an Italian company specializing in cardiovascular devices, and Cyberonics, a U.S. company focused on nerve stimulation. This combination brought together expertise in both heart-related surgeries and neurological treatments. Since the merger, LivaNova has focused its strategy by selling off certain business lines, like its cardiac rhythm management and heart valve businesses, to concentrate on its core strengths. The company aims to be a leader in specific, specialized areas of the medical device market rather than competing across dozens of categories.
What it actually does
LivaNova is a medical technology company that creates and sells devices used in hospitals for complex heart surgeries and to treat certain neurological conditions. Think of them as providing critical tools that surgeons and specialists use to save or improve lives during high-stakes procedures. Their products are used in operating rooms and intensive care units around the world. The company sells its devices and related services directly to hospitals and other healthcare providers.
Cardiopulmonary
This is a major part of LivaNova's business and provides essential equipment for open-heart surgery. Its main products are heart-lung machines, which temporarily take over the function of a patient's heart and lungs during an operation, and oxygenators, which add oxygen to the blood. Hospitals and surgical teams are the customers, buying both the large machines and the disposable items like tubing and cannulae (specialized tubes for moving fluids) that are used for each procedure. This segment provides a steady business because every surgery requires new disposable products.
Neuromodulation
This segment focuses on devices that use electrical stimulation to treat medical conditions. Its primary product is the VNS Therapy™ System, an implantable device that stimulates the vagus nerve to help control seizures in patients with drug-resistant epilepsy. The system works by sending small electrical pulses to the brain through the vagus nerve. Neurologists and neurosurgeons are the main customers who prescribe and implant these devices for patients whose seizures are not well-managed by medication alone. LivaNova is also exploring the use of this technology for other conditions like difficult-to-treat depression and obstructive sleep apnea.
What management is betting on now
LivaNova's current strategy focuses on strengthening its core businesses while expanding into new, high-growth areas. A major priority is the continued rollout of its new Essenz Perfusion System, a next-generation heart-lung machine, to drive growth in the Cardiopulmonary segment. In Neuromodulation, the company is working to increase the use of its VNS Therapy for epilepsy and is investing heavily in getting its new device for obstructive sleep apnea (a condition where breathing repeatedly stops and starts during sleep) to market. Management is also pursuing approval to use its nerve stimulation technology for difficult-to-treat depression, which could open up a significant new market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$32.85M
FY2024 Q4
$68.30M
FY2025 Q1
$13.18M
FY2025 Q2
$47.77M
FY2025 Q3
$62.18M
FY2025 Q4
$50.16M
FY2026 Q1
$926.00K
FY2026 Q2
$35.04M
Revenue
$390.59M
Net income
$108.57M
Diluted EPS
1.93
Operating cash flow
$66.59M
Free cash flow
$35.04M
Fetching…
Sources
Revenue
$362.26M
Net income
$22.29M
Diluted EPS
0.40
Operating cash flow
$15.22M
Free cash flow
$926.00K
Fetching…
Sources
Revenue
$360.92M
Net income
$30.91M
Diluted EPS
0.57
Operating cash flow
$82.40M
Free cash flow
$50.16M
Fetching…
Sources
Revenue
$357.75M
Net income
$26.78M
Diluted EPS
0.49
Operating cash flow
$85.06M
Free cash flow
$62.18M
Fetching…
Sources
Revenue
$352.52M
Net income
$27.16M
Diluted EPS
0.50
Operating cash flow
$62.92M
Free cash flow
$47.77M
Fetching…
Sources
Revenue
$316.86M
Net income
$-327.32M
Diluted EPS
-6.01
Operating cash flow
$23.97M
Free cash flow
$13.18M
Fetching…
Sources
Revenue
$321.83M
Net income
$55.89M
Diluted EPS
1.04
Operating cash flow
$78.71M
Free cash flow
$68.30M
Fetching…
Sources
Revenue
$318.12M
Net income
$32.95M
Diluted EPS
0.60
Operating cash flow
$50.99M
Free cash flow
$32.85M
Fetching…
Sources
Is it cheap or expensive?
Fair value $121.80 vs current price $78.51
Wall Street consensus is the average analyst price target: $89.10 (-26.8% lower than our fair-value estimate).
Our most-likely fair value is $121.80 a share — about 55.1% above today's price of $78.51, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $164.7M - more cash than debt. Interest coverage 4.0x.
Net debt
$-164.67M
Interest coverage
4.05x
LivaNova PLC's profit covers its interest bill about 4.0 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
LIVN
BASELINE
LivaNova PLC
Total debt $351.95M Interest coverage 4.05x This is the baseline the peer rows are being compared against.
Total debt $29.09M Interest coverage 371.93x +9,093% vs LIVN Carries about 91.9x more debt cushion than LIVN.
Total debt $74.22M Interest coverage -1.61x -100% vs LIVN This peer has almost no interest-payment cushion compared with LIVN.
Total debt $727.35M Interest coverage -4.03x -100% vs LIVN This peer has almost no interest-payment cushion compared with LIVN.
What you should know
The case for and against LIVN
3 Rewards
1 Risk
Rewards
-
Revenue grew 6.0% last year.
-
Returns 15.4% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Insider ownership is only 0.4% (peer median: 1.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.44x
Forward P/E
16.79x
P/B
3.26x
P/S
2.93x
EV/EBITDA
15.99x
PEG ratio
0.93x
Profitability
How much profit each dollar creates
Gross margin
67.7%
Operating margin
13.5%
Net margin
12.8%
ROE
15.4%
ROA
5.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.27x
Current ratio
1.45x
Quick ratio
1.08x
Total debt
$351.95M
Total cash
$516.62M
Growth
How the business has been compounding
Revenue TTM
$1.47B
Revenue 5Y CAGR
7.6%
EPS TTM
3.35
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$249.26M
Free CF TTM
$173.29M
FCF margin
11.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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