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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Integra Lifesciences Holdings Corporation (XNAS:IART) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
IART
Name:
INTEGRA LIFESCIENCES HOLDINGS CORPORATION (XNAS:IART)
Sector:
30.28M
Industry:
Medical Devices
CEO:
Mr. Peter Arduini
Total Employees:
3,800
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -52.47% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF INTEGRA LIFESCIENCES HOLDINGS CORPORATION(IART) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND MEDICAL DEVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
47.34
One Month Price Target:
$47.64
Six Month Price Target :
$49.12
Likely Price in One Year's Time:
Ticker:
$50.9
Likely Trading Range Today Under (Normal Volatility)
$47.16
Price Upper limit ($) :
$47.51
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$45.21
This week:
$42.58
This month :
$37.83
Other Primary facts
Market Cap:
3.90B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
83.50M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
13.75%
-9.03%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$57.22
$52.74
$37.46
$41.94
Medium risk (<10%) entry points
Buy Call
Sell Call
$51.29
Buy Put:
Sell Put:
$50.33
$43.38
$44.35
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
IART
Sharpe Ratio:
-1.04%
Comparison:
IART, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -168.85% lower than the industry
& is -145.75% lower than the market/S&P 500 average
Average Returns/Yield of
IART
Daily returns:
-0.01%
Weekly returns:
-0.07%
Monthly returns:
-0.28%
Yearly returns:
15.36%
Comparison of returns:
Average annual returns/yield (last 3 years) is -121.72% below industry average
Classification:
IART, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.41
Statistical test of Returns:
IART has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.18%
Weekly Volatility:
4.88%
Monthly Volatility:
9.76%
Yearly Volatility:
33.80%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.19%
Volatility in last five trading days has been -91.35% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.49%
Weekly VaR:
-10.05%
Monthly VaR:
-20.10%
How Much Can the price of
IART
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-18%
Worst case (decline):
-69.62%
This translates to price declining to:
$38.85
This translates to price declining to:
$14.38
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
IART is a 41.85% riskier investment compared to the market/S&P 500 & is 21.53% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -30.52% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
IART
Beta in relation to market/S&P 500--1.12
Expected beta in 1 year's time:
0.666
Expected beta in 3 year's time:
0.941
Unlevered (debt free) Beta:
0.613
Beta in relation to Nasdaq (XNAS):
0.431
Beta in relation to all global stocks::
0.571
Beta Comparison & Analysis
Beta of competitors/peers::
1.135
Beta is -1.33% lower than peers
Average Industry Beta:
1.065
Beta is 5.14% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
13.85%
Sustainable growth rate is 6.33% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.142
Alpha is -388.06% below industry average alpha yield
Alpha is -901% below the market average
Analysis of Cost of Capital of
IART
Equity cost of capital:
0.108
Equity cost of capital is 3.59% above industry mean WACC
Unlevered (without debt) cost of capital:
5.93%
Before-tax cost of debt:
2.98%
After-tax cost of debt:
2.35%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.35%
WACC is -9.60% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$18.67
Revenue growth rate per share of (3Y):
2.45
Annual revenue growth rate is -98.81% below industry average
EPS:
$1.84
Expected Annual growth rate of EPS (3Y):
50.18%
Expected future EPS growth rate is 333.27% higher than the Medical Devices industry
Free cash flow (FCF) per share:
$3.29
-
-
Debt per share
$19.04
EBITDA per share
$3.95
Valuation Analysis Today of
IART
P/E Ratio:
24.14
P/E Ratio of Competitors/Peers:
46.69
P/E ratio is -48.29% lower than main peers & is -90.09% lower than the industry
Stock price/value with industry average P/E ratio: $448.12
IART is -89.44% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
2.54
Price to sales ratio is -72.76% below the industry mean
P/B (Price to book value ratio):
2.45
Price to free cash flow: 14.38
Price to free cash flow ratio is -69.30% lower than the industry
Net income growth rate (3Y):
177.25%
Net income growth rate is 82.50% higher than the average industry net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
98.42%
Net debt to equity ratio:
76.89%
Debt to assets ratio:
43.29%
Net debt to assets ratio:
33.82%
Debt-to-asset ratio is 11.74% above industry average
Ability to repay debt:
Interest coverage ratio:
6.71
Interest coverage ratio is -49.71% less than industry average
Looking forward:
Debt growth rate:
-42.97%
Annual debt growth is -118% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.73%
Analysis of Key Statistics
Correlation of price movement with the market:
0.455
Statistical significance of correlation:
IART has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.468
Stock price is -2.73% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.468
Correlation of price movement with Nasdaq (^IXIC):
0
Covariance of price movement with the market:
0
Kurtosis
4.185
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.38
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
IART
Gross Profit Margin Ratio:
247%
Operating Profit Margin Ratio:
13.64%
Operating profit margin is -179.90% lower than the industry
Net Profit Margin Ratio:
247%
Effective Tax Rate:
16.14%
Effective tax rate is -70.62% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
9.69%
Return on equity (ROE) is -198.88% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
4.26%
Return on assets (ROA) is -226.49% lower than the industry
Financial Leverage:
1.8x
Current Ratio:
3.38
Current ratio is -47.79% below industry average
Cash Conversion Cycle (days):
64.9
Cash conversion cycle is 16.31% above industry average
The remaining useful life of property plant & equipment is: 6.2 years
Stock based compensation to net income ratio:
4.02%
In-depth Efficiency Analysis
Revenue generated per employee:
410.3K
Each employee generates 9% more revenue than industry average revenue per employee
EBITDA generated per employee:
86.7K
Each employee generates 1286% more EBITDA than industry average revenue per employee
Profit generated per employee:
41.2K
Each employee generates -239% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
8.0K
Each employee generates -156% less free cash flow than industry average revenue per employee
Assets/Capital per employee
685.8K
Each employee generates -156% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 20.25%
Growth rate in R&D investment/expenditure is -15543.41% lower than the industry
Competitors/Peer firms of
IART
ARENA PHARMACEUTICALS, INC. (XNAS:ARNA)
CureVac NV (XNAS:CVAC)
BLUEPRINT MEDICINES CORPORATION (XNAS:BPMC)
ZAI LAB LIMITED (XNAS:ZLAB)
HALOZYME THERAPEUTICS, INC. (XNAS:HALO)
ROIVANT SCIENCES LTD. (XNAS:ROIV)
EXELIXIS, INC. (XNAS:EXEL)
SHOCKWAVE MEDICAL, INC. (XNAS:SWAV)
CRISPR Therapeutics Ltd (XNAS:CRSP)
Current Analyst Ratings
Strong buy�21%
Buy�17%
Hold�25%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
1.56B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
594.55M
964.46M
94.76M
-
640.74M
-
16.28M
751.78M
6.37M
49.12M
93.68M
329.51M
212.68M
156.58M
186.71M
30.13M
156.58M
Statement of Cash Flow
Date:
Period:
29.72M
Differed Income Tax :
3.54M
Stock Based Compensation :
6.29M
Change in Working Capital :
- 29770.00K
Accounts Receivables:
- 3116.00K
Other Working Capital:
-
Other Non-Cash Items:
1.65M
Net Cash Provided by Operating Activities:
44.34M
Investments in PP&E:
- 9325.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
407.09M
-
407.09M
234.01M
328.01M
96.95M
1.07B
390.85M
1.01B
1.12B
-
54.68M
29.51M
2.61B
-
3.67B
88.37M
59.30M
-
5.34M
162.82M
315.83M
1.59B
94.60M
1.74B
-
2.06B
900.00K
731.47M
- 21025.0K
903.85M
March 31, 2022 at 6:00:00 AM
1.35B
1.62B
3.67B
-
1.65B
1.2B
-
- 4742.00K
- 14067.00K
- 11750.00K
-
- 125000.00K
-
3.29M
- 133465.00K
- 3168.00K
- 106356.00K
407.09M
513.45M
44.34M
- 14067.00K
30.28M
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
IART
2023
2024
2025
2026
2027
$51.15
$86.81
$93.35
$100.37
$107.92