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Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 49.7GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-20.0%
Sector: -43.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, LivaNova PLC (LIVN) receives a "Hold" rating with a composite score of 50.3/100, ranked #1129 out of 4446 stocks. Key factor scores: Quality 50/100, Value 54/100, Momentum 64/100. This is quantitative analysis only — not investment advice.
LivaNova PLC (LIVN) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does LivaNova PLC Do?
LivaNova PLC, a medical device company, designs, develops, manufactures, and sells therapeutic solutions worldwide. It operates through three segments: Cardiopulmonary, Neuromodulation, and Advanced Circulatory Support. The Cardiopulmonary segment develops, produces, and sells cardiopulmonary products, including oxygenators, heart-lung machines, autotransfusion systems, perfusion tubing systems, cannulae, connect, and other related products. The Neuromodulation segment designs, develops, and markets VNS Therapy System, an implantable device that delivers vagus nerve stimulation (VNS) therapy for the treatment of drug-resistant epilepsy, difficult-to-treat depression, and obstructive sleep apnea. It is also involved in the development and clinical testing of the VITARIA System for treating heart failure through VNS. The Advanced Circulatory Support segment develops, produces, and sells temporary life support products, such as cardiopulmonary and respiratory support solutions. The company serves perfusionists, neurologists, neurosurgeons, and other physicians, as well as hospitals, other medical institutions, and healthcare providers. It sells its products through direct sales representatives and independent distributors. The company has a research collaboration with Verily to capture clinical biomarkers of depression. LivaNova PLC was founded in 1987 and is headquartered in London, the United Kingdom. LivaNova PLC (LIVN) is classified as a mid-cap stock in the Healthcare sector, specifically within the Medical Equipment industry. The company is led by CEO Damien McDonald and employs approximately 2,900 people. With a market capitalization of $3.5B, LIVN is one of the notable companies in the Healthcare sector.
LivaNova PLC (LIVN) Stock Rating — Hold (April 2026)
As of April 2026, LivaNova PLC receives a Hold rating with a composite score of 50.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.LIVN ranks #1,129 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, LivaNova PLC ranks #84 of 838 stocks, placing it in the top quartile of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
LIVN Stock Price and 52-Week Range
LivaNova PLC (LIVN) currently trades at $62.78. The stock lost $0.59 (0.9%) in the most recent trading session. The 52-week high for LIVN is $71.92, which means the stock is currently trading -12.7% from its annual peak. The 52-week low is $32.48, putting the stock 93.3% above its annual trough. Recent trading volume was 639K shares, suggesting relatively thin trading activity.
Is LIVN Overvalued or Undervalued? — Valuation Analysis
LivaNova PLC (LIVN) carries a value factor score of 54/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 26.70x, compared to the Healthcare sector average of 23.63x — a premium of 13%. The price-to-book ratio stands at 2.90x, versus the sector average of 2.75x. The price-to-sales ratio is 2.58x, compared to 1.66x for the average Healthcare stock. On an enterprise value basis, LIVN trades at 20.01x EV/EBITDA, versus 6.34x for the sector.
Overall, LIVN's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
LivaNova PLC Profitability — ROE, Margins, and Quality Score
LivaNova PLC (LIVN) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is -20.0%, compared to the Healthcare sector average of -43.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -9.2% versus the sector average of -33.1%.
On a margin basis, LivaNova PLC reports gross margins of 68.8%, compared to 71.5% for the sector. The operating margin is 14.3% (sector: -66.1%). Net profit margin stands at -19.4%, versus -58.7% for the average Healthcare stock. Revenue growth is running at 12.3% on a trailing basis, compared to 10.6% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
LIVN Debt, Balance Sheet, and Financial Health
LivaNova PLC has a debt-to-equity ratio of 31.0%, compared to the Healthcare sector average of 32.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.36x, suggesting adequate working capital coverage. Total debt on the balance sheet is $376M. Cash and equivalents stand at $646M.
LIVN has a beta of 1.11, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for LivaNova PLC is 64/100, reflecting average volatility within the normal range for its sector.
LivaNova PLC Revenue and Earnings History — Quarterly Trend
In TTM 2026, LivaNova PLC reported revenue of $1.35B and earnings per share (EPS) of $-4.45. Net income for the quarter was $-240M. Gross margin was 68.8%. Operating income came in at $192M.
In FY 2025, LivaNova PLC reported revenue of $1.39B and earnings per share (EPS) of $-4.45. Net income for the quarter was $-242M. Gross margin was 67.7%. Revenue grew 10.7% year-over-year compared to FY 2024. Operating income came in at $199M.
In Q3 2025, LivaNova PLC reported revenue of $358M and earnings per share (EPS) of $0.49. Net income for the quarter was $27M. Gross margin was 68.4%. Revenue grew 12.5% year-over-year compared to Q3 2024. Operating income came in at $54M.
In Q2 2025, LivaNova PLC reported revenue of $353M and earnings per share (EPS) of $0.50. Net income for the quarter was $27M. Gross margin was 67.8%. Revenue grew 10.7% year-over-year compared to Q2 2024. Operating income came in at $54M.
Over the past 8 quarters, LivaNova PLC has demonstrated a growth trajectory, with revenue expanding from $319M to $1.35B. Investors analyzing LIVN stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
LIVN Dividend Yield and Income Analysis
LivaNova PLC (LIVN) does not currently pay a dividend. This is common among smaller companies in the Medical Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Healthcare dividend stocks may want to explore other Healthcare stocks or use the stock screener to filter by dividend yield.
LIVN Momentum and Technical Analysis Profile
LivaNova PLC (LIVN) has a momentum factor score of 64/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 22/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
LIVN vs Competitors — Healthcare Sector Ranking and Peer Comparison
Comparing LIVN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full LIVN vs S&P 500 (SPY) comparison to assess how LivaNova PLC stacks up against the broader market across all factor dimensions.
LIVN Next Earnings Date
No upcoming earnings date has been announced for LivaNova PLC (LIVN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy LIVN? — Investment Thesis Summary
LivaNova PLC presents a balanced picture with arguments on both sides. Price momentum is positive at 64/100, suggesting the trend favors buyers. Low volatility (stability score 64/100) reduces downside risk.
In summary, LivaNova PLC (LIVN) earns a Hold rating with a composite score of 50.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on LIVN stock.
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Institutional Research Dossier
LivaNova PLC (LIVN) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
LivaNova PLC (LIVN) receives a Hold rating, justified by a mixed financial performance and a lack of clear catalysts for significant outperformance. While the company exhibits strengths in revenue growth and gross margins relative to the healthcare sector, concerns persist regarding net income losses and a relatively weak Investment score, suggesting potential inefficiencies in capital allocation. The current valuation appears fair, but not compelling enough to warrant a more bullish stance given the existing risks and uncertainties.
The company's strategic focus on therapeutic solutions within the medical device industry, particularly in neuromodulation and cardiopulmonary support, offers growth potential. However, realizing this potential hinges on successful product development, regulatory approvals, and effective market penetration. The Hold rating reflects a balanced view, acknowledging both the opportunities and challenges facing LivaNova, and suggests investors should await further evidence of sustained profitability and improved capital allocation before considering a more aggressive position.
Business Strategy & Overview
LivaNova operates as a medical device company with a diversified portfolio spanning cardiopulmonary, neuromodulation, and advanced circulatory support. The cardiopulmonary segment focuses on products used in open-heart surgery, including oxygenators and heart-lung machines, targeting perfusionists and hospitals. This segment benefits from relatively stable demand driven by the ongoing need for cardiac procedures. The neuromodulation segment centers on VNS Therapy for drug-resistant epilepsy and depression, representing a higher-growth, higher-margin opportunity. The company is also developing the VITARIA System for heart failure, which, if successful, could significantly expand the neuromodulation segment's addressable market. The advanced circulatory support segment provides temporary life support products, catering to critical care settings.
LivaNova's strategic positioning involves a combination of organic growth through product innovation and potential acquisitions to expand its product offerings and geographic reach. The company invests in research and development to enhance existing products and develop new therapies, particularly in neuromodulation. The collaboration with Verily to capture clinical biomarkers of depression highlights the company's commitment to leveraging technology to improve patient outcomes and personalize treatment. This partnership could provide valuable data to refine VNS therapy and identify patients most likely to benefit from the treatment.
The company's sales strategy relies on a mix of direct sales representatives and independent distributors, allowing it to reach a broad customer base across different geographies. Direct sales are crucial for complex products like VNS Therapy, where specialized knowledge and support are required. Independent distributors provide access to smaller hospitals and clinics, expanding the company's market coverage. LivaNova's success depends on maintaining strong relationships with key opinion leaders and healthcare providers, as well as securing favorable reimbursement policies for its products.
The medical device industry is characterized by intense competition, stringent regulatory requirements, and rapid technological advancements. LivaNova competes with larger, more established players in each of its segments. To differentiate itself, the company focuses on innovation, clinical evidence, and customer service. The regulatory landscape, particularly in the United States and Europe, requires significant investment in clinical trials and regulatory submissions. Delays in regulatory approvals can significantly impact the company's ability to launch new products and generate revenue. The company must also adapt to evolving healthcare trends, such as the increasing emphasis on value-based care and the adoption of minimally invasive procedures.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
12.3%
Sector: 10.6%
+16% VS SCTR
Economic Moat Analysis
LivaNova's economic moat is best characterized as Narrow. The company possesses some elements of competitive advantage, but these are not strong enough to create a wide and sustainable moat. The neuromodulation segment, particularly VNS Therapy, benefits from intangible assets in the form of patents and regulatory approvals. These patents provide a degree of protection against direct competition, and the regulatory pathway for implantable medical devices is often lengthy and costly, creating a barrier to entry for new players. However, these patents eventually expire, and competitors may develop alternative therapies or devices that circumvent the existing intellectual property.
Switching costs are moderate for LivaNova's products. In the cardiopulmonary segment, hospitals may be reluctant to switch suppliers due to established relationships and the need for staff training on new equipment. However, the products in this segment are relatively commoditized, and price competition is intense. In the neuromodulation segment, switching costs are higher, as patients who have benefited from VNS Therapy are unlikely to switch to a different treatment unless there is a compelling reason to do so. However, the effectiveness of VNS Therapy varies among patients, and some may not experience significant benefits, making them more open to alternative therapies.
Network effects are not a significant source of competitive advantage for LivaNova. While the company benefits from its relationships with key opinion leaders and healthcare providers, these relationships do not create a strong network effect that would deter customers from switching to competitors. The company's products are not inherently more valuable as more people use them.
Cost advantages are not a primary driver of LivaNova's competitive advantage. While the company strives to improve its manufacturing efficiency and reduce costs, it does not have a significant cost advantage over its competitors. The medical device industry is characterized by high research and development costs, and companies must invest heavily in innovation to remain competitive. Efficient scale is also not a major factor, as the market for LivaNova's products is not concentrated enough to allow a single company to dominate the industry.
Overall, LivaNova's narrow moat is primarily based on intangible assets in the neuromodulation segment and moderate switching costs. However, the company faces intense competition and must continuously innovate to maintain its competitive position. The lack of a wide moat makes the company vulnerable to disruption from new technologies and therapies.
Financial Health & Profitability
LivaNova's financial health presents a mixed picture. The company's revenue growth has been positive, with a 12.3% increase in the most recent TTM period compared to the sector average of 10.7%. This indicates a strong demand for its products and effective market penetration. However, the company's net income has been volatile, with a significant loss of $-242.47M in the most recent TTM period, contrasting sharply with the $63.23M profit in the previous fiscal year. This volatility raises concerns about the company's ability to consistently generate profits.
Gross margins are relatively strong at 68.8%, slightly below the sector average of 71.9%. Operating margins are also positive at 14.3%, significantly better than the sector average of -65.2%. This suggests that the company is effectively managing its operating expenses. However, the net margin of -19.4% indicates that the company is struggling to translate its operating profits into net income, likely due to interest expenses, taxes, or other non-operating items.
The company's balance sheet appears to be in reasonable shape. It has a healthy cash balance of $646.08M and a manageable debt load of $376.10M, resulting in a debt-to-equity ratio of 31.00, which is in line with the sector average of 30.00. The current ratio of 1.36 indicates that the company has sufficient liquid assets to cover its short-term liabilities. However, the absence of free cash flow data makes it difficult to assess the company's ability to generate cash from its operations.
Analyzing the quarterly financial history reveals some concerning trends. While revenue has generally been increasing, net income has been highly volatile, with significant fluctuations from quarter to quarter. The large net loss in Q1 FY2025 significantly impacted the overall TTM net income. The gross margin has remained relatively stable, but the operating margin has fluctuated, indicating variations in operating expenses. The lack of consistent profitability and free cash flow generation raises questions about the sustainability of the company's financial performance.
The ROE of -20.0% is significantly below the sector average of -42.5%, which, while seemingly positive, is still negative and indicates that the company is not effectively generating returns on its equity. The company's Quality score of 50/100 reflects these concerns about profitability and returns. Overall, LivaNova's financial health is mixed, with strengths in revenue growth and operating margins offset by concerns about net income losses and volatile profitability.
Valuation Assessment
LivaNova's valuation presents a nuanced picture. The company's P/E ratio of 26.7x is slightly higher than the sector average of 24.3x, suggesting that the stock is trading at a premium to its peers. However, the P/E ratio can be misleading due to the company's volatile earnings and recent net losses. A more reliable valuation metric is the EV/EBITDA ratio, which stands at 4.7x, significantly lower than the sector average of 6.4x. This indicates that the company is undervalued relative to its earnings before interest, taxes, depreciation, and amortization.
The absence of free cash flow data makes it difficult to assess the company's valuation using a discounted cash flow analysis. However, based on the available information, the stock appears to be fairly valued. The premium P/E ratio is offset by the lower EV/EBITDA ratio, suggesting that the market is pricing in the company's growth potential but also acknowledging the risks associated with its volatile earnings.
The company's Momentum score of 62/100 indicates that the stock has been performing well in recent periods, likely driven by the positive revenue growth and improving operating margins. However, the Investment score of 28/100 suggests that the market has concerns about the company's capital allocation and growth prospects. The Stability score of 64/100 reflects the stock's moderate volatility and drawdown risk.
Compared to its historical valuation, LivaNova's current valuation appears to be in line with its past performance. The company has historically traded at a premium to the sector average due to its growth potential and innovative products. However, the recent net losses and volatile earnings have likely tempered investor enthusiasm, resulting in a more moderate valuation.
Overall, LivaNova's valuation is fair, but not compelling. The stock is not significantly undervalued, and there are risks associated with its volatile earnings and uncertain growth prospects. Investors should await further evidence of sustained profitability and improved capital allocation before considering a more aggressive position.
Risk & Uncertainty
LivaNova faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is regulatory uncertainty. The medical device industry is heavily regulated, and the company must obtain regulatory approvals for its products in each of the markets in which it operates. Delays in regulatory approvals or unfavorable regulatory decisions could significantly impact the company's ability to launch new products and generate revenue. The ongoing development of the VITARIA System for heart failure is particularly subject to regulatory risk, as the device is still in clinical testing and may not receive regulatory approval.
Competition is another major risk. LivaNova competes with larger, more established players in each of its segments. These competitors may have greater financial resources, stronger brand recognition, and more extensive distribution networks. The company must continuously innovate and differentiate its products to remain competitive. The neuromodulation segment is particularly competitive, with several companies developing alternative therapies for epilepsy and depression.
Product liability is also a significant risk. The company's products are used in critical care settings, and any defects or malfunctions could result in serious injury or death. The company could face product liability lawsuits, which could be costly and damage its reputation. The VNS Therapy system, being an implantable device, carries inherent risks of complications and adverse events, which could lead to product liability claims.
The company's reliance on a limited number of key customers and suppliers also poses a risk. The loss of a major customer or the disruption of a key supplier could negatively impact the company's revenue and profitability. The company's supply chain is also vulnerable to disruptions from natural disasters, political instability, or other unforeseen events.
Finally, the company's leverage could pose a risk if it is unable to generate sufficient cash flow to service its debt. While the company's debt-to-equity ratio is in line with the sector average, a significant decline in revenue or profitability could make it difficult to meet its debt obligations. The company's negative free cash flow further exacerbates this risk.
Bulls Say / Bears Say
The Bull Case
BULL VIEWLivaNova's neuromodulation segment, particularly VNS Therapy, offers significant growth potential in the treatment of drug-resistant epilepsy and depression, driven by increasing awareness and adoption of the therapy.
BULL VIEWThe company's strong revenue growth and improving operating margins demonstrate its ability to effectively compete in the medical device industry and capitalize on market opportunities.
BULL VIEWLivaNova's collaboration with Verily to capture clinical biomarkers of depression could lead to more personalized and effective VNS therapy, further enhancing its competitive advantage.
The Bear Case
BEAR VIEWLivaNova's volatile earnings and recent net losses raise concerns about its ability to consistently generate profits and sustain its growth trajectory.
BEAR VIEWThe company faces intense competition and regulatory uncertainty, which could negatively impact its ability to launch new products and maintain its market share.
BEAR VIEWLivaNova's lack of free cash flow and reliance on debt financing could limit its financial flexibility and increase its vulnerability to economic downturns.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score LIVN and 4,400+ other equities.
LivaNova PLC exhibits a 72% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
-9.2%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
68.8%
Sector: 71.5%
Operating Margin
Core business profitability
14.3%
Sector: -66.1%
Net Margin
Bottom-line profitability
-19.4%
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
