Inotiv, Inc. (NASDAQ: NOTV)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0000720154
Market Cap 10.06 Mn
P/B 0.09
P/E -0.14
P/S 0.02
ROIC (Qtr) -5.14
Div Yield % 0.00
Rev 1y % (Qtr) 0.84
Total Debt (Qtr) 473.16 Mn
Debt/Equity (Qtr) 4.34
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About

Inotiv, Inc., a prominent contract research organization, is dedicated to providing nonclinical and analytical drug discovery and development services to the pharmaceutical and medical device industries. Operating under the symbols NOTV and INVT, Inotiv is a significant player in the pharmaceutical industry. Inotiv's primary business activities encompass two main segments: Discovery and Safety Assessment (DSA) and Research Models and Services (RMS). The DSA segment focuses on efficacy and safety evaluations, while the RMS segment offers animal...

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Investment thesis

Bull case

  • Tangible assets of 408.57M provide exceptional 11.03x coverage of deferred revenue 37.03M, showing strong service capability backing.
  • Operating cash flow of (11.39M) fully covers other non-current liabilities (5.65M) by 2.02x, showing strong long-term stability.
  • Tangible assets of 408.57M provide robust 5.23x coverage of other current liabilities 78.18M, indicating strong asset backing.
  • Cash reserves of 12.73M provide comfortable 3.93x coverage of tax obligations 3.24M, showing strong fiscal management.
  • Tangible assets of 408.57M provide robust 6.47x coverage of receivables 63.18M, showing strong asset quality.

Bear case

  • Operating cash flow of (11.39M) barely covers its investment activities of (13.61M), with a coverage ratio of 0.84, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 12.73M against inventory of 44.32M, the 0.29 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of (11.39M) provides insufficient coverage of deferred revenue obligations of 37.03M, which is -0.31x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (11.39M) shows concerning coverage of stock compensation expenses of 5.64M, with a -2.02 ratio indicating potential earnings quality issues.
  • Operating cash flow of (11.39M) provides minimal 0.61x coverage of tax expenses of (18.60M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Geographical Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Diagnostics & Research
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMO Thermo Fisher Scientific Inc. 195.62 Bn 145.81 18.20 35.68 Bn
2 DHR Danaher Corp /De/ 150.95 Bn 25.70 7.18 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 50.58 Bn 49.23 12.14 1.09 Bn
4 A Agilent Technologies, Inc. 35.16 Bn 26.99 5.06 3.35 Bn
5 DGX Quest Diagnostics Inc 32.69 Bn 61.34 4.50 6.38 Bn
6 NTRA Natera, Inc. 28.52 Bn -92.25 13.48 0.18 Bn
7 IQV Iqvia Holdings Inc. 28.27 Bn 20.79 1.73 15.95 Bn
8 MTD Mettler Toledo International Inc/ 27.89 Bn 32.09 6.93 2.15 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.61 2.51
EV to Cash from Ops. EV/CFO -39.04 23.19
EV to Debt EV to Debt 0.94 49.21
EV to EBIT EV/EBIT -14.00 13.76
EV to EBITDA EV/EBITDA 18.85 15.54
EV to Free Cash Flow [EV/FCF] EV/FCF -17.79 16.92
EV to Market Cap EV to Market Cap 44.21 1.99
EV to Revenue EV/Rev 0.87 4.86
Price to Book Value [P/B] P/B 0.09 -21.66
Price to Earnings [P/E] P/E -0.14 12.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -1.84
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.86
Dividend per Basic Share Div per Share (Qtr) 0.00 0.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.94
Interest Coverage Int. cover (Qtr) -0.56 -137.21
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 21.08 -37.66
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -66.53 23.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.25
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 68.10 28.29
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 165.61 27.21
EBIT Growth (1y) % EBIT 1y % (Qtr) 65.44 25.03
EBT Growth (1y) % EBT 1y % (Qtr) 37.71 9.12
EPS Growth (1y) % EPS 1y % (Qtr) 56.62 32.52
FCF Growth (1y) % FCF 1y % (Qtr) -13.62 61.96
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 17.54 185.72
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.70 0.57
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.02 1.29
Current Ratio Curr Ratio (Qtr) 0.30 2.91
Debt to Equity Ratio Debt/Equity (Qtr) 4.34 -2.51
Interest Cover Ratio Int Coverage (Qtr) -0.56 -137.21
Times Interest Earned Times Interest Earned (Qtr) -0.56 -137.21
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.60 -96.62
EBIT Margin % EBIT Margin % (Qtr) -6.18 -115.03
EBT Margin % EBT Margin % (Qtr) -17.12 -113.62
Gross Margin % Gross Margin % (Qtr) 23.50 44.75
Net Profit Margin % Net Margin % (Qtr) -13.50 -112.47