Inotiv, Inc. (NASDAQ: NOTV)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0000720154
Market Cap 19.84 Mn
P/B 0.15
P/E -0.29
P/S 0.04
ROIC (Qtr) -1.93
Div Yield % 0.00
Rev 1y % (Qtr) 5.92
Total Debt (Qtr) 456.36 Mn
Debt/Equity (Qtr) 3.35

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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Price action

Investment thesis

Bull case

  • Tangible assets of 436.63M provide exceptional 8.48x coverage of deferred revenue 51.51M, showing strong service capability backing.
  • Tangible assets of 436.63M provide robust 4.54x coverage of other current liabilities 96.23M, indicating strong asset backing.
  • Cash reserves of 21.74M provide comfortable 3.90x coverage of tax obligations 5.57M, showing strong fiscal management.
  • Tangible assets of 436.63M provide robust 5.58x coverage of receivables 78.22M, showing strong asset quality.

Bear case

  • Operating cash flow of (10.46M) barely covers its investment activities of (12.89M), with a coverage ratio of 0.81, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (10.46M) provides insufficient coverage of deferred revenue obligations of 51.51M, which is -0.20x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (10.46M) shows concerning coverage of stock compensation expenses of 6.03M, with a -1.73 ratio indicating potential earnings quality issues.
  • Free cash flow of (23.35M) provides weak coverage of capital expenditures of 12.89M, with a -1.81 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (10.46M) provides minimal 0.55x coverage of tax expenses of (19.14M), 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. 234.48 Bn 35.69 5.36 35.68 Bn
2 DHR Danaher Corp /De/ 171.11 Bn 48.85 7.05 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 57.62 Bn 56.08 13.83 1.09 Bn
4 IQV Iqvia Holdings Inc. 42.37 Bn 33.03 2.66 15.19 Bn
5 A Agilent Technologies, Inc. 42.16 Bn 32.36 6.07 3.35 Bn
6 NTRA Natera, Inc. 31.64 Bn -102.32 14.95 0.18 Bn
7 MTD Mettler Toledo International Inc/ 30.89 Bn 36.96 7.84 2.21 Bn
8 WAT Waters Corp /De/ 23.59 Bn 36.37 7.60 1.49 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.60 2.82
EV to Cash from Ops. EV/CFO -43.91 19.55
EV to Debt EV to Debt 1.01 54.87
EV to EBIT EV/EBIT -14.73 18.82
EV to EBITDA EV/EBITDA 18.34 4.36
EV to Free Cash Flow [EV/FCF] EV/FCF -19.66 17.63
EV to Market Cap EV to Market Cap 23.14 1.58
EV to Revenue EV/Rev 0.89 5.06
Price to Book Value [P/B] P/B 0.15 1.35
Price to Earnings [P/E] P/E -0.29 18.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -2.00
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) -0.55 -128.90
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 23.41 -35.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1.44 23.84
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.25
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 64.89 9.72
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 185.45 -444.66
EBIT Growth (1y) % EBIT 1y % (Qtr) 62.64 8.29
EBT Growth (1y) % EBT 1y % (Qtr) 32.65 -6.03
EPS Growth (1y) % EPS 1y % (Qtr) 49.64 15.59
FCF Growth (1y) % FCF 1y % (Qtr) 1.23 56.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 8.82 185.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.67 0.57
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.04 1.23
Current Ratio Curr Ratio (Qtr) 0.35 2.70
Debt to Equity Ratio Debt/Equity (Qtr) 3.35 -0.84
Interest Cover Ratio Int Coverage (Qtr) -0.55 -128.90
Times Interest Earned Times Interest Earned (Qtr) -0.55 -128.90
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.80 -97.22
EBIT Margin % EBIT Margin % (Qtr) -6.08 -115.64
EBT Margin % EBT Margin % (Qtr) -17.11 -114.24
Gross Margin % Gross Margin % (Qtr) 23.60 44.76
Net Profit Margin % Net Margin % (Qtr) -13.40 -113.12