Operating Margin - LivaNova PLC (NASDAQ:LIVN)

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Price: 63.95 USD -0.17%

Market Cap: 3.5B USD

15%

Current

10%

Average

3.9%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

15%

Operating Profit

201.6m

Revenue

1.3B

Operating Margin Across Competitors

Country	Company	Market Cap	Operating Margin
UK	LivaNova PLC NASDAQ:LIVN	3.5B USD	15%
US	Abbott Laboratories NYSE:ABT	214.4B USD	18%
US	Intuitive Surgical Inc NASDAQ:ISRG	196.2B USD	29%
US	Boston Scientific Corp NYSE:BSX	136B USD	19%
US	Stryker Corp NYSE:SYK	134.9B USD	22%
IE	Medtronic PLC NYSE:MDT	127.9B USD	19%
DE	Siemens Healthineers AG XETRA:SHL	49B EUR	14%
US	IDEXX Laboratories Inc NASDAQ:IDXX	56.6B USD	31%
US	Becton Dickinson and Co NYSE:BDX	57.2B USD	16%
US	Edwards Lifesciences Corp NYSE:EW	48.9B USD	28%
US	GE Healthcare Technologies Inc NASDAQ:GEHC	39.2B USD	14%

LivaNova PLC
Glance View

Market Cap

3.5B USD

Industry

Health Care

LivaNova PLC is a dynamic player in the realm of medical technology, with its roots tracing back to the merger of two well-established entities, Sorin Group and Cyberonics, in 2015. This union was more than just a blending of operations; it marked the convergence of expertise in cardiac surgery and neuromodulation. Headquartered in London, LivaNova set out with a mission to innovate within the treatment space for life-critical conditions, making a name for itself in the healthcare sector by focusing on two principal areas: cardiovascular solutions and neuromodulation therapy. These areas aren't just buzzwords; they represent the backbone of the company’s operations, serving critical patient needs with a near-requirement for continuous technological advancement. LivaNova's revenue streams are primarily derived from its cutting-edge products used in life-sustaining procedures and therapeutic interventions. In cardiovascular solutions, the company excels with its offerings in heart-lung machines, used in cardiac surgeries, and heart valves, instrumental in treating heart valve disease. Meanwhile, their neuromodulation division stands at the forefront of treating refractory epilepsy and depression with devices that deliver electrical impulses to the vagus nerve. By continuously pushing the envelope on medical tech, LivaNova not only ensures reliable outcomes for patients but also maintains a robust portfolio that draws revenues from hospitals and clinics worldwide. This balance of innovative prowess and strategic product deployment is what enables LivaNova to mitigate risks and sustain its financial health amidst the volatile landscape of the global healthcare market.

View LIVN Analysis

LIVN Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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	Berkshire Hathaway Inc NYSE:BRK.A	742 550 USD 0.99%
	Bank of America Corp NYSE:BAC	54.56 USD 0.89%
	Mastercard Inc NYSE:MA	563.37 USD 4.55%
	UnitedHealth Group Inc NYSE:UNH	336.73 USD 2.55%
	Exxon Mobil Corp NYSE:XOM	119.54 USD

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	Johnson & Johnson NYSE:JNJ	210.01 USD 1.68%
	Bank of America Corp NYSE:BAC	54.56 USD 0.89%
	Mastercard Inc NYSE:MA	563.37 USD 4.55%
	Salesforce Inc NYSE:CRM	262.35 USD -0.7%
	Abbvie Inc NYSE:ABBV	223.98 USD -0.53%
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LivaNova PLC
NASDAQ:LIVN