IARTIntegra LifeSciences Holdings Corporation
Is the business good?
The checks split: earnings fully cash-backed (1.6×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is IART?
Integra LifeSciences Holdings Corporation earns 3.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.6 points below what the capital costs: growth destroys value
- Operating margin
- 4.0%
Operating margin · Medical Devices median 2.1% · 12 months to Q2 2026
- Cash conversion
- 1.65×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.9%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 11% |
| FY2021 | 13% |
| FY2022 | 15% |
| FY2023 | 7.2% |
| FY2024 | 1.8% |
| FY2025 | −30% |
Details›
- Gross margin12 months to Q2 2026
- 52%
- Operating margin12 months to Q2 2026
- 4.0%
- Net margin12 months to Q2 2026
- −0.44%
- Free cash flow margin
- 1.6%
- R&D as % of revenue
- 5.8%
- Revenue, trailing twelve months
- $1.65B
- Free cash flow, trailing twelve months
- $26M
- Net income, trailing twelve months
- −$7.2M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.