Integer Holdings Corp (ITGR): what the price requires
At today's price, Integer Holdings Corp (ITGR) is priced for +9.8% growth. boothcheck doesn't publish a fair value or a price target; it shows what the price assumes, so you can judge whether that bar is too high.
Generated: 2026-07-14 · Exported: 2026-07-16 · Source: https://boothcheck.com/report/ITGR
Headline
| Field | Value |
|---|---|
| Ticker | ITGR |
| Company | Integer Holdings Corp |
| Current price | $95.93/sh |
What The Price Requires (Inversion)
The assumption today's price embeds, recovered by inverting the valuation.
| Field | Value |
|---|---|
| Inversion basis | whole-company |
| Operating margin needed | 2.8% |
| Operating margin today | 10.8% |
| Margin compression implied | -8.0pp |
| Implied growth | 9.8% |
| Multiple paid | 23x operating income |
The operating-margin requirement is derived from the framework's value band at year 12, a separately labeled basis from the headline growth/duration solve.
Solve inputs: computed at a 7.7% cost of capital with 4% terminal growth over a 5-year stage; each 1pp of cost of capital moves the implied operating-profit growth ~7.9pp.
Reconcile: at the x-ray's 9.3% required return this reads ~21.5%/yr; the models below use their own rates.
How unusual the bet is: within-range
| Reference | Value |
|---|---|
| vs own history | -0.38σ |
| cohort percentile (of 112 peers) | 58 |
| implied end-window share | 0% |
Valuation X-Ray
The price is justified by relative-multiple; asset-based/earnings-power land below the price.
How the valuation models price the stock relative to the market price. Price/FV above 1.0 means the market pays more than that lens defends (expensive); at or below 1.0 the lens can defend the price.
| Family | Median price/FV | Models | Reads |
|---|---|---|---|
| Asset | 2.27x | 5 | expensive |
| Earnings | 2.20x | 3 | expensive |
| Relative | 0.68x | 5 | justifies |
| Growth | 1.33x | 3 | expensive |
Families that justify the price: Relative Families that call it expensive: Asset, Earnings
The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 6.8%); the inversion above states its own rate.
Per-Model Detail (n=16)
| Model | Family | FV | Price/FV | Applicable | Methodology |
|---|---|---|---|---|---|
| DCF Perpetual Growth | Growth | $72.28 | 1.33x | yes | FCF base $0.1B, growth 7% (input: historical growth), terminal g 4.0%, WACC 6.8%, 5yr projection |
| DCF Exit Multiple | Growth | $90.49 | 1.06x | yes | Exit EV/EBITDA: 17.4x / 19.4x / 21.4x (bear / base = today's held flat / bull), 5yr |
| Relative Valuation | Relative | $88.94 | 1.08x | yes | P/E 24x (static sector reference · 2026-04), scenarios: 20.1x / 24.0x / 27.9x (bear / base = reference held flat / bull), EV/EBITDA 16x |
| Simple DDM | Growth | — | — | no | — |
| Two-Stage DDM | Growth | — | — | no | — |
| Simple Excess Return | Asset | $44.52 | 2.15x | yes | BV/sh $49.28, ROE (TTM) 8.4%, ke 9.3% |
| Two-Stage Excess Return | Asset | $42.30 | 2.27x | yes | 5yr excess ROE then converge to ke=9.3% |
| Discounted Future Market Cap | Growth | $71.86 | 1.33x | yes | Rev $1.9B, growth 7% (input: historical growth; tapered), Terminal P/S: 1.5x / 1.8x / 2.1x (bear / base = today's held flat / bull, cap 8x) |
| Peter Lynch Fair Value | Relative | $141.05 | 0.68x | yes | EPS $4.03, growth 35% (input: historical EPS growth), PEG=0.67 (Undervalued) |
| Margin Trajectory | Growth | — | — | no | — |
| Earnings Power Value | Earnings | $22.41 | 4.28x | yes | Normalized EBIT (5y avg op income, one-time charges added back) $0.18B × (1−19%) / WACC 6.8% → EPV (no growth) |
| Residual Income | Asset | $41.94 | 2.29x | yes | BV $49.28 + 5yr PV of (ROE (TTM) 8.4% − Kₑ 9.3%) × BV; BV grows 5.4%/yr |
| Graham Number | Asset | $66.85 | 1.43x | yes | √(22.5 × EPS $4.03 × BVPS $49.28) — Graham's conservative floor |
| EV/EBITDA Relative | Relative | $72.51 | 1.32x | yes | EBITDA $0.24B × sector EV/EBITDA 16.0x |
| FCF Yield | Earnings | $0.01 | 9592.50x | yes | FCF $99.8M / Kₑ 9.3% — zero-growth perpetuity (excluded from median) |
| SBC-Adj FCF Yield | Earnings | $0.01 | 9592.50x | yes | SBC-adj FCF $0.08B (FCF $0.10B − SBC $0.02B) capitalized at Kₑ (excluded from median) |
| Ben Graham Formula | Earnings | $130.03 | 0.74x | yes | EPS $4.03 × (8.5 + 2×15.0%) × (4.4 / 5.3%) |
| ROIC-Justified P/B | Asset | $6.24 | 15.37x | yes | BV $49.28 × (ROIC 0.9% / WACC 6.8%) |
| P/Sales Sector | Relative | $215.59 | 0.44x | yes | Revenue $1.86B × sector P/S 4.0x |
| PEG Fair Value | Relative | $151.13 | 0.63x | yes | EPS $4.03 × (PEG 1.5 × growth 25.0% (input: historical EPS growth)) → PE 37.5x |
| Earnings Yield | Earnings | $43.57 | 2.20x | yes | EPS $4.03 / required return 9.3% (Rf 4.3% + ERP 5.0%) |
| Funds From Operations Multiple | Relative | — | — | no | — |
| Clinical Phase NPV | Growth | — | — | no | — |
| Merton | Asset | — | — | no | — |
| V5 Mechanical | — | — | — | no | — |
Solvency
| Field | Value |
|---|---|
| Net debt | $1.3b |
| Net debt / NOPAT (after-tax) | 8.15x |
| Net debt / operating income (pre-tax) | 6.61x |
| Interest coverage | 4.5x |
| Share count CAGR (dilution) | 0.8% |
| Burning cash | no |
Bullet Takeaways
- Integer is a medical device contract development and manufacturing organization, the outsourced factory behind other companies' implantable and interventional devices, and it describes itself as offering capabilities "to medical device companies" that "very few companies offer the scope of."
- At $90.93 the stock prices in roughly 9% annual operating-income growth, which the conservative asset and earnings-power methods say is too rich, while the peer-multiple and growth methods say it is reasonable, so the verdict hinges on which lens you trust.
- Management cut full-year 2026 guidance, now expecting reported sales to decline 1% to 3% and adjusted EPS of $5.83 to $6.40 on softer electrophysiology demand, and the board has launched a strategic review that could end in a sale.
Bull Case
What the standard valuation models miss about Integer is that they treat it like a generic industrial when it is closer to an embedded supplier inside the medical device industry. The book value on which the asset models lean is thin, and the trailing operating margin of 11% understates what an outsourcing partner with deep regulatory entanglement can earn, because the value here is in qualified manufacturing lines and multi-year programs, not in the balance sheet. Integer's own filing makes the point that "very few companies offer the scope of" manufacturing capabilities and services it provides to medical device companies, which is the kind of switching-cost moat that a price-to-book or zero-growth earnings model structurally cannot see.
The demand backdrop is genuinely attractive even with the near-term guidance cut. Integer builds components for cardiac rhythm management, neuromodulation, electrophysiology, and structural heart, end markets growing with an aging population and the shift toward less-invasive procedures. The relationships are sticky because a device maker cannot casually move a qualified, regulator-audited production line, and the 10-K describes how it has been "working closely with impacted customers to support the transition of these products" when capacity is reallocated, the language of a partner managing scarce manufacturing slots rather than a vendor competing on price. The peer-multiple and growth-DCF methods that reach the current price are arguably the more honest read of a business whose economics are forward and relationship-driven.
The forward setup gives the bull case a clean catalyst. The board has retained financial and legal advisors and opened a strategic review that explicitly contemplates a sale, merger, or business combination. A strategic or private-equity acquirer would value Integer on its qualified manufacturing footprint and embedded customer relationships, the things the asset and earnings-power models discount, not on a depressed trailing margin. The case is that the market is pricing a contract manufacturer when it owns something closer to critical infrastructure for the device industry.
Bear Case
The most honest way to read Integer right now is to listen to the models that disagree with the price, because the conservative ones are flashing the same warning the latest quarter confirmed. The asset-based methods and the earnings-power value, which capitalize what the business actually earns today rather than what it might earn later, all land far below $90.93: the zero-growth earnings-power figure is in the low twenties, and the excess-return and residual-income methods sit in the low-to-mid forties. Those frames are saying the price already embeds a healthy dose of future growth, and they are the methods least likely to be fooled by an optimistic narrative.
The operating results back the cautious models. First-quarter sales rose just 0.5% as reported and 1.3% organically, adjusted EBITDA fell about 7% to $85 million, and adjusted EPS declined year over year, all because lower volumes meant the fixed cost base was spread over fewer units. More telling, management lowered full-year guidance to a 1% to 3% reported sales decline and adjusted EPS of $5.83 to $6.40, citing customer forecast cuts in electrophysiology. A contract manufacturer lives and dies on its customers' forecasts, and when those forecasts get marked down, Integer's fixed-cost-heavy plants delever margins quickly. The 10-K is candid that the actual performance of its products "is dependent on how they are utilized as part of our customers' devices," a reminder that Integer sits one step removed from the end demand it cannot control.
The balance sheet narrows the margin for error. Integer carries about $1.3 billion of net debt against trailing operating income near $200 million, so net debt runs above six times operating income and interest coverage is only around 5.3 times, leverage that is manageable in a growing business but uncomfortable in one whose sales are now guided down. The strategic review is a double-edged catalyst: it signals the board itself is not convinced the standalone path maximizes value, and a review that ends without a deal would leave the stock priced for a growth-and-takeout outcome it did not get. The model disagreement is the whole story here. When the relative and growth methods need an acquirer or a demand reacceleration to be right, and the asset and earnings methods only need the present to persist, the burden of proof sits with the bulls.
Valuation
Integer is the cleanest example of a name where the valuation methods split into two camps, and the split is the information. At $90.93 the peer-multiple methods (relative valuation near $89, EV/EBITDA near $73) and the growth-DCF approaches sit right around or modestly below the price, so on those lenses the stock is fairly valued. The conservative camp tells a different story: the earnings-power value, capitalizing normalized operating profit with no growth, lands near $22; the excess-return and residual-income methods land in the low forties; and the ROIC-justified book multiple is far below. The framework characterizes the price as justified by relative and growth methods while asset and earnings-power say expensive.
The inversion translates that into a single bet. The current price implies operating income growing roughly 9% a year, against a business whose latest quarter grew sales barely 1% organically and whose own guidance now points to a sales decline this year. That gap between the implied growth and the realized trajectory is the crux: the price is reasonable if Integer returns to mid-single-digit-plus growth and a strategic acquirer or demand recovery validates the forward methods, and rich if the recent slowdown is the run-rate.
Solvency is the constraint that keeps this from being a free option. Integer carries about $1.3 billion of net debt, net debt to operating income above six times, and interest coverage near 5.3 times. That is workable while the business grows but tightens quickly if margins keep delevering, because the fixed-cost manufacturing model amplifies volume swings in both directions. The valuation, then, is not cheap on what Integer earns today; it is a wager that the embedded-supplier moat the asset models cannot see is real and that either growth resumes or the strategic review surfaces an acquirer willing to pay for it.
Catalysts
The first quarter of 2026 reframed the story from steady compounder to show-me. Integer reported sales up just 0.5% as reported and 1.3% organic, adjusted EPS of $1.20 down year over year, and adjusted EBITDA off about 7% to $85 million, with management attributing the profit decline to lower fixed-cost absorption. The bigger event was the guidance cut: full-year reported sales are now expected to fall 1% to 3% and adjusted EPS to land at $5.83 to $6.40, with management pointing to customer forecast adjustments in electrophysiology and a more risk-adjusted outlook.
Alongside the print, the board announced a strategic review, working with financial and legal advisors to weigh a sale, merger, or strategic combination against continuing as a standalone company. That review is the dominant near-term catalyst: a transaction at a strategic multiple would validate the forward valuation methods, while a decision to stay independent would throw the weight back onto the demand recovery. The concrete things to watch over the next two quarters are whether electrophysiology orders stabilize, whether margins stop delevering as volumes normalize, and any update from the review process. The reaccelerate-or-sell question is what resolves whether the optimistic methods or the conservative ones turn out to be the honest read.
Peer Cohorts (Per Segment, With Filing Citations)
Whole company (single operating segment) (reported)
- WST (WEST PHARMACEUTICAL SERVICES, INC.)
- (no filing in the citation store)
- MMSI (MERIT MEDICAL SYSTEMS INC)
- (no filing in the citation store)
- ICUI (ICU MEDICAL INC/DE)
- (no filing in the citation store)
- SOLV (SOLVENTUM CORPORATION)
- (no filing in the citation store)
- HAE (HAEMONETICS CORPORATION)
- (no filing in the citation store)
- BAX (BAXTER INTERNATIONAL INC)
- (no filing in the citation store)
- STE (STERIS plc)
- (no filing in the citation store)
- ZBH (ZIMMER BIOMET HOLDINGS, INC.)
- (no filing in the citation store)
Methodology Note
- Priced-in inversion: the valuation is inverted on the current price to recover the operating-income growth, duration, and steady-state margin the price embeds (ROE for financials, FFO growth for REITs).
- Valuation x-ray: the valuation models, grouped into four families (asset, earnings, relative, growth). Each model is expressed as a price/FV ratio (distance from price), not a point fair-value estimate. The spread across families is the disagreement.
- Solvency: net cash/debt, net-debt-to-NOPAT, interest coverage, and share-count CAGR from EDGAR financials (net debt / FFO and fixed-charge coverage for REITs; regulatory-capital framing for financials).
- Peer cohorts: per-segment comparables with deep-linkable SEC filing citations.
Fundamentals sourced from SEC EDGAR filings. Current price from Databento. The priced-in inversion and valuation x-ray are computed by the boothcheck engine; narrative composed by AI from the structured data.
Sources
Integer Q1 2026 earnings, StockTitan / Seeking Alpha, May 2026 · Integer Q1 2026 strategic review, StockTitan, May 2026 · Integer Q1 2026 earnings, Seeking Alpha, May 2026 · Integer Q1 2026 earnings, Seeking Alpha / Quiver, April 2026