Integer Holdings Corp (ITGR): what the price assumes

In the published model solve dated 2026-Q2, anchored at $125.33, Integer Holdings Corp (ITGR) is priced for +16.8% growth. boothcheck publishes no house fair value, target price, or buy/sell rating; individual model outputs and user-controlled scenarios are analytical inputs, not Boothcheck targets. Narrative composed 2026-06-27.

Generated: 2026-08-30 · Source: https://boothcheck.com/report/ITGR

Headline

What The Price Assumes (Inversion)

The assumption today's price embeds, recovered by inverting the valuation.

The operating-margin figure is value-band context at year 12: derived from the framework's value band, a separate calculation — not part of the priced-in solve.

Solve inputs: computed at a 8% cost of capital with 4% terminal growth over a 5-year stage.

How unusual the bet is: within-range (limited comparison data)

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.

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 7.2%); the inversion above states its own rate.

Per-Model Detail (n=15)

Economic-Unit Decomposition (Sum Of The Parts)

Only one reportable economic unit is present in the current topology source. Consolidated operating lenses remain available, but there is no multi-unit decomposition.

No total common-equity value is stated. One or more material units lack a supported unit value. The displayed values are an indicative subtotal; consolidated debt and cash cannot be applied to a fraction of the company.

Solvency

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.)
• FY2025 10-K: …(1) (2) Contract Manufactured Products Serbia Kovin Proprietary Products Asia Pacific China Qingpu Proprietary Products India Sri City Proprietary Products Singapore Jurong (1) (2) Proprietary Products 23 Type of Facility/ Country Location Segment Mold-and-Die Tool Shop: North America United States of America Upper…
• FY2025 10-K: …reportable segments. In 2023, one of our customers individually accounted for more than 10% of consolidated net sales, at 10.9 % or $ 322.1 million, contributing to net sales in both the Proprietary and Contract Manufacturing reportable segments. The following table presents net sales and long-lived assets, by the…
• MMSI (MERIT MEDICAL SYSTEMS INC)
• FY2025 10-K: …labor shortages and increases in labor costs; price and product competition; extreme weather events; and geopolitical events. For a further discussion of the risks and uncertainties and other factors affecting our business, see Item 1A. Risk Factors in this report and our subsequent Quarterly Reports on Form 10-Q.…
• FY2025 10-K: Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐ Indicate by check mark whether the registrant is a…
• ICUI (ICU MEDICAL INC/DE)
• FY2025 10-K: …the period of benefit is less than one year. Practical expedients and exemptions In addition to the practical expedient applied to sales commissions, under ASC Topic 606, we elected to apply the practical expedient for shipping and handling costs incurred after the customer has obtained control of a good. We will…
• FY2025 10-K: …and temperature management products. We also offer IV Solutions products through a commercial relationship with the joint venture. We sell the majority of our products globally through our direct sales force and through independent distributors throughout the U.S. and internationally. We also sell certain products on…
• SOLV (SOLVENTUM CORPORATION)
• FY2025 10-K: …contain a single performance obligation. For these customer arrangements, control transfers to customers at a point-in-time when goods have been delivered as that is generally when legal title, physical possession and risks and rewards of ownership transfer to the customer. The Company also enters into customer…
• FY2025 10-K: All Other for all historical periods. All Other also includes sales and cost of sales related to our supply agreements with 3M and other supply agreements assumed by the Company at Spin-Off related to legacy 3M businesses, which were historically included in Corporate and Unallocated. Certain items are maintained at…
• HAE (HAEMONETICS CORPORATION)
• FY2025 10-K: …revenue when, or as, the performance obligation is satisfied. Some of the Company's contracts have multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contract's transaction price to each performance obligation based on the estimated standalone selling…
• FY2025 10-K: EGMENT AND ENTERPRISE-WIDE INFORMATION The Company determines its reportable segments by first identifying its operating segments, and then by assessing whether any components of these segments constitute a business for which discrete financial information is available and where segment management regularly reviews…
• BAX (BAXTER INTERNATIONAL INC)
• FY2025 10-K: …http://www.baxter.com/20251231#LongTermDebtAndLeaseObligationExcludingCurrentMaturities http://fasb.org/us-gaap/2025#OperatingIncomeLoss http://fasb.org/us-gaap/2025#OperatingIncomeLoss http://fasb.org/us-gaap/2025#OperatingIncomeLoss iso4217:USD xbrli:shares iso4217:USD xbrli:shares bax:segment xbrli:pure bax:site…
• FY2025 10-K: …and operating lease right-of-use assets, net are attributed to the following geographic regions. as of December 31 (in millions) 2025 2024 Property, plant and equipment and operating lease right-of-use assets, net: United States $ 1,609 $ 1,654 Emerging markets 817 793 Rest of world 760 729 Total property, plant and…
• STE (STERIS plc)
• FY2025 10-K: …changes for comparability, as required. For more information, refer to Note 4 titled, "Discontinued Operations." Non-allocated operating costs that support the entire Company and items not indicative of operating trends are excluded from segment operating income. Our Healthcare segment provides a comprehensive…
• FY2025 10-K: …Healthcare, Applied Sterilization Technologies ("AST"), and Life Sciences. Previously, we had four reportable business segments; however, as a result of the divestiture of our Dental segment, Dental is presented as discontinued operations. Historical information has been retrospectively adjusted to exclude…
• ZBH (ZIMMER BIOMET HOLDINGS, INC.)
• FY2025 10-K: ") is our President and Chief Executive Officer . Our CODM allocates resources to achieve our operating profit goals through three operating segments. These operating segments, which also constitute our reportable segments, are Americas; EMEA; and Asia Pacific. Our CODM evaluates performance based upon segment…
• FY2025 10-K: Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards…

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.
• Economic-unit decomposition (SOTP): each disclosed business unit is assigned its native valuation basis before any multiple is applied. Operating units are valued on enterprise value; funded financial units are valued on their own common equity, because their borrowings fund earning assets rather than levering the parent. A company total is stated only once every material unit carries a supported value and the parent capital bridge reconciles.
• 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.