Time To Buy Integer Stock?

Shares of Integer (NYSE: ITGR), a contract development and manufacturing company for medical devices, experienced a sharp 32% drop yesterday, October 23, 2025. This significant decline was primarily driven by the company’s revised financial guidance for the rest of 2025 and a weak preliminary outlook for 2026, both of which were negatively impacted by slower-than-anticipated adoption of new products. This unfavorable news overshadowed ITGR’s otherwise strong third-quarter 2025 earnings, which had successfully met or exceeded revenue and adjusted earnings per share expectations.

Is ITGR Stock a Buy After the Dip?

Despite the recent drop and a few inherent concerns that make the stock risky, we believe ITGR stock is a buy. The stock’s current Moderate valuation makes it particularly attractive from a valuation perspective.

We arrive at this conclusion by evaluating ITGR’s current valuation against its operating performance over recent years and its current and historical financial condition. Our analysis focuses on key parameters: Growth, Profitability, Financial Stability, and Downturn Resilience. This detailed assessment shows that Integer currently exhibits a Moderate operating performance and financial condition.

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Image by Konstantin Kolosov from Pixabay

How Does Integer’s Valuation Look vs. The S&P 500?

Going by what you pay per dollar of sales or profit, ITGR stock looks moderate compared to the broader market.

1. Integer has a price-to-sales (P/S) ratio of 1.4 vs. a figure of 3.2 for the S&P 500
2. Additionally, the company’s price-to-free cash flow (P/FCF) ratio is 21.5 compared to 21.1 for S&P 500
3. And, it has a price-to-earnings (P/E) ratio of 31.3 vs. the benchmark’s 24.2

How Have Integer’s Revenues Grown Over Recent Years?

Integer’s Revenues have seen some growth over recent years.

1. Integer has seen its top line grow at an average rate of 12.0% over the last 3 years (vs. increase of 5.4% for S&P 500)
2. Its revenues have grown 9.6% from $1.6 Bil to $1.8 Bil in the last 12 months (vs. growth of 5.1% for S&P 500)
3. Also, its quarterly revenues grew 11.4% to $476 Mil in the most recent quarter from $428 Mil a year ago (vs. 6.2% improvement for S&P 500)

How Profitable Is Integer?

Integer’s profit margins are worse than most companies in the Trefis coverage universe.

1. Integer’s Operating Income over the last four quarters was $236 Mil, which represents a moderate Operating Margin of 13.1% (vs. 18.6% for S&P 500)
2. Integer’s Operating Cash Flow (OCF) over this period was $210 Mil, pointing to a moderate OCF Margin of 11.7% (vs. 20.4% for S&P 500)
3. For the last four-quarter period, Integer’s Net Income was $83 Mil – indicating a very poor Net Income Margin of 4.6% (vs. 12.7% for S&P 500)

Does Integer Look Financially Stable?

Integer’s balance sheet looks weak.

• Integer’s Debt figure was $1.3 Bil at the end of the most recent quarter, while its market capitalization is $2.6 Bil (as of 10/23/2025). This implies a moderate Debt-to-Equity Ratio of 51.0% (vs. 21.1% for S&P 500). [Note: A low Debt-to-Equity Ratio is desirable]
• Cash (including cash equivalents) makes up $23 Mil of the $3.4 Bil in Total Assets for Integer.  This yields a very poor Cash-to-Assets Ratio of 0.7% (vs. 7.0% for S&P 500)

How Resilient Is ITGR Stock During A Downturn?

ITGR stock has fared worse than the benchmark S&P 500 index during some of the recent downturns. Worried about the impact of a market crash on ITGR stock? Our dashboard With Integer Stock Climbed 5.8% In A Month, How Confident Are You? has a detailed analysis of how the stock performed during and after previous market crashes.

Inflation Shock (2022)

1. ITGR stock fell 48.7% from a high of $99.66 on 29 July 2021 to $51.11 on 10 October 2022, vs. a peak-to-trough decline of 25.4% for the S&P 500
2. The stock fully recovered to its pre-Crisis peak by 19 December 2023
3. Since then, the stock has increased to a high of $144.36 on 28 January 2025 and currently trades at around $74

Covid Pandemic (2020)

1. ITGR stock fell 52.3% from a high of $98.93 on 20 February 2020 to $47.20 on 23 March 2020, vs. a peak-to-trough decline of 33.9% for the S&P 500
2. The stock fully recovered to its pre-Crisis peak by 29 July 2021

Global Financial Crisis (2008)

1. ITGR stock fell 54.9% from a high of $34.72 on 17 July 2007 to $15.66 on 8 May 2008, vs. a peak-to-trough decline of 56.8% for the S&P 500
2. The stock fully recovered to its pre-Crisis peak by 5 July 2013

Putting All The Pieces Together: What It Means For ITGR Stock

In summary, Integer’s performance across the parameters detailed above are as follows:

• Growth: Strong
• Profitability: Weak
• Financial Stability: Weak
• Downturn Resilience: Weak
• Overall: Moderate

While ITGR stock looks promising, investing in a single stock without comprehensive analysis can be risky. Consider the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.

The Bottom Line

The analysis shows that Integer’s operating performance and financial health are moderate, which aligns with its current moderate valuation. In our view, the significant market reaction to the guidance was excessive, and the recent negative news appears to be overpriced in the current stock level. Although we could be wrong in our assessment and investors may still be unwilling to pay even a 1x trailing revenue valuation multiple given the stock’s concerns, we believe ITGR is well-positioned to deliver robust returns for long-term investors holding for 3-5 years.

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