Inotiv Inc. Common Stock (NOTV)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital and carry little debt. Inotiv fails those tests. It provides nonclinical drug discovery and safety assessment services, but the numbers show a business under stress. In the latest reported quarter, fiscal Q1 2026, revenue was $117.7M while net income was -$32.5M, a -27.6% margin. The provided revenue growth is only 0.84%, and profit growth is -2.71%. The trailing EPS figure provided is -$2.48, ROE is -74.09%, and ROCE is -4.02% by FairStock calculations. Free cash flow is -$13.6M, a -140% FCF yield, so the firm is consuming cash. Debt to equity is 6.33, and the Altman Z-score of -1.96 signals financial distress. A Piotroski F-score of 3/9 confirms weak fundamentals. The stock closed at $0.01 on 2026-07-27, giving a $9.7M market cap. On book value, P/B of 0.01 looks almost absurdly cheap, but book value can vanish when losses persist and assets are impaired. P/E is 0.00 because earnings are negative. EV/EBITDA is 70.01, not cheap for a cash-burning enterprise. Beta of 3.77 and a 52-week range of $0.01 to $1.47 show extreme volatility and a collapse in price. There is no clear moat in these figures—only scale of revenue and employees, not pricing power. As Graham might say, a low price is not the same as a margin of safety when the enterprise is bleeding. I would need evidence of durable positive cash flow and debt reduction before calling this anything more than speculative.

In plain English: Inotiv provides drug development services and research models to pharmaceutical and medical device companies. The business looks weak: it is losing money and using more cash than it brings in, with heavy debt. The stock trades for about a penny, but that very low price reflects serious financial risk rather than a safe bargain.

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Data as of 2026-07-27 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer