Revvity, Inc. RVTY
Verdict: Sell. Fair value $90.38 against a price of $105 on 6 Jan 2026, 14% below the price.
In plain words
The case for: Narrow competitive moat provides durability. Industry tailwinds with growing market.
The case against: Intense competitive pressure could compress margins. In 2023, Operating Cash Flow collapsed to just $0.09B while the company reported $0.69B in Net.... The $600M negative gap between Net Income and OCF in 2023 strongly implies a major adverse movement....
Main risks
- Severe Revenue and Profitability Collapse: Revenue has declined at a -10.4% 3-year CAGR from its 2021 peak, while annual net income has fallen by 71% over the same period, indicating a major deterioration in core business performance.
- Highly Negative Return on Incremental Capital (ROIIC): A calculated ROIIC of -75.2% suggests that capital invested over the last three years has coincided with a dramatic drop in earnings, indicating significant value destruction and poor capital allocation decisions.
- Precarious Leverage and Coverage: With a proxy-based Net Debt/EBITDA ratio of approximately 5.7x and an interest coverage ratio of only 1.3x, the company's ability to service its debt is a major concern, especially given the negative earnings trend.
- Low interest coverage (1.3x)
- In 2023, Operating Cash Flow collapsed to just $0.09B while the company reported $0.69B in Net...
- Intense competitive environment