Since July 2025, Integra LifeSciences has been in a holding pattern, posting a small loss of 4% while floating around $12.25. The stock also fell short of the S&P 500’s 9.9% gain during that period.
Is now the time to buy Integra LifeSciences, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free for active Edge members.
Why Do We Think Integra LifeSciences Will Underperform?
We're cautious about Integra LifeSciences. Here are three reasons we avoid IART and a stock we'd rather own.
1. Core Business Falling Behind as Demand Plateaus
In addition to reported revenue, organic revenue is a useful data point for analyzing Surgical Equipment & Consumables - Specialty companies. This metric gives visibility into Integra LifeSciences’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement.
Over the last two years, Integra LifeSciences failed to grow its organic revenue. This performance was underwhelming and implies it may need to improve its products, pricing, or go-to-market strategy. It also suggests Integra LifeSciences might have to lean into acquisitions to accelerate growth, which isn’t ideal because M&A can be expensive and risky (integrations often disrupt focus). 
2. Free Cash Flow Margin Dropping
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
As you can see below, Integra LifeSciences’s margin dropped by 19.6 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. Integra LifeSciences’s free cash flow margin for the trailing 12 months was breakeven.
3. High Debt Levels Increase Risk
Debt is a tool that can boost company returns but presents risks if used irresponsibly. As long-term investors, we aim to avoid companies taking excessive advantage of this instrument because it could lead to insolvency.
Integra LifeSciences’s $2.01 billion of debt exceeds the $232.2 million of cash on its balance sheet. Furthermore, its 6× net-debt-to-EBITDA ratio (based on its EBITDA of $318.2 million over the last 12 months) shows the company is overleveraged.
At this level of debt, incremental borrowing becomes increasingly expensive and credit agencies could downgrade the company’s rating if profitability falls. Integra LifeSciences could also be backed into a corner if the market turns unexpectedly – a situation we seek to avoid as investors in high-quality companies.
We hope Integra LifeSciences can improve its balance sheet and remain cautious until it increases its profitability or pays down its debt.
Final Judgment
Integra LifeSciences falls short of our quality standards. With its shares lagging the market recently, the stock trades at 5.2× forward P/E (or $12.25 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better investments elsewhere. Let us point you toward one of our top digital advertising picks.
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