RVTY
Revvity, Inc.$98.49
Sell
Target $72.13
Report: Mar 07, 2026Healthcare • Medical - Diagnostics & Research • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$98.49-26.8%
Rec: SellConviction: High
Entry Target
N/A
N/A
Fair Value
$72.13
(27% below current)
Stop Loss
N/A
N/A
Position Size
None
Time Horizon
N/A
Key Metrics
Live Snapshot
Market Data
52 Week High$118.30
52 Week Low$81.36
Avg. 3 Month Volume1.32M
Efficiency
LTM Gross Margin54.8%
LTM EBITDA Margin26.7%
LTM EBIT Margin12.5%
LTM Operating Margin12.5%
LTM ROA2.0%
LTM ROE3.2%
LTM ROIC7.8%
LTM ROCE3.1%
Capital Structure
Market Cap (MM)$9.8B
Enterprise Value (MM)$12.2B
Shares Outstanding111.80M
Total Debt (MM)$3.37B
Cash & Equivalents (MM)$919.86M
LTM Net Debt (MM)$2.45B
LTM Net Debt/EBITDA3.2x
Growth
TTM Rev. Growth3.7%
Last 3-Yr Rev. CAGR-10.2%
Last 3-Yr EBITDA CAGR-14.6%
Last 3-Yr EPS CAGR-22.9%
Valuation
Street Target Price$115.14
LTM EV/Revenue4.3x
LTM EV/Gross Profit7.8x
LTM EV/EBIT34.2x
LTM EV/EBITDA16.0x
LTM P/E40.6x
LTM EV/FCF24.0x
LTM P/FCF19.2x
LTM P/TB3.1x
LTM P/B1.4x
Dividend Yield0.3%
Payout Ratio13.5%
Executive SummarySituation: Current price is $98.49 versus fair value $72.13 (-26.8% expected return), and valuation confidence is stable. Debate: Bull case depends on Continued Margin Compression in Diagnostics Persistent volume declines in China due to DRG reforms and the 60 bps headwind from tariffs are likely to cause further misses on adjusted EPS guidance, forcing a multiple re-rating. Bear case centers on Moat Erosion in Diagnostics Technological disruption or low-cost competition in the immunodiagnostics space could permanently impair Revvity's pricing power and return on capital. Conclusion: Recommendation is Sell with no position, pending a materially better risk/reward setup.
Bull Case
Software ARR growth of 40% and net retention rates above 110% signal a successful transition to a high-margin SaaS model; aggressive share repurchases ($800 million in 2025) provide a floor for EPS during the transition.
Bear Case
ROIC of 7.8% is consistently below the 9.5% WACC, indicating that every dollar of reinvested capital is destroying shareholder value; China DRG reforms and 60 bps tariff headwinds are permanently impairing diagnostic margins.
Key Catalysts
Near-Term (0-6 months)Impact: High
Continued Margin Compression in Diagnostics Persistent volume declines in China due to DRG reforms and the 60 bps headwind from tariffs are...
Mid-Term (6-18 months)Impact: Critical
Slowing Software ARR Growth If software net retention falls below 110% or ARR growth slows from its current 40% clip, the primary bull narra...
Long-Term (18+ months)Impact: Moderate
Revvity is at a critical juncture following its 2023 pivot; recent insider selling and a 'Negative' outlook from S&P Global Ratings regardin...
Primary Risks
Concern: High
Moat Erosion in Diagnostics Technological disruption or low-cost competition in the immunodiagnostics space could permanently impair Revvity...
Concern: Medium
Capital Allocation Failure Continued pursuit of high-premium, low-return M&A could further strain the balance sheet and lead to a credit rat...
Concern: Medium
The stewardship verdict is adequate for operational maintenance but weak for value creation. The board, led by Audit Chair Samuel Chapin (ex...
Recent Activity
2026-02-03SEC Filing (8-K)
-5.57%Revvity reports Q4 2025 revenue of $772M, 6% growth, and initiates 2026 guidance
2026-01-13SEC Filing (8-K)
+6.02%Revvity announces preliminary Q4 2025 financial results and earnings call
2025-05-14SEC Filing (SC 13G/A)
-5.88%T. Rowe Price Associates, Inc. amends Schedule 13G to report 8.0% ownership of Revvity Inc.
2024-11-15SEC Filing (SC 13G)
-5.63%T. Rowe Price Associates, Inc. reports 5.3% beneficial ownership of Revvity Inc. common stock
2022-02-02SEC Filing (SC 13G/A)
+6.22%BlackRock, Inc. reports 6.7% beneficial ownership of PerkinElmer Inc.
Valuation Table
9.8/10Decision Grade
Scenario Range
$57
Bear
$86
Base
$106
Bull
$98