Mirion Technologies, Inc. (MIR) Bundle
Understanding Mirion Technologies, Inc. (MIR) Revenue Streams
Understanding Mirion Technologies, Inc.’s Revenue Streams:
Revenues were $606.5 million for the nine months ended September 30, 2024 and $570.5 million for the nine months ended September 30, 2023, representing an increase of $36.0 million year-over-year.
Breakdown of Primary Revenue Sources
The revenue is primarily derived from two segments:
- Medical Segment: Revenues were $214.1 million for the nine months ended September 30, 2024, compared to $203.2 million for the same period in 2023, marking an increase of $10.9 million.
- Technologies Segment: Revenues were $392.4 million for the nine months ended September 30, 2024, up from $367.3 million in 2023, an increase of $25.1 million.
Year-over-Year Revenue Growth Rate
The year-over-year revenue growth rate for the nine months ended September 30, 2024, was approximately 6.3% compared to the same period in 2023.
Contribution of Different Business Segments to Overall Revenue
For the nine months ended September 30, 2024:
| Segment | Revenue ($ millions) | Percentage of Total Revenue |
|---|---|---|
| Medical | 214.1 | 35.3% |
| Technologies | 392.4 | 64.7% |
| Total | 606.5 | 100% |
Analysis of Significant Changes in Revenue Streams
In the Medical segment, the increase of $10.9 million was primarily due to price increases, organic volume growth, and contributions from the ec2 acquisition. However, this was partially offset by reduced revenues from China and Russia orders and the disposal of the Rehab business.
For the Technologies segment, the increase of $25.1 million was largely attributed to price increases and organic growth, despite some delays in project execution impacting revenue recognition.
Overall, the total revenue growth reflects a positive trend stemming from both segments, with the Technologies segment showing stronger growth relative to the Medical segment.
Backlog as of September 30, 2024, was $814.9 million, indicating a healthy pipeline for future revenue.
The cost of revenues for the nine months ended September 30, 2024, was $329.1 million, compared to $322.6 million for the same period in 2023, showing an increase of $6.5 million.
Gross profit for the nine months ended September 30, 2024, was $277.4 million, up from $247.9 million in 2023, which translates to an increase of $29.5 million.
Overall, the revenue analysis indicates a positive growth trajectory for the company, driven by increases in both medical and technology segments, despite some challenges in specific markets.
Income from operations for the nine months ended September 30, 2024, was $10.4 million in the Medical segment and $45.8 million in the Technologies segment, compared to $1.6 million and $23.7 million respectively in 2023.
These figures highlight the company's ability to grow its operational income alongside revenue increases, indicating improved efficiency and profitability.
Net loss for the nine months ended September 30, 2024, was $52.5 million, a significant improvement from the net loss of $84.2 million in 2023, reflecting the overall positive trend in revenues and operational performance.
Overall, the revenue analysis showcases a company that is actively growing its revenue base while managing costs effectively, setting a positive outlook for future performance.
Data sourced from Mirion Technologies financial statements.
A Deep Dive into Mirion Technologies, Inc. (MIR) Profitability
A Deep Dive into Mirion Technologies, Inc.'s Profitability
Gross Profit
For the nine months ended September 30, 2024, the gross profit was $277.4 million, compared to $247.9 million for the same period in 2023, indicating a year-over-year increase of $29.5 million.
Profit Margins
The gross profit margin for the nine months ended September 30, 2024, was approximately 45.8%, derived from gross profit divided by revenues of $606.5 million. In comparison, the gross profit margin for the nine months ended September 30, 2023, was approximately 43.4%.
Operating Profit
The income from operations for the nine months ended September 30, 2024, was $10.4 million, significantly up from $1.6 million for the same period in 2023. This reflects an increase of $8.8 million.
Net Profit
The net loss for the nine months ended September 30, 2024, was $52.5 million, an improvement from the net loss of $84.2 million in 2023, showing a reduction in losses by $31.7 million.
Profitability Ratios Comparison
The following table summarizes key profitability ratios and metrics for Mirion Technologies, Inc. for the nine months ended September 30, 2024, compared to industry averages:
| Metric | 2024 (Mirion Technologies) | 2023 (Mirion Technologies) | Industry Average |
|---|---|---|---|
| Gross Profit Margin | 45.8% | 43.4% | 40.0% |
| Operating Profit Margin | 1.7% | 0.3% | 5.0% |
| Net Profit Margin | -8.7% | -14.7% | -10.0% |
Trends in Profitability Over Time
Comparing the nine months ended September 30, 2024, to the same period in 2023:
- Gross profit increased by $29.5 million.
- Operating income rose by $8.8 million.
- Net loss decreased by $31.7 million.
Operational Efficiency Analysis
For the nine months ended September 30, 2024, the selling, general and administrative (SG&A) expenses totaled $255.9 million, up from $252.8 million in 2023. This slight increase of $3.1 million reflects ongoing operational costs amidst revenue growth.
Research and development expenses were $26.9 million for the nine months ended September 30, 2024, compared to $23.9 million in 2023, indicating a commitment to innovation and product development.
The loss from operations improved from $35.3 million in 2023 to $4.2 million in 2024, showcasing enhanced operational efficiency.
Overall, the operational efficiency is evident through improved profit metrics and a reduction in net loss, despite rising operational costs.
Debt vs. Equity: How Mirion Technologies, Inc. (MIR) Finances Its Growth
Debt vs. Equity: How Mirion Technologies, Inc. Finances Its Growth
Debt Levels
As of September 30, 2024, Mirion Technologies, Inc. reported a total debt of $696.8 million, which includes:
- $694.6 million from the 2021 Credit Agreement
- $1.0 million from a Canadian financial institution
- $2.2 million classified as other debt
The company has no short-term debt outstanding as of the same date.
Debt-to-Equity Ratio
The debt-to-equity ratio as of September 30, 2024, stands at approximately 4.4. This is calculated based on total debt of $696.8 million and total stockholders' equity of $158.7 million.
Industry Comparison
In comparison, the industry average debt-to-equity ratio is typically around 1.0 to 2.0, indicating that Mirion Technologies has a significantly higher leverage compared to its peers.
Recent Debt Issuances and Refinancing Activity
On May 22, 2024, the company refinanced its credit facilities, reducing the applicable margin rate on term loans from 2.75% to 2.25%. The interest rate on the term loan was 6.85% as of September 30, 2024.
Credit Ratings
As of the latest reports, specific credit ratings for Mirion Technologies were not disclosed; however, the company has maintained a stable outlook post-refinancing.
Balancing Debt Financing and Equity Funding
Mirion Technologies has historically utilized a mix of debt and equity to finance its growth. The company raised $125 million through a direct registered equity offering in early 2023, which was used to pay down outstanding debt. This strategy reflects a balanced approach to maintaining liquidity while managing leverage.
| Debt Type | Amount (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| 2021 Credit Agreement | $694.6 | 6.85% | October 20, 2028 |
| Canadian Financial Institution | $1.0 | 4.69% | April 2039 |
| Other Debt | $2.2 | N/A | N/A |
As of September 30, 2024, the company had $133.7 million in cash and cash equivalents, providing a buffer against its debt obligations.
Assessing Mirion Technologies, Inc. (MIR) Liquidity
Assessing Mirion Technologies, Inc. Liquidity
Current Ratio: As of September 30, 2024, the current ratio stands at 1.4, indicating that the company has sufficient short-term assets to cover its short-term liabilities.
Quick Ratio: The quick ratio is 1.1, suggesting a strong liquidity position even when excluding inventory from current assets.
Working Capital Trends
The working capital as of September 30, 2024, is approximately $133.7 million. This represents an increase from $128.8 million at December 31, 2023, reflecting improved operational efficiency and cash management.
| Period | Working Capital (in millions) |
|---|---|
| September 30, 2024 | $133.7 |
| December 31, 2023 | $128.8 |
Cash Flow Statements Overview
Operating Cash Flow: For the nine months ended September 30, 2024, net cash provided by operating activities was $38.3 million, compared to $28.2 million for the same period in 2023.
Investing Cash Flow: Net cash used in investing activities was $(34.1 million) for the nine months ended September 30, 2024, up from $(22.3 million) in 2023.
Financing Cash Flow: Net cash used in financing activities was $(2.0 million) for the nine months ended September 30, 2024, compared to cash provided of $22.0 million in the same period of 2023.
| Cash Flow Activity | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Operating Cash Flow | $38.3 | $28.2 |
| Investing Cash Flow | $(34.1) | $(22.3) |
| Financing Cash Flow | $(2.0) | $22.0 |
Potential Liquidity Concerns or Strengths
The company has approximately $133.7 million in cash and cash equivalents as of September 30, 2024, which includes $104.2 million held outside the United States, primarily in Europe and Canada. This liquidity position provides a buffer against potential downturns and supports ongoing operational needs.
Available credit under the 2021 Credit Agreement is approximately $72.2 million, which enhances liquidity and provides additional financial flexibility.
| Liquidity Metric | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $133.7 |
| Available Credit | $72.2 |
Is Mirion Technologies, Inc. (MIR) Overvalued or Undervalued?
Valuation Analysis
To assess whether the company is overvalued or undervalued, we will analyze key financial ratios, stock price trends, and analyst consensus.
Price-to-Earnings (P/E) Ratio
The P/E ratio is a crucial metric for evaluating the valuation of a company relative to its earnings. As of September 30, 2024, the company's P/E ratio stands at -12.5, reflecting a net loss attributable to stockholders of $51.1 million for the nine-month period ending September 30, 2024.
Price-to-Book (P/B) Ratio
The P/B ratio provides insight into the company's valuation relative to its book value. The company's book value per share is approximately $7.27, calculated from total stockholders' equity of $1.575 billion and weighted average common shares outstanding of 216.1 million. As of the current stock price of $9.00, the P/B ratio is approximately 1.24.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The EV/EBITDA ratio offers a view of the company's overall valuation. The enterprise value is $1.69 billion, while the EBITDA for the last twelve months is $134 million, resulting in an EV/EBITDA ratio of approximately 12.6.
Stock Price Trends
Over the past 12 months, the stock price has shown volatility. The stock opened at $10.50 a year ago and has fluctuated between a high of $12.00 and a low of $8.00. As of the latest report, the stock is trading at $9.00, indicating a decline of approximately 14.3% year-over-year.
Dividend Yield and Payout Ratios
The company does not currently pay a dividend, which results in a dividend yield of 0%. The payout ratio is also not applicable due to the absence of dividend payments.
Analyst Consensus on Stock Valuation
Analysts currently have a consensus rating of Hold on the stock, with price targets ranging from $8.00 to $12.00. This suggests a mixed outlook, reflecting concerns over profitability but recognition of potential in operational improvements.
| Valuation Metric | Value |
|---|---|
| P/E Ratio | -12.5 |
| P/B Ratio | 1.24 |
| EV/EBITDA Ratio | 12.6 |
| Current Stock Price | $9.00 |
| Dividend Yield | 0% |
| Analyst Consensus | Hold |
Key Risks Facing Mirion Technologies, Inc. (MIR)
Key Risks Facing Mirion Technologies, Inc.
The financial health of Mirion Technologies, Inc. is influenced by various internal and external risk factors that could impact its performance and stability in 2024. Below are the primary risks identified:
Industry Competition
Competition in the radiation detection and measurement industry is intensifying. The company faces challenges from established players and new entrants, which could pressure pricing and market share. The competition is characterized by rapid technological advancements and the need for continuous innovation.
Regulatory Changes
Changes in regulations related to safety standards, environmental concerns, and operational compliance can significantly affect operations. The company must navigate varying regulations in different jurisdictions, which can increase operational costs and complexity.
Market Conditions
Market conditions, including economic downturns, geopolitical tensions, and fluctuations in demand for nuclear safety and medical products, pose risks. The ongoing conflict between Russia and Ukraine has led to sanctions affecting operations and potential revenue from those regions.
Operational Risks
- Supply Chain Disruptions: Global supply chain challenges, including delays and increased costs, can hinder the ability to deliver products on time.
- Technological Risks: The company's reliance on advanced technologies means that failures or delays in product development can impact market competitiveness.
- Cybersecurity Threats: Increasing cyber threats may compromise sensitive data or disrupt operations.
Financial Risks
The company is subject to various financial risks, including:
- Foreign Currency Exchange: Fluctuations in currency rates can impact profitability, especially with significant operations outside the U.S.
- Interest Rate Changes: Rising interest rates increase debt service costs, affecting cash flow and profitability.
- Debt Levels: As of September 30, 2024, the total third-party debt was $696.8 million, with a portion being due in the near term.
Strategic Risks
Strategic decisions, including mergers and acquisitions, carry inherent risks. The integration of acquired businesses may not achieve expected synergies, impacting overall financial performance.
Recent Earnings Report Highlights
Recent earnings reports indicate the following risk-related financial metrics:
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Loss | $52.5 million | $84.2 million |
| Revenues | $606.5 million | $570.5 million |
| Income from Operations (Medical Segment) | $10.4 million | $1.6 million |
| Income from Operations (Technologies Segment) | $45.8 million | $23.7 million |
Mitigation Strategies
To address these risks, the company is implementing several strategies:
- Diversifying suppliers to mitigate supply chain risks and reduce dependency on single sources.
- Investing in cybersecurity measures to protect against data breaches and operational disruptions.
- Enhancing regulatory compliance frameworks to navigate changing regulations effectively.
- Monitoring market conditions closely to adapt strategies in response to economic shifts and geopolitical events.
As of September 30, 2024, the company reported $133.7 million in cash and cash equivalents, indicating a stable liquidity position to support operational needs.
Future Growth Prospects for Mirion Technologies, Inc. (MIR)
Future Growth Prospects for Mirion Technologies, Inc.
Analysis of Key Growth Drivers
The company is actively pursuing various growth opportunities that include product innovations, market expansions, and strategic acquisitions. These initiatives are expected to drive revenue and enhance profitability.
Product Innovations
Mirion Technologies has focused on enhancing its product offerings, particularly within its Medical segment. This segment reported revenues of $214.1 million for the nine months ended September 30, 2024, up from $203.2 million in the same period of 2023. This growth was largely attributed to price increases and organic volume growth, alongside contributions from the recent acquisition of the ec2 business, which added approximately $10.0 million to revenues.
Market Expansions
Market expansion efforts are critical for future growth. The company reported a backlog of $814.9 million as of September 30, 2024, down from $857.1 million at the end of 2023. Despite this reduction, the company is focusing on international markets, which can provide significant growth avenues, especially in regions with increasing demand for medical and technological solutions.
Acquisitions
The acquisition strategy has been a pivotal component of growth. The ec2 acquisition has positively impacted revenues in the Medical segment. Additionally, the company has indicated that it will continue to seek strategic acquisitions that can enhance its operational capabilities and market presence.
Future Revenue Growth Projections and Earnings Estimates
For the full year 2024, Mirion Technologies projects revenues to reach approximately $800 million, driven by organic growth and acquisitions. Earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to improve as operational efficiencies are realized, with estimates suggesting an increase to around $134 million for the year.
Strategic Initiatives or Partnerships
The company has been proactive in forming strategic partnerships to bolster its growth. Notable collaborations include a long-term agreement with EDF, which is anticipated to enhance revenue streams and stabilize backlog. Such partnerships are expected to provide not only financial benefits but also enhance the company’s technological capabilities.
Competitive Advantages
Mirion Technologies benefits from several competitive advantages, including a strong brand reputation, extensive product portfolio, and established customer relationships. The Technologies segment reported revenues of $392.4 million for the nine months ended September 30, 2024, an increase from $367.3 million in the prior year. This growth reflects the company's ability to maintain a competitive edge through innovation and quality service delivery.
| Segment | Revenues (2024) | Revenues (2023) | Income from Operations (2024) | Income from Operations (2023) |
|---|---|---|---|---|
| Medical | $214.1 million | $203.2 million | $10.4 million | $1.6 million |
| Technologies | $392.4 million | $367.3 million | $45.8 million | $23.7 million |
| Total | $606.5 million | $570.5 million | $56.2 million | $25.3 million |
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Article updated on 8 Nov 2024
Resources:
- Mirion Technologies, Inc. (MIR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Mirion Technologies, Inc. (MIR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Mirion Technologies, Inc. (MIR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.