OrthoPediatrics (KIDS) AI Stock Analysis

• Market Cap: $515.94M
• Dividend Yield: N/A
• Average Volume (3M): 129.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 31.28%
• EPS Growth: -81.86%
• Country: US
• Employees: 562
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Devices
• EPS (TTM): -0.39
• Shares Outstanding: 24,769,049
• 10 Day Avg. Volume: 110,828
• 30 Day Avg. Volume: 129,319
• PEG Ratio: 0.41
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.14
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 3.80
• Enterprise Value/Ebitda: -9.35
• 1Y Price Target: $36.43
• Price Target Upside: 74.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 66 Neutral
• Price Target: $23.50 ▲( 12.82% Upside)

OrthoPediatrics' overall score is driven by strong positive sentiment from its earnings call and promising revenue growth. However, challenges in profitability and cash flow, along with a bearish technical outlook, weigh down the score. The company's strategic focus on innovation and market expansion, coupled with optimistic future guidance, are key strengths.

Positive Factors

Financial Performance

KIDS' revenue beat expectations showing a strong performance despite challenges.

Market Position

Physician feedback for KIDS' products continues to be extremely positive and emphasizes its dominant position in the pediatric orthopedic market.

Valuation

Shares now trade at a compelling valuation with a price target of $37, indicating strong growth potential in a strategic niche unlikely to attract competition.

Negative Factors

Cost Concerns

The company is exposed to tariffs which could impact costs and profitability.

OrthoPediatrics Business Overview & Revenue Model

Company Description

OrthoPediatrics Corp., a medical device company, designs, develops, and markets anatomically appropriate implants and devices for the treatment of children with orthopedic conditions in the United States and internationally. The company offers trauma and deformity correction products; scoliosis procedures for the treatment of spinal deformity; and sports medicine and other products. Its products comprise PediLoc, PediPlates, cannulated screws, PediFlex nail, PediNail, PediLoc tibia, anterior cruciate ligament reconstruction systems, locking cannulated blades, locking proximal femurs, Spica Tables, RESPONSE Spine systems, Bandloc, Pediguard, Pediatric Nailing Platform, Femur system, Orthex, QuickPack, and ApiFix Mid-C system. The company serves pediatric orthopedic market, as well as pediatric orthopedic surgeons and caregivers. OrthoPediatrics Corp. was founded in 2006 and is headquartered in Warsaw, Indiana.

How the Company Makes Money

OrthoPediatrics generates revenue primarily through the sale of its specialized orthopedic implants and instruments designed for pediatric use. The company's revenue model is based on direct sales to hospitals, surgical centers, and healthcare providers, as well as through distribution partnerships in various regions. Key revenue streams include its core product lines, such as trauma and deformity correction systems, scoliosis treatment systems, and sports medicine solutions. The company also benefits from strong relationships with pediatric orthopedic surgeons, who provide insights and feedback to guide product development, ensuring that its offerings meet the specific needs of young patients. Additionally, OrthoPediatrics may engage in strategic partnerships and collaborations to expand its market reach and enhance its product portfolio, contributing to its overall earnings.

OrthoPediatrics Financial Statement Overview

Summary

OrthoPediatrics exhibits strong revenue growth and a robust equity position with low debt. However, profitability is a challenge due to negative net income and free cash flows. Operational inefficiencies and reliance on external financing for cash flow pose risks to financial stability.

Income Statement

OrthoPediatrics has demonstrated consistent revenue growth, with a TTM revenue increase of 37.6% compared to the previous year. Despite this, the company is facing profitability challenges, evidenced by negative net profit margins and EBIT margins. The gross profit margin is relatively strong at 67.8%, indicating effective cost management relative to revenue. However, both the EBIT and EBITDA margins are negative, reflecting operational inefficiencies and high operating expenses.

Balance Sheet

The company maintains a solid equity position with an equity ratio of 74.9%, suggesting financial stability. The debt-to-equity ratio is low at 0.07, which indicates a conservative approach to leverage. However, the return on equity is negative due to consistent net losses, which is a concern for long-term value creation. Overall, the balance sheet exhibits strong equity and low debt, but profitability remains a challenge.

Cash Flow

OrthoPediatrics faces negative free cash flow, although it has improved from the previous year. The operating cash flow to net income ratio is unfavorable, reflecting cash flow struggles in relation to losses. The company is heavily investing in capital expenditures, which could drive future growth but currently contributes to cash flow challenges. Financing cash flow remains positive, indicating reliance on external funding.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
204.73M	148.73M	122.29M	98.05M	71.08M
	Gross Profit
148.60M	111.25M	90.66M	73.40M	55.03M
	EBIT
-29.52M	-25.77M	-21.79M	-17.87M	-20.41M
	EBITDA
-10.44M	-8.38M	-7.93M	-7.19M	-22.35M
	Net Income Common Stockholders
-37.82M	-20.97M	1.26M	-16.26M	-32.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
68.83M	80.31M	118.29M	53.54M	83.90M
	Total Assets
473.21M	438.75M	427.73M	304.27M	320.41M
	Total Debt
24.12M	10.06M	907.00K	1.04M	1.50M
	Net Debt
-19.70M	-21.00M	-8.08M	-6.60M	-27.26M
	Total Liabilities
118.64M	61.72M	49.08M	78.91M	85.64M
	Stockholders Equity
354.57M	377.02M	378.65M	225.37M	234.77M
Cash Flow		Free Cash Flow
-41.31M	-46.03M	-31.80M	-29.07M	-29.83M
	Operating Cash Flow
-27.05M	-27.05M	-21.77M	-13.06M	-18.53M
	Investing Cash Flow
-13.16M	41.68M	-113.37M	-7.41M	-69.69M
	Financing Cash Flow
53.13M	7.30M	135.97M	6.00K	46.73M

OrthoPediatrics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KIDS, the sentiment is Negative. The current price of 20.83 is below the 20-day moving average (MA) of 22.06, below the 50-day MA of 22.73, and below the 200-day MA of 25.15, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 38.91 is Neutral, neither overbought nor oversold. The STOCH value of 5.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KIDS.

OrthoPediatrics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIBN	72 Outperform	$783.25M	―	-15.96%	―	22.60%	41.26%
KIDS	66 Neutral	$515.94M	―	-11.33%	―	31.28%	-81.86%
Sector *	53 Neutral	$5.14B	3.03	-43.89%	2.83%	16.75%	-0.06%
CBLL	52 Neutral	$599.25M	―	26.25%	―	―	―
TMCI	48 Neutral	$383.72M	―	-45.73%	―	7.54%	4.28%
OFIX	47 Neutral	$434.91M	―	-27.82%	―	5.85%	-8.92%
BVS	47 Neutral	$536.40M	―	-19.79%	―	8.60%	-42.76%

OrthoPediatrics Corporate Events

OrthoPediatrics Issues Common Stock Under Amendment

OrthoPediatrics announced the issuance of Common Stock under the First Amendment, leveraging an exemption under Section 4(a)(2) of the Securities Act of 1933. This strategic move may impact the company’s financial operations and market positioning by potentially increasing capital and shareholder value.

The most recent analyst rating on (KIDS) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on OrthoPediatrics stock, see the KIDS Stock Forecast page.

OrthoPediatrics Highlights Financial Insights and Innovations

OrthoPediatrics Corp. announced upcoming presentations to investors and analysts, highlighting its use of non-GAAP financial measures to provide insights into its financial performance. The company emphasizes its commitment to innovation and market expansion through R&D and strategic acquisitions, aiming to enhance its position as a leader in pediatric orthopedic solutions.