OrthoPediatrics (KIDS) AI Stock Analysis

• Market Cap: $434.34M
• Dividend Yield: N/A
• Average Volume (3M): 196.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 19.90%
• EPS Growth: -57.90%
• Country: US
• Employees: 562
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.24
• Shares Outstanding: 25,077,330
• 10 Day Avg. Volume: 194,659
• 30 Day Avg. Volume: 196,931
• PEG Ratio: -0.18
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 2.61
• P/FCF Ratio: -12.95
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 2.29
• Enterprise Value/Gross Profit: 3.19
• Enterprise Value/Ebitda: -36.09
• 1Y Price Target: $26.00
• Price Target Upside: 50.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $19.00 ▲(9.89% Upside)

The score is held back primarily by weak profitability and negative operating/free cash flow despite a solid low-leverage balance sheet. Technicals are moderately constructive and the earnings call shows tangible operational improvement with guidance toward cash flow positivity, but valuation remains constrained by losses and no dividend.

Positive Factors

Revenue Growth

Strong revenue growth in core segments indicates robust demand for OrthoPediatrics' products, enhancing its market position and supporting long-term expansion.

Product Portfolio Expansion

The introduction of new products in the OPSB division strengthens OrthoPediatrics' competitive edge and diversifies its revenue streams, supporting sustainable growth.

Adjusted EBITDA Improvement

Significant improvement in adjusted EBITDA reflects enhanced operational efficiency, contributing to better financial health and potential profitability.

Negative Factors

Profitability Challenges

Ongoing profitability issues indicate challenges in cost management and pricing strategy, potentially affecting long-term financial sustainability.

Cash Flow Concerns

Negative cash flow suggests difficulties in generating sufficient cash from operations, which could limit investment in growth initiatives and impact liquidity.

Increased Operating Expenses

Rising operating expenses may pressure margins and hinder profitability, necessitating cost control measures to maintain financial stability.

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 orthopedic surgical products, including implants and instruments tailored for pediatric use. The company operates on a business-to-business model, where it sells its products to hospitals, orthopedic clinics, and healthcare providers. Key revenue streams include direct product sales, as well as recurring revenues from instrument rental agreements and service contracts. Additionally, partnerships with healthcare institutions and participation in clinical studies help enhance product visibility and credibility, further driving sales. The company may also benefit from government and private insurance reimbursements for its surgical solutions, contributing to its overall financial performance.

OrthoPediatrics Financial Statement Overview

Summary

Mixed fundamentals: modest TTM revenue growth (3.03%) and strong gross margin (71.73%), but persistent losses (negative net income/EBIT margins) and weak cash generation with negative operating cash flow and free cash flow. Balance sheet leverage is conservative (debt-to-equity 0.14), which helps, but negative ROE signals profitability is still a key issue.

Income Statement

OrthoPediatrics shows a modest revenue growth rate of 3.03% in the TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains strong at 71.73%, but the consistent negative net income highlights ongoing challenges in achieving profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.14, suggesting conservative leverage. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is not explicitly calculated, but the strong equity base relative to total assets suggests a solid capital structure.

Cash Flow

Cash flow analysis reveals challenges, with negative operating cash flow and free cash flow. The free cash flow growth rate is negative, indicating deteriorating cash generation capabilities. The free cash flow to net income ratio is positive, suggesting some efficiency in converting net income to cash, but overall cash flow remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	227.41M	204.73M	148.73M	122.29M	98.05M	71.08M
Gross Profit	163.12M	148.60M	111.25M	90.66M	73.40M	55.03M
EBITDA	-14.42M	-10.44M	-8.38M	-8.69M	-7.19M	-22.25M
Net Income	-45.61M	-37.82M	-20.97M	1.26M	-16.26M	-32.94M
Balance Sheet
Total Assets	493.49M	473.21M	438.75M	427.73M	308.40M	324.83M
Cash, Cash Equivalents and Short-Term Investments	57.73M	68.83M	80.31M	118.29M	54.91M	85.27M
Total Debt	99.34M	80.90M	10.06M	907.00K	28.51M	26.52M
Total Liabilities	144.18M	118.64M	61.72M	49.08M	83.03M	90.06M
Stockholders Equity	349.31M	354.57M	377.02M	378.65M	225.37M	234.77M
Cash Flow
Free Cash Flow	-29.43M	-41.31M	-46.03M	-31.80M	-29.07M	-29.83M
Operating Cash Flow	-19.19M	-27.05M	-27.05M	-21.77M	-13.06M	-18.53M
Investing Cash Flow	-38.78M	-13.16M	41.68M	-113.37M	-7.41M	-69.69M
Financing Cash Flow	23.85M	53.13M	7.30M	135.97M	6.00K	46.73M

OrthoPediatrics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.29
• 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 17.29 is below the 20-day moving average (MA) of 18.29, below the 50-day MA of 17.97, and below the 200-day MA of 19.60, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 41.59 is Neutral, neither overbought nor oversold. The STOCH value of 6.07 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
BVS	64 Neutral	$642.24M	69.63	4.97%	―	1.58%	―
TNDM	61 Neutral	$1.30B	-6.48	-109.73%	―	17.87%	-57.03%
OFIX	55 Neutral	$520.34M	-4.32	-24.60%	―	4.31%	3.26%
KIDS	54 Neutral	$434.34M	-8.84	-12.67%	―	19.90%	-57.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VREX	50 Neutral	$586.03M	-8.07	-13.95%	―	4.14%	-45.29%
TMCI	45 Neutral	$152.92M	-2.89	-51.63%	―	7.90%	19.92%

OrthoPediatrics Corporate Events

OrthoPediatrics Highlights Growth Strategy in 2026 Investor Presentations

OrthoPediatrics’ executive team plans a series of upcoming presentations to investors and analysts built around its 2026 investor materials, highlighting its exclusive focus on pediatric patients, broad product portfolio, and consistent growth trajectory since inception, excluding the COVID-impacted year of 2020. The presentation underscores the company’s strategy of expanding its addressable market through R&D and selective M&A, leveraging a global commercial channel and intensive clinical education programs to differentiate itself from larger competitors that mainly repurpose adult implants, thereby reinforcing its niche leadership in pediatric orthopedics and its long-term operational and market ambitions.

The most recent analyst rating on (KIDS) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on OrthoPediatrics stock, see the KIDS Stock Forecast page.

OrthoPediatrics Highlights Strategic Focus in Presentations

OrthoPediatrics Corp. has announced upcoming presentations to investors and analysts, highlighting their strategic focus on pediatric orthopedics. The company emphasizes its commitment to innovation and growth, with a consistent track record of launching new products and expanding its market reach. OrthoPediatrics aims to address the unique needs of pediatric patients through specialized product development and clinical education, positioning itself as a leader in the pediatric orthopedic market.

The most recent analyst rating on (KIDS) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on OrthoPediatrics stock, see the KIDS Stock Forecast page.