OrthoPediatrics (KIDS) AI Stock Analysis

• Market Cap: $563.74M
• Dividend Yield: N/A
• Average Volume (3M): 132.44K
• 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: 37
• Industry: Medical - Devices
• EPS (TTM): -0.39
• Shares Outstanding: 24,769,049
• 10 Day Avg. Volume: 152,564
• 30 Day Avg. Volume: 132,436
• PEG Ratio: 1.73
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.89
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 3.57
• Enterprise Value/Ebitda: -7.28
• 1Y Price Target: $34.50
• Price Target Upside: 51.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: $25.00 ▲(9.89%Upside)

OrthoPediatrics' score reflects its strong revenue growth and strategic initiatives evidenced in the earnings call, which are slightly offset by significant profitability and cash flow challenges. The company's technical indicators show moderate bullish momentum, while valuation metrics highlight current unprofitability. Corporate events reinforce a positive view of future growth.

Positive Factors

Financial Performance

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

Growth Potential

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.

Market Position

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

Negative Factors

Cost and Profitability

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

OrthoPediatrics Business Overview & Revenue Model

Company Description

OrthoPediatrics Corp. (KIDS) is a specialized orthopedic company focused on designing, developing, and marketing innovative solutions for the unique orthopedic needs of children. The company operates in the medical technology and healthcare sector, offering a comprehensive portfolio of pediatric orthopedic implants and devices that address a wide range of conditions, including trauma, deformity correction, and scoliosis.

How the Company Makes Money

OrthoPediatrics generates revenue primarily through the sale of its specialized orthopedic products to hospitals, surgical centers, and healthcare providers. The company's key revenue streams include sales of its proprietary surgical systems and implant solutions, such as the RESPONSE Scoliosis System, PediPlates, and the PediFlex Advanced Interlocking Nail System. OrthoPediatrics also collaborates with medical professionals to ensure its products address the specific surgical needs of pediatric patients. Additionally, the company benefits from strategic partnerships and distribution agreements that expand its market reach both domestically and internationally.

OrthoPediatrics Financial Statement Overview

Summary

OrthoPediatrics has shown consistent revenue growth with a robust equity position but struggles with profitability and cash flow. The negative net income and cash flow highlight the need for improved operational efficiency.

Income Statement

OrthoPediatrics has shown consistent revenue growth, with a TTM (Trailing-Twelve-Months) revenue of $212.5 million, up from $204.7 million in 2024. However, the company struggles with profitability, evident from a negative net income of $40.7 million and negative EBIT and EBITDA margins. Despite healthy gross profit margins, the net profit margin remains negative due to high operating expenses.

Balance Sheet

The company's balance sheet is robust with a strong equity base, resulting in a low debt-to-equity ratio. Stockholders' equity accounts for a significant portion of total assets, reflecting stability. However, the presence of negative net income impacts return on equity, which remains negative.

Cash Flow

OrthoPediatrics faces challenges in cash flow management with negative operating and free cash flows. The free cash flow has shown slight improvement yet remains negative at $36.9 million. The operating cash flow to net income ratio is unfavorable due to both metrics being negative.

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
EBITDA	-10.44M	-8.38M	-7.93M	-7.19M	-22.35M
Net Income	-37.82M	-20.97M	1.26M	-16.26M	-32.94M
Balance Sheet
Total Assets	473.21M	438.75M	427.73M	304.27M	320.41M
Cash, Cash Equivalents and Short-Term Investments	68.83M	80.31M	118.29M	53.54M	83.90M
Total Debt	73.12M	10.06M	907.00K	1.04M	1.50M
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: Positive
• Last Price: 22.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KIDS, the sentiment is Positive. The current price of 22.75 is above the 20-day moving average (MA) of 22.14, above the 50-day MA of 21.66, and below the 200-day MA of 23.62, indicating a neutral trend. The MACD of 0.37 indicates Negative momentum. The RSI at 55.52 is Neutral, neither overbought nor oversold. The STOCH value of 75.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KIDS.

OrthoPediatrics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KIDS	68 Neutral	$563.74M	―	-11.33%	―	31.28%	-81.86%
SIBN	61 Neutral	$739.79M	―	-15.96%	―	22.60%	41.26%
Sector *	60 Neutral	HK$17.07B	5.63	-7.44%	2.87%	11.55%	-28.15%
OFIX	51 Neutral	$440.39M	―	-27.82%	―	5.85%	-8.92%
CBLL	48 Neutral	$555.88M	―	26.25%	―	―	―
BVS	47 Neutral	$525.72M	―	-19.79%	―	8.60%	-42.76%
TMCI	40 Underperform	$364.22M	―	-45.73%	―	7.54%	4.28%

OrthoPediatrics Corporate Events

OrthoPediatrics Holds Annual Stockholders Meeting

On May 23, 2025, OrthoPediatrics Corp. held its Annual Meeting of Stockholders where key decisions were made, including the election of directors to serve until 2028. The stockholders approved the compensation of the company’s executive officers and confirmed Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

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 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.