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OrthoPediatrics Corp (KIDS)
NASDAQ:KIDS
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OrthoPediatrics
(NASDAQ:KIDS)
Rating:62Neutral
Price Target:
$24.00
▲(13.42%Upside)
Positive Factors
Market Position
Physician feedback for KIDS' products continues to be extremely positive, emphasizing its dominant position in the pediatric orthopedic market.
Product Development
Development of new products is receiving positive early feedback, highlighting KIDS' dedication to pediatric orthopedics.
Valuation
KIDS shares trade at 1.7x NTM EV/Sales, below high-growth peers at 5.5x NTM EV/Sales, indicating potential for multiple expansion as growth sustains.
Negative Factors
Cost and Profitability
The company is exposed to tariffs which could impact costs and profitability.
Market Attention
As the only pediatric orthopedic pure-play, OrthoPediatrics is destined to be a unique entity in anyone’s coverage universe, which tends to lessen attention.
OrthoPediatrics (KIDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$537.98M
Dividend YieldN/A
Average Volume (3M)141.09K
Price to Earnings (P/E)―
Beta (1Y)0.87
Revenue Growth31.28%
EPS Growth-81.86%
CountryUS
Employees562
SectorHealthcare
Sector Strength58
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.39
Shares Outstanding24,769,049
10 Day Avg. Volume182,931
30 Day Avg. Volume141,093
Financial Highlights & Ratios
PEG Ratio-6.11
Price to Book (P/B)2.17
Price to Sales (P/S)0.00
P/FCF Ratio-25.87
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue1.04
Enterprise Value/Gross Profit5.43
Enterprise Value/Ebitda-11.07
Forecast
1Y Price Target
$36.43Price Target Upside72.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
OrthoPediatrics Business Overview & Revenue Model
Company DescriptionOrthoPediatrics 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 MoneyOrthoPediatrics 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 Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -4.60%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong positive sentiment with significant revenue growth, increased profitability, and successful product approvals. Despite some challenges in international revenue and higher operating expenses, the company remains optimistic about future growth and profitability.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
OrthoPediatrics reported a global revenue growth of 17% in Q1 2025, driven by trauma, scoliosis, and OPSB segments. U.S. revenue increased by 19%, contributing 78% of the total revenue.
Increased Profitability
The company reduced its adjusted EBITDA loss by more than half year-over-year and improved free cash flow by 36%. Gross profit margin increased to 73% from 72% in the previous year.
Successful Product Approvals
Five FDA approvals were received, including the Verteglide system and 3P pediatric plating platform HIP system, enhancing the product portfolio.
Scoliosis Segment Growth
Scoliosis global revenue increased by 34%, driven by the adoption of Response, Apifix, and 7D technology. New approvals like Verteglide are expected to further enhance growth.
OPSB Clinic Expansion
The OPSB segment showed a growth of over 20% with successful expansion into new territories such as North Carolina, with plans for further expansion.
Positive Future Outlook
The company increased its full-year revenue guidance to $236 million to $242 million, reflecting a growth of 15% to 18%.
Negative Updates
International Revenue Challenges
International revenue growth was offset by pressure from LATAM and lower set sales, impacting overall profitability.
Higher Operating Expenses
Total operating expenses increased by 18% to $49.2 million due to increased personnel and OPSB clinic additions.
Company Guidance
During the OrthoPediatrics Corporation's first quarter 2025 earnings call, the company provided optimistic guidance for the year, highlighting several key metrics. The company expects full-year revenue to range between $236 million and $242 million, reflecting an annual growth of 15% to 18%. They project adjusted EBITDA of $15 to $17 million, which will surpass the $15 million allocated for set deployments in 2025. The first quarter saw global revenue growth of 17%, with U.S. revenues increasing by 19% and international revenues by 11%. The company also reduced its adjusted EBITDA loss by over 50% year-over-year and improved free cash flow by 36%. OrthoPediatrics anticipates positive free cash flow by the fourth quarter of 2025 and aims for full-year free cash flow breakeven in 2026. The company emphasized its ongoing commitment to expanding its product offerings, with five FDA approvals already received in 2025, and plans for further clinic and territory expansion, particularly in the OPSB sector.OrthoPediatrics Financial Statement Overview
Summary
OrthoPediatrics has shown consistent revenue growth but struggles with profitability, evident from negative net income and margins. The balance sheet is robust, but cash flow challenges persist with negative operating and free cash flows.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.65
Positive
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.70
Positive
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.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 212.45M | 204.73M | 148.73M | 122.29M | 98.05M | 71.08M | Gross Profit |
| 149.91M | 148.60M | 111.25M | 90.66M | 73.40M | 55.03M | EBIT |
| -30.74M | -29.52M | -25.77M | -21.79M | -17.87M | -20.41M | EBITDA |
| -26.50M | -10.44M | -8.38M | -7.93M | -7.19M | -22.35M | Net Income Common Stockholders |
| -40.68M | -37.82M | -20.97M | 1.26M | -16.26M | -32.94M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 58.77M | 68.83M | 80.31M | 118.29M | 53.54M | 83.90M | Total Assets |
| 470.25M | 473.21M | 438.75M | 427.73M | 304.27M | 320.41M | Total Debt |
| 24.18M | 73.12M | 10.06M | 907.00K | 1.04M | 1.50M | Net Debt |
| -9.26M | -19.70M | -21.00M | -8.08M | -6.60M | -27.26M | Total Liabilities |
| 85.60M | 118.64M | 61.72M | 49.08M | 78.91M | 85.64M | Stockholders Equity |
| 347.15M | 354.57M | 377.02M | 378.65M | 225.37M | 234.77M |
| Cash Flow | Free Cash Flow | ||||
| -36.89M | -41.31M | -46.03M | -31.80M | -29.07M | -29.83M | Operating Cash Flow |
| -24.86M | -27.05M | -27.05M | -21.77M | -13.06M | -18.53M | Investing Cash Flow |
| -15.47M | -13.16M | 41.68M | -113.37M | -7.41M | -69.69M | Financing Cash Flow |
| 53.92M | 53.13M | 7.30M | 135.97M | 6.00K | 46.73M |
OrthoPediatrics Technical Analysis
Negative
21.16
Price Trends
21.57
Negative
23.13
Negative
24.64
Negative
Market Momentum
-0.13
Negative
47.03
Neutral
75.41
Neutral
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 21.16 is below the 20-day moving average (MA) of 21.29, below the 50-day MA of 21.57, and below the 200-day MA of 24.64, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 47.03 is Neutral, neither overbought nor oversold. The STOCH value of 75.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KIDS.
OrthoPediatrics Risk Analysis
OrthoPediatrics disclosed 78 risk factors in its most recent earnings report. OrthoPediatrics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
OrthoPediatrics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $778.14M | ― | -15.96% | ― | 22.60% | 41.26% | |
62 Neutral | $537.98M | ― | -11.33% | ― | 31.28% | -81.86% | |
59 Neutral | $642.08M | ― | 26.25% | ― | ― | ― | |
54 Neutral | $5.41B | 3.27 | -45.10% | 3.29% | 16.81% | 0.02% | |
49 Neutral | $437.26M | ― | -27.82% | ― | 5.85% | -8.92% | |
47 Neutral | $551.19M | ― | -19.79% | ― | 8.60% | -42.76% | |
41 Neutral | $388.12M | ― | -45.73% | ― | 7.54% | 4.28% |
* Healthcare Sector Average
Performance Comparison
KIDS
OrthoPediatrics
21.16
-8.26
-28.08%
OFIX
Orthofix
11.00
-1.57
-12.49%
SIBN
SI-Bone
17.42
4.92
39.36%
BVS
Bioventus
6.62
0.68
11.45%
TMCI
Treace Medical Concepts
5.87
-0.21
-3.45%
CBLL
Ceribell, Inc.
17.27
-8.23
-32.27%
OrthoPediatrics Corporate Events
Executive/Board ChangesShareholder Meetings
OrthoPediatrics Holds Annual Stockholders Meeting
Neutral
May 27, 2025
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.
Private Placements and FinancingBusiness Operations and Strategy
OrthoPediatrics Issues Common Stock Under Amendment
Neutral
May 14, 2025
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.
Business Operations and StrategyFinancial Disclosures
OrthoPediatrics Highlights Financial Insights and Innovations
Positive
May 7, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.