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Orthofix International N.V. (OFIX)
NASDAQ:OFIX
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Orthofix
(NASDAQ:OFIX)
49Neutral
Positive Factors
Financial Performance
Orthofix reported a nice top-line and adj EBITDA beat for the Q, featuring record overall, BGT, and Global Ortho growth with US Spine Fixation and US Ortho up 12% and 21% respectively.
Innovation and Strategy
Orthofix's spinal navigation platform, 7D FLASH, offers differentiating radiation-free workflow while being relatively faster and more cost-effective than traditional methods.
Negative Factors
Revenue Guidance
FY25 revenue guidance is set below Street expectations, as OFIX plans to discontinue product lines that accounted for significant revenue.
Orthofix (OFIX) vs. S&P 500 (SPY)
Market Cap
$667.28M
Dividend YieldN/A
Average Volume (3M)186.76K
Price to Earnings (P/E)―
Beta (1Y)1.81
Revenue Growth7.08%
EPS Growth20.45%
CountryUS
Employees1,634
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-3.30
Shares Outstanding39,022,490
10 Day Avg. Volume275,391
30 Day Avg. Volume186,765
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.82
Price to Cash Flow (P/CF)6.90
P/FCF Ratio5.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.00Price Target Upside34.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Orthofix Business Overview & Revenue Model
Company DescriptionOrthofix Medical, Inc. engages in the provision of medical devices. It operates through the following business segments: Global Spine and Global Extremities. The Global Spine reporting segment offers three primary product categories: Bone Growth Therapies, Spinal Implants, and Biologics. The Bone Growth Therapies product category manufactures, distributes, and provides support services of bone growth stimulator devices that enhance bone fusion. The Spinal Implants product category designs, develops, and markets a broad portfolio of motion preservation and fixation implant products used in surgical procedures of the spine. The Biologics product category provides a portfolio of regenerative products and tissue forms that allow physicians to treat a variety of spinal and orthopedic conditions. The Global Extremities reporting segment offers products and solutions that allow physicians to successfully treat a variety of orthopedic conditions unrelated to the spine. The company was founded on October 19, 1987 and is headquartered in Lewisville, TX.
How the Company Makes MoneyOrthofix generates revenue through the sale of its medical devices and related products across its four business units. The Bone Growth Therapies unit provides non-invasive devices that promote bone healing in patients recovering from surgeries or fractures. The Spinal Implants unit develops and sells a variety of implants and related surgical instruments used in spine surgeries. The Biologics division offers innovative biologic solutions that assist in the healing of bone and soft tissue. Lastly, the Orthopedic Solutions unit provides products that address the needs of patients with limb deformities and other orthopedic conditions. Revenue is primarily derived from direct sales to hospitals, surgical centers, and healthcare providers, as well as through distribution agreements with partners in various regions. Orthofix's earnings are bolstered by its commitment to research and development, strategic partnerships, and a global distribution network that expands its market reach.
Orthofix Financial Statement Overview
Summary
Orthofix's financial performance shows significant challenges, with a concerning lack of revenue and equity in 2024. Despite improvements in operating cash flow, profitability issues and a negative free cash flow indicate ongoing financial instability.Income Statement
Orthofix's income statement reveals significant volatility. Total revenue has shown growth from 2020 to 2023, but 2024 reported zero revenue, a concerning anomaly. Gross profit margins and net income have been negative in recent years, indicating operational inefficiencies. Although EBITDA turned positive in 2024, EBIT and net income remain negative, pointing to ongoing profitability challenges.42
Neutral
Balance Sheet
The balance sheet of Orthofix shows mixed signals. Total assets have decreased significantly in 2024, while shareholder equity was reported as zero, indicating a potential accounting or financial issue. The company had zero debt in 2024, which could be a positive if it weren't for the zero equity. Historically, the debt-to-equity ratio was manageable, but the current lack of equity raises red flags.50
Neutral
Cash Flow
Orthofix's cash flow statement shows improvements in operating cash flow into positive territory in 2024, after previous years of negative cash flow. However, free cash flow remains negative, suggesting that capital expenditures are still outpacing cash generation. The substantial financing cash flow in 2024 might indicate reliance on external funding.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 799.49M | 746.64M | 460.71M | 464.48M | 406.56M | Gross Profit |
| 545.88M | 486.27M | 337.17M | 349.56M | 304.67M | EBIT |
| -84.62M | -139.11M | -20.67M | -6.23M | 1.62M | EBITDA |
| -18.24M | -79.45M | 12.60M | 17.94M | 32.66M | Net Income Common Stockholders |
| -123.88M | -151.40M | -19.75M | -38.38M | 2.52M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 83.24M | 33.11M | 50.70M | 87.85M | 96.29M | Total Assets |
| 893.29M | 925.32M | 458.63M | 476.62M | 525.86M | Total Debt |
| 179.63M | 134.20M | 19.89M | 22.48M | 24.94M | Net Debt |
| 96.39M | 96.44M | -30.81M | -65.37M | -71.35M | Total Liabilities |
| 390.17M | 326.58M | 121.77M | 139.69M | 169.00M | Stockholders Equity |
| 503.12M | 598.73M | 336.86M | 336.93M | 356.86M |
| Cash Flow | Free Cash Flow | |||
| -9.09M | -107.80M | -34.70M | -1.12M | 57.18M | Operating Cash Flow |
| 25.79M | -45.75M | -11.54M | 18.48M | 74.27M | Investing Cash Flow |
| -27.58M | -33.13M | -24.53M | -23.01M | -52.33M | Financing Cash Flow |
| 50.71M | 65.32M | -78.00K | -3.62M | 3.25M |
Orthofix Technical Analysis
Neutral
17.10
Price Trends
17.84
Negative
17.81
Negative
16.55
Positive
Market Momentum
-0.33
Positive
42.84
Neutral
23.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFIX, the sentiment is Neutral. The current price of 17.1 is below the 20-day moving average (MA) of 17.64, below the 50-day MA of 17.84, and above the 200-day MA of 16.55, indicating a neutral trend. The MACD of -0.33 indicates Positive momentum. The RSI at 42.84 is Neutral, neither overbought nor oversold. The STOCH value of 23.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OFIX.
Orthofix Risk Analysis
Orthofix disclosed 59 risk factors in its most recent earnings report. Orthofix 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
Orthofix Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $119.64B | 28.51 | 8.42% | 2.99% | 2.72% | 4.48% | |
72 Outperform | $21.37B | 24.96 | 7.24% | 0.87% | 3.84% | -9.29% | |
68 Neutral | $12.07B | 101.37 | 2.52% | ― | 60.62% | -35.88% | |
57 Neutral | $1.43B | ― | -291.71% | ― | 26.81% | 26.47% | |
56 Neutral | $1.85B | ― | -0.44% | ― | 4.47% | -110.70% | |
49 Neutral | $667.28M | ― | -22.87% | ― | 7.08% | 20.45% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
OFIX
Orthofix
17.10
2.81
19.66%
ATEC
Alphatec Holdings
9.95
-3.84
-27.85%
IART
Integra Lifesciences
22.24
-13.54
-37.84%
MDT
Medtronic
93.28
11.01
13.38%
ZBH
Zimmer Biomet Holdings
107.34
-18.17
-14.48%
GMED
Globus Medical
73.49
18.14
32.77%
Orthofix Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -5.79% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
Orthofix delivered strong financial results in 2024 with record performance across major segments and robust growth in innovative areas like Spine and Orthopedics. Despite the positive momentum, the discontinuation of the M6 product lines and foreign currency challenges present notable headwinds. However, the company's proactive strategy to focus on profitable growth and innovation positions it well for the future.Highlights
Record Financial Performance
Orthofix achieved record fourth quarter and full-year results in 2024, exceeding guidance with net sales of $215.7 million, reflecting an 8% year-over-year growth on a constant currency basis.
Spine Segment Growth
The U.S. spinal fixation business grew 12% year-over-year, with significant growth in the top 6 implant systems, thoracolumbar fixation, and interbody and cervical fusion.
Expansion of Bone Growth Therapy
Bone Growth Therapy (BGT) achieved record revenue and market expansion with a 9% growth in Q4, maintaining the #1 market share position in Spine and driving 10% growth in BGT Fracture.
Orthopedics Segment Achievements
The orthopedics business saw an 18% growth in Q4 with U.S. sales reaching a record 21% increase, led by products like TrueLok and Fitbone.
Innovation and Product Launches
Orthofix continued to innovate with several product launches planned for 2025, including the Reef L Lateral Lumbar Interbody and the TrueLok Elevate TBT system.
Positive Cash Flow and Financial Health
The company generated $21 million in positive free cash flow in the second half of 2024 and negotiated a favorable new term loan.
Lowlights
Discontinuation of M6 Product Lines
Orthofix announced the discontinuation of the M6 artificial cervical and lumbar disc product lines, which had been underperforming with a headwind on the company's top-line growth.
Foreign Currency Impact
The company expects a negative impact from foreign currency of approximately $4 million or 50 basis points on a reported basis for the full year 2025.
Company Guidance
During the Orthofix Q4 2024 earnings call, the company provided guidance for 2025, highlighting several key metrics and strategic initiatives. Orthofix expects full-year 2025 net sales to range between $818 million to $826 million, reflecting constant currency growth of 6.5% year-over-year at the midpoint, excluding revenues from the discontinued M6 artificial disc product lines and accounting for a $4 million foreign currency headwind. The company projects non-GAAP adjusted EBITDA between $82 million and $86 million, indicating an 180 basis point margin expansion at the midpoint compared to 2024. Orthofix aims to sustain positive free cash flow, excluding restructuring charges from the M6 discontinuation. The guidance underscores confidence in sustainable growth driven by their differentiated portfolio and strategic focus on profitable growth initiatives, including new product launches in spine and orthopedics, leveraging the 7D FLASH Navigation System, and enhancing commercial strategies for deeper market penetration.Orthofix Corporate Events
Business Operations and StrategyFinancial Disclosures
Orthofix Reports Record Financial Results for Q4 2024
Neutral
Feb 25, 2025
Orthofix reported record financial results for the fourth quarter and full-year 2024, with net sales increasing by 8% and 7% respectively, compared to the previous year. Despite a net loss of $29.1 million in the fourth quarter, the company achieved a significant improvement in cash flow and increased its long-term growth targets. Orthofix also announced the discontinuation of its M6 artificial disc product lines to focus on more profitable growth opportunities, aligning with its strategic focus on spinal fixation and deformity correction.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.