Orthofix (OFIX) AI Stock Analysis

• Market Cap: $573.06M
• Dividend Yield: N/A
• Average Volume (3M): 428.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: 4.84%
• EPS Growth: 0.85%
• Country: US
• Employees: 1,616
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Devices
• EPS (TTM): -0.36
• Shares Outstanding: 39,494,267
• 10 Day Avg. Volume: 538,289
• 30 Day Avg. Volume: 428,793
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 1.04
• Enterprise Value/Ebitda: 156.53
• 1Y Price Target: $19.50
• Price Target Upside: 32.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 54 Neutral
• Price Target: $15.00 ▲(1.76% Upside)

Orthofix's overall score reflects strong revenue growth and positive momentum in U.S. Orthopedics, offset by profitability challenges and a negative P/E ratio. The technical analysis suggests short-term bullish momentum, but long-term valuation concerns persist due to ongoing losses and lack of dividend yield.

Positive Factors

Financial Performance

Strong Q2 results include revenue, adjusted EBITDA, and FCF beats.

Market Position

The company's 7D Flash Navigation system is seen as a unique and differentiated growth driver.

Product Development

The company is working to accelerate growth through targeted new product launches, with recent FDA clearances supporting differentiation.

Negative Factors

Commercial Channel Optimization

Orthofix experienced some softness in its US Spine Fixation and Biologics businesses as the company works to optimize its US Spine commercial channel.

Distributor Upgrades

There is a worry about the risk to long-range plan growth expectations due to disruptions from distributor upgrades.

Revenue Guidance

OFIX lowered its FY25 revenue guidance ~$10M to mainly account for lower-than-expected NGO business quarterly as well as distributor transition impacts in its US Spine business.

Orthofix Business Overview & Revenue Model

Company Description

Orthofix Medical Inc. is a global medical device company focused on providing innovative solutions for spinal and orthopedic conditions. The company operates primarily in two segments: Orthopedic and Spine, offering a range of products including bone growth stimulators, surgical implants, and regenerative medicine solutions. Orthofix is dedicated to improving patient outcomes through advanced technologies and is committed to research and development in the medical device industry.

How the Company Makes Money

Orthofix generates revenue primarily through the sale of its medical devices in the orthopedic and spine markets. Key revenue streams include the sale of bone growth stimulators, spinal implants, and regenerative medicine products. The company also benefits from recurring revenues through rental programs for certain products, as well as sales of disposable surgical instruments. Significant partnerships with healthcare providers and distributors enhance its market reach and facilitate the adoption of its technologies. Additionally, Orthofix invests in research and development to innovate and expand its product offerings, which contributes to its revenue growth.

Orthofix Financial Statement Overview

Summary

Orthofix shows strong revenue growth but faces profitability challenges with negative net margins and EBIT. The balance sheet is stable with moderate leverage, but the company struggles to generate returns on equity. Cash flow constraints are evident, with declining free cash flow and limited cash generation relative to net income.

Income Statement

Orthofix has shown a mixed performance in its income statement. The company has a strong gross profit margin of 68.4% in TTM, indicating efficient cost management. However, the net profit margin is negative at -15.3%, reflecting significant losses. Revenue growth is robust at 55.9% TTM, but the negative EBIT and EBITDA margins suggest operational inefficiencies and challenges in achieving profitability.

Balance Sheet

The balance sheet reveals moderate financial leverage with a debt-to-equity ratio of 0.38 in TTM, which is manageable. However, the return on equity is negative at -25.4%, indicating that the company is not generating returns for shareholders. The equity ratio stands at 54.7%, showing a solid equity base relative to total assets.

Cash Flow

Cash flow analysis shows challenges, with a significant decline in free cash flow growth at -109.8% TTM. The operating cash flow to net income ratio is 0.19, indicating limited cash generation relative to net losses. The free cash flow to net income ratio is low at 0.016, highlighting cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	809.03M	799.49M	746.64M	460.71M	464.48M	406.56M
Gross Profit	553.59M	545.88M	486.27M	337.17M	349.56M	304.67M
EBITDA	3.68M	-34.18M	-86.98M	12.60M	17.94M	32.66M
Net Income	-123.71M	-126.00M	-151.40M	-19.75M	-38.38M	2.52M
Balance Sheet
Total Assets	837.16M	893.29M	925.32M	458.63M	476.62M	525.86M
Cash, Cash Equivalents and Short-Term Investments	65.61M	83.24M	33.11M	50.70M	87.85M	96.29M
Total Debt	204.74M	179.63M	134.20M	19.89M	22.48M	24.94M
Total Liabilities	378.81M	390.17M	326.58M	121.77M	139.69M	169.00M
Stockholders Equity	458.35M	503.12M	598.73M	336.86M	336.93M	356.86M
Cash Flow
Free Cash Flow	461.00K	-9.09M	-107.80M	-34.70M	-1.12M	57.18M
Operating Cash Flow	28.65M	25.79M	-45.75M	-11.54M	18.48M	74.27M
Investing Cash Flow	-20.83M	-27.58M	-33.13M	-24.53M	-23.01M	-52.33M
Financing Cash Flow	31.02M	50.71M	65.32M	-78.00K	-3.62M	3.25M

Orthofix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFIX, the sentiment is Positive. The current price of 14.74 is above the 20-day moving average (MA) of 13.60, above the 50-day MA of 12.05, and below the 200-day MA of 15.00, indicating a neutral trend. The MACD of 0.84 indicates Negative momentum. The RSI at 76.66 is Negative, neither overbought nor oversold. The STOCH value of 69.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OFIX.

Orthofix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIBN	63 Neutral	$708.37M	―	-14.18%	―	22.93%	43.83%
BVS	58 Neutral	$601.08M	―	-0.10%	―	5.08%	99.38%
TMCI	57 Neutral	$470.01M	―	-46.89%	―	7.67%	23.79%
OFIX	54 Neutral	$573.06M	―	-24.63%	―	4.84%	0.85%
KIDS	54 Neutral	$554.63M	―	-11.49%	―	26.08%	-63.67%
Sector *	51 Neutral	$7.81B	-0.22	-40.01%	2.29%	21.48%	-2.11%
AVNS	48 Neutral	$537.34M	45.80	-46.17%	―	1.48%	-6091.13%

Orthofix Corporate Events

Orthofix Reports Q2 2025 Financial Results and Growth

Orthofix Medical Inc. reported its financial results for the second quarter of 2025, showing net sales of $203.1 million, a 2% increase from the previous year, and a net loss of $14.1 million. The company highlighted significant growth in U.S. Spine Fixation and Bone Growth Therapies, as well as the launch of new products like the TrueLok Elevate Transverse Bone Transport System and the Reef L Interbody System. Orthofix’s strategic initiatives, including distributor transitions, have led to a positive free cash flow and an increase in adjusted EBITDA margin, positioning the company for sustainable growth and long-term shareholder value.

Orthofix Shareholders Meeting and Board Elections

On June 18, 2025, Orthofix Medical Inc. held its annual meeting of shareholders, where a quorum was achieved with 35,364,307 shares present. Key decisions included the election of the board of directors for a one-year term, approval of executive compensation, and ratification of Ernst & Young LLP as the independent accounting firm for the fiscal year 2025. Additionally, Vickie L. Capps was appointed to the Audit and Finance Committee and the Compensation and Talent Development Committee, effective immediately.