Orthofix (OFIX) AI Stock Analysis

• Market Cap: $600.33M
• Dividend Yield: N/A
• Average Volume (3M): 212.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: 4.31%
• EPS Growth: 3.26%
• Country: US
• Employees: 1,616
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.57
• Shares Outstanding: 39,599,660
• 10 Day Avg. Volume: 220,565
• 30 Day Avg. Volume: 212,061
• PEG Ratio: 0.27
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.83
• P/FCF Ratio: -73.28
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 1.29
• Enterprise Value/Ebitda: 136.91
• 1Y Price Target: $21.33
• Price Target Upside: 40.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $16.00 ▲(5.54% Upside)

Orthofix's overall stock score is driven by mixed financial performance, with strong revenue growth but challenges in profitability and cash flow. Technical indicators are positive, supporting a favorable trend. The earnings call highlighted operational efficiency and growth, but valuation remains a concern due to ongoing losses.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Product Innovation

Innovative product launches like TrueLok Elevate enhance competitive positioning and drive market share gains in the orthopedic segment.

Operational Efficiency

Sustained EBITDA margin expansion reflects effective cost management and operational efficiency, contributing to improved profitability.

Negative Factors

Profitability Challenges

Ongoing profitability issues indicate operational challenges that could hinder long-term financial stability and shareholder returns.

Cash Flow Management

Poor cash flow management poses liquidity risks and limits the company's ability to invest in growth opportunities and innovation.

Product Discontinuation Impact

Product discontinuation can lead to revenue loss and market share erosion, necessitating strategic adjustments to mitigate impact.

Orthofix Business Overview & Revenue Model

Company Description

Orthofix Medical Inc. operates as a medical device and biologics company in the United States, Italy, Germany, France, the United Kingdom, Brazil, and internationally. It operates through two segments, Global Spine and Global Orthopedics. The Global Spine segment manufactures, distributes, and provides support services for bone growth stimulator devices that enhance bone fusion, as well as used as a therapeutic treatment for non-spinal and appendicular fractures. This segment also designs, develops, and markets a portfolio of motion preservation and fixation implant products, which are used in surgical procedures of the spine; and a portfolio of products and tissue forms that allow physicians to treat a range of spinal and orthopedic conditions, as well as markets regenerative non-tissue biologic solutions derived from synthetic materials. The Global Orthopedics segment designs, develops, and markets orthopedic products that are used in fracture repair, deformity correction, and bone reconstruction procedures. The company markets and distributes its products through direct sales representatives; independent distributors; and employed and independent sales representatives to physicians, hospitals, ambulatory surgery centers, integrated health delivery systems, and other purchasing organizations. The company was formerly known as Orthofix International N.V. and changed its name to Orthofix Medical Inc. in July 2018. Orthofix Medical Inc. was founded in 1980 and is headquartered in Lewisville, Texas.

How the Company Makes Money

Orthofix generates revenue through the sale of its medical devices and related services in the orthopedic and spine markets. Key revenue streams include the sale of bone growth stimulators, spinal implants, and orthopedic trauma products. The company also earns income from leasing and servicing its devices. Orthofix benefits from strategic partnerships with healthcare providers and distribution networks, which help in expanding its market reach. Additionally, the company invests in research and development to innovate and enhance its product offerings, which can lead to increased sales and market share.

Orthofix Financial Statement Overview

Summary

Orthofix exhibits a mixed financial performance. While revenue growth and gross profit margins are positive, the company struggles with profitability and cash flow management. The balance sheet is relatively stable, but the negative return on equity and cash flow issues highlight areas needing improvement.

Income Statement

Orthofix shows a modest revenue growth with a 1.16% increase in TTM, but profitability remains a concern with negative net profit and EBIT margins. The gross profit margin is relatively strong at 69.3%, indicating efficient cost management. However, persistent net losses and negative EBIT margins highlight ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.40, suggesting a balanced approach to leveraging. However, the negative return on equity indicates that the company is not generating sufficient returns on shareholders' investments. The equity ratio is stable, reflecting a solid asset base relative to liabilities.

Cash Flow

Orthofix faces significant challenges in cash flow management, with a negative free cash flow growth rate and a low operating cash flow to net income ratio. The negative free cash flow to net income ratio further underscores the company's struggle to convert earnings into cash, posing liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	818.06M	799.49M	746.64M	460.71M	464.48M	406.56M
Gross Profit	558.52M	545.88M	486.27M	337.17M	349.56M	304.67M
EBITDA	5.26M	-34.18M	-79.49M	15.66M	21.44M	36.39M
Net Income	-119.12M	-126.00M	-151.40M	-19.75M	-38.38M	2.52M
Balance Sheet
Total Assets	832.61M	893.29M	925.32M	458.63M	476.62M	525.86M
Cash, Cash Equivalents and Short-Term Investments	65.95M	83.24M	33.11M	50.70M	87.85M	96.29M
Total Debt	204.48M	179.63M	117.07M	21.53M	24.31M	24.94M
Total Liabilities	390.12M	390.17M	326.58M	121.77M	139.69M	169.00M
Stockholders Equity	442.49M	503.12M	598.73M	336.86M	336.93M	356.86M
Cash Flow
Free Cash Flow	-2.90M	-9.09M	-107.80M	-34.70M	-1.12M	57.18M
Operating Cash Flow	29.38M	25.79M	-45.75M	-11.54M	18.48M	74.27M
Investing Cash Flow	-24.86M	-27.58M	-33.13M	-24.53M	-23.01M	-52.33M
Financing Cash Flow	28.32M	50.71M	65.32M	-78.00K	-3.62M	3.25M

Orthofix Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.16
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 15.16 is below the 20-day moving average (MA) of 15.66, below the 50-day MA of 15.45, and above the 200-day MA of 13.78, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.08 is Neutral, neither overbought nor oversold. The STOCH value of 23.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OFIX.

Orthofix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BVS	64 Neutral	$610.79M	65.72	4.97%	―	1.58%	―
SIBN	58 Neutral	$883.45M	-39.84	-12.91%	―	23.27%	43.90%
OFIX	55 Neutral	$600.33M	-4.99	-24.60%	―	4.31%	3.26%
AVNS	52 Neutral	$529.18M	-1.12	-46.68%	―	2.70%	-3090.51%
KIDS	52 Neutral	$436.60M	-8.90	-12.67%	―	19.90%	-57.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ZIMV	48 Neutral	―	―	-4.76%	―	-19.52%	94.65%

Orthofix Corporate Events

Orthofix Reports Q3 2025 Financial Results

Orthofix reported its financial results for the third quarter of 2025, showing a net sales increase of 5% on a reported basis and 6% on a pro forma constant currency basis compared to the same period in 2024. Despite a net loss of $22.8 million, the company achieved a positive free cash flow of $2.5 million and expanded its adjusted EBITDA margin for the seventh consecutive quarter. The U.S. Spine Fixation segment saw an 8% growth in net sales, driven by the 7D FLASH navigation technology, while the U.S. Orthopedics business benefited from the commercial launch of TrueLok Elevate. Orthofix has narrowed its full-year 2025 net sales guidance while raising the low end of its adjusted EBITDA guidance, indicating a strong operational performance and a commitment to long-term growth.