Orthofix (OFIX) AI Stock Analysis

• Market Cap: $434.91M
• Dividend Yield: N/A
• Average Volume (3M): 399.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: 5.85%
• EPS Growth: -8.92%
• Country: US
• Employees: 1,616
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Devices
• EPS (TTM): -1.35
• Shares Outstanding: 39,180,832
• 10 Day Avg. Volume: 470,340
• 30 Day Avg. Volume: 399,954
• PEG Ratio: 0.96
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -69.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $23.33
• Price Target Upside: 110.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 47 Neutral
• Price Target: $12.50 ▲( 12.61% Upside)

Orthofix's overall score reflects strengths in revenue growth and strategic board appointments, but is weighed down by ongoing profitability issues, bearish technical indicators, and valuation concerns. The company needs to focus on improving profitability and cash flow stability to enhance its stock performance.

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.

Strategy and Growth

Distributor upgrades, despite being a short-term headwind, are expected to support a more scalable and growth-oriented commercial model.

Valuation

OFIX's current valuation taking into account these factors is attractive, trading significantly below our small-cap and spine comp group averages.

Negative Factors

Market Challenges

The company faces tougher comparisons in FY25 and growth moderation in key areas that have supported previous results.

Product Transition

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

Revenue Guidance

FY25 revenue guidance is set below Street expectations, as OFIX plans to discontinue product lines that accounted for significant revenue.

Orthofix Business Overview & Revenue Model

Company Description

Orthofix Medical Inc. (OFIX) is a global medical device company focused on providing innovative, quality-driven solutions for the spine and orthopedic markets. The company operates through four primary business units: Bone Growth Therapies, Spinal Implants, Biologics, and Orthopedic Solutions. Orthofix is dedicated to improving patients' lives by developing products that help restore mobility and improve the quality of life for individuals undergoing orthopedic and spine procedures.

How the Company Makes Money

Orthofix 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 statements suggest a company facing significant challenges. Revenue and equity were zero in 2024, signaling potential operational or structural issues. While some cash flow metrics have improved, the overall financial health remains precarious with ongoing profitability and leverage concerns.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 11.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFIX, the sentiment is Negative. The current price of 11.1 is below the 20-day moving average (MA) of 12.53, below the 50-day MA of 14.05, and below the 200-day MA of 16.47, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 26.45 is Positive, neither overbought nor oversold. The STOCH value of 4.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OFIX.

Orthofix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIBN	72 Outperform	$783.25M	―	-15.96%	―	22.60%	41.26%
KIDS	66 Neutral	$515.94M	―	-11.33%	―	31.28%	-81.86%
Sector *	53 Neutral	$5.14B	3.03	-44.09%	2.83%	16.75%	-0.06%
AVNS	52 Neutral	$569.26M	45.80	-36.78%	―	1.34%	-530.36%
TMCI	48 Neutral	$369.88M	―	-45.73%	―	7.54%	4.28%
OFIX	47 Neutral	$434.91M	―	-27.82%	―	5.85%	-8.92%
BVS	47 Neutral	$536.40M	―	-19.79%	―	8.60%	-42.76%

Orthofix Corporate Events

Orthofix Gains FDA Clearance for New Bone System

Orthofix reported its first quarter 2025 financial results, showcasing net sales of $193.6 million, a 2.7% increase from the previous year, despite a net loss of $53.1 million. The company received FDA clearance for its TrueLok Elevate Transverse Bone Transport System and is undergoing strategic transitions to optimize its commercial channels, aiming for long-term growth and improved market positioning.

Orthofix Signs New Lease Agreement in Carlsbad

On April 1, 2025, Orthofix Medical Inc. entered into a new lease for its Carlsbad, California office, replacing a previous sublease. The new lease, effective until October 31, 2037, involves a total pre-tax occupancy cost of approximately $34.6 million over 12.5 years, with additional obligations for real estate taxes, insurance, and utilities.

Orthofix Appoints Vickie Capps to Board of Directors

On March 12, 2025, Orthofix Medical Inc. announced the appointment of Vickie Capps to its Board of Directors, effective March 11, 2025. Capps brings extensive experience in global business operations, strategic development, and corporate finance, which is expected to support Orthofix’s strategic transformation and growth. Her appointment increases the board size to ten members, enhancing the company’s leadership as it aims to deliver profitable growth and sustainable shareholder value.

Orthofix Reports Record Financial Results for Q4 2024

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.