Orthofix (OFIX) AI Stock Analysis

• Market Cap: $638.74M
• Dividend Yield: N/A
• Average Volume (3M): 259.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• 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: 265,126
• 30 Day Avg. Volume: 259,968
• 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: 1.13
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 1.29
• Enterprise Value/Ebitda: 136.91
• 1Y Price Target: $20.00
• Price Target Upside: 33.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $15.00 ▼(-0.07% Downside)

Orthofix's overall stock score is driven by a combination of strong earnings call performance and moderate technical indicators. However, financial performance challenges, particularly in profitability and cash flow, along with a poor valuation, weigh down the score. The company's strategic focus on growth and operational efficiency provides some optimism for future improvement.

Positive Factors

Revenue Growth

The consistent revenue growth, particularly in the U.S. Spine and Orthopedics segments, indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Product Innovation

Innovative product launches like TrueLok Elevate enhance Orthofix's competitive edge and drive sustained growth by meeting evolving market needs.

EBITDA Margin Expansion

Continuous EBITDA margin expansion reflects effective cost management and operational efficiency, strengthening financial health and profitability.

Negative Factors

Profitability Challenges

Ongoing profitability issues with negative net profit and EBIT margins could hinder financial stability and growth potential if not addressed.

Cash Flow Management

Challenges in cash flow management pose liquidity risks and may limit the company's ability to invest in growth opportunities.

Product Discontinuation Impact

The discontinuation of key products like M6 artificial discs can disrupt revenue streams and require strategic adjustments to mitigate sales impact.

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 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: Positive
• Last Price: 15.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 15.01 is below the 20-day moving average (MA) of 15.11, above the 50-day MA of 14.99, and above the 200-day MA of 13.98, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 62.45 is Neutral, neither overbought nor oversold. The STOCH value of 86.37 is Negative, 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
BVS	64 Neutral	$613.28M	65.98	4.97%	―	1.58%	―
SIBN	57 Neutral	$845.70M	―	-12.91%	―	23.27%	43.90%
KIDS	53 Neutral	$478.73M	―	-12.67%	―	19.90%	-57.90%
OFIX	52 Neutral	$638.74M	-5.31	-24.60%	―	4.31%	3.26%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AVNS	51 Neutral	$556.10M	―	-46.68%	―	2.70%	-3090.51%
ZIMV	48 Neutral	―	―	-4.76%	―	-19.52%	94.65%

Orthofix Corporate Events

Orthofix Medical Reports Strong Q3 2025 Results

Orthofix Medical Inc., headquartered in Lewisville, Texas, is a global medical technology company specializing in spinal hardware, bone growth therapies, and orthopedic solutions, with a focus on innovative technologies like the 7D FLASH™ Navigation System.

Orthofix International Reports Strong Q3 Earnings Growth

Orthofix International’s recent earnings call conveyed a positive sentiment, underscored by robust revenue growth and operational efficiency. Despite facing challenges such as pricing pressure and product discontinuation, the company successfully maintained positive cash flow and expanded its EBITDA margins, with notable contributions from the U.S. Spine and Orthopedics segments.

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.

The most recent analyst rating on (OFIX) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Orthofix stock, see the OFIX Stock Forecast page.

Orthofix’s Fitbone System Study: A Market Game-Changer?

Study Overview: Orthofix International is conducting a study titled Post Market Evaluation of Clinical Safety and Performance of the Fitbone Transport and Lengthening System. The study aims to evaluate the safety and performance of the FITBONE Transport and Lengthening Nail, a device used for treating various limb conditions. This research is significant as it seeks to provide additional clinical evidence for product registrations outside the US.

Orthofix’s Virtuos Bone Graft Study: A Promising Update for Lumbar Fusion

Orthofix International is conducting a study titled ‘A Prospective Post-Market Historically Controlled Open-Label Study to Assess the Efficacy of Virtuos in Lumbar Fusion.’ The study aims to evaluate the effectiveness of a cellular-based allograft bone graft, Virtuos, in lumbar spinal fusion for patients with degenerative disc disease. This research is significant as it could offer new insights into improving spinal fusion outcomes.

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.

The most recent analyst rating on (OFIX) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Orthofix stock, see the OFIX Stock Forecast page.