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Orthofix International (OFIX)
:OFIX
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Orthofix (OFIX) AI Stock Analysis

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OFIX

Orthofix

(NASDAQ:OFIX)

Rating:55Neutral
Price Target:
$13.00
▲(5.61% Upside)
Orthofix's overall stock score is driven by strong earnings call performance and short-term technical momentum. However, significant challenges in financial performance and valuation, including negative profitability and cash flow constraints, weigh heavily on the score. The positive sentiment from recent earnings and strategic initiatives provides some optimism for future growth.
Positive Factors
Financial Performance
Orthofix is on the cusp of starting to generate consistent positive free cash flow, providing additional financial flexibility for internal investment, M&A opportunities, and potentially reducing debt.
Growth Drivers
The company's 7D Flash Navigation system is seen as a unique and differentiated growth driver.
Investment Potential
Analyst's recommendation is an OUTPERFORM investment rating with a 12-month price target of $16, suggesting a significant upside potential.
Negative Factors
Business Disruptions
There is a worry about the risk to long-range plan growth expectations due to disruptions from distributor upgrades.
Market Challenges
Orthofix experienced some softness in its US Spine Fixation and Biologics businesses as the company works to optimize its US Spine commercial channel.
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 (OFIX) vs. SPDR S&P 500 ETF (SPY)

Orthofix Business Overview & Revenue Model

Company DescriptionOrthofix 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 MoneyOrthofix generates revenue primarily through the sale of its orthopedic and spine products. The company's key revenue streams include sales of medical devices used in orthopedic reconstruction, regenerative tissue products, and bone growth therapies. Orthofix also earns income from its spine segment, which includes products like spinal implants and biologics. Significant partnerships with healthcare providers and distribution agreements further contribute to its revenue. The company's earnings are driven by product innovation, a robust distribution network, and its focus on expanding its market presence globally.

Orthofix Earnings Call Summary

Earnings Call Date:Jun 30, 2025
(Q2-2025)
|
% Change Since: 11.00%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in key segments like USA Orthopedics and Spinal Fixation, successful product launches, and improved financial metrics including gross margin and cash flow. However, challenges such as pricing impacts and international sales decline were noted. Overall, the positive aspects outweighed the negative ones, suggesting a strong performance and optimistic outlook.
Q2-2025 Updates
Positive Updates
Positive Net Sales Growth
Pro forma net sales reached $200.7 million, representing a year-over-year constant currency growth of 4%.
Strong Performance in USA Spinal Fixation
Net sales grew 5.4% with a 7% increase in procedure volume, consistent with company expectations.
USA Orthopedics Growth
U.S. Orthopedics grew 28%, driven by strong execution and product launches, marking the fourth consecutive quarter of double-digit growth.
7D FLASH Navigation System Success
U.S. unit placements grew by 66% in H1 2025 compared to the prior year, representing a total revenue commitment of $12 million over 3-4 years.
Launch of VIRATA Spinal Fixation System
Received FDA clearance and initiated limited market release, expected to contribute to growth in the coming years.
Record Orthopedics Product Launch
TrueLok Elevate Transverse Bone Transport System in full market release globally, expanding presence in diabetic wound market.
Improved Adjusted Gross Margin
Pro forma non-GAAP adjusted gross margin reached 72.7%, a 140 basis point increase from the previous year.
Positive Free Cash Flow
Generated positive free cash flow of $4.5 million in Q2, with a total cash balance of $68.7 million.
Negative Updates
Price Decrease Impact in U.S. Spine Fixation
Growth partially offset by a pricing decrease at a major account, impacting sales for the remainder of the year.
International Orthopedics Decline
International Orthopedics business declined 2%, attributed to large NGO orders in 2024 that did not repeat in 2025.
Tariffs Exposure
Estimated annual tariff exposure in the range of $3 million to $4 million, primarily in cost of goods sold.
Company Guidance
During the Orthofix Second Quarter 2025 Earnings Call, several key metrics and guidance details were shared. Orthofix reported pro forma net sales of $200.7 million, reflecting a year-over-year constant currency growth of 4%. The USA Spinal Fixation net sales grew by 5.4%, accompanied by a 7% increase in procedure volume. The company also noted a significant 66% growth in 7D FLASH navigation system placements in the first half of 2025 compared to the previous year. The U.S. Orthopedics segment grew by 28%, driven by the launch of the TrueLok Elevate system. Adjusted EBITDA margin expanded by approximately 190 basis points to 10.3% of net sales, with free cash flow generation amounting to $4.5 million. For the full year 2025, Orthofix maintained guidance for pro forma net sales between $808 million and $816 million and adjusted EBITDA of $82 million to $86 million, with expectations of continued positive free cash flow.

Orthofix Financial Statement Overview

Summary
Orthofix shows revenue growth and moderate leverage, but struggles with profitability and cash flow stability. Negative net profit margins and cash flow fluctuations highlight ongoing operational challenges.
Income Statement
45
Neutral
Orthofix has shown consistent revenue growth with a 7.74% increase from 2023 to 2024. However, the company faces challenges with profitability, as evidenced by negative net profit margins and EBIT margins over the past years. The TTM data continues this trend with a further decline in profitability metrics, indicating ongoing operational struggles.
Balance Sheet
55
Neutral
The company's balance sheet indicates a stable equity position with a debt-to-equity ratio of 0.42 in the TTM period, suggesting moderate leverage. However, the decline in stockholders' equity over time presents potential concerns. The equity ratio remains healthy, providing a cushion against liabilities.
Cash Flow
50
Neutral
Orthofix's cash flow statement reveals fluctuations in free cash flow, with negative values indicating cash burn. The operating cash flow to net income ratio is positive, suggesting adequate cash generation relative to net losses, but the trend of negative free cash flow growth is a risk.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue809.03M799.49M746.64M460.71M464.48M406.56M
Gross Profit553.59M545.88M486.27M337.17M349.56M304.67M
EBITDA-16.93M-34.18M-86.98M12.60M17.94M32.66M
Net Income-123.71M-126.00M-151.40M-19.75M-38.38M2.52M
Balance Sheet
Total Assets837.16M893.29M925.32M458.63M476.62M525.86M
Cash, Cash Equivalents and Short-Term Investments65.61M83.24M33.11M50.70M87.85M96.29M
Total Debt175.29M179.63M134.20M19.89M22.48M24.94M
Total Liabilities378.81M390.17M326.58M121.77M139.69M169.00M
Stockholders Equity458.35M503.12M598.73M336.86M336.93M356.86M
Cash Flow
Free Cash Flow461.00K-9.09M-107.80M-34.70M-1.12M57.18M
Operating Cash Flow28.65M25.79M-45.75M-11.54M18.48M74.27M
Investing Cash Flow-20.83M-27.58M-33.13M-24.53M-23.01M-52.33M
Financing Cash Flow31.02M50.71M65.32M-78.00K-3.62M3.25M

Orthofix Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.31
Price Trends
50DMA
11.06
Positive
100DMA
12.61
Negative
200DMA
15.22
Negative
Market Momentum
MACD
0.07
Negative
RSI
65.09
Neutral
STOCH
38.18
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 12.31 is above the 20-day moving average (MA) of 11.13, above the 50-day MA of 11.06, and below the 200-day MA of 15.22, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 65.09 is Neutral, neither overbought nor oversold. The STOCH value of 38.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OFIX.

Orthofix Risk Analysis

Orthofix disclosed 55 risk factors in its most recent earnings report. Orthofix reported the most risks in the "Legal & Regulatory" 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$681.83M-14.18%22.93%43.83%
60
Neutral
HK$17.54B4.97-4.95%3.61%9.71%-38.85%
57
Neutral
$504.37M-19.79%8.60%-42.76%
55
Neutral
$482.32M-24.63%4.84%0.85%
50
Neutral
$500.09M-11.49%26.08%-63.67%
49
Neutral
$457.35M45.80-46.17%1.34%-530.36%
40
Underperform
$351.64M-45.73%7.54%4.28%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OFIX
Orthofix
12.31
-4.61
-27.25%
AVNS
Avanos Medical
9.89
-13.13
-57.04%
KIDS
OrthoPediatrics
20.19
-8.09
-28.61%
SIBN
SI-Bone
16.00
1.77
12.44%
BVS
Bioventus
6.14
-1.46
-19.21%
TMCI
Treace Medical Concepts
5.59
-0.73
-11.55%

Orthofix Corporate Events

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Orthofix Reports Q2 2025 Financial Results and Growth
Positive
Aug 5, 2025

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.

Executive/Board ChangesShareholder Meetings
Orthofix Shareholders Meeting and Board Elections
Neutral
Jun 20, 2025

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.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 07, 2025