Orthofix (OFIX) AI Stock Analysis

• Market Cap: $428.25M
• Dividend Yield: N/A
• Average Volume (3M): 490.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 5.85%
• EPS Growth: -8.92%
• Country: US
• Employees: 1,616
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Devices
• EPS (TTM): -1.35
• Shares Outstanding: 39,180,832
• 10 Day Avg. Volume: 477,460
• 30 Day Avg. Volume: 490,276
• PEG Ratio: 0.42
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.87
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 0.72
• Enterprise Value/Ebitda: -3.11
• 1Y Price Target: $23.33
• Price Target Upside: 121.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 49 Neutral
• Price Target: $10.50 ▼(-0.19%Downside)

Orthofix's stock score is primarily impacted by financial struggles, including profitability and cash flow issues, along with bearish technical signals. Positive earnings call insights provide some stability, but overall risks dominate.

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.

Product Innovation

Orthofix's spinal navigation platform, 7D FLASH, offers differentiating radiation-free workflow while being relatively faster and more cost-effective than traditional methods.

Valuation

Shares of OFIX remain relatively inexpensive, suggesting potential value despite moderated growth expectations.

Negative Factors

Business Disruptions

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. 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 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 Financial Statement Overview

Summary

Orthofix shows revenue growth and moderate leverage. However, struggles with consistent profitability and negative free cash flow indicate challenges in financial health.

Income Statement

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

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

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
804.53M	799.49M	746.64M	460.71M	464.48M	406.56M
	Gross Profit
531.60M	545.88M	486.27M	337.17M	349.56M	304.67M
	EBIT
-100.98M	-84.62M	-139.11M	-20.67M	-6.23M	1.62M
	EBITDA
-17.43M	-34.18M	-86.98M	12.60M	17.94M	32.66M
	Net Income Common Stockholders
-143.07M	-126.00M	-151.40M	-19.75M	-38.38M	2.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
57.95M	83.24M	33.11M	50.70M	87.85M	96.29M
	Total Assets
823.14M	893.29M	925.32M	458.63M	476.62M	525.86M
	Total Debt
192.76M	179.63M	134.20M	19.89M	22.48M	24.94M
	Net Debt
134.81M	96.39M	96.44M	-30.81M	-65.37M	-71.35M
	Total Liabilities
364.85M	390.17M	326.58M	121.77M	139.69M	169.00M
	Stockholders Equity
458.29M	503.12M	598.73M	336.86M	336.93M	356.86M
Cash Flow		Free Cash Flow
-4.68M	-9.09M	-107.80M	-34.70M	-1.12M	57.18M
	Operating Cash Flow
26.03M	25.79M	-45.75M	-11.54M	18.48M	74.27M
	Investing Cash Flow
-23.37M	-27.58M	-33.13M	-24.53M	-23.01M	-52.33M
	Financing Cash Flow
28.52M	50.71M	65.32M	-78.00K	-3.62M	3.25M

Orthofix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 10.52 is below the 20-day moving average (MA) of 11.16, below the 50-day MA of 12.38, and below the 200-day MA of 16.04, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 32.92 is Neutral, neither overbought nor oversold. The STOCH value of 20.33 is Neutral, 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	$764.08M	―	-15.96%	―	22.60%	41.26%
KIDS	62 Neutral	$522.87M	―	-11.33%	―	31.28%	-81.86%
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%
AVNS	52 Neutral	$565.56M	45.80	-36.78%	―	1.34%	-530.36%
OFIX	49 Neutral	$428.25M	―	-27.82%	―	5.85%	-8.92%
BVS	47 Neutral	$542.15M	―	-19.79%	―	8.60%	-42.76%
TMCI	41 Neutral	$362.33M	―	-45.73%	―	7.54%	4.28%

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.