OrthoPediatrics (KIDS) AI Stock Analysis

• Market Cap: $422.30M
• Dividend Yield: N/A
• Average Volume (3M): 207.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 19.90%
• EPS Growth: -57.90%
• Country: US
• Employees: 562
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.24
• Shares Outstanding: 25,077,330
• 10 Day Avg. Volume: 219,211
• 30 Day Avg. Volume: 207,741
• PEG Ratio: -0.18
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 2.61
• P/FCF Ratio: -12.95
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 2.93
• Enterprise Value/Ebitda: -17.91
• 1Y Price Target: $24.00
• Price Target Upside: 42.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 47 Neutral
• Price Target: $16.00 ▼(-4.99% Downside)

OrthoPediatrics faces significant challenges in profitability and cash flow, reflected in a low financial performance score. Technical indicators suggest a bearish trend, and valuation metrics are weak due to negative earnings. Despite positive developments in revenue growth and EBITDA, short-term disruptions and increased expenses weigh on the overall score.

Positive Factors

Revenue Growth

The consistent revenue growth, especially in core segments like trauma and deformity, indicates strong market demand and product adoption, supporting long-term business expansion.

Adjusted EBITDA Improvement

Significant improvement in adjusted EBITDA reflects enhanced operational efficiency and cost management, which are crucial for achieving sustainable profitability.

High Gross Profit Margin

A high and improving gross profit margin indicates strong pricing power and cost control, which are essential for maintaining competitive advantage and financial health.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, despite revenue growth, highlight the need for better cost management and operational efficiency to achieve sustainable earnings.

Cash Flow Concerns

Negative cash flow indicates difficulties in generating cash from operations, which could limit the company's ability to invest in growth and manage debt.

Increased Operating Expenses

Rising operating expenses can erode profitability and cash flow, necessitating strategic cost management to ensure long-term financial stability.

OrthoPediatrics Business Overview & Revenue Model

Company Description

OrthoPediatrics Corp., a medical device company, designs, develops, and markets anatomically appropriate implants and devices for the treatment of children with orthopedic conditions in the United States and internationally. The company offers trauma and deformity correction products; scoliosis procedures for the treatment of spinal deformity; and sports medicine and other products. Its products comprise PediLoc, PediPlates, cannulated screws, PediFlex nail, PediNail, PediLoc tibia, anterior cruciate ligament reconstruction systems, locking cannulated blades, locking proximal femurs, Spica Tables, RESPONSE Spine systems, Bandloc, Pediguard, Pediatric Nailing Platform, Femur system, Orthex, QuickPack, and ApiFix Mid-C system. The company serves pediatric orthopedic market, as well as pediatric orthopedic surgeons and caregivers. OrthoPediatrics Corp. was founded in 2006 and is headquartered in Warsaw, Indiana.

How the Company Makes Money

OrthoPediatrics generates revenue primarily through the sale of its specialized orthopedic products and surgical instruments to hospitals, surgical centers, and medical professionals involved in pediatric care. The company's revenue model is based on direct sales of its proprietary products, which include a variety of orthopedic implants and systems. Additionally, the company participates in training and educational programs for surgeons, which can further drive product adoption and usage. Significant partnerships with hospitals and healthcare systems that utilize OrthoPediatrics' products also contribute to its revenue. Furthermore, the company may benefit from ongoing research and development efforts that lead to new product innovations, expanding its market reach and potential sales opportunities.

OrthoPediatrics Financial Statement Overview

Summary

OrthoPediatrics shows modest revenue growth but struggles with profitability and cash flow. The balance sheet is strong with low leverage, yet the company needs to improve operational efficiency to enhance profitability and cash generation.

Income Statement

OrthoPediatrics shows a modest revenue growth rate of 3.03% in the TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains strong at 71.73%, but the consistent negative net income highlights ongoing challenges in achieving profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.14, suggesting conservative leverage. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is not explicitly calculated, but the strong equity base relative to total assets suggests a solid capital structure.

Cash Flow

Cash flow analysis reveals challenges, with negative operating cash flow and free cash flow. The free cash flow growth rate is negative, indicating deteriorating cash generation capabilities. The free cash flow to net income ratio is positive, suggesting some efficiency in converting net income to cash, but overall cash flow remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	227.41M	204.73M	148.73M	122.29M	98.05M	71.08M
Gross Profit	163.12M	148.60M	111.25M	90.66M	73.40M	55.03M
EBITDA	-26.67M	-10.44M	-8.38M	-8.69M	-7.19M	-22.35M
Net Income	-45.61M	-37.82M	-20.97M	1.26M	-16.26M	-32.94M
Balance Sheet
Total Assets	493.49M	473.21M	438.75M	427.73M	304.27M	320.41M
Cash, Cash Equivalents and Short-Term Investments	57.73M	68.83M	80.31M	118.29M	53.54M	83.90M
Total Debt	48.23M	80.90M	10.06M	907.00K	1.04M	1.18M
Total Liabilities	144.18M	118.64M	61.72M	49.08M	78.91M	85.64M
Stockholders Equity	349.31M	354.57M	377.02M	378.65M	225.37M	234.77M
Cash Flow
Free Cash Flow	-29.43M	-41.31M	-46.03M	-31.80M	-29.07M	-29.83M
Operating Cash Flow	-19.19M	-27.05M	-27.05M	-21.77M	-13.06M	-18.53M
Investing Cash Flow	-38.78M	-13.16M	41.68M	-113.37M	-7.41M	-69.69M
Financing Cash Flow	23.85M	53.13M	7.30M	135.97M	6.00K	46.73M

OrthoPediatrics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KIDS, the sentiment is Negative. The current price of 16.84 is below the 20-day moving average (MA) of 17.39, below the 50-day MA of 18.84, and below the 200-day MA of 21.63, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 40.34 is Neutral, neither overbought nor oversold. The STOCH value of 13.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KIDS.

OrthoPediatrics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VREX	―	$491.78M	-3.66	-25.57%	―	-1.36%	-479.49%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OFIX	―	$609.79M	―	-24.63%	―	4.84%	0.85%
BVS	―	$559.74M	―	-0.10%	―	5.08%	99.38%
TMCI	―	$401.15M	―	-46.89%	―	7.67%	23.79%
KIDS	―	$422.30M	-8.61	-12.67%	―	19.90%	-57.90%
TNDM	―	$945.97M	―	-111.91%	―	25.84%	-47.67%

OrthoPediatrics Corporate Events

OrthoPediatrics Corp’s Mixed Earnings Call Review

The recent earnings call for OrthoPediatrics Corp presented a mixed sentiment, reflecting both optimism and caution. The company showcased strong growth in its core segments, such as Trauma & Deformity and OPSB clinics, and reported significant improvements in adjusted EBITDA and free cash flow. However, these positive developments were tempered by challenges in 7D capital sales and the Latin American market, alongside increased operating expenses and impairment charges. While OrthoPediatrics is on a promising path toward profitability and cash flow positivity, short-term disruptions in certain business segments paint a balanced outlook.

OrthoPediatrics Corp. Reports Strong Q3 2025 Growth

OrthoPediatrics Corp., a company dedicated to pediatric orthopedics, develops and markets a wide range of products aimed at improving the lives of children with orthopedic conditions across the globe.

OrthoPediatrics Highlights Strategic Focus in Presentations

OrthoPediatrics Corp. has announced upcoming presentations to investors and analysts, highlighting their strategic focus on pediatric orthopedics. The company emphasizes its commitment to innovation and growth, with a consistent track record of launching new products and expanding its market reach. OrthoPediatrics aims to address the unique needs of pediatric patients through specialized product development and clinical education, positioning itself as a leader in the pediatric orthopedic market.

The most recent analyst rating on (KIDS) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on OrthoPediatrics stock, see the KIDS Stock Forecast page.

OrthoPediatrics Announces Board Member Resignation and Replacement

On August 7, 2025, OrthoPediatrics Corp. announced the resignation of Board member Terry Schlotterback due to retirement, effective August 8, 2025. Kelly Fischer, currently Senior Vice President and CFO of Cook Medical, was appointed to fill the vacancy and will serve on the Audit and Compensation Committees. The transition is not expected to impact the company’s operations or stakeholder interests significantly.

The most recent analyst rating on (KIDS) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on OrthoPediatrics stock, see the KIDS Stock Forecast page.

OrthoPediatrics Corp Reports Strong Q2 2025 Earnings

OrthoPediatrics Corp’s recent earnings call highlighted a robust performance, marked by significant revenue growth, particularly in the Scoliosis and OPSB segments. The company showcased promising expansions and product launches, although it faced challenges such as a decline in gross margins and restructuring costs. Despite these hurdles, the positive aspects and growth initiatives seemed to outweigh the challenges, painting an overall optimistic picture.

OrthoPediatrics Corp. Achieves Record Revenue Milestone

OrthoPediatrics Corp., a company dedicated to pediatric orthopedics, continues to make strides in the medical field with a comprehensive range of products aimed at improving the lives of children with orthopedic conditions. The company operates in the healthcare sector, focusing on trauma, deformity, scoliosis, and sports medicine procedures, and distributes its products globally.

OrthoPediatrics Highlights Strategic Focus in Presentations

OrthoPediatrics Corp. announced upcoming presentations to investors and analysts, highlighting its strategic focus on pediatric orthopedics. The company emphasizes its unique market position with a comprehensive product portfolio and global sales channel, aiming to expand its market through R&D and acquisitions, while continuing to support clinical education and innovation.

The most recent analyst rating on (KIDS) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on OrthoPediatrics stock, see the KIDS Stock Forecast page.

OrthoPediatrics Expands Specialty Bracing Division Globally

On August 5, 2025, OrthoPediatrics Corp. announced the expansion of its OrthoPediatrics Specialty Bracing (OPSB) division with new clinics and entry into new territories, including California, Ohio, Colorado, New York, and Ireland. This strategic expansion aims to enhance access to pediatric orthopedic care, leveraging partnerships with major children’s hospitals and expanding into international markets, thereby positioning the company to meet the growing demand for pediatric bracing and orthopedic care.

The most recent analyst rating on (KIDS) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on OrthoPediatrics stock, see the KIDS Stock Forecast page.