Orthofix (OFIX) AI Stock Analysis

• Market Cap: $474.48M
• Dividend Yield: N/A
• Average Volume (3M): 338.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: 5.85%
• EPS Growth: -8.92%
• Country: US
• Employees: 1,616
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Devices
• EPS (TTM): -1.35
• Shares Outstanding: 39,180,832
• 10 Day Avg. Volume: 490,327
• 30 Day Avg. Volume: 338,653
• 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: 92.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Orthofix's overall score is constrained by its financial instability and technical weaknesses. While the earnings call and corporate governance changes provide some optimism, the core financial and valuation metrics highlight significant risks that require strategic action to address.

Positive Factors

Financial Performance

Orthofix reported a solid top-line and adj. EBITDA beat for the quarter, featuring growth in Bone Growth Therapies and Global Ortho.

Strategic Initiatives

Orthofix has continued to hone its overall strategy by making some strategic exits to focus resources on profitable growth.

Valuation

Orthofix's current valuation is attractive, trading significantly below small-cap and spine comp group averages.

Negative Factors

Growth Expectations

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

Revenue Guidance

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

Short-term Challenges

1Q25 implied sales are likely to be soft against Street expectations due to guidance commentary and timing of new product contributions.

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 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: 12.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 12.11 is below the 20-day moving average (MA) of 13.29, below the 50-day MA of 15.06, and below the 200-day MA of 16.68, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 30.26 is Neutral, neither overbought nor oversold. The STOCH value of 41.79 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	70 Neutral	$787.94M	―	-15.96%	―	22.60%	41.26%
KIDS	57 Neutral	$545.91M	―	-11.33%	―	31.28%	-81.86%
Sector *	52 Neutral	$5.15B	3.56	-42.52%	2.83%	14.56%	-0.50%
OFIX	52 Neutral	$474.48M	―	-27.82%	―	5.85%	-8.92%
TMCI	50 Neutral	$429.01M	―	-45.73%	―	7.54%	4.28%
AVNS	48 Neutral	$584.99M	45.80	-36.78%	―	1.34%	-530.36%
BVS	47 Neutral	$508.51M	―	-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.

Spark’s Take on OFIX Stock

According to Spark, TipRanks’ AI Analyst, OFIX is a Neutral.

Orthofix’s overall stock score reflects its precarious financial health, with zero revenue and equity in 2024 raising red flags. Despite positive guidance and strategic initiatives, technical indicators suggest bearish momentum, and valuation metrics are concerning. The company must address these issues to improve its financial standing and investor confidence.

To see Spark’s full report on OFIX stock, click here.

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.

Spark’s Take on OFIX Stock

According to Spark, TipRanks’ AI Analyst, OFIX is a Neutral.

Orthofix receives an overall score of 51, reflecting several challenges and some opportunities. The financial performance shows significant weaknesses, particularly in revenue and equity. However, the positive earnings call guidance and strategic focus on growth could drive improvements. Technical analysis and valuation reflect current market skepticism, but the company’s proactive strategy could stabilize its future performance.

To see Spark’s full report on OFIX stock, click here.

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.