NasdaqGS:OFIX

Stock Analysis Report

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Executive Summary

Orthofix Medical Inc., a medical device company, provides musculoskeletal healing products and therapies worldwide. More Details

Rewards

Trading at 42.5% below our estimate of its fair value

Earnings are forecast to grow 82.72% per year

Risk Analysis

No risks detected for OFIX from our risk checks.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Orthofix Medical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OFIX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.7%

OFIX

1.1%

US Medical Equipment

1.0%

US Market


1 Year Return

-42.0%

OFIX

15.4%

US Medical Equipment

13.6%

US Market

Return vs Industry: OFIX underperformed the US Medical Equipment industry which returned 15.4% over the past year.

Return vs Market: OFIX underperformed the US Market which returned 13.6% over the past year.


Shareholder returns

OFIXIndustryMarket
7 Day5.7%1.1%1.0%
30 Day-4.4%1.5%-0.4%
90 Day-10.9%12.0%8.9%
1 Year-42.0%-42.0%16.4%15.4%16.2%13.6%
3 Year-37.6%-37.6%73.3%68.8%40.2%30.8%
5 Year-12.7%-12.7%149.6%130.6%89.6%68.2%

Price Volatility Vs. Market

How volatile is Orthofix Medical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Orthofix Medical undervalued compared to its fair value and its price relative to the market?

42.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OFIX ($29.85) is trading below our estimate of fair value ($51.93)

Significantly Below Fair Value: OFIX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OFIX is unprofitable, so we can't compare its PE Ratio to the US Medical Equipment industry average.

PE vs Market: OFIX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OFIX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OFIX is good value based on its PB Ratio (1.7x) compared to the US Medical Equipment industry average (3.9x).


Next Steps

Future Growth

How is Orthofix Medical forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

82.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OFIX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: OFIX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OFIX's is expected to become profitable in the next 3 years.

Revenue vs Market: OFIX's revenue (8.3% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: OFIX's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OFIX's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

How has Orthofix Medical performed over the past 5 years?

-22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OFIX is currently unprofitable.

Growing Profit Margin: OFIX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OFIX is unprofitable, and losses have increased over the past 5 years at a rate of 22.4% per year.

Accelerating Growth: Unable to compare OFIX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OFIX is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (-0.2%).


Return on Equity

High ROE: OFIX has a negative Return on Equity (-6.25%), as it is currently unprofitable.


Next Steps

Financial Health

How is Orthofix Medical's financial position?


Financial Position Analysis

Short Term Liabilities: OFIX's short term assets ($343.6M) exceed its short term liabilities ($89.6M).

Long Term Liabilities: OFIX's short term assets ($343.6M) exceed its long term liabilities ($161.1M).


Debt to Equity History and Analysis

Debt Level: OFIX's debt to equity ratio (29%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if OFIX's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable OFIX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: OFIX is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 1.4% per year.


Next Steps

Dividend

What is Orthofix Medical current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate OFIX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate OFIX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OFIX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OFIX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OFIX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Jon Serbousek (59 yo)

0.83

Tenure

US$5,282,932

Compensation

Mr. Jon C. Serbousek serves as President and Chief Executive Officer at Orthofix Medical Inc., since November 1, 2019 and served as its President of Global Spine since August 5, 2019 until November 1, 2019 ...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD5.28M) is above average for companies of similar size in the US market ($USD2.02M).

Compensation vs Earnings: Insufficient data to compare Jon's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jon Serbousek
President0.83yrUS$5.28m0.16%
$ 926.9k
Douglas Rice
CFO & Chief Accounting Officer5.42yrsUS$1.90m0.23%
$ 1.3m
Kimberley Elting
Chief Legal & Administrative Officer2.92yrsUS$1.81m0.092%
$ 531.2k
Bradley Mason
Consultant0.83yrUS$2.88m0.60%
$ 3.5m
James Ryaby
Chief Scientific Officer7.17yrsno datano data
Tim McGuire
Chief Information Officer3.67yrsno datano data
Dan Yarbrough
Vice President of Investor Relationsno datano datano data
Jill Mason
Chief Ethics & Compliance Officer4.17yrsno datano data
Kevin Kenny
President of Global Spine Business0.75yrno datano data
Mark Quick
Senior Director of Business Development & Investor Relationsno datano datano data

3.3yrs

Average Tenure

57yo

Average Age

Experienced Management: OFIX's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jon Serbousek
President0.83yrUS$5.28m0.16%
$ 926.9k
Ronald Matricaria
Independent Chairman6.5yrsUS$485.02k0.68%
$ 3.9m
Lilly Marks
Independent Director5.25yrsUS$250.56k0.057%
$ 331.3k
James Hinrichs
Independent Director6.42yrsUS$274.98k0.14%
$ 825.0k
Alexis Lukianov
Independent Director3.75yrsUS$259.98k0.0067%
$ 38.7k
Jason Hannon
Independent Director0.25yrno datano data
John Sicard
Independent Director2.5yrsUS$244.98k0%
$ 0
Maria Sainz
Independent Director7.83yrsUS$254.98k0.14%
$ 781.3k
Michael Paolucci
Independent Director4.5yrsUS$279.98k0.026%
$ 147.8k

4.5yrs

Average Tenure

59yo

Average Age

Experienced Board: OFIX's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Orthofix Medical Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Orthofix Medical Inc.
  • Ticker: OFIX
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$576.927m
  • Shares outstanding: 19.33m
  • Website: https://www.orthofix.com

Number of Employees


Location

  • Orthofix Medical Inc.
  • 3451 Plano Parkway
  • Lewisville
  • Texas
  • 75056
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OFIXNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDApr 1992
OM2DB (Deutsche Boerse AG)YesCommon SharesDEEURApr 1992

Biography

Orthofix Medical Inc., a medical device company, provides musculoskeletal healing products and therapies worldwide. It operates through two segments, Global Spine and Global Extremities. The Global Spine s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 06:02
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.