Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on OFIX

Negative drivers behind Orthofix Medical Inc.'s recent performance include a disappointing Q4 earnings release, which missed estimates by $0.04 per share. The company's net sales growth of 8% on a reported and constant currency basis was overshadowed by a 12% decline in U.S. Spine Fixation net sales. Additionally, the company's recent conference participation and investor relations activities have been overshadowed by a shareholder litigation investigation, which may raise concerns about corporate governance and management's decision-making. Furthermore, the company's recent product clearance and CE Mark for the TrueLok Elevate Transverse Bone Transport System, while a positive development, may not have had a significant impact on the company's short-term performance.

1.c. Company Highlights

2. Orthofix's Q4 2025 Earnings: A Strong Finish to a Transformative Year

Orthofix reported Q4 2025 revenues that were in line with expectations, though the EPS came in below estimates at $0.26 versus $0.44 expected. The company's Bone Growth Therapies (BGT) and U.S. Limb Reconstruction achieved significant growth, with the latter growing 8% in Q4 and 16% for the full year. This growth was driven by the company's focus on high-value clinical categories and its sharpened commercial strategy.

Publication Date: Mar -09

📋 Highlights
  • US Limb Reconstruction Growth:: Achieved 8% Q4 growth and 16% full-year growth, reflecting a $2.6 billion market focus.
  • 2026 Net Sales Guidance:: Projected $850–860 million ($855M midpoint), up 5.5% year-over-year in constant currency.
  • 3-Year Financial Targets:: 6.5–7.5% net sales CAGR and mid-teens non-GAAP EBITDA margin by 2028.
  • VIRATA Launch Impact:: H2 2026 expected to enhance surgical efficiency and drive US Spine growth.
  • Free Cash Flow Improvement:: $7–8 million increase in 2026, excluding legal settlements, with sustained positive cash flow through 2028.

Segment Performance

The company's Global Spine Fixation net sales grew 10% for the year and in Q4, driven by a strengthened distributor network and commercial channel optimization efforts. The VIRATA Spinal Fixation System, a new product launch, is expected to drive future growth in the US Spine business. The Limb Reconstruction business is also expected to return to double-digit growth in the second half of 2026.

Guidance and Outlook

Orthofix expects full-year 2026 net sales of $850 million to $860 million, representing 5.5% pro forma constant currency year-over-year growth. The company also expects positive free cash flow and has guided for non-GAAP adjusted EBITDA of $95 million to $98 million. Analysts estimate that the company's revenue will grow at 6.3% next year.

Valuation

Orthofix's current valuation metrics indicate a 'P/E Ratio' of -5.48, a 'P/S Ratio' of 0.62, and an 'EV/EBITDA' of 7.76. These metrics suggest that the company's stock may be undervalued, presenting a potential investment opportunity. The company's 'ROE (%)' is -20.38, and 'ROIC (%)' is -10.01, indicating that the company still faces challenges in terms of profitability.

Operational Highlights

The company has made significant progress in its operational transformation, with a strengthened commercial platform and improved financial foundations. Orthofix is focused on commercializing new technologies, including 7D FLASH navigation and Voyager earnout placement, and driving deeper penetration of its biologics business. The upcoming product launches, including VIRATA, are expected to drive growth and enhance surgical efficiency.

3. NewsRoom

Card image cap

Down 12.6% in 4 Weeks, Here's Why You Should You Buy the Dip in Orthofix (OFIX)

Mar -16

Source: zacks.com

Card image cap

Halper Sadeh LLC Encourages Orthofix Medical Inc. Shareholders to Contact the Firm to Discuss Their Rights

Mar -11

Source: businesswire.com

Card image cap

Orthofix Investor News: Rosen Law Firm Announces Investigation of Breaches of Fiduciary Duties by the Directors and Officers of Orthofix Medical, Inc. – OFIX

Mar -11

Source: businesswire.com

Card image cap

Orthofix Medical (NASDAQ:OFIX) Shares Gap Up Following Insider Buying Activity

Feb -28

Source: defenseworld.net

Card image cap

Orthofix Medical Inc. (OFIX) Q4 2025 Earnings Call Transcript

Feb -24

Source: seekingalpha.com

Card image cap

Orthofix (OFIX) Q4 Earnings and Revenues Lag Estimates

Feb -24

Source: zacks.com

Card image cap

Orthofix to Report Fourth Quarter and Full-Year 2025 Financial Results

Feb -03

Source: businesswire.com

Card image cap

Orthofix Medical (NASDAQ:OFIX) vs. WORK Medical Technology Group (NASDAQ:WOK) Financial Contrast

Feb -01

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.69%)

6. Segments

Spinal Implants, Biologics, and Enabling Technologies

Expected Growth: 5.5%

Orthofix Medical Inc.'s 5.5% growth is driven by increasing demand for spinal implants, biologics, and enabling technologies. Key drivers include an aging population, rising prevalence of spinal disorders, and advancements in minimally invasive surgical procedures. Additionally, the company's focus on innovation, strategic partnerships, and expansion into emerging markets contribute to its growth momentum.

Bone Growth Therapies

Expected Growth: 5.8%

Orthofix Medical Inc.'s Bone Growth Therapies segment growth of 5.8% is driven by increasing demand for minimally invasive spine procedures, adoption of novel biologic solutions, and expansion into emerging markets. Additionally, strategic partnerships and investments in research and development are contributing to the segment's growth.

Global Orthopedics

Expected Growth: 6.2%

The 6.2% growth of Global Orthopedics from Orthofix Medical Inc. is driven by increasing demand for minimally invasive spine procedures, rising adoption of orthobiologics, and expanding presence in emerging markets. Additionally, advancements in 3D printing and robotic-assisted surgeries are contributing to the segment's growth.

7. Detailed Products

Bone Growth Therapies

Orthofix Medical Inc. offers a range of bone growth therapies, including bone growth stimulators and osteoinductive products, to enhance bone healing and fusion.

Biologics

Orthofix's biologics portfolio includes a range of products, including bone graft substitutes and osteoinductive products, designed to promote bone healing and tissue regeneration.

Internal Fixation

Orthofix's internal fixation products, including plates, screws, and rods, are designed to stabilize and support the spine and other bones during the healing process.

Orthobiologics

Orthofix's orthobiologics products, including bone graft substitutes and osteoinductive products, are designed to promote bone healing and tissue regeneration.

Spinal Implants

Orthofix's spinal implant products, including interbody devices and instrumentation, are designed to treat a range of spinal conditions, including degenerative disc disease and spinal deformities.

Surgical Instruments

Orthofix's surgical instruments, including surgical tools and implantable devices, are designed to support surgeons during orthopedic and spinal procedures.

8. Orthofix Medical Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Orthofix Medical Inc. operates in a highly competitive industry, and there are several substitutes available for its products. However, the company's focus on innovation and quality has helped it to maintain a competitive edge.

Bargaining Power Of Customers

Orthofix Medical Inc.'s customers are primarily healthcare professionals and hospitals, who have limited bargaining power due to the specialized nature of the company's products.

Bargaining Power Of Suppliers

Orthofix Medical Inc. relies on a few key suppliers for its raw materials, which gives them some bargaining power. However, the company's strong relationships with its suppliers help to mitigate this risk.

Threat Of New Entrants

The medical device industry is highly regulated, and there are significant barriers to entry. This makes it difficult for new entrants to compete with established players like Orthofix Medical Inc.

Intensity Of Rivalry

The medical device industry is highly competitive, with several established players competing for market share. Orthofix Medical Inc. faces intense competition from companies like Stryker, Johnson & Johnson, and Medtronic.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 14.13%
Debt Cost 6.32%
Equity Weight 85.87%
Equity Cost 9.24%
WACC 8.83%
Leverage 16.46%

11. Quality Control: Orthofix Medical Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SI-BONE

A-Score: 5.1/10

Value: 6.8

Growth: 5.8

Quality: 5.6

Yield: 0.0

Momentum: 9.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
AxoGen

A-Score: 4.5/10

Value: 2.2

Growth: 7.0

Quality: 5.1

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Silk Road Medical

A-Score: 4.0/10

Value: 6.4

Growth: 5.6

Quality: 4.8

Yield: 0.0

Momentum: 6.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Orthofix Medical

A-Score: 3.6/10

Value: 8.9

Growth: 1.3

Quality: 3.8

Yield: 0.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Xtant Medical

A-Score: 3.3/10

Value: 6.7

Growth: 2.9

Quality: 3.9

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
TELA Bio

A-Score: 3.1/10

Value: 7.8

Growth: 5.7

Quality: 3.6

Yield: 0.0

Momentum: 0.0

Volatility: 1.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.87$

Current Price

11.87$

Potential

-0.00%

Expected Cash-Flows