Orthofix Medical Inc. (OFIX) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA below its 5-year median

Orthofix Medical's EV/EBITDA of 13.2 is below its 5-year median of 20.6.

P/B below the industry

Orthofix Medical's price-to-book of 0.68 is below the Surgical, Medical, and Dental Instruments and Supplies median of 3.22.

Trading below fair value

The share price of $7.18 is below our fair value estimate of $14.01.

Margin of safety over 20%

The price is 48.8% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 21.3% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 2.1% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.

Guidance issued

The latest outlook (full-year 2026 Net sales, Aug 5, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 70.9% over the last twelve months, against 68.3% a year earlier.

Return on equity under 15%

Return on equity was -10.3% over the last twelve months and averaged -18.3% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -2.9%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Orthofix Medical's return on equity of -10.3% is above the Surgical, Medical, and Dental Instruments and Supplies median of -31.3%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was -5.4% over the last twelve months, against a 5-year average of -12.0%.

Net margin above the industry

Orthofix Medical's net margin of -5.4% is above the Surgical, Medical, and Dental Instruments and Supplies median of -14.1%.

High debt

Debt is 51.6% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 1.9% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 3.11 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.05; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Orthofix Medical has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.