Orthofix Medical Inc. Common Stock (DE) (OFIX)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable earning power, a strong balance sheet, and a price that offers a margin of safety. Orthofix does not yet pass that test. In fiscal FY2025, the year ended 2025-12-31, revenue was $822.3M, yet net income was -$92.2M. That was an improvement from -$126.0M in fiscal FY2024, the year ended 2024-12-31, and -$151.4M in fiscal FY2023, the year ended 2023-12-31, but it is still a real loss. In the latest filed quarter, fiscal Q2 2026 ended 2026-06-30, revenue was $210.9M and net income was -$15.8M; the prior-year fiscal Q2 2025 ended 2025-06-30 lost $14.1M, so the loss widened. Free cash flow is negative: trailing FCF is -$27.8M, a -7.4% FCF yield as FairStock calculates it. With debt-to-equity of 0.61, a FairStock Altman Z-Score of 0.47, and FairStock's ROCE of -2.74%, the financial risk is not trivial. On valuation, at the 2026-10-13 close of $9.26, the FairStock P/B is 0.88 and P/E is -6.09. A sub-book price can be interesting, but not when FairStock's ROE is -13.91% and cash is going out the door. FairStock's EV/EBITDA of 26.76 is not cheap. The FairStock Piotroski F-Score is a mediocre 5/9, and the Lynch category computes to none because of losses in each of the last four years. Medical devices can have switching costs and recurring revenue, but those advantages are not showing up in profit. Until Orthofix produces positive net income and free cash flow, the asset discount alone is not enough for me.

In plain English: Orthofix Medical makes medical devices for spine and limb reconstruction. The business looks weak right now: it lost money in fiscal 2023, 2024, and 2025, and it is still losing money in the latest quarter. The shares trade below the company's accounting value, but because it keeps losing money and spending cash, the price looks risky rather than clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer