Orthofix Medical Inc.
Find Ratings ReportsORTHOFIX MEDICAL INC's gross profit margin for the third quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. ORTHOFIX MEDICAL INC has weak liquidity. Currently, the Quick Ratio is 0.98 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 84.53% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q3 FY23 | Q3 FY22 |
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Net Sales ($mil) | 184.01 | 114.0 |
EBITDA ($mil) | 0.94 | 2.32 |
EBIT ($mil) | -12.16 | -5.25 |
Net Income ($mil) | -28.86 | -10.72 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 34.95 | 51.66 |
Total Assets ($mil) | 905.65 | 449.66 |
Total Debt ($mil) | 109.84 | 26.99 |
Equity ($mil) | 615.48 | 333.54 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 75.31 | 78.01 |
EBITDA Margin | 0.5 | 2.03 |
Operating Margin | -6.61 | -4.6 |
Sales Turnover | 0.74 | 1.03 |
Return on Assets | -15.04 | -10.11 |
Return on Equity | -22.14 | -13.64 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 2.58 | 3.18 |
Debt/Capital | 0.15 | 0.07 |
Interest Expense | 1.58 | 0.28 |
Interest Coverage | -7.72 | -18.95 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 36.75 | 20.01 |
Div / share | 0.0 | 0.0 |
EPS | -0.77 | -0.53 |
Book value / share | 16.75 | 16.67 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 671588.0 | 845724.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.83 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 4.96. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, ORTHOFIX MEDICAL INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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OFIX NM | Peers 49.88 | OFIX NM | Peers 33.16 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. OFIX's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. OFIX's P/CF is negative making the measure meaningless. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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OFIX 32.14 | Peers 24.07 | OFIX NA | Peers 0.91 | |||||||||||||||||||||
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. OFIX's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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OFIX 0.83 | Peers 4.96 | OFIX -71.05 | Peers 126.83 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. OFIX is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, OFIX is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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OFIX 0.76 | Peers 6.41 | OFIX 44.20 | Peers 8.91 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. OFIX is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. OFIX has a sales growth rate that significantly exceeds its peers. |
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