OFIX

Orthofix Medical Inc

Healthcare


Presented:12/18/2023
Price:$13.06
Cap:$0.48B
Current Price:$15.66
Cap:$0.60B

Presented

Date12/18/2023
Price$13.06
Market Cap$0.48B
Ent Value$0.56B
P/E RatioN/A
Book Value$16.75
Div Yield0%
Shares O/S36.76M
Ave Daily Vol855,476
Short IntN/A

Current

Price$15.66
Market Cap$0.60B
Orthofix Medical, Inc. engages in the provision of medical devices. It operates through the following business segments: Global Spine and Global Extremities. The Global Spine reporting segment offers three primary product categories: Bone Growth Therapies, Spinal Implants, and Biologics. The Bone Growth Therapies product category manufactures, distributes, and provides support services of bone growth stimulator devices that enhance bone fusion. The Spinal Implants product category designs, develops, and markets a broad portfolio of motion preservation and fixation implant products used in surgical procedures of the spine. The Biologics product category provides a portfolio of regenerative products and tissue forms that allow physicians to treat a variety of spinal and orthopedic conditions. The Global Extremities reporting segment offers products and solutions that allow physicians to successfully treat a variety of orthopedic conditions unrelated to the spine. The company was founded on October 19, 1987 and is headquartered in Lewisville, TX.

Publicly traded companies mentioned herein: Orthofix Medical Inc (OFIX)

Highlights

The presenter is long shares of Orthofix Medical Inc (OFIX), a leading medical device company and provider of spinal, orthopedic, bone growth and motion preservation products. While the stock took a 30%+ hit in September amid a leadership shakeup and subsequent termination of the CEO, CFO and CLO, the company has stated it had nothing to do with business operations or finance, and reiterated guidance in the wake of the news. At $12.70 per share and only $35MM in net debt, the stock trades at 0.6x revenue and just under 7x EBITDA. This is considerably behind its peers, which generally trade at around 3x - 5x revenue and north of 10x EBITDA. As such, the presenter sees significant upside using a 1.5x revenue multiple or a 10x EBITDA multiple on $125MM of out-year EBITDA, yielding a $30 price target (+130%). 

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