Orthofix International provides reconstructive and regenerative orthopedic and spine solutions to physicians. It operates through four segments: BioStim, Biologics, Extremity Fixation, and Spine Fixation. The company was founded in 1987 and is based in Willemstad, Curaçao.
OFIX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Orthofix Medical Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Orthofix Medical Inc ranked in the 22th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Orthofix Medical Inc, consider:
In the past 5.28 years, Orthofix Medical Inc has a compound free cash flow growth rate of 0.01%; that's higher than only 21.78% of free cash flow generating stocks in the Healthcare sector.
Orthofix Medical Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -19.54. This coverage rate is greater than that of merely 5.7% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as OFIX, try BAX, HOLX, MDT, SRDX, and TMO.
Orthofix Medical Inc. (NASDAQ:OFIX), a global medical device company focused on musculoskeletal products and therapies, today announced that it plans to release financial results for the second quarter 2020 before market open on Thursday, August 6, 2020. Jon Serbousek, President and Chief Executive Officer, and Doug Rice, Chief Financial Officer, will host a conference call and webcast to review the Company’s results at 8:30 a.m. ET the same day.