OrthoPediatrics Corp. — Earnings Quality Grade D
KIDS · Healthcare
Significant concerns
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 83 days, change +8 days YoY
AR growth 27.1% exceeds revenue growth 15.4%
Revenue 15.4%, CFFO 82.1%. Cash follows revenue
Expense Quality
Inventory 14.3% vs COGS 13.5%. Normal
CapEx growth -22.1% vs revenue 15.4%. Normal
SG&A/Gross Profit = 111.5%, exceeds 70%
Gross margin 73.1%, change +0.5pp. Stable
Cash Flow Quality
CFFO/NI = 0.12. Below 1.0
FCF is negative ($-0.0B)
Accruals ratio = -6.8%. Low accruals
Cash $0.1B covers 61% of debt $0.1B
Balance Sheet Health
Goodwill+Intangibles $0.2B = 54% of equity. Over 50%
Debt/EBITDA = -12.7x. Healthy
Other assets grew 50.5% vs revenue 15.4%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change 7% YoY. Normal
Manipulation Score
M-Score = -2.66 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25