Orthofix Medical Inc. — Earnings Quality Grade F
OFIX · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 60 days, change -1 days YoY
AR growth 0.8% vs revenue growth 2.9%
Revenue 2.9%, CFFO 29.3%. Cash follows revenue
Expense Quality
Inventory -9.0% vs COGS 1.1%. Normal
CapEx growth -0.7% vs revenue 2.9%. Normal
SG&A/Gross Profit = 97.9%, exceeds 70%
Gross margin 68.8%, change +0.6pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = -14.8%. Low accruals
Cash $0.1B covers only 46% of debt $0.2B
Balance Sheet Health
Goodwill+Intangibles $0.3B = 59% of equity. Over 50%
Debt/EBITDA = 18.0x (>4x). Interest coverage = -4.7x (<2x). Financial stress
Other assets grew 38.7% vs revenue 2.9%
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 -9% YoY. Normal
Manipulation Score
M-Score = -3.20 (< -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