MeritValue

ORTHOPEDIATRICS CORP

KIDSdata completeness 100%11 fiscal years on file
The thesis, from the filings

ORTHOPEDIATRICS CORP earns about -5% on invested capital, but has diluted owners by 22% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$98M1$122.3M2$148.7M3$204.7M3$236.3M3
Net income−$16.3M4$1.26M5−$21M6−$37.8M6−$39.6M6
Operating cash flow−$13.1M7−$21.8M8−$27M9−$27M9−$4.85M9
Capital expenditure$8.1M10$10M11$16.9M12$14.3M12$11.1M12
Free cash flow (derived)−$21.2M7−$31.8M8−$43.9M9−$41.3M9−$16M9
Total debt$2.09M13$1.81M14$21.1M15$151.3M16$207.7M16
Cash & equivalents$7.64M17$8.99M18$31.1M19$43.8M20$19.6M20
Diluted shares19.3M20.9M22.7M23.1M23.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$147.74
your share of equity
Profit it earned you last year
−$16.9
Free cash flow it threw off
−$6.8
Debt you’d be carrying
$88.53

10 shares is a claim on $147.74 of net worth that earned you −$16.9 and generated −$6.8 of cash last year, against $88.53 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-5% avg · 5y
FY21 -6%FY22 -1%FY23 -5%FY24 -7%FY25 -6%

It earned an average -5% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+22% shares · 5y

Share count is up 22% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 9847% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001425450-24-000013 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001425450-25-000015 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001425450-26-000013 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001425450-24-000013 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001425450-25-000015 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001425450-26-000013 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001425450-24-000013 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001425450-25-000015 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001425450-26-000013 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001425450-24-000013 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001425450-25-000015 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001425450-26-000013 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001425450-23-000024 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0001425450-24-000013 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0001425450-25-000015 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0001425450-26-000013 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0001425450-22-000027 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001425450-24-000013 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001425450-25-000015 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001425450-26-000013 (CashAndCashEquivalentsAtCarryingValue)