Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Aug 11, 2026
Orthopediatrics Corp (KIDS)
A forensic read on Orthopediatrics Corp built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
4.5
Distress distance
Clean
Earnings quality
6
Forensic signals
-13.6
P / E (ttm)
-11.4%
ROE
$633M
Market cap
0.00%
Dividend yield
15.4%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Orthopediatrics Corp earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 4.5, placing it in the Safe zone. 6 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-7.0%
FY2025
Return on invested capital.Return on invested capital is -7.0% in the latest fiscal year and slipping from -5% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+3.8%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +12% over the last 3 years to FY2025 (+3.8%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~3.8% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~11%.
stopped
FY2017→FY2019
Shareholder returns — halted.Capital returns have STOPPED — $6M of buybacks + dividends in FY2017, but ~$0 in FY2019. A halt usually means the company is conserving cash.
+10.9%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +10.9% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by receivables up +27% against revenue +15% and inventory up +14% against +13% in cost of sales. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 9% of net operating assets, diverging from the balance-sheet accrual read.
74d DSO
Key fundamentals
Latest Revenue$236.3M
Revenue Growth YoY+15.4%
Revenue CAGR (3yr)+24.6%
Net Margin-16.8%
Free Cash Flow-$16.0M
Return on Equity-11.4%
Debt / Equity0.29x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Orthopediatrics Corp's actual 10-K/10-Q/8-K filings?
Receivables vs revenue.Days sales outstanding moved from 69 to 74 days FY2024→FY2025 (receivables +27% vs revenue +15%). Receivables are creeping up relative to sales. Across FY2021–FY2025 the day count ran 65 → 64 → 73 → 69 → 74 days — the latest step continues a climb that was already under way, which is the persistence that separates a collection problem from a busy quarter.
8% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 8% of revenue in FY2025 — about $0.76 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count, and there it has run at about 3.9% a year and is falling.