Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 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
2.7
Altman Z-score
Clean
Earnings quality
6
Forensic signals
-11.4%
ROE
$521M
Market cap
ORTHOPEDIATRICS CORP earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is 2.7, 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%Return on invested capital.Return on invested capital is -7% and slipping from -5% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+4.0%/yrShare-count dilution.Diluted share count changed +12% over the last 3 years to FY2025 (+4.0%/yr). The count is GROWING — existing holders are being diluted. That's ~4.0% 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 ~12%.
+10.9%Accruals ratio.Net operating assets grew +10.9% relative to their average in FY2025 — the accrual component of earnings. Accruals are building faster than is comfortable — part of profit sits in receivables, inventory or capitalized costs rather than cash. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -9% of net operating assets.
83d DSOReceivables vs revenue.Days sales outstanding moved from 76 to 83 days FY2024→FY2025 (receivables +27% vs revenue +15%). Receivables are creeping up relative to sales — watch the trend.
767dInventory days.Days inventory outstanding moved from 761 to 767 FY2024→FY2025 (against cost of goods sold; inventory +14% vs +13% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
$2MGoodwill impairments.Took $2M of goodwill writedowns across 1 year(s) (FY2025 ($2M)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.
Key fundamentals
Net Margin-16.8%
Debt / Equity0.29x
Free Cash Flow$-16.0M
Latest Revenue$236.3M
Return on Equity-11.4%
Revenue Growth YoY+15.4%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on ORTHOPEDIATRICS CORP:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about KIDS's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown