RTIX  Rti Biologics Inc.

Exchange

NASDAQ

Sector

Health Care

Industry

Industrial Specialties

Market Cap.

210.33M

Vuru Grade

35.27/100

Current Price

$3.60
+0.10 (+2.86%)

Growth Price

$2.09
Overvalued by 42.05%

Stability Price

$4.67
Undervalued by 29.65%

Company Metrics

  • P/E 38.31
  • P/S 0.75
  • P/B 1.24
  • EPS -0.31
  • Cash ROIC 0.78%
  • Cash Ratio 0.21
  • Dividend 0 / 0%
  • Avg. Vol. 171,002.00
  • Shares 58.43M
  • Market Cap. 210.33M

Company Description

RTI Biologics, Inc. and its subsidiaries produce orthopedic and other surgical implants that repair and promote the natural healing of human bone and other human tissues, and improve surgical outcomes. The company processes human musculoskeletal and other tissues, including bone, cartilage, tendon, ligament, fascia lata, pericardium, and sclera and dermal tissues into allografts, as well as bovine... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

RTI Surgical Inc. (RTIX) Moves Higher on Volume Spike for February 23
Equities.com - Feb 23, 2017
RTI Surgical Inc. (RTIX) traded on unusually high volume on Feb. 23, as the stock gained 1.45% to close at $3.50. On the day, RTI Surgical Inc. saw 282,318 shares trade hands on 837 trades. Considering that the stock averages only a daily volume of ...
RTI Surgical® Announces 2016 Fourth Quarter, Full Year Results - OrthoSpineNews
RTI Surgical reports 4Q loss - Yahoo Finance
RTI Surgical Inc: M&A Target?
Seeking Alpha - May 19, 2016
Krensavage Asset Management LLC, activist investor, and Water Street Healthcare Partners at the same time. This is an outstanding opportunity.
RTI Surgical Inc. (RTIX) Soars 6.82% on February 20
Equities.com - Feb 20, 2017
RTI Surgical Inc. (RTIX) had a good day on the market for Monday February 20 as shares jumped 6.82% to close at $3.53. About 241,622 shares traded hands on 928 trades for the day, compared with an average daily volume of 168,119 shares out of a total ...
The RTI Surgical, Inc. (RTIX) Stake Boosted by Continental Advisors LLC - DailyQuint
RTI Surgical, Inc.'s (RTIX) stock price is Worth at $3.53 while ends Friday ... - Hot Stocks Point
RTI Surgical® Schedules 2016 Fourth Quarter, Year End Earnings and Conference ...
Yahoo Finance - Feb 16, 2017
RTI Surgical Inc. (RTI) (RTIX), a global surgical implant company, announced today that it plans to release financial results from the fourth quarter and year ended December 31, 2016 on Thursday, Feb. 23, 2017, prior to the market open.
RTI Surgical Inc. (RTIX) Moves Lower on Volume Spike for February 16 - Equities.com
RTI SURGICAL, INC (NASDAQ:RTIX) Files An 8-K Unregistered Sales of Equity ...
Market Exclusive - Feb 1, 2017
RTI Surgical, Inc. is engaged in producing orthopedic and other surgical implants that repair and promote the natural healing of human bone and other human tissues.
RTI Surgical collaborates with ADA on report for tracking and tracing of human ...
Dentistry IQ - Oct 10, 2016
Last week, RTI Surgical Inc. (Alachua, Florida; Nasdaq: RTIX) issued a statement regarding its collaboration with the American Dental Association (ADA) on a new report regarding tissue implants used in dental surgeries.
Announces Agreement with Oxford Performance Materials
Business Wire (press release) - Feb 11, 2016
ALACHUA, Fla.--(BUSINESS WIRE)--RTI Surgical┬« Inc. (RTI) (Nasdaq: RTIX), a leading global surgical implant company, announced a new agreement with Oxford Performance Materials, Inc. (OPM), a pioneer in advanced materials and additive ...
Continues to Advance Science Behind Allograft Implantation
Business Wire (press release) - Jul 25, 2016
ALACHUA, Fla.--(BUSINESS WIRE)--RTI Surgical, Inc. (RTI) (Nasdaq: RTIX), a leading global surgical implant company, announced that a peer-reviewed, pre-clinical study titled Multipotent adult progenitor cells on an allograft scaffold facilitate the ...
RTI Surgical Inc (NASDAQ:RTIX) Stock Technicals Hit Strength
CML News - Feb 24, 2017
This is a technical analysis stock rating for RTI Surgical Inc (NASDAQ:RTIX) . The company has a four bull technical rating which indicates some strength.
Yearly Sales Estimates Of RTI Surgical, Inc. (NASDAQ:RTIX) At $72.395
Equities Focus - 17 hours ago
Last week EPS forecast was $0.01 and a month ago was $0.01. EPS forecast 2-months ago was $0.01 while 90-days afore, it was $0.01.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for RTIX to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate RTIX's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$3.60 Current Price

$2.09 Growth Price (DCF)

Overvalued by 42.05%


Growth Rate Assumed by Market: 500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


RTIX's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$4.67 Stability Price (EPV)

Undervalued by 29.65%


Discount Rate: 15.0%

$4.25 Book Price

Undervalued by 18.04%


Poor Cash Return on Invested Capital over the past 5 years

RTIX has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

RTIX has only created $0.78 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 19.28M 5.94M -20.38M -9.42M -9.24M
divided by
Invested Capital 148.23M 154.25M 298.78M 298.45M 308.52M
Cash ROIC 13.01% 3.85% -6.82% -3.16% -3.00%

Poor Return on Equity over the past 5 years

RTIX has shown an inability to deliver strong results for shareholders. This could be due to poor management, RTIX operating in a highly competitive industry, or having a weak business in general.

RTIX has only generated $1.73 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 8.38M 8.40M -17.81M 2.70M 14.92M
divided by
Stockholders' Equity 172.42M 183.99M 168.05M 167.84M 181.36M
Return on Equity 4.86% 4.57% -10.60% 1.61% 8.22%

Poor Business Performance over the past 10 years

RTIX's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

RTIX has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow -8.07M 4.89M -7.45M -8.80M 26.15M 19.28M 5.94M -20.38M -9.42M -9.24M

Weak Balance Sheet

RTIX's financial position is not ideal. The key is to check whether RTIX is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 15.51M 18.56M 20.08M 17.38M 28.21M 46.18M 49.70M 18.72M 15.70M 12.61M
Current Assets 73.30M 88.44M 131.71M 152.94M 159.07M 159.68M 166.57M 186.66M 197.50M 191.71M
Total Assets 129.81M 135.97M 334.08M 354.51M 225.76M 230.03M 241.41M 369.85M 378.14M 381.07M
Current Liabilities 16.52M 17.82M 41.52M 38.00M 33.44M 35.62M 37.46M 52.36M 63.99M 59.93M
Total Liabilities 19.92M 24.32M 53.03M 64.62M 63.82M 57.61M 57.42M 201.80M 210.30M 199.71M
Stockholder' Equity 109.89M 111.64M 281.05M 289.89M 161.94M 172.42M 183.99M 168.05M 167.84M 181.36M
Current Ratio 4.44 4.96 3.17 4.03 4.76 4.48 4.45 3.57 3.09 3.20
TL-to-TA 0.15 0.18 0.16 0.18 0.28 0.25 0.24 0.55 0.56 0.52

Low or No Reinvestment of Profits over the past 10 years

RTIX has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to RTIX operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings -19.90M -21.99M -121.97M -116.12M -245.52M -237.14M -228.74M -246.55M -243.85M -228.94M
Retained Earnings Growth - -10.53% -454.57% 4.80% -111.44% 3.41% 3.54% -7.79% 1.09% 6.12%

Loss Making Entity over the past 10 years

RTIX has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$15.28 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income -11.13M -2.10M -99.98M 5.86M -129.40M 8.38M 8.40M -17.81M 2.70M 14.92M
divided by
Revenue 73.97M 94.21M 146.64M 164.53M 166.17M 169.32M 178.11M 197.98M 262.81M 282.29M
Net Profit Margin -15.04% -2.22% -68.18% 3.56% -77.87% 4.95% 4.72% -9.00% 1.03% 5.28%

Varying Pricing Power over the past 10 years

RTIX has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$49.23 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 19.32M 37.65M 68.81M 77.49M 76.00M 159.51M 85.22M 80.11M 133.80M 149.74M
divided by
Revenue 73.97M 94.21M 146.64M 164.53M 166.17M 169.32M 178.11M 197.98M 262.81M 282.29M
Gross Margin 26.12% 39.97% 46.93% 47.10% 45.74% 94.21% 47.84% 40.46% 50.91% 53.04%

High Capital Intensity over the past 10 years

RTIX spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

216.21% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 1.33M 2.17M 6.82M 4.42M 3.24M 8.48M 14.86M 15.93M 16.31M 18.24M
divided by
Net Income -11.13M -2.10M -99.98M 5.86M -129.40M 8.38M 8.40M -17.81M 2.70M 14.92M
Capital Expenditure Ratio -11.94% -103.67% -6.82% 75.53% -2.51% 101.27% 176.87% -89.40% 605.12% 122.28%

No Dividend History over the past 10 years

RTIX has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 29.75M 29.82M 49.91M 54.77M 54.73M 55.35M 56.07M 56.26M 56.74M 58.59M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 5.86 8.79 2.97 3.81 2.71 4.44 4.10 3.39 5.22 4.00
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

RTIX has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 29.75M 29.82M 49.91M 54.77M 54.73M 55.35M 56.07M 56.26M 56.74M 58.59M
Stock Bought Back - -0.24% -40.25% -8.87% 0.08% -1.13% -1.27% -0.34% -0.84% -3.17%
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