RTIX  Rti Biologics Inc.

Exchange

NASDAQ

Sector

Health Care

Industry

Industrial Specialties

Market Cap.

271.56M

Vuru Grade

15.50/100

Current Price

$4.60
-0.05 (-1.08%)

Growth Price

$2.51
Overvalued by 45.50%

Stability Price

$1.06
Overvalued by 77.02%

Company Metrics

  • P/E 38.31
  • P/S 0.98
  • P/B 1.67
  • EPS -0.37
  • Cash ROIC -2.00%
  • Cash Ratio 0.23
  • Dividend 0 / 0%
  • Avg. Vol. 248,114.00
  • Shares 59.03M
  • Market Cap. 271.56M

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

Ajo LP Invests $2.60 Million in RTI Surgical, Inc. (RTIX)
OrthoSpineNews - Sep 19, 2017
Ajo LP acquired a new position in shares of RTI Surgical, Inc. (NASDAQ:RTIX) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission.
RTI Surgical Is An Undervalued Acquisition Target
Seeking Alpha - Nov 23, 2016
Defects in bone and other human tissue can be caused by a variety of sources. Some of the more common ones include traumatic injury, birth defects, infectious disease and aging.
BRIEF-RTI Surgical divests cardiothoracic closure business to A&E Medical Corp
Reuters - Aug 3, 2017
BRIEF-RTI Surgical divests cardiothoracic closure business to A&E Medical Corp. Reuters Staff. 1 Min Read. Aug 3 (Reuters) - RTI Surgical Inc. * RTI Surgical divests cardiothoracic closure business to A&E Medical Corporation for up to $60 million.
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.
BRIEF-RTI Surgical Q4 revenue $71.3 million
Reuters - Feb 23, 2017
BRIEF-RTI Surgical Q4 revenue $71.3 million. Reuters Staff. 1 Min Read. Feb 23 (Reuters) - RTI Surgical Inc: * RTI Surgical announces 2016 fourth quarter, full year results; initiates actions to improve execution and return to profitable growth.
Continues to Augment Leadership Team to Accelerate its Strategic Direction
Business Wire (press release) - Sep 18, 2017
ALACHUA, Fla.--(BUSINESS WIRE)--RTI Surgical Inc. (RTI) (Nasdaq:RTIX), a leading global surgical implant company, announced today three new appointments to its senior leadership team to accelerate the Company's strategic growth initiatives.
RTI Surgical, Inc. (RTIX) is Paradigm Capital Management Inc. NY's 4th Largest ... - StockNewsTimes
Head-To-Head Analysis: RTI Surgical (NASDAQ:RTIX) vs. St Jude Medical (STJ) - TrueBlueTribune
RTI Surgical, Inc. (RTIX) Shares Sold by Morgan Stanley
The Ledger Gazette - Sep 23, 2017
RTI Surgical logo Morgan Stanley cut its stake in RTI Surgical, Inc. (NASDAQ:RTIX) by 27.2% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission.
Kennedy Capital Management Inc. Reduces Position in RTI Surgical, Inc. (RTIX) - Dispatch Tribunal
RTI Surgical, Inc. (NASDAQ:RTIX) Sees Significantly Lower Trading Volume - Highlight Press
Decision Time: RTI Surgical Inc (NASDAQ:RTIX) Stock Technicals Hit Inflection ...
CML News - 21 hours ago
Decision Time: RTI Surgical Inc (NASDAQ:RTIX) now sits in the perhaps the most difficult technical position -- the stock has no urgency in its direction and that has left it at an inflection point.
RTI Surgical Announces Additional 510(k) Clearance for the Streamline
Business Wire (press release) - Oct 26, 2016
ALACHUA, Fla.--(BUSINESS WIRE)--RTI Surgical (RTI) (Nasdaq: RTIX), a global surgical implant company, is pleased to announce a recent 510(k) clearance for the Streamline OCT Occipito-Cervico-Thoracic System.
Divests Cardiothoracic Closure Business to A&E Medical Corporation for up to ...
Business Wire (press release) - Aug 3, 2017
ALACHUA, Fla.--(BUSINESS WIRE)--RTI Surgical Inc. (RTI) (Nasdaq: RTIX), a global surgical implant company, today announced that it has sold its cardiothoracic closure business to A&E Advanced Closure Systems, LLC (A&E Medical), a leading ...
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.

$4.60 Current Price

$2.51 Growth Price (DCF)

Overvalued by 45.50%


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

$1.06 Stability Price (EPV)

Overvalued by 77.02%


Discount Rate: 15.0%

$3.55 Book Price

Overvalued by 22.88%


Very Poor Cash Return on Invested Capital over the past 5 years

RTIX has failed to generate positive returns on 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 lost $2.00 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 5.94M -20.38M -9.42M -9.24M -2.63M
divided by
Invested Capital 154.25M 298.78M 298.45M 308.52M 295.22M
Cash ROIC 3.85% -6.82% -3.16% -3.00% -0.89%

Very Poor Return on Equity over the past 5 years

RTIX has shown an inability to deliver 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 generated a $0.99 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 8.40M -17.81M 2.70M 14.92M -14.40M
divided by
Stockholders' Equity 183.99M 168.05M 167.84M 181.36M 164.92M
Return on Equity 4.57% -10.60% 1.61% 8.22% -8.73%

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
2007200820092010201120122013201420152016
Free Cash Flow 4.89M -7.45M -8.80M 26.15M 19.28M 5.94M -20.38M -9.42M -9.24M -2.63M

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
2007200820092010201120122013201420152016
Cash 18.56M 20.08M 17.38M 28.21M 46.18M 49.70M 18.72M 15.70M 12.61M 13.85M
Current Assets 88.44M 131.71M 152.94M 159.07M 159.68M 166.57M 186.66M 197.50M 191.71M 180.29M
Total Assets 135.97M 334.08M 354.51M 225.76M 230.03M 241.41M 369.85M 378.14M 381.07M 368.03M
Current Liabilities 17.82M 41.52M 38.00M 33.44M 35.62M 37.46M 52.36M 63.99M 59.93M 58.96M
Total Liabilities 24.32M 53.03M 64.62M 63.82M 57.61M 57.42M 201.80M 210.30M 199.71M 203.12M
Stockholder' Equity 111.64M 281.05M 289.89M 161.94M 172.42M 183.99M 168.05M 167.84M 181.36M 164.92M
Current Ratio 4.96 3.17 4.03 4.76 4.48 4.45 3.57 3.09 3.20 3.06
TL-to-TA 0.18 0.16 0.18 0.28 0.25 0.24 0.55 0.56 0.52 0.55

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
2007200820092010201120122013201420152016
Retained Earnings -21.99M -121.97M -116.12M -245.52M -237.14M -228.74M -246.55M -243.85M -228.94M -243.34M
Retained Earnings Growth - -454.57% 4.80% -111.44% 3.41% 3.54% -7.79% 1.09% 6.12% -6.29%

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.

$14.30 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income -2.10M -99.98M 5.86M -129.40M 8.38M 8.40M -17.81M 2.70M 14.92M -14.40M
divided by
Revenue 94.21M 146.64M 164.53M 166.17M 169.32M 178.11M 197.98M 262.81M 282.29M 272.87M
Net Profit Margin -2.22% -68.18% 3.56% -77.87% 4.95% 4.72% -9.00% 1.03% 5.28% -5.28%

Strong 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. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$51.47 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
2007200820092010201120122013201420152016
Gross Profit 37.65M 68.81M 77.49M 76.00M 159.51M 85.22M 80.11M 133.80M 149.74M 132.35M
divided by
Revenue 94.21M 146.64M 164.53M 166.17M 169.32M 178.11M 197.98M 262.81M 282.29M 272.87M
Gross Margin 39.97% 46.93% 47.10% 45.74% 94.21% 47.84% 40.46% 50.91% 53.04% 48.50%

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
2007200820092010201120122013201420152016
Capital Expenditure 2.17M 6.82M 4.42M 3.24M 8.48M 14.86M 15.93M 16.31M 18.24M 17.95M
divided by
Net Income -2.10M -99.98M 5.86M -129.40M 8.38M 8.40M -17.81M 2.70M 14.92M -14.40M
Capital Expenditure Ratio -103.67% -6.82% 75.53% -2.51% 101.27% 176.87% -89.40% 605.12% 122.28% -124.68%

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
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 29.82M 49.91M 54.77M 54.73M 55.35M 56.07M 56.26M 56.74M 58.59M 58.24M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 8.79 2.97 3.81 2.71 4.44 4.10 3.39 5.22 4.00 3.25
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
2007200820092010201120122013201420152016
Shares Outstanding 29.82M 49.91M 54.77M 54.73M 55.35M 56.07M 56.26M 56.74M 58.59M 58.24M
Stock Bought Back - -40.25% -8.87% 0.08% -1.13% -1.27% -0.34% -0.84% -3.17% 0.61%
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