One-glance verdict
Undervalued
$25.91 our estimate vs market $13.31
Wall Street consensus: $17.60 (-32.1% lower than our fair-value estimate)
49% below our estimate, below the bear case
Fundamentals snapshot
Bioventus Inc.
BVS · NMS · Healthcare · Medical Devices
Current price
$13.31
52-week range
$6.25 - $15.89
Market cap
$909.14M
Balance sheet
Stretched
2.13x Stretched
Net debt $233.35M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 2.4% last year.
- Reward Returns 25.7% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 6/10 years.
What this company does
Bioventus Inc.
Bioventus is a medical device company focused on helping people with bone, joint, and nerve pain. It makes most of its money by selling products like pain-relieving knee injections and advanced surgical tools directly to doctors and hospitals. Because these treatments are often for conditions common in an aging population, the company serves a large and potentially growing market.
How the company got here
Bioventus was created in 2012, spinning out from a larger medical equipment company called Smith & Nephew to focus specifically on bone healing and joint pain treatments. For years, it built up its business around key products for these conditions. In 2021, the company had its Initial Public Offering (IPO, the first time a private company sells its stock to the public) to raise money and expand further. It then bought several other companies to add new technologies, including devices for nerve stimulation and cartilage repair, to its portfolio.
What it actually does
Bioventus is a medical technology company that makes products to help people with bone and joint problems heal and feel less pain. Think of it as a company focused on helping your body's natural healing process, often without major surgery. Their products range from injections that soothe arthritic knee pain to ultrasonic devices that help broken bones heal faster. Doctors and hospitals buy these products to treat patients with musculoskeletal conditions, which are injuries or disorders of the muscles, bones, and joints.
Pain Treatments
This is the company's largest business, making up the biggest piece of its sales. Its main products are injections of a substance called hyaluronic acid, which acts like a lubricant for people with knee osteoarthritis (the common 'wear-and-tear' type of arthritis). Patients receive these injections from their doctor to get relief from joint pain and stiffness. The company makes money by selling these injection products, like its DUROLANE and GELSYN-3 brands, to physicians and healthcare providers.
Surgical Solutions
This part of the company provides tools and materials for surgeons, primarily for bone-related procedures. It sells bone graft substitutes, which are materials surgeons use to help bones fuse together or fill in gaps during surgery. It also makes ultrasonic surgical systems, which are high-tech tools that use sound waves to let surgeons make very precise cuts in bone or remove soft tissue. Hospitals and surgical centers pay for these products to use during operations like spinal fusions or tumor removals.
Restorative Therapies
This is a smaller but important part of the business focused on helping the body heal after an injury. Its best-known product is called EXOGEN, a device that uses low-intensity ultrasound to help heal bone fractures that are not mending on their own. Patients can use this device at home to stimulate the bone's natural healing process. The company makes money by selling or renting these devices to patients who have been prescribed them by a doctor.
What management is betting on now
The company's leadership is focused on growing its most successful products, especially its knee pain injections, while also launching new technologies. They are investing in bringing newer products to market, such as a system for repairing damaged cartilage and a non-opioid treatment for chronic nerve pain. A major priority is to use the money from its established products to generate strong cash flow (the cash left over after paying for business operations) and pay down its debt. The company's board has also begun exploring strategic options, which could include anything from continuing on its current path to selling the company.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$10.25M
FY2024 Q4
$18.75M
FY2025 Q1
$-20.16M
FY2025 Q2
$25.25M
FY2025 Q3
$29.62M
FY2025 Q4
$37.39M
FY2026 Q1
$8.36M
FY2026 Q2
$18.91M
Revenue
$153.21M
Net income
$33.44M
Diluted EPS
0.47
Operating cash flow
$19.87M
Free cash flow
$18.91M
Fetching…
Sources
Revenue
$132.09M
Net income
$3.11M
Diluted EPS
0.04
Operating cash flow
$8.93M
Free cash flow
$8.36M
Fetching…
Sources
Revenue
$157.90M
Net income
$14.76M
Diluted EPS
0.21
Operating cash flow
$37.97M
Free cash flow
$37.39M
Fetching…
Sources
Revenue
$138.65M
Net income
$3.15M
Diluted EPS
0.05
Operating cash flow
$30.10M
Free cash flow
$29.62M
Fetching…
Sources
Revenue
$147.66M
Net income
$7.46M
Diluted EPS
0.11
Operating cash flow
$25.94M
Free cash flow
$25.25M
Fetching…
Sources
Revenue
$123.88M
Net income
$-2.64M
Diluted EPS
-0.04
Operating cash flow
$-19.33M
Free cash flow
$-20.16M
Fetching…
Sources
Revenue
$153.64M
Net income
$-156.00K
Diluted EPS
-0.01
Operating cash flow
$19.32M
Free cash flow
$18.75M
Fetching…
Sources
Revenue
$138.96M
Net income
$-4.82M
Diluted EPS
-0.07
Operating cash flow
$10.32M
Free cash flow
$10.25M
Fetching…
Sources
Is it cheap or expensive?
Fair value $25.91 vs current price $13.31
Wall Street consensus is the average analyst price target: $17.60 (-32.1% lower than our fair-value estimate).
Our most-likely fair value is $25.91 a share — about 94.7% above today's price of $13.31, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $233.4M. Interest coverage 2.1x.
Net debt
$233.35M
Interest coverage
2.13x
Bioventus Inc.'s profit covers its interest bill about 2.1 times over. which is stronger than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
BVS
BASELINE
Bioventus Inc.
Total debt $263.75M Interest coverage 2.13x This is the baseline the peer rows are being compared against.
Total debt $261.90M Interest coverage -4.72x -100% vs BVS This peer has almost no interest-payment cushion compared with BVS.
Total debt $25.25M Interest coverage -6.34x -100% vs BVS This peer has almost no interest-payment cushion compared with BVS.
Total debt $2.05B Interest coverage 0.21x -90% vs BVS Carries about 10.2x less debt cushion than BVS.
Total debt $17.21M Interest coverage 63.51x +2,888% vs BVS Carries about 29.9x more debt cushion than BVS.
What you should know
The case for and against BVS
3 Rewards
0 Risks
Rewards
-
Revenue grew 2.4% last year.
-
Returns 25.7% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.06x
Forward P/E
14.47x
P/B
3.98x
P/S
1.56x
EV/EBITDA
14.87x
PEG ratio
1.53x
Profitability
How much profit each dollar creates
Gross margin
68.7%
Operating margin
12.2%
Net margin
9.4%
ROE
25.7%
ROA
5.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.95x
Current ratio
1.69x
Quick ratio
1.11x
Total debt
$263.75M
Total cash
$30.39M
Growth
How the business has been compounding
Revenue TTM
$581.85M
Revenue 5Y CAGR
7.2%
EPS TTM
0.78
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$96.87M
Free CF TTM
$72.11M
FCF margin
12.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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