K2M Group Holdings, Inc.
K2M Group Holdings, Inc. Fundamental Analysis
K2M Group Holdings, Inc. (KTWO) shows weak financial fundamentals with a PE ratio of -31.64, profit margin of -14.40%, and ROE of -14.74%. The company generates $0.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 0.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KTWO's fundamental strength across five key dimensions:
Efficiency Score
WeakKTWO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKTWO trades at attractive valuation levels.
Growth Score
WeakKTWO faces weak or negative growth trends.
Financial Health Score
ExcellentKTWO maintains a strong and stable balance sheet.
Profitability Score
WeakKTWO struggles to sustain strong margins.
Key Financial Metrics
Is KTWO Expensive or Cheap?
P/E Ratio
KTWO trades at -31.64 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KTWO's PEG of -0.32 indicates potential undervaluation.
Price to Book
The market values K2M Group Holdings, Inc. at 4.85 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -75.09 times EBITDA. This is generally considered low.
How Well Does KTWO Make Money?
Net Profit Margin
For every $100 in sales, K2M Group Holdings, Inc. keeps $-14.40 as profit after all expenses.
Operating Margin
Core operations generate -12.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-14.74 in profit for every $100 of shareholder equity.
ROA
K2M Group Holdings, Inc. generates $-9.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
K2M Group Holdings, Inc. generates limited operating cash flow of $-6.01M, signaling weaker underlying cash strength.
Free Cash Flow
K2M Group Holdings, Inc. generates weak or negative free cash flow of $-9.23M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.46 in free cash annually.
FCF Yield
KTWO converts -3.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-31.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.84
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.15
vs 25 benchmark
ROA
Return on assets percentage
-0.10
vs 25 benchmark
ROCE
Return on capital employed
-0.10
vs 25 benchmark
How KTWO Stacks Against Its Sector Peers
| Metric | KTWO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -31.64 | 25.28 | Better (Cheaper) |
| ROE | -14.74% | 17.00% | Weak |
| Net Margin | -14.40% | -42636.00% (disorted) | Weak |
| Debt/Equity | 0.31 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 2.84 | 38.17 | Strong Liquidity |
| ROA | -9.96% | -273.00% (disorted) | Weak |
KTWO outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews K2M Group Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Blend, Diversified, Stable
EPS CAGR
N/A
Industry Style: Blend, Diversified, Stable
FCF CAGR
N/A
Industry Style: Blend, Diversified, Stable