Breaking Down Paragon 28, Inc. (FNA) Financial Health: Key Insights for Investors

Are you keeping a close watch on the financial health of Paragon 28, Inc. (FNA), especially with Zimmer Biomet's recent acquisition announcement? As investors, understanding the key financial metrics is crucial. Did you know that Paragon 28's preliminary unaudited net revenue for 2024 is expected to be in the range of $255.9 million to $256.2 million, representing an impressive 18.2% to 18.4% reported growth compared to the previous year? But what does this mean for its overall financial stability and future prospects? Let's dive into a detailed breakdown of Paragon 28's financial performance and uncover the insights that matter most to investors.

Paragon 28, Inc. (FNA) Revenue Analysis

Understanding Paragon 28, Inc.'s (FNA) revenue streams involves examining the sources from which the company generates its income, how those revenues have changed over time, and the relative importance of each segment to the company's overall financial performance. This analysis is crucial for investors to gauge the stability and growth potential of the company.

Paragon 28, Inc. (FNA) primarily generates revenue through the sale of its foot and ankle surgical solutions. These products include implants, instruments, and other related items used in foot and ankle surgeries. Revenue can be further broken down by:

• Product Categories: Specific types of implants (e.g., bone screws, plates, joint implants) and instruments.
• Geographic Regions: Revenue generated from sales in different regions, such as the United States and international markets.
• Customer Type: Sales to hospitals, surgical centers, and distributors.

Analyzing the year-over-year revenue growth rate provides insights into the company's performance trends. Here's what to consider:

• Historical Trends: Reviewing several years of revenue data to identify consistent growth patterns, seasonality, or cyclical trends.
• Percentage Increase/Decrease: Calculating the percentage change in revenue from one year to the next to quantify growth.
• Factors Influencing Growth: Identifying factors that contributed to revenue increases or decreases, such as new product launches, market expansion, or changes in competitive landscape.

To understand the revenue contribution of different business segments to Paragon 28, Inc.'s (FNA) overall revenue, a segmented revenue analysis is essential. While specific figures may vary year to year, key aspects include:

• Segment Identification: Defining distinct business segments based on product lines, geographic regions, or customer types.
• Revenue Allocation: Determining the revenue generated by each segment.
• Contribution Percentage: Calculating the percentage of total revenue contributed by each segment to assess its relative importance.

Significant changes in revenue streams can indicate shifts in the company's strategic direction or market dynamics. Analysis should cover:

• New Revenue Sources: Identifying any new products, services, or markets that have begun contributing to revenue.
• Discontinued Revenue Streams: Noting any products, services, or markets that have been discontinued or have experienced a significant decline in revenue.
• Impact Assessment: Evaluating the impact of these changes on overall revenue growth, profitability, and market position.

Below is a sample table illustrating how revenue might be broken down (Note: This is a hypothetical example):

For further insights into Paragon 28, Inc.'s (FNA) financial health, you can explore Breaking Down Paragon 28, Inc. (FNA) Financial Health: Key Insights for Investors.

Paragon 28, Inc. (FNA) Profitability Metrics

Analyzing Paragon 28, Inc. (FNA)'s profitability involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These include gross profit, operating profit, and net profit margins, as well as trends in these metrics over time and comparisons to industry averages.

As of the fiscal year 2024, Paragon 28, Inc. (FNA)'s financial performance can be assessed through the following:

• Gross Profit: This is calculated as revenue less the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs.
• Operating Profit: This is earnings before interest and taxes (EBIT) and is derived by deducting operating expenses from gross profit. It reflects the profitability of a company's core operations, excluding financial leverage and tax impacts.
• Net Profit: This is the profit remaining after all expenses, including interest and taxes, have been deducted from revenue. It represents the actual profit available to shareholders.

To provide a clearer picture, a table summarizing these metrics with hypothetical 2024 data is shown below:

Analyzing trends in profitability over time is crucial. An increasing gross margin indicates improved production efficiency or pricing strategies. Similarly, a rising operating margin suggests better cost control and operational effectiveness. Net profit margin trends reveal the overall financial health and profitability of Paragon 28, Inc. (FNA) after accounting for all expenses.

Comparing Paragon 28, Inc. (FNA)'s profitability ratios with industry averages provides valuable context. If Paragon 28, Inc. (FNA)'s margins are higher than the industry average, it may indicate a competitive advantage. Conversely, lower margins may signal areas needing improvement.

Operational efficiency is vital for profitability. Efficient cost management and favorable gross margin trends directly impact the bottom line. For instance, reducing production costs or negotiating better supplier terms can improve gross margins, leading to higher profitability.

For further insights into the values and principles guiding Paragon 28, Inc. (FNA), you can explore their Mission Statement, Vision, & Core Values of Paragon 28, Inc. (FNA).

Paragon 28, Inc. (FNA) Debt vs. Equity Structure

Understanding how Paragon 28, Inc. (FNA) finances its growth involves analyzing its debt and equity structure. This includes assessing the levels of both short-term and long-term debt, evaluating the debt-to-equity ratio relative to industry benchmarks, and noting any recent debt-related activities such as issuances or refinancing.

As of the fiscal year 2024, Paragon 28, Inc. (FNA) reported a total debt of $172.2 million. This consists of:

• Short-term debt: $1.2 million
• Long-term debt: $171 million

The company's debt-to-equity ratio stands at 1.13, calculated from a total equity of $152.5 million. When compared to the medical devices industry average, this ratio provides insights into Paragon 28, Inc. (FNA)'s financial leverage relative to its peers.

Here is a snapshot of Paragon 28, Inc. (FNA)'s debt and equity composition for the fiscal year 2024:

Balancing debt and equity is crucial for funding growth. Too much debt can increase financial risk, while too little might limit growth opportunities. Paragon 28, Inc. (FNA)'s approach to managing its capital structure reflects its strategy for navigating these trade-offs.

For further insights into the investors and motivations behind Paragon 28, Inc. (FNA), explore Exploring Paragon 28, Inc. (FNA) Investor Profile: Who’s Buying and Why?

Paragon 28, Inc. (FNA) Liquidity and Solvency

Analyzing Paragon 28, Inc.'s (FNA) liquidity and solvency involves examining key financial ratios and statements to understand the company's ability to meet its short-term and long-term obligations. Here’s a breakdown of essential areas to consider:

Assessing Paragon 28, Inc.'s Liquidity:

• Current and Quick Ratios: These ratios provide insights into Paragon 28, Inc.'s ability to cover its short-term liabilities with its short-term assets.

For the fiscal year 2024, an analysis of these ratios is crucial.

• The current ratio, calculated by dividing current assets by current liabilities, indicates the company's ability to pay off its current liabilities with its current assets.
• The quick ratio, which excludes inventories from current assets, offers a more conservative view of liquidity, showing the company's ability to meet short-term obligations without relying on the sale of inventories.

Ideally, a current ratio of 1.5 to 2.0 and a quick ratio above 1.0 are generally considered healthy, but these benchmarks can vary by industry.

• Working Capital Trends: Monitoring the trend of Paragon 28, Inc.'s working capital (current assets minus current liabilities) helps assess whether the company's liquidity position is improving or deteriorating.

A positive and increasing working capital balance typically indicates a strengthening liquidity position, while a negative or declining balance may signal potential liquidity issues. Analyzing the components of working capital, such as accounts receivable, accounts payable, and inventory levels, can provide further insights into the company's cash flow management and operational efficiency.

• Cash Flow Statements Overview: Examining Paragon 28, Inc.'s cash flow statements provides a comprehensive view of the company's cash inflows and outflows from operating, investing, and financing activities.

Here's what to look for:

• Operating Cash Flow: A positive and consistent operating cash flow indicates that the company is generating sufficient cash from its core business operations to fund its activities and meet its obligations.
• Investing Cash Flow: This section reveals how the company is using cash for investments in assets, such as property, plant, and equipment (PP&E). Significant cash outflows for investments may indicate growth initiatives, while cash inflows may result from the sale of assets.
• Financing Cash Flow: This section shows how the company is raising capital through debt or equity financing. Positive cash flow from financing activities may indicate that the company is relying on external funding, while negative cash flow may result from debt repayments or share repurchases.

Reviewing these trends over several periods provides a clearer picture of Paragon 28, Inc.'s overall financial health and sustainability.

• Potential Liquidity Concerns or Strengths: Identifying potential liquidity concerns or strengths involves analyzing the aforementioned ratios and cash flow trends in conjunction with other relevant financial metrics and qualitative factors.

For instance, a declining current ratio coupled with negative operating cash flow may raise concerns about the company's ability to meet its short-term obligations. Conversely, a consistently high current ratio and strong operating cash flow may indicate a robust liquidity position. Additionally, factors such as access to credit lines, the company's reputation, and industry conditions can also impact its liquidity profile.

Here is a sample table to illustrate key liquidity metrics:

Understanding Paragon 28, Inc.'s mission, vision, and core values can provide additional context for assessing its long-term financial strategy. You can explore more about this aspect at: Mission Statement, Vision, & Core Values of Paragon 28, Inc. (FNA).

Paragon 28, Inc. (FNA) Valuation Analysis

Assessing whether Paragon 28, Inc. (FNA) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. Let's delve into these aspects to provide a clearer picture for investors.

Price-to-Earnings (P/E), Price-to-Book (P/B), and Enterprise Value-to-EBITDA (EV/EBITDA) Ratios:

These ratios are fundamental in valuation analysis. As of the latest data, Paragon 28, Inc. (FNA) exhibits the following:

• P/E Ratio: Currently, information on Paragon 28, Inc.'s (FNA) P/E ratio is limited.
• P/B Ratio: Similarly, precise P/B ratio data for Paragon 28, Inc. (FNA) is not available.
• EV/EBITDA: Up-to-date specifics on Paragon 28, Inc.'s (FNA) EV/EBITDA are unavailable.

To effectively use these metrics, investors should compare them against industry averages and the company's historical values. A higher P/E ratio than peers might suggest overvaluation, while a lower one could indicate undervaluation, assuming growth prospects are similar. The same principle applies to P/B and EV/EBITDA ratios.

Stock Price Trends:

Analyzing stock price movements provides insights into market sentiment and company performance. Over the past year, Paragon 28, Inc. (FNA) has shown varied performance. From April 2024 to April 2025, the stock has experienced fluctuations, reflecting broader market trends and company-specific news.

• 1-Year Stock Performance: Examining the past year's trend reveals volatility, with periods of growth offset by declines.
• Key Price Points: Identifying peak and trough prices within this period helps assess potential resistance and support levels.

Dividend Yield and Payout Ratios:

As of now, Paragon 28, Inc. (FNA) does not offer a dividend. Therefore, dividend yield and payout ratios are not applicable in this valuation analysis.

Analyst Consensus:

Analyst ratings provide a summarized view of expert opinions on the stock's potential. Recent analyst reports on Paragon 28, Inc. (FNA) present a mixed outlook:

• Buy Ratings: Some analysts recommend a 'buy,' citing growth prospects and potential market expansion.
• Hold Ratings: Others suggest a 'hold,' indicating a neutral stance based on current valuation and near-term outlook.
• Sell Ratings: A few analysts advise a 'sell,' expressing concerns about competition or financial performance.

The consensus leans towards a cautious 'hold,' reflecting uncertainty among analysts. Investors should consider these opinions alongside their own research.

Here's a snapshot of analyst ratings:

For more insights into the investors profile, consider reading: Exploring Paragon 28, Inc. (FNA) Investor Profile: Who’s Buying and Why?

Paragon 28, Inc. (FNA) Risk Factors

Understanding the risks facing Paragon 28, Inc. (FNA) is crucial for investors looking to assess the company's financial health and future prospects. These risks can stem from various sources, both internal and external, and can significantly impact the company's performance.

Here's an overview of key risks:

• Industry Competition: The medical device industry is highly competitive. Paragon 28, Inc. (FNA) faces competition from larger, more established companies with greater resources, as well as smaller, specialized firms. This competition can impact pricing, market share, and profitability.
• Regulatory Changes: The medical device industry is heavily regulated. Changes in regulations, both in the United States and internationally, can increase the cost of developing, manufacturing, and marketing Paragon 28, Inc. (FNA)'s products. Delays in regulatory approvals or unfavorable regulatory decisions can also negatively impact the company.
• Market Conditions: Economic downturns, changes in healthcare spending, and other macroeconomic factors can affect the demand for Paragon 28, Inc. (FNA)'s products. For example, a decrease in elective surgical procedures due to economic concerns could reduce the company's revenue.

Operational, financial, and strategic risks can be gleaned from recent earnings reports or filings. These may include:

• Product Liability: As a medical device manufacturer, Paragon 28, Inc. (FNA) faces the risk of product liability claims. These claims can be costly to defend and can result in significant financial liabilities.
• Intellectual Property: The company's success depends in part on its ability to protect its intellectual property. Infringement of its intellectual property rights by competitors could harm its business.
• Acquisition and Integration Risks: Paragon 28, Inc. (FNA) may grow through acquisitions. Integrating acquired businesses can be challenging, and the company may not realize the anticipated benefits of these acquisitions.

Mitigation strategies and plans, if available, often address these risks:

• Diversification: Diversifying its product portfolio can help Paragon 28, Inc. (FNA) reduce its reliance on any single product or market.
• Compliance Programs: Implementing robust compliance programs can help the company navigate the complex regulatory landscape and reduce the risk of regulatory penalties.
• Insurance: Maintaining adequate insurance coverage can help the company mitigate the financial impact of product liability claims and other risks.

For further insights into the company's mission, vision, and core values, refer to: Mission Statement, Vision, & Core Values of Paragon 28, Inc. (FNA).

Paragon 28, Inc. (FNA) Growth Opportunities

Paragon 28, Inc. (FNA) is poised for future growth through several key drivers. These include product innovations, strategic market expansions, and potential acquisitions. These elements collectively contribute to the company's revenue and earnings prospects.

Product innovation remains a cornerstone of Paragon 28, Inc.'s (FNA) growth strategy. The company's focus on developing and launching new, specialized foot and ankle solutions addresses unmet clinical needs and drives adoption among surgeons. Continued investment in R&D and a robust product pipeline are expected to sustain this momentum.

Market expansion, both geographically and within existing markets, presents another significant growth avenue for Paragon 28, Inc. (FNA). Increasing its presence in international markets and penetrating deeper into the U.S. market can unlock substantial revenue opportunities. Strategic acquisitions of complementary businesses or technologies could further accelerate market expansion and broaden the company's product portfolio.

While specific future revenue growth projections and earnings estimates are subject to market conditions and company performance, analysts generally anticipate continued growth for Paragon 28, Inc. (FNA), driven by the factors mentioned above. Monitoring the company's financial reports and industry trends will provide valuable insights into its actual growth trajectory.

Strategic initiatives and partnerships also play a crucial role in shaping Paragon 28, Inc.'s (FNA) future. Collaborations with key opinion leaders, partnerships with healthcare providers, and participation in industry events can enhance the company's visibility, credibility, and market reach. These initiatives can facilitate product adoption, drive brand awareness, and foster long-term relationships with customers.

Paragon 28, Inc.'s (FNA) competitive advantages further solidify its position for growth. The company's specialized focus on the foot and ankle market, its comprehensive product portfolio, and its strong relationships with surgeons provide a distinct edge over competitors. These advantages enable Paragon 28, Inc. (FNA) to capture market share, command premium pricing, and sustain its growth trajectory.

The following points highlight potential areas of expansion and strategic initiatives that could drive future growth for Paragon 28, Inc. (FNA):

• Geographic Expansion: Increasing presence in untapped international markets.
• Product Line Extension: Developing new products that complement existing offerings.
• Strategic Alliances: Partnering with other companies to expand market reach.
• Acquisitions: Acquiring companies with innovative technologies.

A summary of the company's financial highlights, showcasing its growth trajectory, is provided below:

For more in-depth analysis, refer to: Breaking Down Paragon 28, Inc. (FNA) Financial Health: Key Insights for Investors.