MEDICAL FACILITIES CORP (DR.CA) Stock Fundamental Analysis
TSX:DR - Toronto Stock Exchange - CA58457V5036 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to DR. DR was compared to 17 industry peers in the Health Care Providers & Services industry. DR has an excellent profitability rating, but there are some minor concerns on its financial health. DR is cheap, but on the other hand it scores bad on growth. These ratings would make DR suitable for value investing!
1. Profitability
1.1 Basic Checks
DR had positive earnings in the past year.
DR had a positive operating cash flow in the past year.
Of the past 5 years DR 4 years were profitable.
In the past 5 years DR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.89%, DR belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
With an excellent Return On Equity value of 25.26%, DR belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
The Return On Invested Capital of DR (22.35%) is better than 93.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DR is significantly above the industry average of 8.08%.
The last Return On Invested Capital (22.35%) for DR is above the 3 year average (16.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 25.26% | ||
| ROIC | 22.35% |
ROA(3y)2.51%
ROA(5y)2.31%
ROE(3y)9.17%
ROE(5y)8.45%
ROIC(3y)16.3%
ROIC(5y)14.21%
1.3 Margins
DR has a Profit Margin of 4.43%. This is in the better half of the industry: DR outperforms 75.00% of its industry peers.
DR's Profit Margin has declined in the last couple of years.
DR has a better Operating Margin (16.88%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of DR has declined.
The Gross Margin of DR (68.12%) is better than 100.00% of its industry peers.
DR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.88% | ||
| PM (TTM) | 4.43% | ||
| GM | 68.12% |
OM growth 3Y9.45%
OM growth 5Y-4.08%
PM growth 3Y19.75%
PM growth 5Y-4.93%
GM growth 3Y-0.08%
GM growth 5Y-0.59%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DR is creating value.
Compared to 1 year ago, DR has less shares outstanding
Compared to 5 years ago, DR has less shares outstanding
DR has a better debt/assets ratio than last year.
2.2 Solvency
DR has an Altman-Z score of 1.67. This is a bad value and indicates that DR is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.67, DR is doing good in the industry, outperforming 62.50% of the companies in the same industry.
DR has a debt to FCF ratio of 2.11. This is a good value and a sign of high solvency as DR would need 2.11 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.11, DR belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
A Debt/Equity ratio of 1.66 is on the high side and indicates that DR has dependencies on debt financing.
DR has a Debt to Equity ratio of 1.66. This is in the lower half of the industry: DR underperforms 75.00% of its industry peers.
Although DR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.66 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 1.67 |
ROIC/WACC2.93
WACC7.63%
2.3 Liquidity
A Current Ratio of 1.15 indicates that DR should not have too much problems paying its short term obligations.
The Current ratio of DR (1.15) is better than 75.00% of its industry peers.
A Quick Ratio of 1.02 indicates that DR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.02, DR is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The earnings per share for DR have decreased by -3.90% in the last year.
Measured over the past 5 years, DR shows a small growth in Earnings Per Share. The EPS has been growing by 2.88% on average per year.
Looking at the last year, DR shows a decrease in Revenue. The Revenue has decreased by -0.35% in the last year.
Measured over the past years, DR shows a small growth in Revenue. The Revenue has been growing by 2.66% on average per year.
EPS 1Y (TTM)-3.9%
EPS 3Y52.96%
EPS 5Y2.88%
EPS Q2Q%3100%
Revenue 1Y (TTM)-0.35%
Revenue growth 3Y6.98%
Revenue growth 5Y2.66%
Sales Q2Q%-0.96%
3.2 Future
DR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.01% yearly.
DR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -8.20% yearly.
EPS Next Y96.91%
EPS Next 2Y-5.47%
EPS Next 3Y-0.01%
EPS Next 5YN/A
Revenue Next Year-2.55%
Revenue Next 2Y-12.28%
Revenue Next 3Y-8.2%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.22, which indicates a correct valuation of DR.
Based on the Price/Earnings ratio, DR is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.62, DR is valued a bit cheaper.
DR is valuated rather expensively with a Price/Forward Earnings ratio of 19.74.
DR's Price/Forward Earnings ratio is rather cheap when compared to the industry. DR is cheaper than 81.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DR to the average of the S&P500 Index (22.70), we can say DR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.22 | ||
| Fwd PE | 19.74 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than DR, based on the Enterprise Value to EBITDA ratio.
93.75% of the companies in the same industry are more expensive than DR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.74 | ||
| EV/EBITDA | 4.39 |
4.3 Compensation for Growth
DR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of DR may justify a higher PE ratio.
PEG (NY)0.17
PEG (5Y)5.63
EPS Next 2Y-5.47%
EPS Next 3Y-0.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.12%, DR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.87, DR pays a better dividend. On top of this DR pays more dividend than 81.25% of the companies listed in the same industry.
DR's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
5.2 History
The dividend of DR decreases each year by -22.73%.
DR has been paying a dividend for at least 10 years, so it has a reliable track record.
DR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-22.73%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
DR pays out 30.83% of its income as dividend. This is a sustainable payout ratio.
DR's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP30.83%
EPS Next 2Y-5.47%
EPS Next 3Y-0.01%
TSX:DR (2/21/2025, 7:00:00 PM)
17.03
+0.06 (+0.35%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners5.86%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap392.03M
Analysts42.22
Price Target16.58 (-2.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend0.24
Dividend Growth(5Y)-22.73%
DP30.83%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-74.11%
Min EPS beat(2)-106.47%
Max EPS beat(2)-41.75%
EPS beat(4)1
Avg EPS beat(4)-54.94%
Min EPS beat(4)-106.47%
Max EPS beat(4)2.34%
EPS beat(8)3
Avg EPS beat(8)47.59%
EPS beat(12)5
Avg EPS beat(12)-138.82%
EPS beat(16)6
Avg EPS beat(16)-108.55%
Revenue beat(2)0
Avg Revenue beat(2)-3.65%
Min Revenue beat(2)-4.55%
Max Revenue beat(2)-2.75%
Revenue beat(4)2
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)2.51%
Revenue beat(8)3
Avg Revenue beat(8)-0.45%
Revenue beat(12)4
Avg Revenue beat(12)-0.85%
Revenue beat(16)4
Avg Revenue beat(16)-1.46%
PT rev (1m)0%
PT rev (3m)10.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)64%
EPS NY rev (1m)-5.8%
EPS NY rev (3m)62.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.22 | ||
| Fwd PE | 19.74 | ||
| P/S | 0.63 | ||
| P/FCF | 3.74 | ||
| P/OCF | 3.4 | ||
| P/B | 3.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.39 |
EPS(TTM)1.05
EY6.17%
EPS(NY)0.86
Fwd EY5.07%
FCF(TTM)4.56
FCFY26.76%
OCF(TTM)5
OCFY29.39%
SpS27.21
BVpS4.77
TBVpS-3.34
PEG (NY)0.17
PEG (5Y)5.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 25.26% | ||
| ROCE | 28.96% | ||
| ROIC | 22.35% | ||
| ROICexc | 24.1% | ||
| ROICexgc | 53.71% | ||
| OM | 16.88% | ||
| PM (TTM) | 4.43% | ||
| GM | 68.12% | ||
| FCFM | 16.75% |
ROA(3y)2.51%
ROA(5y)2.31%
ROE(3y)9.17%
ROE(5y)8.45%
ROIC(3y)16.3%
ROIC(5y)14.21%
ROICexc(3y)18.56%
ROICexc(5y)16.19%
ROICexgc(3y)38.47%
ROICexgc(5y)33.08%
ROCE(3y)21.15%
ROCE(5y)18.5%
ROICexcg growth 3Y25.78%
ROICexcg growth 5Y0.51%
ROICexc growth 3Y24.99%
ROICexc growth 5Y6.44%
OM growth 3Y9.45%
OM growth 5Y-4.08%
PM growth 3Y19.75%
PM growth 5Y-4.93%
GM growth 3Y-0.08%
GM growth 5Y-0.59%
F-Score8
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.66 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 36.82% | ||
| Cap/Sales | 1.64% | ||
| Interest Coverage | 7.13 | ||
| Cash Conversion | 86.2% | ||
| Profit Quality | 378.47% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 1.67 |
F-Score8
WACC7.63%
ROIC/WACC2.93
Cap/Depr(3y)46.11%
Cap/Depr(5y)40.28%
Cap/Sales(3y)2.43%
Cap/Sales(5y)2.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.9%
EPS 3Y52.96%
EPS 5Y2.88%
EPS Q2Q%3100%
EPS Next Y96.91%
EPS Next 2Y-5.47%
EPS Next 3Y-0.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.35%
Revenue growth 3Y6.98%
Revenue growth 5Y2.66%
Sales Q2Q%-0.96%
Revenue Next Year-2.55%
Revenue Next 2Y-12.28%
Revenue Next 3Y-8.2%
Revenue Next 5YN/A
EBIT growth 1Y16.54%
EBIT growth 3Y17.09%
EBIT growth 5Y-1.53%
EBIT Next Year-6.6%
EBIT Next 3Y5.42%
EBIT Next 5YN/A
FCF growth 1Y27.96%
FCF growth 3Y-10.7%
FCF growth 5Y-1.01%
OCF growth 1Y28.83%
OCF growth 3Y-5.84%
OCF growth 5Y-2.24%