MEDICAL FACILITIES CORP (DR.CA) Stock Fundamental Analysis
TSX:DR - Toronto Stock Exchange - CA58457V5036 - Common Stock - Currency: CAD
DR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 19 industry peers in the Health Care Providers & Services industry. Both the health and profitability get an excellent rating, making DR a very profitable company, without any liquidiy or solvency issues. DR has a bad growth rate and is valued cheaply. This makes DR very considerable 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.
DR had positive earnings in 4 of the past 5 years.
DR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DR (25.68%) is better than 92.86% of its industry peers.
The Return On Equity of DR (93.69%) is better than 100.00% of its industry peers.
DR has a better Return On Invested Capital (18.38%) than 92.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DR is significantly above the industry average of 6.86%.
The last Return On Invested Capital (18.38%) for DR is above the 3 year average (16.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.68% | ||
| ROE | 93.69% | ||
| ROIC | 18.38% |
ROA(3y)8.42%
ROA(5y)6.13%
ROE(3y)25.39%
ROE(5y)18.93%
ROIC(3y)16.37%
ROIC(5y)14.6%
1.3 Margins
With an excellent Profit Margin value of 24.74%, DR belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
DR's Profit Margin has improved in the last couple of years.
DR has a Operating Margin of 15.59%. This is amongst the best in the industry. DR outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of DR has remained more or less at the same level.
The Gross Margin of DR (65.80%) is better than 92.86% of its industry peers.
DR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.59% | ||
| PM (TTM) | 24.74% | ||
| GM | 65.8% |
OM growth 3Y-0.97%
OM growth 5Y-1.3%
PM growth 3Y78.64%
PM growth 5Y55.2%
GM growth 3Y-0.53%
GM growth 5Y-0.42%
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
Compared to 1 year ago, DR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that DR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.41, DR is in line with its industry, outperforming 57.14% of the companies in the same industry.
The Debt to FCF ratio of DR is 1.65, which is an excellent value as it means it would take DR, only 1.65 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.65, DR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DR has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
DR's Debt to Equity ratio of 1.17 is in line compared to the rest of the industry. DR outperforms 50.00% 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 | 1.17 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 1.41 |
ROIC/WACC2.33
WACC7.89%
2.3 Liquidity
A Current Ratio of 1.45 indicates that DR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.45, DR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.37 indicates that DR should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.37, DR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 79.31% over the past year.
DR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -31.41%.
DR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.59% yearly.
EPS 1Y (TTM)79.31%
EPS 3Y10.86%
EPS 5Y0%
EPS Q2Q%142.86%
Revenue 1Y (TTM)-31.41%
Revenue growth 3Y-5.96%
Revenue growth 5Y-3.59%
Sales Q2Q%-24.52%
3.2 Future
The Earnings Per Share is expected to grow by 0.63% on average over the next years.
Based on estimates for the next years, DR will show a decrease in Revenue. The Revenue will decrease by -7.10% on average per year.
EPS Next Y-11.79%
EPS Next 2Y-4.92%
EPS Next 3Y0.63%
EPS Next 5YN/A
Revenue Next Year-21.55%
Revenue Next 2Y-11.23%
Revenue Next 3Y-7.1%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 11.13, which indicates a very decent valuation of DR.
92.86% of the companies in the same industry are more expensive than DR, based on the Price/Earnings ratio.
DR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
Based on the Price/Forward Earnings ratio of 13.62, the valuation of DR can be described as correct.
Based on the Price/Forward Earnings ratio, DR is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DR to the average of the S&P500 Index (21.60), we can say DR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.13 | ||
| Fwd PE | 13.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DR is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DR is valued cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.25 | ||
| EV/EBITDA | 4.01 |
4.3 Compensation for Growth
DR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.92%
EPS Next 3Y0.63%
5. Dividend
5.1 Amount
DR has a Yearly Dividend Yield of 2.32%.
Compared to an average industry Dividend Yield of 4.41, DR pays a bit more dividend than its industry peers.
DR's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
The dividend of DR decreases each year by -19.91%.
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)-19.91%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
DR pays out 8.01% of its income as dividend. This is a sustainable payout ratio.
DP8.01%
EPS Next 2Y-4.92%
EPS Next 3Y0.63%
TSX:DR (6/30/2025, 7:00:00 PM)
15.8
+0.29 (+1.87%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners12.28%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap303.83M
Analysts42.22
Price Target16.58 (4.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend0.35
Dividend Growth(5Y)-19.91%
DP8.01%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.37%
Min EPS beat(2)-24.98%
Max EPS beat(2)39.71%
EPS beat(4)1
Avg EPS beat(4)-33.37%
Min EPS beat(4)-106.47%
Max EPS beat(4)39.71%
EPS beat(8)2
Avg EPS beat(8)-44.37%
EPS beat(12)5
Avg EPS beat(12)6.68%
EPS beat(16)7
Avg EPS beat(16)-95.19%
Revenue beat(2)0
Avg Revenue beat(2)-11.48%
Min Revenue beat(2)-18.84%
Max Revenue beat(2)-4.13%
Revenue beat(4)0
Avg Revenue beat(4)-7.57%
Min Revenue beat(4)-18.84%
Max Revenue beat(4)-2.75%
Revenue beat(8)2
Avg Revenue beat(8)-3.55%
Revenue beat(12)3
Avg Revenue beat(12)-2.59%
Revenue beat(16)4
Avg Revenue beat(16)-2.53%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)36.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.13 | ||
| Fwd PE | 13.62 | ||
| P/S | 0.73 | ||
| P/FCF | 3.25 | ||
| P/OCF | 2.99 | ||
| P/B | 2.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.01 |
EPS(TTM)1.42
EY8.99%
EPS(NY)1.16
Fwd EY7.34%
FCF(TTM)4.86
FCFY30.75%
OCF(TTM)5.29
OCFY33.48%
SpS21.65
BVpS5.72
TBVpS-1.22
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.68% | ||
| ROE | 93.69% | ||
| ROCE | 22.24% | ||
| ROIC | 18.38% | ||
| ROICexc | 26.53% | ||
| ROICexgc | 78% | ||
| OM | 15.59% | ||
| PM (TTM) | 24.74% | ||
| GM | 65.8% | ||
| FCFM | 22.44% |
ROA(3y)8.42%
ROA(5y)6.13%
ROE(3y)25.39%
ROE(5y)18.93%
ROIC(3y)16.37%
ROIC(5y)14.6%
ROICexc(3y)21.7%
ROICexc(5y)18.79%
ROICexgc(3y)53.59%
ROICexgc(5y)43.79%
ROCE(3y)19.81%
ROCE(5y)17.76%
ROICexcg growth 3Y35.06%
ROICexcg growth 5Y23.36%
ROICexc growth 3Y18.42%
ROICexc growth 5Y13.1%
OM growth 3Y-0.97%
OM growth 5Y-1.3%
PM growth 3Y78.64%
PM growth 5Y55.2%
GM growth 3Y-0.53%
GM growth 5Y-0.42%
F-Score6
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 1.65 | ||
| Debt/EBITDA | 1.42 | ||
| Cap/Depr | 32.41% | ||
| Cap/Sales | 1.99% | ||
| Interest Coverage | 6.03 | ||
| Cash Conversion | 112.39% | ||
| Profit Quality | 90.72% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 1.41 |
F-Score6
WACC7.89%
ROIC/WACC2.33
Cap/Depr(3y)47.79%
Cap/Depr(5y)40.36%
Cap/Sales(3y)2.81%
Cap/Sales(5y)2.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)79.31%
EPS 3Y10.86%
EPS 5Y0%
EPS Q2Q%142.86%
EPS Next Y-11.79%
EPS Next 2Y-4.92%
EPS Next 3Y0.63%
EPS Next 5YN/A
Revenue 1Y (TTM)-31.41%
Revenue growth 3Y-5.96%
Revenue growth 5Y-3.59%
Sales Q2Q%-24.52%
Revenue Next Year-21.55%
Revenue Next 2Y-11.23%
Revenue Next 3Y-7.1%
Revenue Next 5YN/A
EBIT growth 1Y-33.05%
EBIT growth 3Y-6.86%
EBIT growth 5Y-4.85%
EBIT Next Year-2.54%
EBIT Next 3Y2.48%
EBIT Next 5YN/A
FCF growth 1Y22.31%
FCF growth 3Y4.28%
FCF growth 5Y3.38%
OCF growth 1Y15.56%
OCF growth 3Y3.26%
OCF growth 5Y1.55%