MD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 103 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of MD get a neutral evaluation. Nothing too spectacular is happening here. MD is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make MD suitable for value investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year MD was profitable.
MD had a positive operating cash flow in the past year.
In multiple years MD reported negative net income over the last 5 years.
MD had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of MD (7.37%) is better than 89.32% of its industry peers.
The Return On Equity of MD (18.21%) is better than 86.41% of its industry peers.
With a decent Return On Invested Capital value of 10.25%, MD is doing good in the industry, outperforming 79.61% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MD is in line with the industry average of 9.16%.
The last Return On Invested Capital (10.25%) for MD is above the 3 year average (7.83%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	7.37%
ROE	18.21%
ROIC	10.25%

ROA(3y)-1.5%

ROA(5y)-4.7%

ROE(3y)-4.21%

ROE(5y)-20.91%

ROIC(3y)7.83%

ROIC(5y)7.13%

1.3 Margins

Looking at the Profit Margin, with a value of 8.44%, MD belongs to the top of the industry, outperforming 89.32% of the companies in the same industry.
MD has a better Operating Margin (12.20%) than 83.50% of its industry peers.
MD's Operating Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	12.2%
PM (TTM)	8.44%
GM	N/A

OM growth 3Y-7.13%

OM growth 5Y-6.94%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MD is creating some value.
The number of shares outstanding for MD has been increased compared to 1 year ago.
MD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MD is higher compared to a year ago.

2.2 Solvency

MD has an Altman-Z score of 2.16. This is not the best score and indicates that MD is in the grey zone with still only limited risk for bankruptcy at the moment.
MD has a Altman-Z score (2.16) which is in line with its industry peers.
MD has a debt to FCF ratio of 2.20. This is a good value and a sign of high solvency as MD would need 2.20 years to pay back of all of its debts.
MD has a better Debt to FCF ratio (2.20) than 78.64% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that MD is somewhat dependend on debt financing.
MD's Debt to Equity ratio of 0.65 is in line compared to the rest of the industry. MD outperforms 56.31% of its industry peers.
Even though the debt/equity ratio score it not favorable for MD, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

		Industry Rank	Sector Rank
Debt/Equity	0.65
Debt/FCF	2.2
Altman-Z	2.16

ROIC/WACC1.16

WACC8.81%

2.3 Liquidity

A Current Ratio of 1.83 indicates that MD should not have too much problems paying its short term obligations.
MD's Current ratio of 1.83 is fine compared to the rest of the industry. MD outperforms 71.84% of its industry peers.
MD has a Quick Ratio of 1.83. This is a normal value and indicates that MD is financially healthy and should not expect problems in meeting its short term obligations.
MD has a Quick ratio of 1.83. This is in the better half of the industry: MD outperforms 74.76% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.83
Quick Ratio	1.83

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

MD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.92%, which is quite impressive.
MD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.01% yearly.
The Revenue has decreased by -4.21% in the past year.
The Revenue has been growing slightly by 2.49% on average over the past years.

EPS 1Y (TTM)56.92%

EPS 3Y-2.95%

EPS 5Y-15.01%

EPS Q2Q%52.27%

Revenue 1Y (TTM)-4.21%

Revenue growth 3Y1.74%

Revenue growth 5Y2.49%

Sales Q2Q%-3.58%

3.2 Future

MD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.64% yearly.
MD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.71% yearly.

EPS Next Y44.07%

EPS Next 2Y22.97%

EPS Next 3Y16.76%

EPS Next 5Y7.64%

Revenue Next Year-4.52%

Revenue Next 2Y-0.98%

Revenue Next 3Y0.1%

Revenue Next 5Y2.71%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.48, the valuation of MD can be described as very reasonable.
Based on the Price/Earnings ratio, MD is valued cheaply inside the industry as 90.29% of the companies are valued more expensively.
MD is valuated cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
MD is valuated reasonably with a Price/Forward Earnings ratio of 9.49.
Based on the Price/Forward Earnings ratio, MD is valued cheaply inside the industry as 89.32% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, MD is valued rather cheaply.

		Industry Rank	Sector Rank
PE	10.48
Fwd PE	9.49

4.2 Price Multiples

84.47% of the companies in the same industry are more expensive than MD, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MD indicates a rather cheap valuation: MD is cheaper than 89.32% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	6.72
EV/EBITDA	7.07

4.3 Compensation for Growth

MD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of MD may justify a higher PE ratio.
A more expensive valuation may be justified as MD's earnings are expected to grow with 16.76% in the coming years.