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MEDIFAST INC (MED) Stock Fundamental Analysis

NYSE:MED - New York Stock Exchange, Inc. - US58470H1014 - Common Stock - Currency: USD

14.73  +0.4 (+2.79%)

After market: 14.7 -0.03 (-0.2%)

Fundamental Rating

5

Taking everything into account, MED scores 5 out of 10 in our fundamental rating. MED was compared to 37 industry peers in the Personal Care Products industry. While MED has a great health rating, its profitability is only average at the moment. MED is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

MED had positive earnings in the past year.
In the past year MED had a positive cash flow from operations.
Of the past 5 years MED 4 years were profitable.
Of the past 5 years MED 4 years had a positive operating cash flow.
MED Yearly Net Income VS EBIT VS OCF VS FCFMED Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

1.2 Ratios

Looking at the Return On Assets, with a value of 2.52%, MED is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
MED has a better Return On Equity (3.53%) than 61.11% of its industry peers.
MED has a Return On Invested Capital of 3.85%. This is comparable to the rest of the industry: MED outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MED is significantly above the industry average of 13.42%.
The 3 year average ROIC (66.76%) for MED is well above the current ROIC(3.85%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 2.52%
ROE 3.53%
ROIC 3.85%
ROA(3y)39.56%
ROA(5y)39.19%
ROE(3y)74.33%
ROE(5y)72.55%
ROIC(3y)66.76%
ROIC(5y)65.61%
MED Yearly ROA, ROE, ROICMED Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80

1.3 Margins

MED has a Profit Margin of 1.09%. This is comparable to the rest of the industry: MED outperforms 52.78% of its industry peers.
MED's Profit Margin has declined in the last couple of years.
MED has a Operating Margin (1.61%) which is comparable to the rest of the industry.
MED's Operating Margin has declined in the last couple of years.
MED has a Gross Margin of 73.80%. This is amongst the best in the industry. MED outperforms 83.33% of its industry peers.
In the last couple of years the Gross Margin of MED has remained more or less at the same level.
Industry RankSector Rank
OM 1.61%
PM (TTM) 1.09%
GM 73.8%
OM growth 3Y-7.93%
OM growth 5Y-3.09%
PM growth 3Y-5.55%
PM growth 5Y-3.6%
GM growth 3Y-1.03%
GM growth 5Y-0.93%
MED Yearly Profit, Operating, Gross MarginsMED Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

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9

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MED is creating value.
MED has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
MED Yearly Shares OutstandingMED Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M 8M 10M
MED Yearly Total Debt VS Total AssetsMED Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

2.2 Solvency

An Altman-Z score of 5.03 indicates that MED is not in any danger for bankruptcy at the moment.
The Altman-Z score of MED (5.03) is better than 72.22% of its industry peers.
There is no outstanding debt for MED. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.03
ROIC/WACC0.42
WACC9.06%
MED Yearly LT Debt VS Equity VS FCFMED Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

2.3 Liquidity

A Current Ratio of 3.11 indicates that MED has no problem at all paying its short term obligations.
The Current ratio of MED (3.11) is better than 80.56% of its industry peers.
MED has a Quick Ratio of 2.55. This indicates that MED is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.55, MED belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.11
Quick Ratio 2.55
MED Yearly Current Assets VS Current LiabilitesMED Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

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0

3. Growth

3.1 Past

MED shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -77.72%.
Measured over the past years, MED shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.59% on average per year.
EPS 1Y (TTM)-77.72%
EPS 3Y-47.33%
EPS 5Y-20.59%
EPS Q2Q%-81.82%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-37.7%

3.2 Future

The Earnings Per Share is expected to decrease by -50.12% on average over the next years. This is quite bad
Based on estimates for the next years, MED will show a decrease in Revenue. The Revenue will decrease by -7.70% on average per year.
EPS Next Y-85.07%
EPS Next 2Y-50.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.7%
Revenue Next 2Y-7.7%
Revenue Next 3YN/A
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.
MED Yearly Revenue VS EstimatesMED Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
MED Yearly EPS VS EstimatesMED Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 7.26, which indicates a rather cheap valuation of MED.
MED's Price/Earnings ratio is rather cheap when compared to the industry. MED is cheaper than 97.22% of the companies in the same industry.
MED's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 48.61, which means the current valuation is very expensive for MED.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MED is on the same level as its industry peers.
MED's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.68.
Industry RankSector Rank
PE 7.26
Fwd PE 48.61
MED Price Earnings VS Forward Price EarningsMED Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, MED is valued cheaper than 97.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.76
EV/EBITDA -2.87
MED Per share dataMED EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

The decent profitability rating of MED may justify a higher PE ratio.
MED's earnings are expected to decrease with -50.12% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-50.12%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 9.97%, MED is a good candidate for dividend investing.
MED's Dividend Yield is rather good when compared to the industry average which is at 5.12. MED pays more dividend than 97.22% of the companies in the same industry.
MED's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
Industry RankSector Rank
Dividend Yield 9.97%

5.2 History

On average, the dividend of MED grows each year by 28.11%, which is quite nice.
MED has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)28.11%
Div Incr Years0
Div Non Decr Years0
MED Yearly Dividends per shareMED Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6

5.3 Sustainability

MED pays out 255.69% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of MED has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP255.69%
EPS Next 2Y-50.12%
EPS Next 3YN/A
MED Yearly Income VS Free CF VS DividendMED Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
MED Dividend Payout.MED Dividend Payout, showing the Payout Ratio.MED Dividend Payout.PayoutRetained Earnings

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MEDIFAST INC

NYSE:MED (2/21/2025, 8:04:00 PM)

After market: 14.7 -0.03 (-0.2%)

14.73

+0.4 (+2.79%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)02-18 2025-02-18/amc
Earnings (Next)04-28 2025-04-28/amc
Inst Owners84.03%
Inst Owner Change-6.33%
Ins Owners2.58%
Ins Owner Change0%
Market Cap161.15M
Analysts46.67
Price Target16.83 (14.26%)
Short Float %12.89%
Short Ratio6
Dividend
Industry RankSector Rank
Dividend Yield 9.97%
Yearly Dividend6.7
Dividend Growth(5Y)28.11%
DP255.69%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)179.33%
Min EPS beat(2)133.56%
Max EPS beat(2)225.1%
EPS beat(4)2
Avg EPS beat(4)74.79%
Min EPS beat(4)-43.28%
Max EPS beat(4)225.1%
EPS beat(8)6
Avg EPS beat(8)73.01%
EPS beat(12)9
Avg EPS beat(12)55.54%
EPS beat(16)12
Avg EPS beat(16)45.18%
Revenue beat(2)1
Avg Revenue beat(2)-0.33%
Min Revenue beat(2)-4.11%
Max Revenue beat(2)3.45%
Revenue beat(4)3
Avg Revenue beat(4)1.12%
Min Revenue beat(4)-4.11%
Max Revenue beat(4)3.45%
Revenue beat(8)7
Avg Revenue beat(8)2.86%
Revenue beat(12)10
Avg Revenue beat(12)2.99%
Revenue beat(16)14
Avg Revenue beat(16)4.62%
PT rev (1m)0%
PT rev (3m)-4.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 7.26
Fwd PE 48.61
P/S 0.24
P/FCF 4.76
P/OCF 4.03
P/B 0.78
P/tB 0.78
EV/EBITDA -2.87
EPS(TTM)2.03
EY13.78%
EPS(NY)0.3
Fwd EY2.06%
FCF(TTM)3.09
FCFY20.99%
OCF(TTM)3.65
OCFY24.81%
SpS61.65
BVpS18.95
TBVpS18.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.52%
ROE 3.53%
ROCE 4.96%
ROIC 3.85%
ROICexc 17.21%
ROICexgc 17.21%
OM 1.61%
PM (TTM) 1.09%
GM 73.8%
FCFM 5.02%
ROA(3y)39.56%
ROA(5y)39.19%
ROE(3y)74.33%
ROE(5y)72.55%
ROIC(3y)66.76%
ROIC(5y)65.61%
ROICexc(3y)149.98%
ROICexc(5y)N/A
ROICexgc(3y)149.98%
ROICexgc(5y)N/A
ROCE(3y)86.04%
ROCE(5y)84.56%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-26.36%
ROICexc growth 3YN/A
ROICexc growth 5Y-26.36%
OM growth 3Y-7.93%
OM growth 5Y-3.09%
PM growth 3Y-5.55%
PM growth 5Y-3.6%
GM growth 3Y-1.03%
GM growth 5Y-0.93%
F-Score6
Asset Turnover2.32
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 47.95%
Cap/Sales 0.91%
Interest Coverage 250
Cash Conversion 168.87%
Profit Quality 461.75%
Current Ratio 3.11
Quick Ratio 2.55
Altman-Z 5.03
F-Score6
WACC9.06%
ROIC/WACC0.42
Cap/Depr(3y)234.74%
Cap/Depr(5y)200.92%
Cap/Sales(3y)1.3%
Cap/Sales(5y)1.19%
Profit Quality(3y)100.89%
Profit Quality(5y)106.66%
High Growth Momentum
Growth
EPS 1Y (TTM)-77.72%
EPS 3Y-47.33%
EPS 5Y-20.59%
EPS Q2Q%-81.82%
EPS Next Y-85.07%
EPS Next 2Y-50.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-37.7%
Revenue Next Year-14.7%
Revenue Next 2Y-7.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-92.78%
EBIT growth 3Y-3.62%
EBIT growth 5Y12.84%
EBIT Next Year-68.3%
EBIT Next 3Y-43.29%
EBIT Next 5YN/A
FCF growth 1Y-70.86%
FCF growth 3Y0.45%
FCF growth 5Y20.36%
OCF growth 1Y-70.45%
OCF growth 3Y0.56%
OCF growth 5Y19.42%