MEDIFAST INC (MED) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MED - US58470H1014 - Common Stock
11.19 USD
-0.27 (-2.36%)
11.23 USD
+0.04 (+0.36%)
Overall MED gets a fundamental rating of 4 out of 10. We evaluated MED against 36 industry peers in the Personal Care Products industry. While MED has a great health rating, there are worries on its profitability. MED does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year MED has reported negative net income.
- MED had a positive operating cash flow in the past year.
- MED had positive earnings in each of the past 5 years.
- MED had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MED has a Return On Assets of 0.09%. This is comparable to the rest of the industry: MED outperforms 50.00% of its industry peers.
- Looking at the Return On Equity, with a value of 0.12%, MED is in line with its industry, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 0.12% | ||
| ROIC | N/A |
ROA(3y)26.08%
ROA(5y)31.33%
ROE(3y)47.66%
ROE(5y)57.89%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- MED has a Profit Margin (0.06%) which is in line with its industry peers.
- MED's Profit Margin has declined in the last couple of years.
- MED's Operating Margin has declined in the last couple of years.
- The Gross Margin of MED (72.44%) is better than 72.22% of its industry peers.
- MED's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 0.06% | ||
| GM | 72.44% |
OM growth 3Y-38.9%
OM growth 5Y-24.01%
PM growth 3Y-68.15%
PM growth 5Y-49.83%
GM growth 3Y-0.04%
GM growth 5Y-0.38%
2. Health
2.1 Basic Checks
- MED does not have a ROIC to compare to the WACC, probably because it is not profitable.
- MED has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for MED has been reduced compared to 5 years ago.
- MED has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 4.55 indicates that MED is not in any danger for bankruptcy at the moment.
- MED's Altman-Z score of 4.55 is amongst the best of the industry. MED outperforms 83.33% of its industry peers.
- MED has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.55 |
ROIC/WACCN/A
WACC8.88%
2.3 Liquidity
- MED has a Current Ratio of 4.45. This indicates that MED is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 4.45, MED belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- A Quick Ratio of 3.95 indicates that MED has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 3.95, MED belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.45 | ||
| Quick Ratio | 3.95 |
3. Growth
3.1 Past
- The earnings per share for MED have decreased strongly by -100.00% in the last year.
- The earnings per share for MED have been decreasing by -20.59% on average. This is quite bad
- MED shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -36.29%.
- MED shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.33% yearly.
EPS 1Y (TTM)-100%
EPS 3Y-47.33%
EPS 5Y-20.59%
EPS Q2Q%-160%
Revenue 1Y (TTM)-36.29%
Revenue growth 3Y-26.64%
Revenue growth 5Y-3.33%
Sales Q2Q%-36.21%
3.2 Future
- MED is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -43.69% yearly.
- The Revenue is expected to decrease by -23.25% on average over the next years. This is quite bad
EPS Next Y-50.25%
EPS Next 2Y-43.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-36.56%
Revenue Next 2Y-23.25%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Forward Price/Earnings Ratio is negative for MED. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- MED's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 190.37 | ||
| EV/EBITDA | -15.53 |
4.3 Compensation for Growth
- A cheap valuation may be justified as MED's earnings are expected to decrease with -43.69% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-43.69%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- MED has a Yearly Dividend Yield of 9.97%, which is a nice return.
- MED's Dividend Yield is rather good when compared to the industry average which is at 1.90. MED pays more dividend than 97.22% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, MED pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.97% |
5.2 History
- The dividend of MED decreases each year by -53.42%.
- MED has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-53.42%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 78.63% of the earnings are spent on dividend by MED. This is not a sustainable payout ratio.
- The Dividend Rate of MED has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP78.63%
EPS Next 2Y-43.69%
EPS Next 3YN/A
MEDIFAST INC / MED FAQ
What is the ChartMill fundamental rating of MEDIFAST INC (MED) stock?
ChartMill assigns a fundamental rating of 4 / 10 to MED.
Can you provide the valuation status for MEDIFAST INC?
ChartMill assigns a valuation rating of 1 / 10 to MEDIFAST INC (MED). This can be considered as Overvalued.
Can you provide the profitability details for MEDIFAST INC?
MEDIFAST INC (MED) has a profitability rating of 3 / 10.
Can you provide the financial health for MED stock?
The financial health rating of MEDIFAST INC (MED) is 9 / 10.