MD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 102 industry peers in the Health Care Providers & Services industry. MD has only an average score on both its financial health and profitability. MD scores decently on growth, while it is valued quite cheap. This could make an interesting 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

MD had positive earnings in the past year.
In the past year MD had a positive cash flow from operations.
In multiple years MD reported negative net income over the last 5 years.
In the past 5 years MD always reported a positive cash flow from operatings.

1.2 Ratios

MD's Return On Assets of 7.37% is amongst the best of the industry. MD outperforms 89.32% of its industry peers.
Looking at the Return On Equity, with a value of 18.21%, MD belongs to the top of the industry, outperforming 86.41% of the companies in the same industry.
MD has a better Return On Invested Capital (10.25%) than 79.61% of its industry peers.
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

MD has a better Profit Margin (8.44%) than 89.32% of its industry peers.
MD has a Operating Margin of 12.20%. This is amongst the best in the industry. MD outperforms 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

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MD is still creating some value.
MD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MD has more shares outstanding
Compared to 1 year ago, MD has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.17 indicates that MD is not a great score, but indicates only limited risk for bankruptcy at the moment.
MD has a Altman-Z score (2.17) which is comparable to the rest of the industry.
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.
The Debt to FCF ratio of MD (2.20) is better than 78.64% of its industry peers.
MD has a Debt/Equity ratio of 0.65. This is a neutral value indicating 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.
Although MD 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	0.65
Debt/FCF	2.2
Altman-Z	2.17

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.
Looking at the Current ratio, with a value of 1.83, MD is in the better half of the industry, outperforming 71.84% of the companies in the same industry.
A Quick Ratio of 1.83 indicates that MD should not have too much problems paying its short term obligations.
MD's Quick ratio of 1.83 is fine compared to the rest 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.
Measured over the past years, MD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.01% on average per year.
The Revenue has decreased by -4.21% in the past year.
MD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.49% yearly.

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

Based on estimates for the next years, MD will show a small growth in Earnings Per Share. The EPS will grow by 7.64% on average per year.
The Revenue is expected to grow by 2.71% on average over the next years.

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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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

Based on the Price/Earnings ratio of 10.48, the valuation of MD can be described as reasonable.
Based on the Price/Earnings ratio, MD is valued cheaply inside the industry as 89.32% of the companies are valued more expensively.
MD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
The Price/Forward Earnings ratio is 9.49, which indicates a very decent valuation of MD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MD indicates a rather cheap valuation: MD is cheaper than 89.32% of the companies listed in the same industry.
MD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	10.48
Fwd PE	9.49

4.2 Price Multiples

82.52% of the companies in the same industry are more expensive than MD, based on the Enterprise Value to EBITDA ratio.
MD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MD is cheaper than 89.32% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	6.72
EV/EBITDA	7.19

4.3 Compensation for Growth

The 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.