MEDIFAST INC (MED) Stock Fundamental Analysis
NYSE:MED - US58470H1014 - Common Stock
14.03 USD
+0.01 (+0.07%)
14.03 USD
0 (0%)
Taking everything into account, MED scores 5 out of 10 in our fundamental rating. MED was compared to 36 industry peers in the Personal Care Products industry. While MED has a great health rating, its profitability is only average at the moment. MED has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MED was profitable.
In the past year MED had a positive cash flow from operations.
Each year in the past 5 years MED has been profitable.
MED had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.35%, MED is in line with its industry, outperforming 52.78% of the companies in the same industry.
MED has a better Return On Equity (1.68%) than 61.11% of its industry peers.
MED has a Return On Invested Capital (0.66%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for MED is significantly above the industry average of 12.91%.
The last Return On Invested Capital (0.66%) for MED is well below the 3 year average (38.03%), which needs to be investigated, but indicates that MED had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 1.68% | ||
| ROIC | 0.66% |
ROA(3y)26.08%
ROA(5y)31.33%
ROE(3y)47.66%
ROE(5y)57.89%
ROIC(3y)38.03%
ROIC(5y)46.7%
1.3 Margins
The Profit Margin of MED (0.76%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MED has declined.
MED's Operating Margin of 0.46% is in line compared to the rest of the industry. MED outperforms 44.44% of its industry peers.
MED's Operating Margin has declined in the last couple of years.
MED has a Gross Margin of 73.84%. This is in the better half of the industry: MED outperforms 77.78% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.46% | ||
| PM (TTM) | 0.76% | ||
| GM | 73.84% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MED is creating value.
The number of shares outstanding for MED has been increased compared to 1 year ago.
MED has less shares outstanding than it did 5 years ago.
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.
2.2 Solvency
An Altman-Z score of 5.19 indicates that MED is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.19, MED is doing good in the industry, outperforming 77.78% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.19 |
ROIC/WACC0.07
WACC8.87%
2.3 Liquidity
MED has a Current Ratio of 4.47. 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 4.47, MED belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
A Quick Ratio of 3.82 indicates that MED has no problem at all paying its short term obligations.
The Quick ratio of MED (3.82) is better than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.82 |
3. Growth
3.1 Past
MED shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -87.18%.
The earnings per share for MED have been decreasing by -20.59% on average. This is quite bad
Looking at the last year, MED shows a very negative growth in Revenue. The Revenue has decreased by -37.62% in the last year.
The Revenue has been decreasing by -3.33% on average over the past years.
EPS 1Y (TTM)-87.18%
EPS 3Y-47.33%
EPS 5Y-20.59%
EPS Q2Q%-76.09%
Revenue 1Y (TTM)-37.62%
Revenue growth 3Y-26.64%
Revenue growth 5Y-3.33%
Sales Q2Q%-37.38%
3.2 Future
The Earnings Per Share is expected to decrease by -64.21% on average over the next years. This is quite bad
MED is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -23.25% yearly.
EPS Next Y-146.27%
EPS Next 2Y-64.21%
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
The EPS growth rate is decreasing: in the next years the growth will be less 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 25.98, which means the current valuation is very expensive for MED.
MED's Price/Earnings is on the same level as the industry average.
MED's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.13.
The Forward Price/Earnings Ratio is negative for MED. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.98 | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | -4.36 |
4.3 Compensation for Growth
MED has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as MED's earnings are expected to decrease with -64.21% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-64.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.97%, MED is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.54, MED pays a better dividend. On top of this MED pays more dividend than 97.22% of the companies listed in the same industry.
MED's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| 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
MED pays out 5.39% of its income as dividend. This is 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.
DP5.39%
EPS Next 2Y-64.21%
EPS Next 3YN/A
14.03
+0.01 (+0.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners75.57%
Inst Owner Change3.9%
Ins Owners3.3%
Ins Owner Change17.04%
Market Cap154.19M
Analysts45
Price Target15.3 (9.05%)
Short Float %21.54%
Short Ratio9.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.97% |
Yearly Dividend0.07
Dividend Growth(5Y)-53.42%
DP5.39%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)126.59%
Min EPS beat(2)54.16%
Max EPS beat(2)199.01%
EPS beat(4)4
Avg EPS beat(4)160.04%
Min EPS beat(4)54.16%
Max EPS beat(4)225.1%
EPS beat(8)6
Avg EPS beat(8)101.41%
EPS beat(12)10
Avg EPS beat(12)89.05%
EPS beat(16)13
Avg EPS beat(16)68.5%
Revenue beat(2)2
Avg Revenue beat(2)6.41%
Min Revenue beat(2)4.07%
Max Revenue beat(2)8.75%
Revenue beat(4)4
Avg Revenue beat(4)4.85%
Min Revenue beat(4)3.13%
Max Revenue beat(4)8.75%
Revenue beat(8)7
Avg Revenue beat(8)2.63%
Revenue beat(12)11
Avg Revenue beat(12)4.12%
Revenue beat(16)14
Avg Revenue beat(16)3.32%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-30%
EPS NQ rev (3m)-310.53%
EPS NY rev (1m)7%
EPS NY rev (3m)7%
Revenue NQ rev (1m)-10.34%
Revenue NQ rev (3m)-21.81%
Revenue NY rev (1m)-2.79%
Revenue NY rev (3m)-2.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.98 | ||
| Fwd PE | N/A | ||
| P/S | 0.32 | ||
| P/FCF | N/A | ||
| P/OCF | 37.13 | ||
| P/B | 0.71 | ||
| P/tB | 0.71 | ||
| EV/EBITDA | -4.36 |
EPS(TTM)0.54
EY3.85%
EPS(NY)-1.41
Fwd EYN/A
FCF(TTM)-0.22
FCFYN/A
OCF(TTM)0.38
OCFY2.69%
SpS43.72
BVpS19.65
TBVpS19.65
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 1.68% | ||
| ROCE | 1% | ||
| ROIC | 0.66% | ||
| ROICexc | 2.44% | ||
| ROICexgc | 2.44% | ||
| OM | 0.46% | ||
| PM (TTM) | 0.76% | ||
| GM | 73.84% | ||
| FCFM | N/A |
ROA(3y)26.08%
ROA(5y)31.33%
ROE(3y)47.66%
ROE(5y)57.89%
ROIC(3y)38.03%
ROIC(5y)46.7%
ROICexc(3y)95.28%
ROICexc(5y)N/A
ROICexgc(3y)95.28%
ROICexgc(5y)N/A
ROCE(3y)57.45%
ROCE(5y)70.54%
ROICexcg growth 3Y-42.96%
ROICexcg growth 5Y-39.1%
ROICexc growth 3Y-42.96%
ROICexc growth 5Y-39.1%
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%
F-Score5
Asset Turnover1.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 47.98% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 26.07% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.82 | ||
| Altman-Z | 5.19 |
F-Score5
WACC8.87%
ROIC/WACC0.07
Cap/Depr(3y)86.65%
Cap/Depr(5y)168.74%
Cap/Sales(3y)0.96%
Cap/Sales(5y)1.15%
Profit Quality(3y)359.98%
Profit Quality(5y)250.42%
High Growth Momentum
Growth
EPS 1Y (TTM)-87.18%
EPS 3Y-47.33%
EPS 5Y-20.59%
EPS Q2Q%-76.09%
EPS Next Y-146.27%
EPS Next 2Y-64.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-37.62%
Revenue growth 3Y-26.64%
Revenue growth 5Y-3.33%
Sales Q2Q%-37.38%
Revenue Next Year-36.56%
Revenue Next 2Y-23.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-95.63%
EBIT growth 3Y-55.18%
EBIT growth 5Y-26.54%
EBIT Next Year-106.45%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-101.21%
FCF growth 3Y-34.4%
FCF growth 5Y-25.51%
OCF growth 1Y-98.06%
OCF growth 3Y-36.26%
OCF growth 5Y-21.91%