MEDIFAST INC (MED)

US58470H1014 - Common Stock

33.71  +0.21 (+0.63%)

After market: 33.71 0 (0%)

Fundamental Rating

7

MED gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 37 industry peers in the Personal Care Products industry. MED scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MED is valued correctly, but it does not seem to be growing.



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8

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.
In the past 5 years MED always reported a positive cash flow from operatings.

1.2 Ratios

MED has a better Return On Assets (32.09%) than 100.00% of its industry peers.
MED has a Return On Equity of 49.35%. This is amongst the best in the industry. MED outperforms 100.00% of its industry peers.
MED has a Return On Invested Capital of 45.06%. This is amongst the best in the industry. MED outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MED is significantly above the industry average of 14.69%.
The 3 year average ROIC (66.76%) for MED is well above the current ROIC(45.06%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 32.09%
ROE 49.35%
ROIC 45.06%
ROA(3y)39.56%
ROA(5y)39.19%
ROE(3y)74.33%
ROE(5y)72.55%
ROIC(3y)66.76%
ROIC(5y)65.61%

1.3 Margins

MED's Profit Margin of 9.27% is fine compared to the rest of the industry. MED outperforms 70.27% of its industry peers.
In the last couple of years the Profit Margin of MED has declined.
MED has a Operating Margin of 11.79%. This is in the better half of the industry: MED outperforms 72.97% of its industry peers.
In the last couple of years the Operating Margin of MED has declined.
MED has a Gross Margin of 72.37%. This is amongst the best in the industry. MED outperforms 81.08% of its industry peers.
MED's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 11.79%
PM (TTM) 9.27%
GM 72.37%
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%

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9

2. Health

2.1 Basic Checks

MED has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MED remains at a similar level compared to 1 year ago.
MED has less shares outstanding than it did 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 8.12 indicates that MED is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.12, MED belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
MED has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.12
ROIC/WACC4.82
WACC9.34%

2.3 Liquidity

A Current Ratio of 2.43 indicates that MED has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.43, MED is in line with its industry, outperforming 59.46% of the companies in the same industry.
A Quick Ratio of 1.84 indicates that MED should not have too much problems paying its short term obligations.
The Quick ratio of MED (1.84) is better than 64.86% of its industry peers.
Industry RankSector Rank
Current Ratio 2.43
Quick Ratio 1.84

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2

3. Growth

3.1 Past

MED shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.77%.
MED shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.59% yearly.
MED shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -32.93%.
The Revenue has been growing by 16.43% on average over the past years. This is quite good.
EPS 1Y (TTM)-32.77%
EPS 3Y-0.18%
EPS 5Y14.59%
EPS growth Q2Q-83.18%
Revenue 1Y (TTM)-32.93%
Revenue growth 3Y4.67%
Revenue growth 5Y16.43%
Revenue growth Q2Q-43.35%

3.2 Future

The Earnings Per Share is expected to decrease by -41.06% on average over the next years. This is quite bad
The Revenue is expected to decrease by -15.77% on average over the next years. This is quite bad
EPS Next Y-78.89%
EPS Next 2Y-41.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-34.82%
Revenue Next 2Y-15.77%
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.
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.

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 3.70, the valuation of MED can be described as very cheap.
Based on the Price/Earnings ratio, MED is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.92, MED is valued rather cheaply.
The Price/Forward Earnings ratio is 17.52, which indicates a rather expensive current valuation of MED.
Based on the Price/Forward Earnings ratio, MED is valued a bit cheaper than the industry average as 75.68% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.49. MED is around the same levels.
Industry RankSector Rank
PE 3.7
Fwd PE 17.52

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MED is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MED is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 2.6
EV/EBITDA 1.14

4.3 Compensation for Growth

MED has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as MED's earnings are expected to decrease with -41.06% in the coming years.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-41.06%
EPS Next 3YN/A

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6

5. Dividend

5.1 Amount

MED has a Yearly Dividend Yield of 19.70%, which is a nice return.
In the last 3 months the price of MED has falen by -38.96%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.07, MED pays a better dividend. On top of this MED pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, MED pays a better dividend.
Industry RankSector Rank
Dividend Yield 19.7%

5.2 History

The dividend of MED is nicely growing with an annual growth rate of 28.11%!
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

5.3 Sustainability

73.43% of the earnings are spent on dividend by MED. This is not a sustainable payout ratio.
MED's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP73.43%
EPS Next 2Y-41.06%
EPS Next 3YN/A

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MEDIFAST INC

NYSE:MED (4/26/2024, 7:04:00 PM)

After market: 33.71 0 (0%)

33.71

+0.21 (+0.63%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap367.44M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 19.7%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 3.7
Fwd PE 17.52
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.25
Profitability
Industry RankSector Rank
ROA 32.09%
ROE 49.35%
ROCE
ROIC
ROICexc
ROICexgc
OM 11.79%
PM (TTM) 9.27%
GM 72.37%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover3.46
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.43
Quick Ratio 1.84
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-32.77%
EPS 3Y-0.18%
EPS 5Y
EPS growth Q2Q
EPS Next Y-78.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-32.93%
Revenue growth 3Y4.67%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y