MEDIFAST INC (MED) Stock Fundamental Analysis
NYSE:MED - New York Stock Exchange, Inc. - US58470H1014 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MED. MED was compared to 35 industry peers in the Personal Care Products industry. While MED has a great health rating, its profitability is only average at the moment. MED does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year MED was profitable.
MED had a positive operating cash flow in the past year.
Each year in the past 5 years MED has been profitable.
Each year in the past 5 years MED had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -2.50%, MED perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
The Return On Equity of MED (-3.32%) is comparable to the rest of the industry.
MED's Return On Invested Capital of 3.65% is in line compared to the rest of the industry. MED outperforms 51.43% 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 15.17%.
The last Return On Invested Capital (3.65%) 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 | -2.5% | ||
| ROE | -3.32% | ||
| ROIC | 3.65% |
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
MED's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.23%, MED is in line with its industry, outperforming 45.71% of the companies in the same industry.
In the last couple of years the Operating Margin of MED has declined.
MED's Gross Margin of 73.89% is amongst the best of the industry. MED outperforms 82.86% 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 | 2.23% | ||
| PM (TTM) | N/A | ||
| GM | 73.89% |
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 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 has been increased compared to 1 year ago.
Compared to 5 years ago, MED has less shares outstanding
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
MED has an Altman-Z score of 4.84. This indicates that MED is financially healthy and has little risk of bankruptcy at the moment.
MED's Altman-Z score of 4.84 is fine compared to the rest of the industry. MED outperforms 77.14% 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 | 4.84 |
ROIC/WACC0.36
WACC10.09%
2.3 Liquidity
MED has a Current Ratio of 3.52. This indicates that MED is financially healthy and has no problem in meeting its short term obligations.
MED's Current ratio of 3.52 is amongst the best of the industry. MED outperforms 85.71% of its industry peers.
A Quick Ratio of 2.87 indicates that MED has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.87, MED belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.52 | ||
| Quick Ratio | 2.87 |
3. Growth
3.1 Past
MED shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -91.41%.
MED shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.59% yearly.
Looking at the last year, MED shows a very negative growth in Revenue. The Revenue has decreased by -43.80% in the last year.
MED shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.33% yearly.
EPS 1Y (TTM)-91.41%
EPS 3Y-47.33%
EPS 5Y-20.59%
EPS Q2Q%-95.65%
Revenue 1Y (TTM)-43.8%
Revenue growth 3Y-26.64%
Revenue growth 5Y-3.33%
Sales Q2Q%-37.37%
3.2 Future
Based on estimates for the next years, MED will show a very negative growth in Earnings Per Share. The EPS will decrease by -62.84% on average per year.
Based on estimates for the next years, MED will show a very negative growth in Revenue. The Revenue will decrease by -20.71% on average per year.
EPS Next Y-149.75%
EPS Next 2Y-62.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-34.73%
Revenue Next 2Y-20.71%
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.
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
Based on the Price/Earnings ratio of 34.73, the valuation of MED can be described as expensive.
MED's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MED to the average of the S&P500 Index (26.48), we can say MED is valued slightly more expensively.
MED is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.73 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MED is valued cheaper than 88.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.49 | ||
| EV/EBITDA | -3.92 |
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 -62.84% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-62.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MED has a Yearly Dividend Yield of 9.97%, which is a nice return.
Compared to an average industry Dividend Yield of 5.46, MED pays a better dividend. On top of this MED pays more dividend than 97.14% 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 2.39.
| 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
The earnings of MED are negative and hence is the payout ratio. MED will probably not be able to sustain this dividend level.
The Dividend Rate of MED has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-2.84%
EPS Next 2Y-62.84%
EPS Next 3YN/A
12.85
+0.11 (+0.86%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners75.57%
Inst Owner Change-1.19%
Ins Owners3.3%
Ins Owner Change17.04%
Market Cap141.22M
Analysts45
Price Target15.3 (19.07%)
Short Float %20.95%
Short Ratio9.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.97% |
Yearly Dividend0.07
Dividend Growth(5Y)-53.42%
DP-2.84%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)108.02%
Min EPS beat(2)54.16%
Max EPS beat(2)161.88%
EPS beat(4)4
Avg EPS beat(4)143.68%
Min EPS beat(4)54.16%
Max EPS beat(4)225.1%
EPS beat(8)6
Avg EPS beat(8)87.84%
EPS beat(12)10
Avg EPS beat(12)72.86%
EPS beat(16)13
Avg EPS beat(16)57.2%
Revenue beat(2)2
Avg Revenue beat(2)3.6%
Min Revenue beat(2)3.13%
Max Revenue beat(2)4.07%
Revenue beat(4)3
Avg Revenue beat(4)1.63%
Min Revenue beat(4)-4.11%
Max Revenue beat(4)4.07%
Revenue beat(8)7
Avg Revenue beat(8)2.6%
Revenue beat(12)11
Avg Revenue beat(12)3.41%
Revenue beat(16)14
Avg Revenue beat(16)3.31%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-175%
EPS NY rev (1m)0%
EPS NY rev (3m)4.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.73 | ||
| Fwd PE | N/A | ||
| P/S | 0.26 | ||
| P/FCF | 10.49 | ||
| P/OCF | 6.86 | ||
| P/B | 0.67 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | -3.92 |
EPS(TTM)0.37
EY2.88%
EPS(NY)-1.32
Fwd EYN/A
FCF(TTM)1.23
FCFY9.53%
OCF(TTM)1.87
OCFY14.59%
SpS49.45
BVpS19.2
TBVpS19.2
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.5% | ||
| ROE | -3.32% | ||
| ROCE | 5.52% | ||
| ROIC | 3.65% | ||
| ROICexc | 14.62% | ||
| ROICexgc | 14.62% | ||
| OM | 2.23% | ||
| PM (TTM) | N/A | ||
| GM | 73.89% | ||
| FCFM | 2.48% |
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 Turnover1.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 56.07% | ||
| Cap/Sales | 1.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.52 | ||
| Quick Ratio | 2.87 | ||
| Altman-Z | 4.84 |
F-Score5
WACC10.09%
ROIC/WACC0.36
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)-91.41%
EPS 3Y-47.33%
EPS 5Y-20.59%
EPS Q2Q%-95.65%
EPS Next Y-149.75%
EPS Next 2Y-62.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-43.8%
Revenue growth 3Y-26.64%
Revenue growth 5Y-3.33%
Sales Q2Q%-37.37%
Revenue Next Year-34.73%
Revenue Next 2Y-20.71%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-85.02%
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-93.24%
FCF growth 3Y-34.4%
FCF growth 5Y-25.51%
OCF growth 1Y-90.42%
OCF growth 3Y-36.26%
OCF growth 5Y-21.91%