MEDIFAST INC (MED) Stock Fundamental Analysis
NYSE:MED - New York Stock Exchange, Inc. - US58470H1014 - Common Stock - Currency: USD
Taking everything into account, MED scores 5 out of 10 in our fundamental rating. MED was compared to 35 industry peers in the Personal Care Products industry. MED is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. MED has a valuation in line with the averages, but on the other hand it 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.
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
Looking at the Return On Assets, with a value of 0.74%, MED is in line with its industry, outperforming 54.29% of the companies in the same industry.
With a Return On Equity value of 1.00%, MED perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
MED's Return On Invested Capital of 6.59% is in line compared to the rest of the industry. MED outperforms 60.00% 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 16.78%.
The last Return On Invested Capital (6.59%) 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 | 0.74% | ||
| ROE | 1% | ||
| ROIC | 6.59% |
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
Looking at the Profit Margin, with a value of 0.35%, MED is in line with its industry, outperforming 51.43% of the companies in the same industry.
MED's Profit Margin has declined in the last couple of years.
The Operating Margin of MED (3.64%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MED has declined.
Looking at the Gross Margin, with a value of 73.80%, MED is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
MED's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.64% | ||
| PM (TTM) | 0.35% | ||
| GM | 73.8% |
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.
MED has more shares outstanding than it did 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 5.12 indicates that MED is not in any danger for bankruptcy at the moment.
MED has a better Altman-Z score (5.12) than 71.43% of its industry peers.
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 | 0 | ||
| Altman-Z | 5.12 |
ROIC/WACC0.72
WACC9.11%
2.3 Liquidity
MED has a Current Ratio of 3.34. This indicates that MED is financially healthy and has no problem in meeting its short term obligations.
MED's Current ratio of 3.34 is fine compared to the rest of the industry. MED outperforms 80.00% of its industry peers.
MED has a Quick Ratio of 2.68. This indicates that MED is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.68, MED belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.34 | ||
| Quick Ratio | 2.68 |
3. Growth
3.1 Past
The earnings per share for MED have decreased strongly by -79.59% in the last year.
Measured over the past years, MED shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.59% on average per year.
MED shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -43.80%.
MED shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.33% yearly.
EPS 1Y (TTM)-79.59%
EPS 3Y-47.33%
EPS 5Y-20.59%
EPS Q2Q%-118.94%
Revenue 1Y (TTM)-43.8%
Revenue growth 3Y-26.64%
Revenue growth 5Y-3.33%
Sales Q2Q%-33.77%
3.2 Future
The Earnings Per Share is expected to decrease by -62.84% 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 -20.71% yearly.
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
The Price/Earnings ratio is 11.25, which indicates a very decent valuation of MED.
Compared to the rest of the industry, the Price/Earnings ratio of MED indicates a rather cheap valuation: MED is cheaper than 88.57% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MED to the average of the S&P500 Index (26.19), we can say MED is valued rather cheaply.
The Forward Price/Earnings Ratio is negative for MED. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MED is valued cheaper than 91.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.08 | ||
| EV/EBITDA | -2.33 |
4.3 Compensation for Growth
The decent profitability rating of MED may justify a higher PE ratio.
A cheap valuation may be justified as MED's earnings are expected to decrease with -62.84% in the coming years.
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 5.72, MED pays a better dividend. On top of this MED pays more dividend than 97.14% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, 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
34.18% of the earnings are spent on dividend by MED. This is a low number and sustainable payout ratio.
MED's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP34.18%
EPS Next 2Y-62.84%
EPS Next 3YN/A
NYSE:MED (5/30/2025, 3:53:05 PM)
14.06
+0.12 (+0.86%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners84.03%
Inst Owner Change-5.67%
Ins Owners2.58%
Ins Owner Change12.45%
Market Cap154.52M
Analysts45
Price Target15.3 (8.82%)
Short Float %10.94%
Short Ratio5.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.97% |
Yearly Dividend0.07
Dividend Growth(5Y)-53.42%
DP34.18%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)193.49%
Min EPS beat(2)161.88%
Max EPS beat(2)225.1%
EPS beat(4)3
Avg EPS beat(4)126.08%
Min EPS beat(4)-16.22%
Max EPS beat(4)225.1%
EPS beat(8)6
Avg EPS beat(8)87.52%
EPS beat(12)9
Avg EPS beat(12)68.31%
EPS beat(16)13
Avg EPS beat(16)55.41%
Revenue beat(2)2
Avg Revenue beat(2)3.29%
Min Revenue beat(2)3.13%
Max Revenue beat(2)3.45%
Revenue beat(4)3
Avg Revenue beat(4)1.22%
Min Revenue beat(4)-4.11%
Max Revenue beat(4)3.45%
Revenue beat(8)7
Avg Revenue beat(8)3.11%
Revenue beat(12)11
Avg Revenue beat(12)3.28%
Revenue beat(16)14
Avg Revenue beat(16)4.37%
PT rev (1m)-4.76%
PT rev (3m)-9.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-42.11%
EPS NY rev (1m)4.76%
EPS NY rev (3m)-433.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.8%
Revenue NY rev (1m)-3.94%
Revenue NY rev (3m)-23.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | N/A | ||
| P/S | 0.26 | ||
| P/FCF | 9.08 | ||
| P/OCF | 6.31 | ||
| P/B | 0.74 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | -2.33 |
EPS(TTM)1.25
EY8.89%
EPS(NY)-1.32
Fwd EYN/A
FCF(TTM)1.55
FCFY11.02%
OCF(TTM)2.23
OCFY15.84%
SpS54.82
BVpS19.12
TBVpS19.12
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 1% | ||
| ROCE | 9.96% | ||
| ROIC | 6.59% | ||
| ROICexc | 25.13% | ||
| ROICexgc | 25.13% | ||
| OM | 3.64% | ||
| PM (TTM) | 0.35% | ||
| GM | 73.8% | ||
| FCFM | 2.83% |
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-Score6
Asset Turnover2.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 58.66% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.71% | ||
| Profit Quality | 813.67% | ||
| Current Ratio | 3.34 | ||
| Quick Ratio | 2.68 | ||
| Altman-Z | 5.12 |
F-Score6
WACC9.11%
ROIC/WACC0.72
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)-79.59%
EPS 3Y-47.33%
EPS 5Y-20.59%
EPS Q2Q%-118.94%
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%-33.77%
Revenue Next Year-34.73%
Revenue Next 2Y-20.71%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-82.66%
EBIT growth 3Y-55.18%
EBIT growth 5Y-26.54%
EBIT Next Year-125.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-87.94%
FCF growth 3Y-34.4%
FCF growth 5Y-25.51%
OCF growth 1Y-83.42%
OCF growth 3Y-36.26%
OCF growth 5Y-21.91%