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MD: Stable Buybacks And Margins Will Support A Fair Future Outlook

MD: Share Repurchase Plan And Margin Gains Will Support Future Performance

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MD
AnalystConsensusTarget
Not Invested
Published 28 May 2025

Update shared on 06 Dec 2025

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Narrative Update

Analysts modestly reaffirm their outlook on Pediatrix Medical Group, maintaining the price target effectively unchanged at approximately 22.67 dollars. Stable assumptions for discount rate, revenue growth, profit margins, and future valuation multiples continue to support the existing fair value framework.

What's in the News

  • Pediatrix Medical Group reports no share repurchases between July 1 and September 30, 2025 under its August 2, 2018 buyback authorization, with activity for the period totaling 0 shares for 0 million dollars (Key Developments).
  • Cumulatively under the August 2, 2018 program, the company has completed the repurchase of 13,591,231 shares, representing 15.49 percent of shares outstanding, for 478.28 million dollars (Key Developments).
  • Under the separate July 30, 2013 buyback authorization, Pediatrix reports no share repurchases between July 1 and September 30, 2025, with 0 shares bought for 0 million dollars during the period (Key Developments).
  • Cumulative repurchases under the July 30, 2013 program now stand at 5,678,563 shares, representing 5.92 percent of shares outstanding, for 354.99 million dollars (Key Developments).

Valuation Changes

  • The Fair Value Estimate remains unchanged at approximately 22.67 dollars per share, indicating no material reassessment of intrinsic value.
  • The Discount Rate is effectively flat, edging lower from about 6.96 percent to 6.96 percent, a change too small to affect the valuation outcome.
  • The Revenue Growth Assumption is essentially unchanged, moving marginally from roughly 3.56 percent to 3.56 percent, implying a stable growth outlook.
  • The Net Profit Margin Forecast has risen only fractionally, from about 8.04 percent to 8.04 percent, reflecting a negligible shift in profitability expectations.
  • The Future P/E Multiple remains virtually unchanged, ticking up insignificantly from about 13.57x to 13.57x, suggesting stable expectations for future market valuation.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.