TSX:DR

Stock Analysis Report

Medical Facilities

Executive Summary

Medical Facilities Corporation, through its subsidiaries, owns and operates specialty surgical hospitals and an ambulatory surgery center in the United States.


Snowflake Analysis

Undervalued with proven track record.

Share Price & News

How has Medical Facilities's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.6%

DR

10.7%

CA Healthcare

11.7%

CA Market


1 Year Return

-81.3%

DR

-41.2%

CA Healthcare

-26.0%

CA Market

Return vs Industry: DR underperformed the Canadian Healthcare industry which returned -41.2% over the past year.

Return vs Market: DR underperformed the Canadian Market which returned -26% over the past year.


Shareholder returns

DRIndustryMarket
7 Day7.6%10.7%11.7%
30 Day2.8%-22.4%-21.9%
90 Day-32.3%-24.8%-26.6%
1 Year-79.8%-81.3%-39.6%-41.2%-23.6%-26.0%
3 Year-78.0%-82.4%-49.3%-55.4%-15.8%-23.6%
5 Year-73.0%-81.1%-20.0%-37.9%-3.5%-17.8%

Price Volatility Vs. Market

How volatile is Medical Facilities's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Medical Facilities undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DR (CA$3.25) is trading below our estimate of fair value (CA$27.87)

Significantly Below Fair Value: DR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DR is good value based on its PE Ratio (1.6x) compared to the Healthcare industry average (19x).

PE vs Market: DR is good value based on its PE Ratio (1.6x) compared to the Canadian market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: DR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DR is good value based on its PB Ratio (0.6x) compared to the CA Healthcare industry average (1.8x).


Next Steps

Future Growth

How is Medical Facilities forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-136.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DR's earnings are forecast to decline over the next 3 years (-136.9% per year).

Earnings vs Market: DR's earnings are forecast to decline over the next 3 years (-136.9% per year).

High Growth Earnings: DR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DR's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: DR's revenue is forecast to decline over the next 3 years (-0.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Medical Facilities performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DR has a large one-off loss of $24.8M impacting its December 31 2019 financial results.

Growing Profit Margin: DR's current net profit margins (11.1%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: DR's earnings have declined by -2.4% per year over the past 5 years.

Accelerating Growth: DR's earnings growth over the past year (94%) exceeds its 5-year average (-2.4% per year).

Earnings vs Industry: DR earnings growth over the past year (94%) exceeded the Healthcare industry 2.7%.


Return on Equity

High ROE: DR's Return on Equity (34.4%) is considered high.


Next Steps

Financial Health

How is Medical Facilities's financial position?


Financial Position Analysis

Short Term Liabilities: DR's short term assets ($156.8M) exceed its short term liabilities ($85.3M).

Long Term Liabilities: DR's short term assets ($156.8M) do not cover its long term liabilities ($211.9M).


Debt to Equity History and Analysis

Debt Level: DR's debt to equity ratio (87.3%) is considered high.

Reducing Debt: DR's debt to equity ratio has increased from 39.1% to 87.3% over the past 5 years.

Debt Coverage: DR's debt is well covered by operating cash flow (51.1%).

Interest Coverage: DR's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

Inventory Level: DR has a high level of physical assets or inventory.

Debt Coverage by Assets: DR's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Medical Facilities's current dividend yield, its reliability and sustainability?

8.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DR's dividend (8.34%) is higher than the bottom 25% of dividend payers in the Canadian market (2.73%).

High Dividend: DR's dividend (8.34%) is low compared to the top 25% of dividend payers in the Canadian market (8.76%).


Stability and Growth of Payments

Stable Dividend: DR's dividend payments have been volatile in the past 10 years.

Growing Dividend: DR's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.5%), DR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DR's dividends in 3 years are forecast to be well covered by earnings (33.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Rob Horrar (53yo)

2.42s

Tenure

US$1,317,627

Compensation

Mr. Robert O. Horrar, also known as Rob, has been President and Chief Executive Officer of Medical Facilities Corporation since October 25, 2017. Mr. Horrar has been Executive Director of Medical Facilitie ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD1.32M) is above average for companies of similar size in the Canadian market ($USD159.52K).

Compensation vs Earnings: Rob's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Horrar
President2.42yrsUS$1.32mno data
James Rolfe
Chief Development Officer3.5yrsUS$746.15k0.093% $94.3k
R. Curd
Chief Executive Officer of Sioux Falls Specialty Hospital LLP5yrsUS$666.84kno data
David N. Watson
Chief Financial Officer0.75yrno datano data
John Schario
Chief Operating Officer0.17yrno data0.075% $75.7k
William May
Compliance Resource Directorno dataUS$398.25kno data
Kevin Blaylock
Chief Executive Officer of Oklahoma Spine Hospital LLC11.5yrsUS$259.89kno data
Carrie Helm
Chief Executive Officer of Arkansas Surgical Hospital LLCno dataUS$455.83kno data

3.0yrs

Average Tenure

Experienced Management: DR's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Horrar
President2.42yrsUS$1.32mno data
Jeffrey Lozon
Independent Chairman of the Board0.83yrUS$105.00k0.011% $10.7k
Patrick Tlustos
Director of Medical Facilities USA16yrsno datano data
Marilynne Day-Linton
Independent Director7.17yrsUS$161.50k0.037% $37.1k
Erin Enright
Independent Director1.58yrsUS$40.90kno data
Dale Lawr
Independent Director5.33yrsUS$105.00kno data
Reza Shahim
Non-Executive Non-Independent Director2.58yrsUS$106.00kno data
Stephen Dineley
Independent Director4yrsUS$120.00k0.0013% $1.3k

3.3yrs

Average Tenure

65yo

Average Age

Experienced Board: DR's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Medical Facilities Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Medical Facilities Corporation
  • Ticker: DR
  • Exchange: TSX
  • Founded: 2004
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: CA$101.095m
  • Shares outstanding: 31.11m
  • Website: https://www.medicalfacilitiescorp.ca

Number of Employees


Location

  • Medical Facilities Corporation
  • 45 St. Clair Avenue West
  • Suite 200
  • Toronto
  • Ontario
  • M4V 1K6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DRTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2004
MFCS.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2004
31FDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2004

Biography

Medical Facilities Corporation, through its subsidiaries, owns and operates specialty surgical hospitals and an ambulatory surgery center in the United States. The company’s specialty surgical hospitals provide scheduled surgical, imaging, diagnostic, and other pain management procedures; and other ancillary services, such as urgent care and occupational health. It also offers ambulatory surgery center, which performs scheduled outpatient surgical procedures; and third-party business solutions to healthcare entities. The company was founded in 2004 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:24
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.