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

Fundamentals

Average dividend payer and fair value.

Risks

  • Medical Facilities has significant price volatility in the past 3 months.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.1%

TSX:DR

-1.9%

CA Healthcare

-0.04%

CA Market


1 Year Return

-54.9%

TSX:DR

4.2%

CA Healthcare

-4.8%

CA Market

DR underperformed the Healthcare industry which returned 4.2% over the past year.

DR underperformed the Market in Canada which returned -4.8% over the past year.


Share holder returns

DRIndustryMarket
7 Day-3.1%-1.9%-0.04%
30 Day-43.6%-7.2%-2.5%
90 Day-44.4%-10.0%-2.7%
1 Year-51.4%-54.9%8.2%4.2%-1.4%-4.8%
3 Year-58.5%-66.6%-0.006%-13.8%14.3%4.2%
5 Year-44.4%-60.7%51.3%13.5%13.0%-2.9%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Medical Facilities's share price is below the future cash flow value, and at a moderate discount (> 20%).

Medical Facilities's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Medical Facilities is loss making, we can't compare its value to the CA Healthcare industry average.

Medical Facilities is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Medical Facilities, we can't assess if its growth is good value.


Price Based on Value of Assets

Medical Facilities is good value based on assets compared to the CA Healthcare industry average.


Next Steps

Future Growth

How is Medical Facilities expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

141.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Medical Facilities's revenue is expected to grow by 1% yearly, however this is not considered high growth (20% yearly).

Medical Facilities's earnings are expected to grow significantly at over 20% yearly.

Medical Facilities's revenue growth is positive but not above the Canada market average.

Medical Facilities's earnings growth is expected to exceed the Canada market average.

Medical Facilities's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Medical Facilities will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Medical Facilities performed over the past 5 years?

-8.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Medical Facilities does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Medical Facilities's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Medical Facilities's 1-year growth to the North America Healthcare industry average as it is not currently profitable.


Return on Equity

Medical Facilities has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Medical Facilities used its assets less efficiently than the CA Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Medical Facilities improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Medical Facilities's financial position?


Financial Position Analysis

Medical Facilities is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Medical Facilities's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Medical Facilities's level of debt (102.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (40.9% vs 102.9% today).

Debt is well covered by operating cash flow (46.6%, greater than 20% of total debt).

Medical Facilities is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

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

16.31%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Medical Facilities's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2%).

Medical Facilities's dividend is above the markets top 25% of dividend payers in Canada (5.88%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Medical Facilities's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Rob Horrar (53yo)

1.8yrs

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

Rob's remuneration is higher than average for companies of similar size in Canada.

Rob's compensation has increased whilst company is loss making.


Management Age and Tenure

2.4yrs

Average Tenure

The tenure for the Medical Facilities management team is about average.


Board Age and Tenure

3.5yrs

Average Tenure

65yo

Average Age

The tenure for the Medical Facilities board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • David N. Watson (53yo)

    Chief Financial Officer

    • Tenure: 0.2yrs
  • R. Curd

    Chief Executive Officer of Sioux Falls Specialty Hospital LLP

    • Tenure: 4.4yrs
    • Compensation: US$666.84k
  • William May

    Compliance Resource Director

    • Tenure: 0.0yrs
    • Compensation: US$398.25k
  • Rob Horrar (53yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$1.32m
  • Kevin Blaylock

    Chief Executive Officer of Oklahoma Spine Hospital LLC

    • Tenure: 10.9yrs
    • Compensation: US$259.89k
  • Carrie Helm

    Chief Executive Officer of Arkansas Surgical Hospital LLC

    • Tenure: 0.0yrs
    • Compensation: US$455.83k
  • Jim Rolfe

    Chief Development Officer

    • Tenure: 2.9yrs
    • Compensation: US$746.15k
  • Jimmy Porter

    Vice President of Operations

    • Tenure: 1.6yrs
    • Compensation: US$498.68k

Board Members

  • Jeff Lozon (67yo)

    Chairman of the Board

    • Tenure: 0.3yrs
    • Compensation: US$105.00k
  • Pat Tlustos (69yo)

    Director of Medical Facilities USA

    • Tenure: 15.4yrs
  • Marilynne Day-Linton (63yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: US$161.50k
  • Erin Enright (58yo)

    Director

    • Tenure: 1.0yrs
    • Compensation: US$40.90k
  • Dale Lawr (68yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$105.00k
  • Rob Horrar (53yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$1.32m
  • Dave Bellaire (65yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$117.00k
  • Reza Shahim (51yo)

    Non-Executive Non-Independent Director

    • Tenure: 2.0yrs
    • Compensation: US$106.00k
  • Stephen Dineley (67yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$120.00k

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$216.189m
  • 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 pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 00:39
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.