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.

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

-1.2%

DR

0.5%

CA Healthcare

-0.3%

CA Market


1 Year Return

-49.1%

DR

-15.4%

CA Healthcare

0.9%

CA Market

Return vs Industry: DR underperformed the Canadian Healthcare industry which returned -15.4% over the past year.

Return vs Market: DR underperformed the Canadian Market which returned 0.9% over the past year.


Share holder returns

DRIndustryMarket
7 Day-1.2%0.5%-0.3%
30 Day-8.1%-0.7%-2.1%
90 Day-39.2%-9.8%-1.5%
1 Year-44.4%-49.1%-13.1%-15.4%4.4%0.9%
3 Year-58.8%-67.4%0.4%-13.6%15.7%5.4%
5 Year-37.8%-56.9%61.3%20.7%26.1%7.9%

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

Undervalued: DR (CA$7.39) is trading below our estimate of fair value (CA$30.6)

Significantly Undervalued: DR is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: DR is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.

PE vs Market: DR is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate DR's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: DR is good value based on its PB Ratio (1.6x) compared to the CA Healthcare industry average (2.5x).


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

Earnings vs Savings Rate: DR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: DR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: DR is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: DR's revenue (1% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: DR's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

-8.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DR is unprofitable, and losses have increased over the past 5 years at a rate of -8.7% per year.

Accelerating Growth: Unable to compare DR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DR is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (-46%).


Return on Equity

High ROE: DR has a negative Return on Equity (11.63%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: DR is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: DR is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Medical Facilities's financial position?


Financial Position Analysis

Short Term Liabilities: DR's short term assets ($123.6M) exceeds its short term liabilities ($108.9M)

Long Term Liabilities: DR's short term assets (123.6M) do not cover its long term liabilities (223.4M)


Debt to Equity History and Analysis

Debt Level: DR's debt to equity ratio (102.9%) is considered high

Reducing Debt: DR's debt to equity ratio has increased from 40.9% to 102.9% over the past 5 years.

Debt Coverage: DR's debt is well covered by operating cash flow (46.6%).

Interest Coverage: DR is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: DR's 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?

15.16%

Expected Dividend Yield


Dividend Yield vs Market

company15.0%marketbottom25%2.0%markettop25%6.0%industryaverage1.6%forecastin3Years15.2%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: DR's dividend (15.04%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: DR's dividend (15.04%) is in the top 25% of dividend payers in the Canadian market (5.98%)

Stable Dividend: DR's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: DR is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Rob Horrar (53yo)

2yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

Compensation vs Earnings: Rob's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.5yrs

Average Tenure

Experienced Management: DR's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

65yo

Average Age

Experienced Board: DR's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • David N. Watson (53yo)

    Chief Financial Officer

    • Tenure: 0.3yrs
  • R. Curd

    Chief Executive Officer of Sioux Falls Specialty Hospital LLP

    • Tenure: 4.6yrs
    • Compensation: US$666.84k
  • William May

    Compliance Resource Director

    • Tenure: 0yrs
    • Compensation: US$398.25k
  • Rob Horrar (53yo)

    President

    • Tenure: 2yrs
    • Compensation: US$1.32m
  • Kevin Blaylock

    Chief Executive Officer of Oklahoma Spine Hospital LLC

    • Tenure: 11.1yrs
    • Compensation: US$259.89k
  • Carrie Helm

    Chief Executive Officer of Arkansas Surgical Hospital LLC

    • Tenure: 0yrs
    • Compensation: US$455.83k
  • Jim Rolfe

    Chief Development Officer

    • Tenure: 3.1yrs
    • Compensation: US$746.15k
  • Jimmy Porter

    Vice President of Operations

    • Tenure: 1.8yrs
    • Compensation: US$498.68k

Board Members

  • Jeff Lozon (67yo)

    Independent Chairman of the Board

    • Tenure: 0.4yrs
    • Compensation: US$105.00k
  • Pat Tlustos (69yo)

    Director of Medical Facilities USA

    • Tenure: 15.6yrs
  • Marilynne Day-Linton (63yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$161.50k
  • Erin Enright (58yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$40.90k
  • Dale Lawr (68yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$105.00k
  • Rob Horrar (53yo)

    President

    • Tenure: 2yrs
    • Compensation: US$1.32m
  • Dave Bellaire (65yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$117.00k
  • Reza Shahim (51yo)

    Non-Executive Non-Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$106.00k
  • Stephen Dineley (67yo)

    Independent Director

    • Tenure: 3.7yrs
    • 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$229.875m
  • 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 Analysis2019/10/14 02:38
End of Day Share Price2019/10/11 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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)