MEDNAX (NYSE:MD) - Share price, News & Analysis

MD fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	3/6
Financial Health	2/6
Dividends	0/6

MD Stock Overview

MEDNAX, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States and Puerto Rico.

Rewards

Trading at 48.6% below our estimate of its fair value

Earnings are forecast to grow 10.57% per year

Earnings grew by 472.6% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

MEDNAX Competitors

Chemed

NYSE:CHE

US$7.3b

LHC Group

NasdaqGS:LHCG

US$5.1b

AMN Healthcare Services

NYSE:AMN

US$4.0b

Amedisys

NasdaqGS:AMED

US$3.9b

Price History & Performance

Summary of all time highs, changes and price drops for MEDNAX
Historical stock prices
Current Share Price	US$19.08
52 Week High	US$35.68
52 Week Low	US$17.17
Beta	2.05
1 Month Change	-19.08%
3 Month Change	-25.87%
1 Year Change	-38.63%
3 Year Change	-28.99%
5 Year Change	-64.97%
Change since IPO	257.05%

Recent News & Updates

Apr 20

Return Trends At MEDNAX (NYSE:MD) Aren't Appealing

What trends should we look for it we want to identify stocks that can multiply in value over the long term? One common...

Shareholder Returns

	MD	US Healthcare	US Market
7D	7.0%	2.3%	2.7%
1Y	-38.6%	5.6%	-8.1%

Return vs Industry: MD underperformed the US Healthcare industry which returned 4.8% over the past year.

Return vs Market: MD underperformed the US Market which returned -10.8% over the past year.

Price Volatility

Is MD's price volatile compared to industry and market?
MD volatility
MD Average Weekly Movement	6.2%
Healthcare Industry Average Movement	10.2%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: MD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MD's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1979	5,000	Mark Ordan	https://www.mednax.com

MEDNAX, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States and Puerto Rico. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians. The company also provides maternal-fetal care services, including inpatient and office-based clinical care to expectant mothers and unborn babies through affiliated maternal-fetal medicine subspecialists, as well as obstetricians and other clinicians, including maternal-fetal nurse practitioners, certified nurse mid-wives, ultrasonographers, and genetic counselors.

MEDNAX Fundamentals Summary

How do MEDNAX's earnings and revenue compare to its market cap?
MD fundamental statistics
Market Cap	US$1.57b
Earnings (TTM)	US$81.72m
Revenue (TTM)	US$1.95b

20.1x

P/E Ratio

0.8x

P/S Ratio

Is MD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MD income statement (TTM)
Revenue	US$1.95b
Cost of Revenue	US$1.43b
Gross Profit	US$518.30m
Other Expenses	US$436.58m
Earnings	US$81.72m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.95
Gross Margin	26.62%
Net Profit Margin	4.20%
Debt/Equity Ratio	91.8%

How did MD perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

48.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MD ($19.08) is trading below our estimate of fair value ($37.11)

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

Price To Earnings Ratio

PE vs Industry: MD is poor value based on its PE Ratio (20.1x) compared to the US Healthcare industry average (19.1x).

PE vs Market: MD is poor value based on its PE Ratio (20.1x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: MD is poor value based on its PEG Ratio (1.9x)

Price to Book Ratio

PB vs Industry: MD is good value based on its PB Ratio (1.9x) compared to the US Healthcare industry average (2.5x).

Future Growth

How is MEDNAX forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MD's forecast earnings growth (10.6% per year) is above the savings rate (1.9%).

Earnings vs Market: MD's earnings (10.6% per year) are forecast to grow slower than the US market (12.5% per year).

High Growth Earnings: MD's earnings are forecast to grow, but not significantly.

Revenue vs Market: MD's revenue (6.9% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: MD's revenue (6.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

How has MEDNAX performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-45.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MD has a large one-off loss of $68.4M impacting its March 31 2022 financial results.

Growing Profit Margin: MD's current net profit margins (4.2%) are higher than last year (0.8%).

Past Earnings Growth Analysis

Earnings Trend: MD's earnings have declined by 45.9% per year over the past 5 years.

Accelerating Growth: MD's earnings growth over the past year (472.6%) exceeds its 5-year average (-45.9% per year).

Earnings vs Industry: MD earnings growth over the past year (472.6%) exceeded the Healthcare industry 9.6%.

Return on Equity

High ROE: MD's Return on Equity (9.3%) is considered low.

Financial Health

How is MEDNAX's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MD's short term assets ($439.8M) exceed its short term liabilities ($269.7M).

Long Term Liabilities: MD's short term assets ($439.8M) do not cover its long term liabilities ($1.2B).

Debt to Equity History and Analysis

Debt Level: MD's net debt to equity ratio (80.7%) is considered high.

Reducing Debt: MD's debt to equity ratio has increased from 68.7% to 91.8% over the past 5 years.

Debt Coverage: MD's debt is not well covered by operating cash flow (7.6%).

Interest Coverage: MD's interest payments on its debt are well covered by EBIT (4.2x coverage).

Balance Sheet

Dividend

What is MEDNAX current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate MD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MD's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MD has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Healthcare industry.

Management

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

1.8yrs

Average management tenure

CEO

Mark Ordan (62 yo)

1.83yrs

Tenure

US$6,848,969

Compensation

Mr. Mark S. Ordan serves as Chief Executive Officer and Director at MEDNAX, Inc. since July 12, 2020. Mr. Ordan serves as a Director of The Carlyle Group Inc. since April 1, 2022. He joined MEDNAX, Inc. in...

CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD6.85M) is about average for companies of similar size in the US market ($USD5.45M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: MD's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: MD's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31