NYSE:MD

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-18.5%

MD

-4.1%

US Healthcare

-2.8%

US Market


1 Year Return

-65.5%

MD

-8.9%

US Healthcare

-15.9%

US Market

Return vs Industry: MD underperformed the US Healthcare industry which returned -8.9% over the past year.

Return vs Market: MD underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

MDIndustryMarket
7 Day-18.5%-4.1%-2.8%
30 Day-39.4%-19.5%-18.8%
90 Day-64.1%-21.2%-24.0%
1 Year-65.5%-65.5%-7.7%-8.9%-14.2%-15.9%
3 Year-85.7%-85.7%13.1%8.1%9.9%2.8%
5 Year-86.8%-86.8%16.7%8.8%27.2%13.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is MEDNAX 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: MD ($9.72) is trading below our estimate of fair value ($39.92)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MD is good value based on its PB Ratio (0.5x) compared to the US Healthcare industry average (2.2x).


Next Steps

Future Growth

How is MEDNAX forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

99.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: MD is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MD's is expected to become profitable in the next 3 years.

Revenue vs Market: MD's revenue (2.1% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: MD's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MD's Return on Equity is forecast to be low in 3 years time (15.4%).


Next Steps

Past Performance

How has MEDNAX performed over the past 5 years?

-39.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MD is currently unprofitable.

Growing Profit Margin: MD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MD is unprofitable, and losses have increased over the past 5 years at a rate of -39.9% per year.

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

Earnings vs Industry: MD is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (14%).


Return on Equity

High ROE: MD has a negative Return on Equity (-76.72%), as it is currently unprofitable.


Next Steps

Financial Health

How is MEDNAX's financial position?


Financial Position Analysis

Short Term Liabilities: MD's short term assets ($731.5M) exceed its short term liabilities ($541.8M).

Long Term Liabilities: MD's short term assets ($731.5M) do not cover its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: MD's debt to equity ratio (115.4%) is considered high.

Reducing Debt: MD's debt to equity ratio has increased from 25.2% to 115.4% over the past 5 years.


Balance Sheet

Inventory Level: MD has a low level of unsold assets or inventory.

Debt Coverage by Assets: MD's debt is not covered by short term assets (assets are 0.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MD has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: MD has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


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 payouts.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Roger Medel (72yo)

17.08s

Tenure

US$9,938,017

Compensation

Dr. Roger J. Medel, M.D., Co-Founded at MEDNAX, Inc. (also known as Pediatrix Medical Group Inc.) in 1979. Dr. Medel served as the MEDNAX, Inc.’s President until May 2000 and as Chief Executive Officer unt ...


CEO Compensation Analysis

Compensation vs Market: Roger's total compensation ($USD9.94M) is above average for companies of similar size in the US market ($USD3.29M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Roger Medel
Co-Founder17.08yrsUS$9.94m2.08% $16.7m
Stephen Farber
Executive VP & CFO1.42yrsUS$5.75m0.28% $2.2m
Dominic Andreano
Executive VP7.92yrsUS$2.01m0.13% $1.1m
John Pepia
Senior VP & Chief Accounting Officer3.92yrsno data0.13% $1.1m
Charles Lynch
Vice President of Strategy & Investor Relationsno datano datano data
Mary Ann Moore
Chief Compliance Officer & Operations Chief Legal Officer1.25yrsno datano data
James Swift
Chief Development Officer6.33yrsno datano data
Claire Fair
Chief Human Resources Officer1.25yrsno datano data
Nikos Nikolopoulos
Executive VP and Chief Strategy & Growth Officer0.83yrno data0.16% $1.3m
Milissa Stubbs
Chief Operating Officer of MEDNAX Radiology Solutionsno datano datano data

2.7yrs

Average Tenure

53yo

Average Age

Experienced Management: MD's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roger Medel
Co-Founder17.08yrsUS$9.94m2.08% $16.7m
Paul Gabos
Independent Director17.42yrsUS$220.01k0.029% $236.3k
Cesar Alvarez
Independent Chairman of the Board15.92yrsUS$250.01k0.059% $470.5k
Enrique Sosa
Independent Director15.92yrsUS$200.01k0.045% $363.0k
Michael Fernandez
Independent Director24.5yrsUS$200.01k0.73% $5.9m
Waldemar Carlo
Independent Director20.83yrsUS$210.01k0.039% $309.1k
Manuel Kadre
Lead Independent Director6.08yrsUS$235.01k0.15% $1.2m
Pascal Goldschmidt
Independent Director14.08yrsUS$210.01k0.019% $151.0k
Karolyn Barker
Independent Director4.92yrsUS$200.01k0.022% $172.8k
Carlos Migoya
Director0.92yrno data0.015% $117.2k

15.9yrs

Average Tenure

66yo

Average Age

Experienced Board: MD's board of directors are seasoned and experienced ( 15.9 years average tenure).


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.


Top Shareholders

Company Information

MEDNAX, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MEDNAX, Inc.
  • Ticker: MD
  • Exchange: NYSE
  • Founded: 1979
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$802.429m
  • Shares outstanding: 82.55m
  • Website: https://www.mednax.com

Number of Employees


Location

  • MEDNAX, Inc.
  • 1301 Concord Terrace
  • Sunrise
  • Florida
  • 33323
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MDNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1995
PDCDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1995
MD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 1995

Biography

MEDNAX, Inc., together with its subsidiaries, provides newborn, anesthesia, maternal-fetal, radiology and teleradiology, pediatric cardiology, and other pediatric subspecialty physician 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; anesthesia and anesthesia subspecialty care services; and acute and chronic pain management services. The company also provides maternal-fetal care services, including inpatient and office-based clinical care to expectant mothers and their unborn babies through affiliated maternal-fetal medicine subspecialists, as well as obstetricians and other clinicians. In addition, it offers pediatric cardiology care services comprising inpatient and office-based pediatric cardiology care of the fetus, infant, child, and adolescent patient with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through affiliated pediatric cardiologist subspecialists and other related clinical professionals. Further, the company provides other pediatric subspecialty care services through pediatric subspecialists, such as pediatric intensivists, pediatric hospitalists, pediatric surgeons, pediatric ophthalmology, other newborn pediatric care, and newborn hearing screening program, as well as pediatric ear, nose, and throat physicians; and support services in the areas of hospitals, primarily in the pediatric emergency rooms, labor and delivery areas, and nursery and pediatric departments. It operates through a network of approximately 4,325 physicians. The company was founded in 1979 and is based in Sunrise, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 04:28
End of Day Share Price2020/04/03 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.