Medifast
Market Cap
US$2.6b
Last Updated
2021/01/19 23:17 UTC
Data Sources
Company Financials +
Executive Summary
Medifast, Inc., through its subsidiaries, manufactures and distributes weight loss, weight management, healthy living products, and other consumable health and nutritional products in the United States and the Asia-Pacific. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with proven track record.
Similar Companies
Share Price & News
How has Medifast's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MED is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: MED's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
6.4%
MED
-4.8%
US Personal Products
-0.4%
US Market
1 Year Return
91.7%
MED
12.7%
US Personal Products
19.5%
US Market
Return vs Industry: MED exceeded the US Personal Products industry which returned 12.7% over the past year.
Return vs Market: MED exceeded the US Market which returned 19.5% over the past year.
Shareholder returns
| MED | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.4% | -4.8% | -0.4% |
| 30 Day | 10.9% | -0.9% | 2.3% |
| 90 Day | 50.3% | 18.4% | 12.7% |
| 1 Year | 99.2%91.7% | 13.6%12.7% | 22.3%19.5% |
| 3 Year | 233.0%206.0% | 51.5%45.0% | 44.4%34.8% |
| 5 Year | 775.8%659.5% | 107.8%91.6% | 128.7%103.3% |
Long-Term Price Volatility Vs. Market
How volatile is Medifast's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is It Too Late To Consider Buying Medifast, Inc. (NYSE:MED)?4 weeks ago | Simply Wall St
Would Medifast, Inc. (NYSE:MED) Be Valuable To Income Investors?1 month ago | Simply Wall St
How Much Are Medifast, Inc. (NYSE:MED) Insiders Taking Off The Table?Valuation
Is Medifast undervalued compared to its fair value and its price relative to the market?
27.49x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MED ($222) is trading above our estimate of fair value ($149.57)
Significantly Below Fair Value: MED is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MED is poor value based on its PE Ratio (27.5x) compared to the US Personal Products industry average (18.8x).
PE vs Market: MED is poor value based on its PE Ratio (27.5x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: MED is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: MED is overvalued based on its PB Ratio (18.6x) compared to the US Personal Products industry average (2.1x).
Next Steps
Future Growth
How is Medifast forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
15.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MED's forecast earnings growth (15% per year) is above the savings rate (2%).
Earnings vs Market: MED's earnings (15% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: MED's earnings are forecast to grow, but not significantly.
Revenue vs Market: MED's revenue (12.5% per year) is forecast to grow faster than the US market (10.3% per year).
High Growth Revenue: MED's revenue (12.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MED's Return on Equity is forecast to be very high in 3 years time (67.5%).
Next Steps
Past Performance
How has Medifast performed over the past 5 years?
36.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MED has high quality earnings.
Growing Profit Margin: MED's current net profit margins (11.3%) are higher than last year (10.7%).
Past Earnings Growth Analysis
Earnings Trend: MED's earnings have grown significantly by 36.7% per year over the past 5 years.
Accelerating Growth: MED's earnings growth over the past year (28.5%) is below its 5-year average (36.7% per year).
Earnings vs Industry: MED earnings growth over the past year (28.5%) underperformed the Personal Products industry 28.5%.
Return on Equity
High ROE: MED's Return on Equity (67.7%) is considered outstanding.
Next Steps
Financial Health
How is Medifast's financial position?
Financial Position Analysis
Short Term Liabilities: MED's short term assets ($217.5M) exceed its short term liabilities ($112.0M).
Long Term Liabilities: MED's short term assets ($217.5M) exceed its long term liabilities ($8.8M).
Debt to Equity History and Analysis
Debt Level: MED is debt free.
Reducing Debt: MED has not had any debt for past 5 years.
Debt Coverage: MED has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: MED has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Medifast current dividend yield, its reliability and sustainability?
2.04%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MED's dividend (2.04%) is higher than the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: MED's dividend (2.04%) is low compared to the top 25% of dividend payers in the US market (3.85%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, MED has been paying a dividend for less than 10 years.
Growing Dividend: MED's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (56%), MED's dividend payments are covered by earnings.
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
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Dan Chard (55 yo)
4.25yrs
Tenure
US$4,669,993
Compensation
Mr. Daniel R. Chard, also known as Dan, has been Chief Executive Officer of Medifast, Inc. since October 3 2016 and Director since 2016 and also serves as its Executive Chairman since December 10, 2020. Mr...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($USD4.67M) is about average for companies of similar size in the US market ($USD5.00M).
Compensation vs Earnings: Dan's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & CEO | 4.25yrs | US$4.67m | 1.04% $ 27.1m | |
| Executive Vice President of Information Technology | 4.42yrs | US$933.82k | 0.094% $ 2.4m | |
| Chief Marketing Officer | 2.33yrs | US$1.06m | 0.031% $ 799.4k | |
| President of Coach & Client Experience | 1.92yrs | US$703.88k | 0.045% $ 1.2m | |
| Chief Financial Officer | 0.50yr | no data | no data | |
| Executive Vice President of Supply Chain Operations | 0.33yr | no data | no data | |
| VP of Finance & Chief Accounting Officer | 0.92yr | no data | no data | |
| Executive VP | 9.17yrs | US$958.21k | no data | |
| Executive Vice President of Human Resources | 1.25yrs | no data | no data |
1.9yrs
Average Tenure
48.5yo
Average Age
Experienced Management: MED's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & CEO | 4.25yrs | US$4.67m | 1.04% $ 27.1m | |
| Lead Independent Director | 5.58yrs | US$171.30k | 0.24% $ 6.2m | |
| Independent Director | 5.58yrs | US$138.13k | 0.045% $ 1.2m | |
| Independent Director | 7.67yrs | US$136.06k | 0.063% $ 1.6m | |
| Member of Scientific Advisory Board | no data | no data | no data | |
| Independent Director | 2.58yrs | US$135.40k | 0.0051% $ 133.2k | |
| Member of Scientific Advisory Board | no data | no data | no data | |
| Chairman of Advisory Board | no data | no data | no data | |
| Member of Scientific Advisory Board | no data | no data | no data | |
| Independent Director | 5.58yrs | US$136.06k | 0.029% $ 750.8k | |
| Member of Scientific Advisory Board | no data | no data | no data | |
| Member of Scientific Advisory Board | no data | no data | no data |
5.6yrs
Average Tenure
61yo
Average Age
Experienced Board: MED's board of directors are considered experienced (5.6 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
Medifast, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Medifast, Inc.
- Ticker: MED
- Exchange: NYSE
- Founded: 1980
- Industry: Personal Products
- Sector: Household
- Market Cap: US$2.601b
- Shares outstanding: 11.72m
- Website: https://medifastinc.com
Number of Employees
Location
- Medifast, Inc.
- 100 International Drive
- 18th Floor
- Baltimore
- Maryland
- 21202
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MED | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 1993 |
| MDF | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 1993 |
| 0K05 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Dec 1993 |
Biography
Medifast, Inc., through its subsidiaries, manufactures and distributes weight loss, weight management, healthy living products, and other consumable health and nutritional products in the United States and...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/19 23:17 |
| End of Day Share Price | 2021/01/19 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.