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Market Cap

US$2.8b

Last Updated

2021/04/16 22:49 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


Snowflake Analysis

Flawless balance sheet with solid 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

7.2%

MED

2.8%

US Personal Products

1.3%

US Market


1 Year Return

266.1%

MED

79.2%

US Personal Products

53.9%

US Market

Return vs Industry: MED exceeded the US Personal Products industry which returned 87.7% over the past year.

Return vs Market: MED exceeded the US Market which returned 57.5% over the past year.


Shareholder returns

MEDIndustryMarket
7 Day7.2%2.8%1.3%
30 Day-6.5%2.9%3.3%
90 Day13.7%19.2%8.9%
1 Year276.2%266.1%80.3%79.2%56.6%53.9%
3 Year161.1%139.8%75.9%68.9%64.4%53.6%
5 Year794.4%677.6%110.4%93.1%120.4%95.7%

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

Valuation

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

27.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MED ($235) is trading above our estimate of fair value ($83.15)

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 (26.9x) compared to the US Personal Products industry average (19.9x).

PE vs Market: MED is poor value based on its PE Ratio (26.9x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: MED is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: MED is overvalued based on its PB Ratio (17.5x) compared to the US Personal Products industry average (3x).


Future Growth

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

16.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MED's forecast earnings growth (16.2% per year) is above the savings rate (2%).

Earnings vs Market: MED's earnings (16.2% per year) are forecast to grow slower than the US market (18.4% per year).

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

Revenue vs Market: MED's revenue (15% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: MED's revenue (15% 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 (60%).


Past Performance

How has Medifast performed over the past 5 years?

37.0%

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%) are higher than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: MED's earnings have grown significantly by 37% per year over the past 5 years.

Accelerating Growth: MED's earnings growth over the past year (32.1%) is below its 5-year average (37% per year).

Earnings vs Industry: MED earnings growth over the past year (32.1%) exceeded the Personal Products industry 23.8%.


Return on Equity

High ROE: MED's Return on Equity (65.4%) is considered outstanding.


Financial Health

How is Medifast's financial position?


Financial Position Analysis

Short Term Liabilities: MED's short term assets ($234.3M) exceed its short term liabilities ($111.4M).

Long Term Liabilities: MED's short term assets ($234.3M) exceed its long term liabilities ($7.5M).


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


Dividend

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

2.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MED's dividend (2.42%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: MED's dividend (2.42%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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 (51.7%), MED's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MED's dividends in 3 years are forecast to be well covered by earnings (37.6% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Dan Chard (55 yo)

4.5yrs

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 ($USD4.67M) is about average for companies of similar size in the US market ($USD5.19M).

Compensation vs Earnings: Dan's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MED's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: MED's board of directors are considered experienced (5.8 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$2.791b
  • Shares outstanding: 11.71m
  • Website: https://medifastinc.com

Number of Employees


Location

  • Medifast, Inc.
  • 100 International Drive
  • 18th Floor
  • Baltimore
  • Maryland
  • 21202
  • United States

Listings


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 22:49
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.