NYSE:MED

Stock Analysis Report

Executive Summary

Medifast, Inc., through its subsidiaries, manufactures and distributes weight loss, weight management, healthy living products, and other consumable health and nutritional products.

Snowflake

Flawless balance sheet with solid track record.


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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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.4%

MED

2.4%

US Personal Products

0.5%

US Market


1 Year Return

-44.7%

MED

23.4%

US Personal Products

16.1%

US Market

Return vs Industry: MED underperformed the US Personal Products industry which returned 23.4% over the past year.

Return vs Market: MED underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

MEDIndustryMarket
7 Day4.4%2.4%0.5%
30 Day-17.9%3.5%3.9%
90 Day-21.5%-0.9%6.6%
1 Year-43.3%-44.7%25.3%23.4%18.7%16.1%
3 Year120.5%105.5%61.8%53.4%47.2%37.7%
5 Year211.8%181.6%75.2%57.4%61.5%43.7%

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?

16.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MED ($83.46) is trading below our estimate of fair value ($100.49)

Significantly Below Fair Value: MED is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MED is good value based on its PE Ratio (13.4x) compared to the Personal Products industry average (15.6x).

PE vs Market: MED is good value based on its PE Ratio (13.4x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: MED is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: MED is overvalued based on its PB Ratio (8.7x) compared to the US Personal Products industry average (2.5x).


Next Steps

Future Growth

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

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MED's forecast earnings growth (12.2% per year) is above the savings rate (2.7%).

Earnings vs Market: MED's earnings (12.2% per year) are forecast to grow slower than the US market (14.3% 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 (7.3% 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 (73.9%).


Next Steps

Past Performance

How has Medifast performed over the past 5 years?

31.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MED has high quality earnings.

Growing Profit Margin: MED's current net profit margins (10.7%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: MED's earnings have grown significantly by 31.2% per year over the past 5 years.

Accelerating Growth: MED's earnings growth over the past year (55.3%) exceeds its 5-year average (31.2% per year).

Earnings vs Industry: MED earnings growth over the past year (55.3%) exceeded the Personal Products industry 21.4%.


Return on Equity

High ROE: MED's Return on Equity (66.3%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Medifast's financial position?


Financial Position Analysis

Short Term Liabilities: MED's short term assets ($158.3M) exceeds its short term liabilities ($77.5M)

Long Term Liabilities: MED's short term assets ($158.3M) exceeds its long term liabilities (9.9M)


Debt to Equity History and Analysis

Debt Level: MED is debt free.

Reducing Debt: MED had no debt 5 years ago.

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

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

Debt Coverage by Assets: Insufficient data to determine if MED's debt is covered by short term assets.


Next Steps

Dividend

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

3.59%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: MED's dividend (3.59%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: MED's dividend (3.59%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.1%), MED's dividend payments are well 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

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

3.3yrs

Average management tenure


CEO

Dan Chard (54yo)

3.1yrs

Tenure

US$2,218,375

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. Mr. Chard served as President and Chief Operating Officer at Blyth,  ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD2.22M) is about average for companies of similar size in the US market ($USD2.63M).

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


Management Age and Tenure

3.3yrs

Average Tenure

54yo

Average Age

Experienced Management: MED's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

62.5yo

Average Age

Experienced Board: MED's board of directors are considered experienced (5.4 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.


Recent Insider Transactions

SellUS$57,285,82318 Nov 19
Engaged Capital, LLC
EntityCompany
Shares567,892
Max PriceUS$102.88
BuyUS$018 Nov 19
Engaged Capital, LLC
EntityCompany
Shares478,660
Max PriceUS$106.13
SellUS$122,34909 May 19
Carl Sassano
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares850
Max PriceUS$143.94
SellUS$677,35014 Mar 19
Carl Sassano
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$135.47
SellUS$261,84412 Mar 19
Scott Schlackman
EntityIndividual
Shares2,000
Max PriceUS$131.21
SellUS$2,469,71008 Mar 19
Michael MacDonald
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares18,825
Max PriceUS$133.34
SellUS$206,60706 Dec 18
Constance Hallquist
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,343
Max PriceUS$153.84

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Dan Chard (54yo)

    CEO & Director

    • Tenure: 3.1yrs
    • Compensation: US$2.22m
  • Jason Groves (48yo)

    Executive VP

    • Tenure: 8yrs
    • Compensation: US$958.21k
  • Joseph Kelleman (64yo)

    VP of Finance & Corporate Controller

    • Tenure: 6.7yrs
    • Compensation: US$221.42k
  • Timothy Robinson (57yo)

    Chief Financial Officer

    • Tenure: 6.8yrs
    • Compensation: US$1.07m
  • Bill Baker (47yo)

    Executive Vice President of Information Technology

    • Tenure: 3.3yrs
    • Compensation: US$678.75k
  • Tony Tyree (54yo)

    Chief Marketing Officer

    • Tenure: 1.1yrs
  • Nicholas Johnson (39yo)

    Executive VP of Coach Success Market President of OPTAVIA USA

    • Tenure: 0.8yrs
    • Compensation: US$1.30m

Board Members

  • Mike MacDonald (66yo)

    Non-Executive Chairman

    • Tenure: 8yrs
    • Compensation: US$195.35k
  • Carl Sassano (69yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$113.35k
  • Jeff Brown (59yo)

    Lead Director

    • Tenure: 4.4yrs
    • Compensation: US$124.03k
  • Connie Hallquist (55yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$107.96k
  • Kevin Byrnes (72yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$107.96k
  • Dan Chard (54yo)

    CEO & Director

    • Tenure: 3.1yrs
    • Compensation: US$2.22m
  • John Foreyt

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Lawrence Cheskin

    Chairman of Advisory Board

    • Tenure: 0yrs
  • Sylvia Rowe

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • John Hayes

    Member of Scientific Advisory Board

    • Tenure: 0yrs

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$969.419m
  • Shares outstanding: 11.62m
  • Website: https://www.medifastinc.com.

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MEDNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1993
MDFDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1993
0K05LSE (London Stock Exchange)YesCommon StockGBUSDDec 1993

Biography

Medifast, Inc., through its subsidiaries, manufactures and distributes weight loss, weight management, healthy living products, and other consumable health and nutritional products. It offers bars, bites,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 23:46
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
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.