Medifast
Market Cap
US$1.1b
Last Updated
2020/02/27 01:09 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.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and undervalued.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-6.9%
MED
-10.4%
US Personal Products
-7.6%
US Market
1 Year Return
-25.9%
MED
6.6%
US Personal Products
10.2%
US Market
Return vs Industry: MED underperformed the US Personal Products industry which returned 8.1% over the past year.
Return vs Market: MED underperformed the US Market which returned 10.5% over the past year.
Shareholder returns
| MED | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.9% | -10.4% | -7.6% |
| 30 Day | -7.4% | -4.2% | -4.5% |
| 90 Day | 7.5% | -5.2% | -0.6% |
| 1 Year | -23.6%-25.9% | 8.1%6.6% | 12.5%10.2% |
| 3 Year | 121.8%106.1% | 52.1%44.5% | 37.1%28.3% |
| 5 Year | 237.4%201.6% | 48.4%32.6% | 60.8%43.2% |
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
Medifast, Inc.'s (NYSE:MED) Attractive Combination: Does It Earn A Place In Your Dividend Portfolio?3 weeks ago | Simply Wall St
How Should Investors Feel About Medifast, Inc.'s (NYSE:MED) CEO Pay?1 month ago | Simply Wall St
How Does Medifast's (NYSE:MED) P/E Compare To Its Industry, After Its Big Share Price Gain?Valuation
Is Medifast 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: MED ($95.06) is trading below our estimate of fair value ($263.96)
Significantly Below Fair Value: MED is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MED is good value based on its PE Ratio (15.2x) compared to the Personal Products industry average (15.2x).
PE vs Market: MED is good value based on its PE Ratio (15.2x) compared to the US market (17.2x).
Price to Earnings Growth Ratio
PEG Ratio: MED is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: MED is overvalued based on its PB Ratio (9.9x) compared to the US Personal Products industry average (1.9x).
Next Steps
Future Growth
How is Medifast forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
16.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MED's forecast earnings growth (16.3% per year) is above the savings rate (1.7%).
Earnings vs Market: MED's earnings (16.3% per year) are forecast to grow faster than the US market (13.2% per year).
High Growth Earnings: MED's earnings are forecast to grow, but not significantly.
Revenue vs Market: MED's revenue (14.7% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: MED's revenue (14.7% 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 MED's Return on Equity is forecast to be high in 3 years time
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) exceed its short term liabilities ($77.5M).
Long Term Liabilities: MED's short term assets ($158.3M) exceed 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?
4.78%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MED's dividend (4.75%) is higher than the bottom 25% of dividend payers in the US market (1.52%).
High Dividend: MED's dividend (4.75%) is in the top 25% of dividend payers in the US market (3.9%)
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
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Dan Chard (54yo)
3.3yrs
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 ($USD2.57M).
Compensation vs Earnings: Dan's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.3yrs | US$2.22m | 1.05% $11.6m | |
| Chief Financial Officer | 7yrs | US$1.07m | 0.38% $4.2m | |
| Executive Vice President of Information Technology | 3.5yrs | US$678.75k | 0.034% $374.5k | |
| President of Coach & Client Experience | 1yrs | US$1.30m | 0.040% $439.2k | |
| VP of Finance & Chief Accounting Officer | 0yrs | no data | no data | |
| Executive VP | 8.3yrs | US$958.21k | no data | |
| Chief Marketing Officer | 1.3yrs | no data | no data | |
| Executive Officer | 0yrs | US$221.42k | 0.017% $189.0k |
3.4yrs
Average Tenure
54yo
Average Age
Experienced Management: MED's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.3yrs | US$2.22m | 1.05% $11.6m | |
| Non-Executive Chairman | 8.3yrs | US$195.35k | 2.53% $27.8m | |
| Independent Director | 6.6yrs | US$113.35k | 0.14% $1.6m | |
| Lead Director | 4.7yrs | US$124.03k | 0.22% $2.4m | |
| Independent Director | 4.7yrs | US$107.96k | 0.040% $442.8k | |
| Independent Director | 6.8yrs | US$107.96k | 0.063% $696.8k | |
| Member of Scientific Advisory Board | 0yrs | no data | no data | |
| Chairman of Advisory Board | 0yrs | no data | no data | |
| Member of Scientific Advisory Board | 0yrs | no data | no data | |
| Member of Scientific Advisory Board | 0yrs | no data | no data |
5.6yrs
Average Tenure
62.5yo
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$1.097b
- Shares outstanding: 11.62m
- Website: https://ir.medifastinc.com
Number of Employees
Location
- Medifast, Inc.
- 100 International Drive
- 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. It offers bars, bites, pretzels, puffs, oatmeal and cereal crunch products, drinks, hearty choices, pancakes, puddings, soft serves, shakes, smoothies, soft bakes, and soups under the Medifast, OPTAVIA, Thrive by Medifast, Optimal Health by OPTAVIA, Flavors of Home, and Essential 1 brands. The company sells its products through various channels, including the Internet, call centers, independent health advisors, franchise weight loss clinics, and direct consumer marketing. The company was founded in 1980 and is headquartered in Baltimore, Maryland.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/27 01:09 |
| End of Day Share Price | 2020/02/26 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.