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Medifast

NYSE:MED
Snowflake Description

Outstanding track record with flawless balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MED
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Household
Company description

Medifast, Inc., through its subsidiaries, manufactures and distributes weight loss, weight management, healthy living products, and other consumable health and nutritional products. The last earnings update was 45 days ago. More info.


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MED Share Price and Events
7 Day Returns
0.2%
NYSE:MED
0.1%
US Personal Products
0.5%
US Market
1 Year Returns
-16%
NYSE:MED
0.8%
US Personal Products
0.8%
US Market
MED Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Medifast (MED) 0.2% -3.5% 1.4% -16% 324% 334.7%
US Personal Products 0.1% 2.9% 4.3% 0.8% 30.1% 44.3%
US Market 0.5% -0.1% 1% 0.8% 37.5% 37.5%
1 Year Return vs Industry and Market
  • MED underperformed the Personal Products industry which returned 0.8% over the past year.
  • MED underperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
MED
Industry
5yr Volatility vs Market

Value

 Is Medifast undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Medifast to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Medifast.

NYSE:MED Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MED
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Personal Products Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.692 (1 + (1- 21%) (0.83%))
0.797
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:MED using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Medifast is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:MED DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 72.87 Analyst x2 67.78
2020 98.73 Analyst x2 85.44
2021 115.59 Est @ 17.08% 93.05
2022 130.35 Est @ 12.77% 97.62
2023 143.08 Est @ 9.76% 99.67
2024 154.02 Est @ 7.65% 99.81
2025 163.53 Est @ 6.17% 98.58
2026 171.94 Est @ 5.14% 96.42
2027 179.54 Est @ 4.42% 93.66
2028 186.56 Est @ 3.91% 90.54
Present value of next 10 years cash flows $922.57
NYSE:MED DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $186.56 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$4,019.59
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,019.59 ÷ (1 + 7.5%)10
$1,950.64
NYSE:MED Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $922.57 + $1,950.64
$2,873.21
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,873.21 / 11.90
$241.49
NYSE:MED Discount to Share Price
Calculation Result
Value per share (USD) From above. $241.49
Current discount Discount to share price of $137.29
= -1 x ($137.29 - $241.49) / $241.49
43.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Medifast is available for.
Intrinsic value
43%
Share price is $137.29 vs Future cash flow value of $241.49
Current Discount Checks
For Medifast to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Medifast's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Medifast's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Medifast's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Medifast's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MED PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $5.40
NYSE:MED Share Price ** NYSE (2019-06-14) in USD $137.29
United States of America Personal Products Industry PE Ratio Median Figure of 20 Publicly-Listed Personal Products Companies 22.16x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Medifast.

NYSE:MED PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MED Share Price ÷ EPS (both in USD)

= 137.29 ÷ 5.40

25.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Medifast is overvalued based on earnings compared to the US Personal Products industry average.
  • Medifast is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Medifast's expected growth come at a high price?
Raw Data
NYSE:MED PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.42x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
26.6%per year
United States of America Personal Products Industry PEG Ratio Median Figure of 6 Publicly-Listed Personal Products Companies 1.42x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:MED PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.42x ÷ 26.6%

0.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Medifast is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Medifast's assets?
Raw Data
NYSE:MED PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $10.28
NYSE:MED Share Price * NYSE (2019-06-14) in USD $137.29
United States of America Personal Products Industry PB Ratio Median Figure of 46 Publicly-Listed Personal Products Companies 4.04x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:MED PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MED Share Price ÷ Book Value per Share (both in USD)

= 137.29 ÷ 10.28

13.35x

* Primary Listing of Medifast.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Medifast is overvalued based on assets compared to the US Personal Products industry average.
X
Value checks
We assess Medifast's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Personal Products industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Personal Products industry average (and greater than 0)? (1 check)
  5. Medifast has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Medifast expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
26.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Medifast expected to grow at an attractive rate?
  • Medifast's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Medifast's earnings growth is expected to exceed the United States of America market average.
  • Medifast's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MED Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MED Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 26.6%
NYSE:MED Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 25.9%
United States of America Personal Products Industry Earnings Growth Rate Market Cap Weighted Average 23.7%
United States of America Personal Products Industry Revenue Growth Rate Market Cap Weighted Average 6.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MED Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MED Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 913 112 104 2
2019-12-31 738 88 83 2
NYSE:MED Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 568 76 64
2018-12-31 501 61 56
2018-09-30 433 55 47
2018-06-30 371 61 40
2018-03-31 330 55 34
2017-12-31 302 43 28
2017-09-30 286 33 25
2017-06-30 277 27 24
2017-03-31 273 24 20
2016-12-31 275 25 18
2016-09-30 273 28 18
2016-06-30 271 30 17

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Medifast's earnings are expected to grow significantly at over 20% yearly.
  • Medifast's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MED Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Medifast Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MED Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 8.43 8.63 8.23 2.00
2019-12-31 6.77 6.80 6.73 2.00
NYSE:MED Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 5.40
2018-12-31 4.67
2018-09-30 3.96
2018-06-30 3.37
2018-03-31 2.83
2017-12-31 2.32
2017-09-30 2.06
2017-06-30 2.01
2017-03-31 1.66
2016-12-31 1.51
2016-09-30 1.49
2016-06-30 1.43

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Medifast will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Medifast's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Medifast has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Medifast performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Medifast's growth in the last year to its industry (Personal Products).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Medifast has delivered over 20% year on year earnings growth in the past 5 years.
  • Medifast's 1-year earnings growth exceeds its 5-year average (90.3% vs 20.4%)
  • Medifast's earnings growth has exceeded the US Personal Products industry average in the past year (90.3% vs 25%).
Earnings and Revenue History
Medifast's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Medifast Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MED Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 568.28 64.32 350.91 0.23
2018-12-31 501.00 55.79 310.84
2018-09-30 433.17 47.44 269.19 2.00
2018-06-30 371.13 40.35 227.67 1.74
2018-03-31 329.54 33.80 202.49 1.54
2017-12-31 301.56 27.72 186.68 1.50
2017-09-30 286.02 24.53 177.41 1.60
2017-06-30 277.40 23.91 172.72 1.54
2017-03-31 272.81 19.72 168.01 2.07
2016-12-31 274.53 17.84 169.56 2.00
2016-09-30 273.38 17.62 167.47 3.30
2016-06-30 270.74 16.96 165.77 3.00
2016-03-31 271.75 19.41 168.78 2.11
2015-12-31 272.77 19.57 168.75 1.80
2015-09-30 273.76 18.25 167.06
2015-06-30 276.85 18.13 169.99
2015-03-31 279.42 18.90 171.46
2014-12-31 285.29 21.03 173.06 1.30
2014-09-30 267.44 26.90 156.70
2014-06-30 284.90 27.29 170.06
2014-03-31 307.24 27.75 186.64
2013-12-31 324.05 27.14 202.16
2013-09-30 362.84 20.54 235.71
2013-06-30 367.33 22.08 237.46
2013-03-31 363.83 17.82 240.57
2012-12-31 318.57 18.44 205.07
2012-09-30 343.04 15.18 235.74
2012-06-30 328.14 13.04 226.23

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Medifast made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Medifast used its assets more efficiently than the US Personal Products industry average last year based on Return on Assets.
  • Medifast has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Medifast's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Personal Products industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Medifast has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Medifast's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Medifast's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Medifast is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Medifast's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Medifast's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 9.531305661376E+16x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Medifast Company Filings, last reported 2 months ago.

NYSE:MED Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 122.07 13.55 120.43
2018-12-31 109.11 0.00 101.03
2018-09-30 111.64 0.00 103.22
2018-06-30 102.86 0.00 103.32
2018-03-31 113.63 0.00 109.24
2017-12-31 108.58 0.00 98.83
2017-09-30 108.21 0.00 95.73
2017-06-30 104.18 0.00 88.55
2017-03-31 99.17 0.00 78.96
2016-12-31 96.02 0.00 76.85
2016-09-30 94.93 0.06 82.06
2016-06-30 91.27 0.11 79.59
2016-03-31 89.86 0.17 71.65
2015-12-31 88.58 0.22 67.11
2015-09-30 86.81 0.30 66.49
2015-06-30 88.20 0.36 65.04
2015-03-31 84.83 0.42 61.38
2014-12-31 80.48 0.47 52.64
2014-09-30 82.55 0.53 55.63
2014-06-30 97.51 0.59 68.57
2014-03-31 105.17 0.64 77.36
2013-12-31 98.42 0.70 67.80
2013-09-30 111.34 0.75 82.01
2013-06-30 104.55 0.83 78.11
2013-03-31 97.31 0.92 68.90
2012-12-31 90.79 4.34 59.99
2012-09-30 87.23 4.48 62.92
2012-06-30 79.40 4.62 56.56
  • Medifast's level of debt (0%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (0.6% vs 0% today).
  • Debt is well covered by operating cash flow (4.2526365381352E+18%, greater than 20% of total debt).
  • Medifast earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Medifast's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Medifast has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.19%
Current annual income from Medifast dividends.
If you bought $2,000 of Medifast shares you are expected to receive $44 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Medifast's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Medifast's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MED Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Personal Products Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MED Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31
NYSE:MED Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-13 3.000 2.170
2019-03-13 3.000 2.168
2018-12-11 3.000 2.386
2018-09-06 1.920 1.021
2018-06-14 1.920 1.046
2018-03-15 1.920 1.727
2017-12-06 1.920 2.697
2017-09-07 1.280 2.063
2017-06-07 1.280 2.839
2017-03-07 1.280 2.922
2016-12-08 1.280 3.009
2016-09-08 1.000 2.555
2016-06-15 1.000 2.883
2016-03-09 1.000 3.183

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Medifast has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Medifast only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Medifast's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Medifast's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Medifast afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Medifast has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dan Chard
COMPENSATION $2,218,375
AGE 53
TENURE AS CEO 2.7 years
CEO Bio

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, Inc. (also known as, PartyLite) since October 13, 2015 until October 2016. Mr. Chard has over 25 years of direct selling and consumer products experience. Mr. Chard served as the President of Global Sales and Operations at Nu Skin Enterprises Inc. since 2006 until September 8, 2015. Mr. Chard served as a Vice President of Big Planet at Nu Skin Enterprises Inc. since September 2002 until March 2004 and served as its Executive Vice President of Distributor Success since February 2006 until May 2009 and its President of Nu Skin Europe since April 2004 until February 2006, and in various other roles of increasing responsibility since he joined Nu Skin in 1998. He served as a Vice President of Marketing and Product Management at Big Planet Division since September 2002 until March 2004 and Senior Director of Marketing and Product Development for Pharmanex since September 1998 until June 2000. He worked in a variety of strategic management positions including Senior Vice President of Marketing and Product Management at Broadlane and Promedix, leaders in the health care supply chain management industry since July 2000 until August 2002. He worked for PUR Recovery Engineering, a consumer products manufacturer, since October 1997 until October 1998 as the Director of Marketing and also spent six years in marketing management with The Pillsbury Company. He has been Director of Medifast, Inc. since October 3 2016. Mr. Chard holds a B.A. in Economics from Brigham Young University and an M.B.A. from the University of Minnesota.

CEO Compensation
  • Dan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dan's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Medifast management team in years:

2.8
Average Tenure
53
Average Age
  • The tenure for the Medifast management team is about average.
Management Team

Dan Chard

TITLE
CEO & Director
COMPENSATION
$2M
AGE
53
TENURE
2.7 yrs

Timothy Robinson

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
56
TENURE
6.3 yrs

Bill Baker

TITLE
Executive Vice President of Information Technology
COMPENSATION
$679K
AGE
46
TENURE
2.8 yrs

Nicholas Johnson

TITLE
Executive VP of Coach Success Market President of OPTAVIA USA
COMPENSATION
$1M
AGE
38
TENURE
0.3 yrs

Jason Groves

TITLE
Executive VP
COMPENSATION
$958K
AGE
47
TENURE
7.6 yrs

Tony Tyree

TITLE
Chief Marketing Officer
AGE
53
TENURE
0.7 yrs

Joseph Kelleman

TITLE
VP of Finance & Corporate Controller
COMPENSATION
$221K
AGE
63
TENURE
6.3 yrs
Board of Directors Tenure

Average tenure and age of the Medifast board of directors in years:

5
Average Tenure
61.5
Average Age
  • The tenure for the Medifast board of directors is about average.
Board of Directors

Mike MacDonald

TITLE
Non-Executive Chairman
COMPENSATION
$195K
AGE
65
TENURE
7.6 yrs

Dan Chard

TITLE
CEO & Director
COMPENSATION
$2M
AGE
53
TENURE
2.7 yrs

Lawrence Cheskin

TITLE
Chairman of Advisory Board

Kevin Byrnes

TITLE
Independent Director
COMPENSATION
$108K
AGE
71
TENURE
6.1 yrs

Carl Sassano

TITLE
Independent Director
COMPENSATION
$113K
AGE
68
TENURE
5.9 yrs

Connie Hallquist

TITLE
Independent Director
COMPENSATION
$108K
AGE
54
TENURE
4 yrs

Jeff Brown

TITLE
Lead Director
COMPENSATION
$124K
AGE
58
TENURE
4 yrs

John Foreyt

TITLE
Member of Scientific Advisory Board

Sylvia Rowe

TITLE
Member of Scientific Advisory Board

John Hayes

TITLE
Member of Scientific Advisory Board
Who owns this company?
Recent Insider Trading
  • Medifast insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. May 19 Sell Carl Sassano Individual 08. May 19 08. May 19 -850 $143.94 $-122,349
14. Mar 19 Sell Carl Sassano Individual 12. Mar 19 12. Mar 19 -5,000 $135.47 $-677,350
12. Mar 19 Sell Scott Schlackman Individual 08. Mar 19 08. Mar 19 -2,000 $131.21 $-261,844
08. Mar 19 Sell Michael MacDonald Individual 05. Mar 19 05. Mar 19 -18,825 $133.34 $-2,469,710
06. Dec 18 Sell Constance Hallquist Individual 03. Dec 18 03. Dec 18 -1,343 $153.84 $-206,607
15. Nov 18 Buy Michael Hoer Individual 12. Nov 18 12. Nov 18 200 $156.23 $31,246
14. Nov 18 Sell Constance Hallquist Individual 09. Nov 18 09. Nov 18 -1,343 $160.12 $-215,041
13. Nov 18 Buy Daniel Chard Individual 08. Nov 18 08. Nov 18 975 $153.28 $149,448
X
Management checks
We assess Medifast's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Medifast has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Who Has Been Selling Medifast, Inc. (NYSE:MED) Shares?

But logic dictates you should pay some attention to whether insiders are buying or selling shares. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. … Insiders at Medifast Have Sold Stock Recently The last three months saw significant insider selling at Medifast.

Simply Wall St -

Do Medifast's (NYSE:MED) Earnings Warrant Your Attention?

But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Medifast (NYSE:MED). … In the chart below, you can see how the company has grown earnings, and revenue, over time. … As a result, I'm encouraged by the fact that insiders own Medifast shares worth a considerable sum.

Simply Wall St -

Boasting A 53% Return On Equity, Is Medifast, Inc. (NYSE:MED) A Top Quality Stock?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Medifast: 53% = US$64m ÷ US$122m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … How Does Debt Impact Return On Equity?

Simply Wall St -

Is Medifast, Inc. (NYSE:MED) A Smart Choice For Dividend Investors?

It's good to see Medifast has been growing its earnings per share at 22% a year over the past 5 years. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. … We were also glad to see it growing earnings, although its dividend history is not as long as we'd like.

Simply Wall St -

Shareholders Are Raving About How The Medifast (NYSE:MED) Share Price Increased 395%

(NYSE:MED) share price has soared 395% over five years. … During five years of share price growth, Medifast achieved compound earnings per share (EPS) growth of 19% per year. … This EPS growth is lower than the 38% average annual increase in the share price.

Simply Wall St -

Are Investors Undervaluing Medifast, Inc. (NYSE:MED) By 38%?

I will be using the Discounted Cash Flow (DCF) model! … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

Is Medifast, Inc.'s (NYSE:MED) CEO Being Overpaid?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Dan Chard's Compensation Compare With Similar Sized Companies. … is worth US$1.6b, and total annual CEO compensation is US$1.6m.

Simply Wall St -

Medifast, Inc. (NYSE:MED): 2 Days To Buy Before The Ex-Dividend Date

Have you been keeping an eye on Medifast, Inc.'s (NYSE:MED) upcoming dividend of US$0.75 per share payable on the 07 May 2019? … Well, keep on reading because today, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

Simply Wall St -

Who Has Been Selling Medifast, Inc. (NYSE:MED) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Medifast, Inc. … That means that an insider was selling shares at slightly below the current price (US$131). … It's not particularly great to see insiders were selling shares around current prices

Simply Wall St -

Are Medifast, Inc.'s (NYSE:MED) Interest Costs Too High?

However, it also faces higher cost of capital given interest cost is generally lower than equity. … Is MED right in choosing financial flexibility over lower cost of capital … Debt capital generally has lower cost of capital compared to equity funding.

Simply Wall St -

Company Info

Description

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.

Details
Name: Medifast, Inc.
MED
Exchange: NYSE
Founded: 1980
$1,633,432,349
11,897,679
Website: http://www.medifastinc.com.
Address: Medifast, Inc.
100 International Drive,
Baltimore,
Maryland, 21202,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MED Common Stock New York Stock Exchange US USD 30. Dec 1993
DB MDF Common Stock Deutsche Boerse AG DE EUR 30. Dec 1993
LSE 0K05 Common Stock London Stock Exchange GB USD 30. Dec 1993
Number of employees
Current staff
Staff numbers
420
Medifast employees.
Industry
Personal Products
Household
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 23:50
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/05/31
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.