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

Fundamentals

Outstanding track record with flawless balance sheet.

Risks

  • Medifast has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

0.5%

MED

-2.3%

US Personal Products

-0.02%

US Market


1 Year Return

-50.5%

MED

14.1%

US Personal Products

1.6%

US Market

MED underperformed the Personal Products industry which returned 14.1% over the past year.

MED underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

MEDIndustryMarket
7 Day0.5%-2.3%-0.02%
30 Day0.6%-2.2%2.7%
90 Day-15.9%0.7%1.4%
1 Year-49.6%-50.5%15.9%14.1%3.8%1.6%
3 Year197.1%178.9%43.0%35.6%45.2%35.8%
5 Year249.2%217.6%81.8%62.9%61.8%44.1%

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

3 weeks ago | Simply Wall St

Is Medifast, Inc. (NYSE:MED) A High Quality Stock To Own?

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Medifast is good value based on earnings compared to the US Personal Products industry average.

Medifast is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Medifast is good value based on expected growth next year.


Price Based on Value of Assets

Medifast is overvalued based on assets compared to the US Personal Products industry average.


Next Steps

Future Growth

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

24.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Medifast's revenue is expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).

Medifast's earnings are expected to grow significantly at over 20% yearly.

Medifast's revenue growth is expected to exceed the United States of America market average.

Medifast's earnings growth is expected to exceed the United States of America market average.

Medifast's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Medifast will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Medifast performed over the past 5 years?

26.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (77.4% vs 26.5%)

Medifast's earnings growth has exceeded the US Personal Products industry average in the past year (77.4% vs 21.4%).


Return on Equity

Medifast made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

Medifast used its assets more efficiently than the US Personal Products industry average last year based on Return on Assets.


Return on Capital Employed

Medifast has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Medifast's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Medifast has no debt.

Medifast had no debt 5 years ago.

Medifast has no debt, it does not need to be covered by operating cash flow.

Medifast has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Medifast has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

2.82%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Medifast before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Medifast's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Medifast's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

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 4 years.


Current Payout to Shareholders

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.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Dan Chard (54yo)

2.9yrs

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

Dan's remuneration is lower than average for companies of similar size in United States of America.

Dan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.1yrs

Average Tenure

54yo

Average Age

The tenure for the Medifast management team is about average.


Board Age and Tenure

5.2yrs

Average Tenure

62.5yo

Average Age

The tenure for the Medifast board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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
BuyUS$31,24615 Nov 18
Michael Hoer
EntityIndividual
Shares200
Max PriceUS$156.23
SellUS$215,04114 Nov 18
Constance Hallquist
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,343
Max PriceUS$160.12
BuyUS$149,44813 Nov 18
Daniel Chard
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares975
Max PriceUS$153.28

Ownership Breakdown


Management Team

  • Dan Chard (54yo)

    CEO & Director

    • Tenure: 2.9yrs
    • Compensation: US$2.22m
  • Jason Groves (48yo)

    Executive VP

    • Tenure: 7.8yrs
    • Compensation: US$958.21k
  • Joseph Kelleman (64yo)

    VP of Finance & Corporate Controller

    • Tenure: 6.5yrs
    • Compensation: US$221.42k
  • Timothy Robinson (57yo)

    Chief Financial Officer

    • Tenure: 6.6yrs
    • Compensation: US$1.07m
  • Bill Baker (47yo)

    Executive Vice President of Information Technology

    • Tenure: 3.1yrs
    • Compensation: US$678.75k
  • Tony Tyree (54yo)

    Chief Marketing Officer

    • Tenure: 0.9yrs
  • Nicholas Johnson (39yo)

    Executive VP of Coach Success Market President of OPTAVIA USA

    • Tenure: 0.6yrs
    • Compensation: US$1.30m

Board Members

  • Mike MacDonald (66yo)

    Non-Executive Chairman

    • Tenure: 7.8yrs
    • Compensation: US$195.35k
  • Carl Sassano (69yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$113.35k
  • Jeff Brown (59yo)

    Lead Director

    • Tenure: 4.3yrs
    • Compensation: US$124.03k
  • Connie Hallquist (55yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$107.96k
  • Kevin Byrnes (72yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$107.96k
  • Dan Chard (54yo)

    CEO & Director

    • Tenure: 2.9yrs
    • 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$1.261b
  • Shares outstanding: 11.84m
  • 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 Analysis2019/09/20 00:24
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
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.