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


Market Performance


7 Day Return

-13.4%

MED

-12.7%

US Personal Products

-11.2%

US Market


1 Year Return

-34.4%

MED

2.2%

US Personal Products

4.1%

US Market

Return vs Industry: MED underperformed the US Personal Products industry which returned 2.2% over the past year.

Return vs Market: MED underperformed the US Market which returned 4.1% over the past year.


Shareholder returns

MEDIndustryMarket
7 Day-13.4%-12.7%-11.2%
30 Day-16.4%-7.9%-9.5%
90 Day-5.5%-8.5%-5.4%
1 Year-32.4%-34.4%3.7%2.2%6.2%4.1%
3 Year94.0%80.2%46.6%39.2%30.3%21.9%
5 Year196.9%165.4%44.8%29.4%55.0%38.0%

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?

48.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MED ($83.11) is trading below our estimate of fair value ($160.72)

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 (12.6x) compared to the Personal Products industry average (14.2x).

PE vs Market: MED is good value based on its PE Ratio (12.6x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: MED is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: MED is overvalued based on its PB Ratio (9.3x) compared to the US Personal Products industry average (2.1x).


Next Steps

Future Growth

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

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MED's forecast earnings growth (6.5% per year) is above the savings rate (1.7%).

Earnings vs Market: MED's earnings (6.5% per year) are forecast to grow slower than the US market (12.9% per year).

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

Revenue vs Market: MED's revenue (7.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: MED's revenue (7.8% 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 (81.9%).


Next Steps

Past Performance

How has Medifast performed over the past 5 years?

35.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MED has high quality earnings.

Growing Profit Margin: MED's current net profit margins (10.9%) are lower than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: MED's earnings have grown significantly by 35% per year over the past 5 years.

Accelerating Growth: MED's earnings growth over the past year (39.7%) exceeds its 5-year average (35% per year).

Earnings vs Industry: MED earnings growth over the past year (39.7%) exceeded the Personal Products industry 21.4%.


Return on Equity

High ROE: MED's Return on Equity (74.3%) is considered outstanding.


Next Steps

Financial Health

How is Medifast's financial position?


Financial Position Analysis

Short Term Liabilities: MED's short term assets ($154.2M) exceed its short term liabilities ($79.4M).

Long Term Liabilities: MED's short term assets ($154.2M) exceed its long term liabilities ($10.4M).


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: MED's debt is covered by short term assets (assets are 8.6779298269846E+16x debt).


Next Steps

Dividend

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

5.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MED's dividend (5.44%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: MED's dividend (5.44%) is in the top 25% of dividend payers in the US market (4.13%)


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 reasonable payout ratio (51.1%), MED's dividend payments are 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 ($USD2.22M) is about average for companies of similar size in the US market ($USD2.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Chard
CEO & Director3.3yrsUS$2.22m1.05% $10.5m
Timothy Robinson
Chief Financial Officer7yrsUS$1.07m0.38% $3.8m
William Baker
Executive Vice President of Information Technology3.5yrsUS$678.75k0.034% $340.2k
Nicholas Johnson
President of Coach & Client Experience1yrsUS$1.30m0.040% $398.9k
Stephen Johnson
VP of Finance & Chief Accounting Officer0yrsno datano data
Jason Groves
Executive VP8.3yrsUS$958.21kno data
Tony Tyree
Chief Marketing Officer1.3yrsno datano data
Joseph Kelleman
Executive Officer0yrsUS$221.42k0.017% $171.7k

3.4yrs

Average Tenure

54yo

Average Age

Experienced Management: MED's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Chard
CEO & Director3.3yrsUS$2.22m1.05% $10.5m
Michael MacDonald
Non-Executive Chairman8.3yrsUS$195.35k2.53% $25.2m
Carl Sassano
Independent Director6.6yrsUS$113.35k0.14% $1.4m
Jeffrey Brown
Lead Director4.7yrsUS$124.03k0.22% $2.2m
Constance Hallquist
Independent Director4.7yrsUS$107.96k0.040% $402.2k
Kevin Byrnes
Independent Director6.8yrsUS$107.96k0.063% $632.9k
John Foreyt
Member of Scientific Advisory Board0yrsno datano data
Lawrence Cheskin
Chairman of Advisory Board0yrsno datano data
Sylvia Rowe
Member of Scientific Advisory Board0yrsno datano data
John Hayes
Member of Scientific Advisory Board0yrsno datano 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$996.831m
  • Shares outstanding: 11.62m
  • Website: https://ir.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, 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 23:50
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.