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Pediatrix Medical Group (MD)
NYSE:MD
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Pediatrix Medical Group
(NYSE:MD)
49Neutral
Positive Factors
Financial Performance
MD's 4Q results exceeded expectations with significant beats in volume, rate trends, and revenue.
Mergers and Acquisitions
Strong performance and conservative FY25 guidance make MD a potential candidate for private equity mergers and acquisitions.
Negative Factors
Future Growth Concerns
There is caution on the sustainability of these trends and MD's ability to create out-year growth if this favorable payer mix were to moderate or end.
Guidance Concerns
The FY25 EBITDA guidance was initially disappointing due to flat expectations compared to FY24.
Pediatrix Medical Group (MD) vs. S&P 500 (SPY)
Market Cap
$1.07B
Dividend YieldN/A
Average Volume (3M)691.49K
Price to Earnings (P/E)―
Beta (1Y)0.13
Revenue Growth0.92%
EPS Growth-65.03%
CountryUS
Employees4,120
SectorHealthcare
Sector Strength69
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-1.20
Shares Outstanding85,816,880
10 Day Avg. Volume572,611
30 Day Avg. Volume691,494
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.61
Price to Cash Flow (P/CF)2.30
P/FCF Ratio2.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.08Price Target Upside47.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Pediatrix Medical Group Business Overview & Revenue Model
Company DescriptionPediatrix Medical Group, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States and Puerto Rico. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians. The company also provides maternal-fetal care services, including inpatient and office-based clinical care to expectant mothers and unborn babies through affiliated maternal-fetal medicine subspecialists, as well as obstetricians and other clinicians, including maternal-fetal nurse practitioners, certified nurse mid-wives, ultrasonographers, and genetic counselors. In addition, it offers pediatric cardiology care services comprising inpatient and office-based pediatric cardiology care of the fetus, infant, child, and adolescent patient with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through affiliated pediatric cardiologist subspecialists and other related clinical professionals; and specialized cardiac care to the fetus, neonatal and pediatric patients. Further, the company provides other pediatric subspecialty care services through pediatric subspecialists, such as pediatric intensivists, pediatric hospitalists, pediatric surgeons, and pediatric ophthalmologists, as well as pediatric ear, nose, and throat physicians; and support services in the areas of hospitals, primarily in the pediatric emergency rooms, labor and delivery areas, and nursery and pediatric departments. As of February 17, 2022, it operated a network of approximately 2,700 physicians. The company was formerly known as MEDNAX, Inc. and changed its name to Pediatrix Medical Group, Inc. in July 2022. Pediatrix Medical Group, Inc. was founded in 1979 and is based in Sunrise, Florida.
How the Company Makes MoneyPediatrix Medical Group generates revenue primarily through contracts with hospitals and healthcare facilities, where it provides specialized medical services. The company bills for its services through a combination of fee-for-service and value-based care models. Revenue is also derived from reimbursements from private insurance companies, government programs such as Medicare and Medicaid, and direct patient payments. Significant partnerships with hospitals allow the company to maintain a steady stream of income, while strategic acquisitions and collaborations contribute to its growth and expansion in the healthcare sector.
Pediatrix Medical Group Financial Statement Overview
Summary
Pediatrix Medical Group faces profitability challenges, with negative operating margins and net losses. The balance sheet is moderately leveraged but stable, and strong cash flow generation offers some reassurance amidst operational difficulties.Income Statement
The company has experienced a decline in profitability with a negative net profit margin of -5.15% in 2024 compared to -3.03% in 2023. Revenue growth is modest at 0.92%, but the EBIT margin has turned negative. These factors indicate challenges in maintaining efficient operations and profitability.40
Negative
Balance Sheet
The debt-to-equity ratio is 0.87, reflecting a moderate level of leverage, while the equity ratio stands at 35.5%, indicating a reasonable financial structure. However, the decline in stockholders' equity and negative ROE due to consecutive net losses are concerning.55
Neutral
Cash Flow
Free cash flow has grown significantly by 87.70%, and the operating cash flow to net income ratio is robust, reflecting strong cash generation capabilities. However, consistent net losses pose a risk to sustainable cash flow generation.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.01B | 1.99B | 1.97B | 1.91B | 1.73B | Gross Profit |
| 2.01B | 421.56M | 467.03M | 513.24M | 449.32M | EBIT |
| -68.71M | 7.32M | 172.69M | 202.92M | 173.52M | EBITDA |
| -28.37M | 29.89M | 235.64M | 249.88M | 200.37M | Net Income Common Stockholders |
| -103.61M | -60.41M | 66.33M | 130.96M | -9.58M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 348.51M | 177.74M | 9.82M | 387.39M | 1.23B | Total Assets |
| 2.15B | 2.22B | 2.35B | 2.72B | 3.35B | Total Debt |
| 662.31M | 701.65M | 753.57M | 1.07B | 1.80B | Net Debt |
| 432.37M | 628.39M | 743.74M | 678.44M | 680.87M | Total Liabilities |
| 1.39B | 1.37B | 1.46B | 1.83B | 2.60B | Stockholders Equity |
| 764.94M | 849.06M | 891.63M | 896.69M | 747.72M |
| Cash Flow | Free Cash Flow | |||
| 184.55M | 104.00M | 137.23M | 44.49M | 175.83M | Operating Cash Flow |
| 206.57M | 137.32M | 166.94M | 76.74M | 204.62M | Investing Cash Flow |
| -35.41M | -48.18M | -56.95M | -53.07M | 815.51M | Financing Cash Flow |
| -14.48M | -25.71M | -487.55M | -760.12M | -4.16M |
Pediatrix Medical Group Technical Analysis
Negative
12.25
Price Trends
14.10
Negative
14.03
Negative
12.68
Negative
Market Momentum
-0.53
Positive
36.09
Neutral
22.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MD, the sentiment is Negative. The current price of 12.25 is below the 20-day moving average (MA) of 13.34, below the 50-day MA of 14.10, and below the 200-day MA of 12.68, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 36.09 is Neutral, neither overbought nor oversold. The STOCH value of 22.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MD.
Pediatrix Medical Group Risk Analysis
Pediatrix Medical Group disclosed 40 risk factors in its most recent earnings report. Pediatrix Medical Group reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pediatrix Medical Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $887.50M | 36.15 | 10.40% | ― | 27.59% | 61.97% | |
68 Neutral | $1.46B | 14.45 | 10.79% | 2.58% | 15.25% | 51.77% | |
65 Neutral | $1.07B | 37.86 | 5.75% | 2.54% | 11.00% | 37.38% | |
57 Neutral | $1.25B | ― | -65.55% | ― | 3.95% | -5.53% | |
51 Neutral | $5.32B | 3.32 | -40.25% | 2.90% | 17.93% | 2.14% | |
49 Neutral | $1.07B | ― | -12.28% | ― | 0.92% | -65.03% | |
44 Neutral | $891.58M | ― | 42.49% | ― | 6.82% | 92.03% |
* Healthcare Sector Average
Performance Comparison
MD
Pediatrix Medical Group
12.25
3.21
35.51%
BKD
Brookdale Senior Living
6.30
-0.66
-9.48%
NHC
National Healthcare
94.58
5.36
6.01%
USPH
US Physical Therapy
70.53
-28.06
-28.46%
PNTG
Pennant Group
25.57
4.79
23.05%
AVAH
Aveanna Healthcare Holdings
4.57
2.37
107.73%
Pediatrix Medical Group Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -13.18% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant improvements in cash flow and debt reduction. However, ongoing salary expense growth and economic uncertainties were noted as challenges. Overall, the company remains optimistic but cautious about its future prospects.Highlights
Strong Fourth Quarter and Year-End Results
The company finished 2024 with strong fourth quarter results, driven by favorable payer mix and positive volume, resulting in an adjusted EBITDA of $69 million, significantly above expectations.
Successful Portfolio Restructuring
The company completed its portfolio restructuring on time, exiting practices that represented $200 million in annual revenue and improved operating efficiency.
Reduction in Net Debt
The company reduced its net debt to $386 million from $515 million as of September 30th, reflecting a net leverage of just over 1.7 times.
Strong Cash Flow Generation
The company generated $135 million in operating cash flow in the fourth quarter, a significant increase from $73 million in the prior year.
Lowlights
Continued Salary Expense Growth
Same unit salary expense growth continued to be above the average range of 2% to 3% seen pre-2022, indicating ongoing cost pressures.
Uncertain Economic Environment
The company acknowledged the presence of headwinds and uncertainty in the healthcare provider space, making them cautious about the year ahead.
Company Guidance
During the conference call, Pediatrix Medical Group, Inc. provided guidance for the fiscal year 2025, projecting an adjusted EBITDA between $215 million and $235 million. This expectation reflects a careful consideration of both headwinds and opportunities, following a year where 2024 adjusted EBITDA was approximately $220 million, excluding leap year effects. The company completed a portfolio restructuring, exiting practices that represented $200 million in annual revenue, and realized a $30 million annualized EBITDA benefit, of which one-third was recognized in 2024. The guidance also assumes full-year revenue of about $1.8 billion, a general and administrative expense range of $220 million to $230 million, and no anticipated contributions from mergers and acquisitions. Additionally, the company ended 2024 with a strong balance sheet, holding $230 million in cash and achieving a net debt of $386 million, translating to a net leverage of just over 1.7 times adjusted EBITDA.Pediatrix Medical Group Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Pediatrix Medical Group Appoints New CEO Mark S. Ordan
Neutral
Jan 14, 2025
On January 12, 2025, Pediatrix Medical Group appointed Mark S. Ordan as Chief Executive Officer, replacing Dr. James D. Swift. Mr. Ordan’s appointment includes an employment agreement with a detailed compensation package, highlighting the company’s strategic leadership transition and potential impact on its corporate governance and market positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.