Pediatrix Medical Group (MD)
NYSE:MD
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Pediatrix Medical Group
(NYSE:MD)
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Rating:54Neutral
Price Target:
$22.00
▲(1.43% Upside)
Action:DowngradedDate:02/20/26
The score is held back primarily by weak/unclear cash-flow conversion in the most recent period and a sharp revenue decline, alongside bearish technical momentum. These are partially offset by improved leverage and a positive earnings call with modest EBITDA growth guidance and strong liquidity, plus a relatively low P/E valuation.
Positive Factors
Improved leverage & ROE rebound
Net leverage below historical peaks and a rebound to ~19% ROE indicate a stronger capital structure and improved returns on invested capital. Durable lower leverage enhances financial flexibility for reinvestment, supports higher optionality on buybacks/M&A, and reduces refinancing risk during cycles.
Negative Factors
Cash flow collapse in 2025
A reported collapse to zero operating and free cash flow despite positive net income raises material earnings‑quality and cash conversion concerns. Persistently weak cash conversion would constrain capital allocation, increase refinancing dependency, and undermine the sustainability of buybacks or dividend policies.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage & ROE rebound
Net leverage below historical peaks and a rebound to ~19% ROE indicate a stronger capital structure and improved returns on invested capital. Durable lower leverage enhances financial flexibility for reinvestment, supports higher optionality on buybacks/M&A, and reduces refinancing risk during cycles.
Read all positive factors
Pediatrix Medical Group (MD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.80B
Dividend YieldN/A
Average Volume (3M)990.65K
Price to Earnings (P/E)11.0
Beta (1Y)0.57
Revenue Growth-4.21%
EPS GrowthN/A
CountryUS
Employees4,120
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.50
Shares Outstanding83,001,076
10 Day Avg. Volume1,021,799
30 Day Avg. Volume990,646
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)2.11
Price to Sales (P/S)0.95
P/FCF Ratio7.22
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue1.09
Enterprise Value/Gross Profit4.28
Enterprise Value/Ebitda7.79
Forecast
1Y Price Target
$20.67Price Target Upside-4.70% Downside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)2.23
Revenue Forecast (FY)$1.93B
Pediatrix Medical Group Business Overview & Revenue Model
Company Description
Pediatrix 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 c...
How the Company Makes Money
Pediatrix primarily makes money by delivering physician and advanced-practice-provider services and collecting professional fees for those services. Its core revenue stream is patient service revenue generated when its clinicians provide care (e.g...
Pediatrix Medical Group Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented a generally positive operational and financial picture: strong adjusted EBITDA (Q4 $66M; FY $276M), improved pricing and same-unit growth, a healthy balance sheet (cash $375M; net leverage <1x), AR improvements, and new physician alignment programs. Offsetting items include a $26M revenue headwind from portfolio restructuring, patient volume declines (≈3%), a Q4 operating cash flow decline ($115M vs $135M), and uncertainty around the potential lapse of ACA subsidy effects on payer mix. Management provided a 2026 adjusted EBITDA target modestly above 2025 (midpoint ≈+5%) while guiding revenue flat at ~$1.9B and expecting smaller share repurchases; M&A is not assumed in the outlook. On balance, the positive financial results, strong liquidity, and clear strategic initiatives outweigh the headwinds and uncertainties discussed.Positive Updates
Strong Adjusted EBITDA and Record Full Year
Q4 adjusted EBITDA of $66,000,000 (in line with upward guidance); full-year 2025 adjusted EBITDA of $276,000,000 (record practice bonuses noted). 2026 adjusted EBITDA guidance of $280,000,000 to $300,000,000 (midpoint ~5% above 2025).
Negative Updates
Revenue Headwind from Portfolio Restructuring
Consolidated revenue decrease driven by net non-same-unit activity of $26,000,000 (portfolio restructuring), partially offset by acquisitions and organic growth. Full-year 2026 revenue is guided to approximately $1,900,000,000, in line with 2025 (flat year-over-year).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Adjusted EBITDA and Record Full Year
Q4 adjusted EBITDA of $66,000,000 (in line with upward guidance); full-year 2025 adjusted EBITDA of $276,000,000 (record practice bonuses noted). 2026 adjusted EBITDA guidance of $280,000,000 to $300,000,000 (midpoint ~5% above 2025).
Read all positive updates
Company Guidance
Management guided 2026 adjusted EBITDA of $280M–$300M (midpoint ≈5% above 2025 adjusted EBITDA of $276M; Q4 2025 adj. EBITDA was $66M) with full‑year revenue targeted at about $1.9B (flat vs. 2025). They project G&A of $230M–$240M versus $241M in 2025 (midpoint ≈20 basis‑point improvement as a percentage of revenue), expect Q1 to comprise roughly 17%–19% of full‑year adjusted EBITDA (historical Q1 range 17%–21%), and assume steady volume, acuity, and payer mix (overall flat volume and pricing); the outlook includes no M&A, contemplates smaller buybacks than the $64M (2.9M shares) in Q4 (≈83M shares outstanding), and flags a potential but unquantified downside if ACA subsidy coverage lapses, while noting a strong balance sheet (cash ~$375M; net debt just over $220M; net leverage just under 1x).Pediatrix Medical Group Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
66
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.91B | 2.01B | 1.99B | 1.97B | 1.91B |
| Gross Profit | 471.88M | 454.34M | 421.56M | 467.03M | 513.24M |
| EBITDA | 274.22M | -28.37M | 29.89M | 156.70M | 236.10M |
| Net Income | 165.39M | -99.07M | -60.41M | 66.33M | 130.96M |
Balance Sheet | |||||
| Total Assets | 2.25B | 2.15B | 2.22B | 2.35B | 2.72B |
| Cash, Cash Equivalents and Short-Term Investments | 499.72M | 348.51M | 177.74M | 103.06M | 487.11M |
| Total Debt | 660.30M | 662.31M | 701.65M | 717.08M | 1.07B |
| Total Liabilities | 1.38B | 1.39B | 1.37B | 1.46B | 1.83B |
| Stockholders Equity | 865.85M | 764.94M | 849.06M | 891.63M | 896.49M |
Cash Flow | |||||
| Free Cash Flow | 252.63M | 184.55M | 104.00M | 137.23M | 44.49M |
| Operating Cash Flow | 271.09M | 206.57M | 137.32M | 166.94M | 76.74M |
| Investing Cash Flow | -18.30M | -35.41M | -48.18M | -56.95M | -53.07M |
| Financing Cash Flow | -107.49M | -14.48M | -25.71M | -487.55M | -760.12M |
Pediatrix Medical Group Technical Analysis
Positive
21.69
Price Trends
20.48
Positive
21.46
Positive
18.56
Positive
Market Momentum
0.27
Negative
61.46
Neutral
78.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MD, the sentiment is Positive. The current price of 21.69 is above the 20-day moving average (MA) of 20.35, above the 50-day MA of 20.48, and above the 200-day MA of 18.56, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 61.46 is Neutral, neither overbought nor oversold. The STOCH value of 78.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MD.
Pediatrix Medical Group Risk Analysis
Pediatrix Medical Group disclosed 41 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.55B | 17.67 | 11.57% | 1.80% | 23.74% | -18.99% | |
73 Outperform | $1.32B | 23.43 | 11.83% | ― | 6.26% | -19.33% | |
62 Neutral | $2.03B | 12.54 | 5.57% | 1.69% | -22.96% | -59.35% | |
62 Neutral | $1.30B | 54.15 | 2.93% | ― | 68.17% | -85.42% | |
54 Neutral | $1.80B | 11.03 | 19.58% | ― | -4.21% | ― | |
53 Neutral | $1.41B | 7.31 | 953.09% | ― | 15.48% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
MD
Pediatrix Medical Group
21.69
8.42
63.45%
HCSG
Healthcare Services
18.79
9.15
94.92%
NHC
National Healthcare
164.13
75.98
86.19%
SEM
Select Medical
16.38
0.91
5.90%
ASTH
Astrana Health
26.00
-5.09
-16.37%
AVAH
Aveanna Healthcare Holdings
6.49
1.69
35.21%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.