Pediatrix Medical Group (MD) AI Stock Analysis

• Market Cap: $1.42B
• Dividend Yield: N/A
• Average Volume (3M): 770.94K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.30
• Revenue Growth: -3.08%
• EPS Growth: N/A
• Country: US
• Employees: 4,120
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.53
• Shares Outstanding: 87,084,190
• 10 Day Avg. Volume: 711,828
• 30 Day Avg. Volume: 770,936
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: 7.51
• 1Y Price Target: $16.75
• Price Target Upside: 2.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: $18.00 ▲(10.43% Upside)

Pediatrix Medical Group's overall stock score is driven by strong financial performance and positive earnings call sentiment. The technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The valuation is attractive, and recent corporate events further strengthen the company's strategic position. These factors collectively contribute to a robust investment outlook.

Positive Factors

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for strategic investments and shareholder returns, supporting long-term growth.

Share Repurchase Program

The share repurchase program reflects confidence in financial health and commitment to enhancing shareholder value, indicating a positive long-term outlook.

Leadership Strength

Dr. Newman's appointment brings valuable expertise and leadership, likely enhancing strategic direction and reinforcing the company's focus on clinical excellence.

Negative Factors

Revenue Decline

A decline in consolidated revenue due to portfolio restructuring could impact growth potential and requires strategic adjustments to stabilize revenue streams.

Increased Expenses

Rising expenses may pressure margins, necessitating cost management strategies to maintain profitability and operational efficiency.

Legislative Uncertainty

Uncertainty from potential legislative changes could affect reimbursement rates and operational dynamics, posing risks to future financial performance.

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 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 Money

Pediatrix Medical Group generates revenue primarily through the provision of medical services in hospitals and outpatient settings. The company is compensated for its services via reimbursements from private health insurers, government programs like Medicaid and Medicare, and out-of-pocket payments from patients. Key revenue streams include fees for inpatient consults, outpatient services, and telehealth consultations. Additionally, Pediatrix benefits from partnerships with hospitals and health systems, which often contract the company's specialists to provide care within their facilities, further enhancing its revenue potential. The company also focuses on maintaining high-quality care to improve patient outcomes, which can lead to better reimbursement rates from payers.

Pediatrix Medical Group Financial Statement Overview

Summary

Pediatrix Medical Group shows mixed financial performance. Revenue and profitability challenges are evident, with declining revenues and negative net income. However, the balance sheet is stable with manageable debt levels, and positive cash flow metrics indicate effective cash management despite operational challenges.

Income Statement

The income statement reflects a declining revenue trend with a decrease from $2.01 billion in 2024 to $1.98 billion in TTM (Trailing-Twelve-Months) 2025. Gross profit margin has declined to 22.59% from 22.57% in 2024. The company struggled with profitability, showing a negative net income and EBITDA, indicating challenges in cost management and operational efficiency. Despite these issues, there was a slight improvement in EBIT margin from -3.41% in 2024 to 7.79% in TTM 2025.

Balance Sheet

The balance sheet indicates a stable equity position with a debt-to-equity ratio of 0.83 in TTM 2025, slightly improved from 0.87 in 2024. The equity ratio of 39.58% is a positive indicator of the company's reliance on equity financing. However, total assets have decreased, and liabilities remain high, which could pose risks if the trend continues.

Cash Flow

Cash flow analysis shows a positive free cash flow growth of 10.11% in TTM 2025, enhancing liquidity. The operating cash flow to net income ratio is strong at 2.71, indicating effective cash generation from operations despite negative net income. The free cash flow to net income ratio also shows resilience, highlighting effective capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.94B	2.01B	1.99B	1.97B	1.91B	1.73B
Gross Profit	465.84M	454.34M	421.56M	467.03M	513.24M	449.32M
EBITDA	203.51M	-28.37M	29.89M	235.64M	249.88M	200.37M
Net Income	109.92M	-99.07M	-60.41M	66.33M	130.96M	-9.58M
Balance Sheet
Total Assets	2.10B	2.15B	2.22B	2.35B	2.72B	3.35B
Cash, Cash Equivalents and Short-Term Investments	348.33M	348.51M	177.74M	9.82M	387.39M	1.23B
Total Debt	649.56M	662.31M	701.65M	753.57M	1.07B	1.80B
Total Liabilities	1.27B	1.39B	1.37B	1.46B	1.83B	2.60B
Stockholders Equity	833.75M	764.94M	849.06M	891.63M	896.69M	747.72M
Cash Flow
Free Cash Flow	235.87M	184.55M	104.00M	137.23M	44.49M	175.83M
Operating Cash Flow	253.43M	206.57M	137.32M	166.94M	76.74M	204.62M
Investing Cash Flow	-20.89M	-35.41M	-48.18M	-56.95M	-53.07M	815.51M
Financing Cash Flow	-18.33M	-14.48M	-25.71M	-487.55M	-760.12M	-4.16M

Pediatrix Medical Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MD, the sentiment is Neutral. The current price of 16.3 is below the 20-day moving average (MA) of 16.64, above the 50-day MA of 15.31, and above the 200-day MA of 14.26, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 42.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MD.

Pediatrix Medical Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MD	77 Outperform	$1.42B	12.67	14.27%	―	-3.08%	―
PNTG	74 Outperform	877.87M	32.48	8.56%	―	30.58%	24.86%
USPH	70 Outperform	1.27B	36.48	6.33%	2.15%	16.24%	116.58%
NHC	69 Neutral	1.96B	18.85	10.26%	1.95%	25.19%	13.44%
AVAH	59 Neutral	1.83B	116.36	-154.73%	―	11.53%	―
BKD	46 Neutral	1.98B	-7.92	-230.26%	―	3.99%	-14.74%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Pediatrix Medical Group Corporate Events

Pediatrix Medical Group Announces Share Repurchase Program

On August 18, 2025, Pediatrix Medical Group announced a $250 million share repurchase program authorized by its Board of Directors. The program, which aims to utilize the company’s strong cash flow and low debt levels, will be executed over a three-year term through various transaction methods. This strategic move is intended to provide long-term returns to shareholders and strengthen the company’s future business prospects.

Pediatrix Medical Group Appoints Dr. Kurt Newman to Board

On July 1, 2025, Pediatrix Medical Group appointed Dr. Kurt Newman as an independent director. Dr. Newman, a prominent figure in pediatric healthcare and former CEO of Children’s National Hospital, brings extensive clinical insight and leadership experience to the board. His appointment is expected to enhance Pediatrix’s focus on patient-centered care and strengthen collaboration between physicians and executive leadership, contributing to the company’s mission of advancing clinical excellence.