Pediatrix Medical Group, Inc. (MD)
NYSE:MD
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Pediatrix Medical Group
(NYSE:MD)
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Rating:72Outperform
Price Target:
$26.00
▲(12.70% Upside)
Action:Upgraded
Date:05/09/26
The score is driven primarily by improved financial performance (profitability/ROE rebound, better leverage, and consistently positive cash flow) and supportive technical momentum (price above key moving averages with positive MACD). The latest earnings call adds confidence via reaffirmed 2026 EBITDA guidance and operational improvements, while valuation is only moderately attractive and risks include limited revenue growth, volume softness, and potential fading of RCM-related pricing benefits.
Positive Factors
Cash Generation
Consistently positive operating and free cash flow, with FCF tracking net income, creates durable internal funding for capital allocation. This strength supports reinvestment in clinician programs, debt paydown, and opportunistic buybacks without relying solely on external financing.
Negative Factors
Flat-to-Declining Revenue and Volumes
A flat-to-negative top-line trend and modest volume declines constrain durable growth prospects. With limited organic revenue momentum, the company must rely on pricing, acquisitions, or mix shifts to expand margins, increasing execution risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Consistently positive operating and free cash flow, with FCF tracking net income, creates durable internal funding for capital allocation. This strength supports reinvestment in clinician programs, debt paydown, and opportunistic buybacks without relying solely on external financing.
Read all positive factors
Pediatrix Medical Group (MD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.86B
Dividend YieldN/A
Average Volume (3M)796.63K
Price to Earnings (P/E)15.0
Beta (1Y)0.62
Revenue Growth-2.25%
EPS GrowthN/A
CountryUS
Employees4,120
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)2.06
Shares Outstanding82,121,910
10 Day Avg. Volume1,124,160
30 Day Avg. Volume796,628
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 Cap1.24
Enterprise Value/Revenue1.20
Enterprise Value/Gross Profit4.64
Enterprise Value/Ebitda8.29
Forecast
1Y Price Target
$24.20Price Target Upside4.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)2.28
Revenue Forecast (FY)$1.94B
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:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented a majority of positive operational and financial signals: strong Q1 adjusted EBITDA ($58M), above-expectation pricing growth (4%), improved collections (DSO down >5 days YoY), a solid cash balance, modest leverage (~1.3x), successful share repurchase, and strategic senior hires and partner-program rollout. Offsetting items include modest volume declines (NICU days down ~1%), rising clinical salary costs (+$9M S,W,B), higher Q1 cash usage ($130M vs $116M), and uncertainty around the sustainability of RCM-driven pricing and potential effects from tax subsidy lapses. Overall, positives materially outweigh the negatives, though management flagged areas to monitor (pricing tailwind fade, hospital pressures, and executive transition).Positive Updates
Strong Adjusted EBITDA and Reaffirmed Guidance
Q1 adjusted EBITDA of $58 million; management reaffirmed full-year adjusted EBITDA outlook of $280 million to $300 million (midpoint $290 million). Q1 represented roughly 20% of the annual midpoint.
Negative Updates
Volume Declines Across Service Lines
Observed volume declines across service lines in the quarter, including NICU days down about 1%, and management noted recent quarters showed declining volume trends even if not yet a confirmed ongoing trend.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Adjusted EBITDA and Reaffirmed Guidance
Q1 adjusted EBITDA of $58 million; management reaffirmed full-year adjusted EBITDA outlook of $280 million to $300 million (midpoint $290 million). Q1 represented roughly 20% of the annual midpoint.
Read all positive updates
Company Guidance
Pediatrix reaffirmed full-year 2026 adjusted EBITDA guidance of $280 million to $300 million after reporting Q1 adjusted EBITDA of $58 million (about 20% of the midpoint), and said Q2–Q4 EBITDA should be fairly ratable; net leverage was just over 1.3x using the midpoint. Q1 highlights used to support the outlook included consolidated same‑unit revenue growth just under 3% plus ~$6 million of net non‑same‑unit activity, pricing growth of ~4% (driven ~25% by RCM cash collections, ~20% by contract/admin fees, plus favorable payer mix and acuity), accounts receivable DSO of 42.5 days (down >5 days YoY), operating cash use of $130 million (vs. $116 million prior year), $21 million of share repurchases (1 million shares) leaving 82 million shares outstanding, cash just over $200 million, net debt just over $385 million, NICU days down ~1%, practice-level S,W,&B up $9 million YoY, and average net salary growth of ~3% over the past 18 months; management said RCM cash collection benefits may taper and is maintaining flat pricing guidance for the year.Pediatrix Medical Group Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.93B | 1.91B | 2.01B | 1.99B | 1.97B | 1.91B |
| Gross Profit | 498.39M | 471.88M | 454.34M | 421.56M | 467.03M | 513.24M |
| EBITDA | 278.99M | 274.22M | -28.37M | 29.89M | 156.70M | 236.10M |
| Net Income | 174.22M | 165.39M | -99.07M | -60.41M | 66.33M | 130.96M |
Balance Sheet | ||||||
| Total Assets | 2.07B | 2.25B | 2.15B | 2.22B | 2.35B | 2.72B |
| Cash, Cash Equivalents and Short-Term Investments | 328.97M | 499.72M | 348.51M | 177.74M | 103.06M | 487.11M |
| Total Debt | 629.72M | 660.30M | 662.31M | 701.65M | 717.08M | 1.07B |
| Total Liabilities | 1.19B | 1.38B | 1.39B | 1.37B | 1.46B | 1.83B |
| Stockholders Equity | 878.58M | 865.85M | 764.94M | 849.06M | 891.63M | 896.49M |
Cash Flow | ||||||
| Free Cash Flow | 237.66M | 252.63M | 184.55M | 104.00M | 137.23M | 44.49M |
| Operating Cash Flow | 259.05M | 271.09M | 206.57M | 137.32M | 166.94M | 76.74M |
| Investing Cash Flow | -22.81M | -18.30M | -35.41M | -48.18M | -56.95M | -53.07M |
| Financing Cash Flow | -129.09M | -107.49M | -14.48M | -25.71M | -487.55M | -760.12M |
Pediatrix Medical Group Technical Analysis
Positive
23.07
Price Trends
21.76
Positive
21.43
Positive
20.03
Positive
Market Momentum
0.33
Positive
53.36
Neutral
52.26
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 23.07 is above the 20-day moving average (MA) of 22.86, above the 50-day MA of 21.76, and above the 200-day MA of 20.03, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 52.26 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 | $1.48B | 12.43 | 13.60% | ― | 6.46% | 72.30% | |
76 Outperform | $3.07B | 17.30 | 11.68% | 1.80% | 11.40% | 13.96% | |
72 Outperform | $1.86B | 15.02 | 20.09% | ― | -2.25% | ― | |
71 Outperform | $1.68B | 8.22 | 241.47% | ― | 20.49% | 4335.46% | |
68 Neutral | $1.75B | 20.74 | 3.88% | ― | 56.69% | -15.92% | |
62 Neutral | $2.04B | 11.43 | 7.83% | 1.69% | -10.76% | -20.86% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
MD
Pediatrix Medical Group
23.01
7.85
51.78%
HCSG
Healthcare Services
20.79
6.01
40.66%
NHC
National Healthcare
196.00
92.42
89.22%
SEM
Select Medical
16.51
1.66
11.15%
ASTH
Astrana Health
39.30
12.22
45.13%
AVAH
Aveanna Healthcare Holdings
7.63
1.88
32.70%
Pediatrix Medical Group Corporate Events
Executive/Board ChangesShareholder Meetings
Pediatrix Shareholders Reelect Board and Approve Governance Measures
Positive
May 7, 2026
On May 7, 2026, Pediatrix Medical Group held its Annual Meeting, at which shareholders representing a quorum of the outstanding common stock voted to re-elect all nominated directors to the board for terms running until the 2027 annual meeting. Th...
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.