Pediatrix Medical Group (MD) AI Stock Analysis

• Market Cap: $1.28B
• Dividend Yield: N/A
• Average Volume (3M): 842.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: -1.13%
• EPS Growth: -17.77%
• Country: US
• Employees: 4,120
• Sector: Healthcare
• Sector Strength: 43
• Industry: Medical - Care Facilities
• EPS (TTM): 0.33
• Shares Outstanding: 85,905,730
• 10 Day Avg. Volume: 1,252,641
• 30 Day Avg. Volume: 842,839
• PEG Ratio: -0.21
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.45
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 3.86
• Enterprise Value/Ebitda: -4.46
• 1Y Price Target: $15.33
• Price Target Upside: 3.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Pediatrix Medical Group's overall score reflects a balanced view of its current financial challenges and technical strengths. While financial performance exhibits declining revenues and profitability issues, effective cash management and a stable balance sheet are positives. Technical indicators suggest potential upward momentum, though valuation remains a concern with a negative P/E ratio. The earnings call's cautiously optimistic outlook, with improvements in revenue growth and cost management, provides some optimism for future performance.

Positive Factors

Financial Performance

Pediatrix released first quarter 2025 financial results that were above Street expectations.

Private Equity Potential

Strong performance and conservative FY25 guidance make MD a potential candidate for private equity mergers and acquisitions.

Profit Outlook

Management raised its outlook for 2025 profit, with adjusted EBITDA expected to register in the range of $220 million to $240 million compared to previous guidance.

Negative Factors

Birth Trends

Births declined 1.8% y/y in February, down from January birth trends (+4.6% y/y) and 4Q birth trends (+3.4% y/y).

Growth Concerns

Concerns remain about the sustainability of the favorable payer mix trends and the company's ability to create long-term growth if these trends moderate or end.

Guidance Caution

MD had embedded no volume growth in its 2025 guidance, indicating caution in future expectations.

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 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 challenges in profitability with a declining EBIT margin and ongoing net losses, which impact the financial performance negatively. However, the company benefits from a solid balance sheet structure and strong cash flow generation, providing some stability.

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.

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.

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.

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
454.34M	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
-99.07M	-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

• Technical Analysis Sentiment: Positive
• Last Price: 14.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 14.87 is above the 20-day moving average (MA) of 13.55, above the 50-day MA of 13.77, and above the 200-day MA of 13.17, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 64.18 is Neutral, neither overbought nor oversold. The STOCH value of 92.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MD.

Pediatrix Medical Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	76 Outperform	$1.65B	15.71	11.19%	2.25%	19.16%	31.92%
PNTG	69 Neutral	$1.03B	38.80	11.28%	―	30.04%	43.47%
MD	67 Neutral	$1.28B	―	-10.01%	―	-1.13%	-17.77%
USPH	64 Neutral	$1.21B	36.74	6.72%	2.22%	14.30%	76.89%
BKD	56 Neutral	$1.58B	―	-91.17%	―	3.88%	-34.30%
Sector *	52 Neutral	$5.19B	3.04	-44.20%	2.82%	16.59%	-0.39%
AVAH	51 Neutral	$1.11B	327.59	42.49%	―	9.05%	―

Pediatrix Medical Group Corporate Events

Pediatrix Medical Group Holds Annual Shareholders’ Meeting

On May 8, 2025, Pediatrix Medical Group held its Annual Shareholders’ Meeting, where all nominees for the Board of Directors were elected to serve until the 2026 meeting. Additionally, shareholders ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025 and approved the executive compensation for the 2024 fiscal year on a non-binding, advisory basis.

Spark’s Take on MD Stock

According to Spark, TipRanks’ AI Analyst, MD is a Neutral.

Pediatrix Medical Group shows a mixed picture with strong cash flow and improved earnings guidance, suggesting potential operational improvements. However, profitability issues and a negative valuation metric weigh heavily, along with technical indicators pointing to potential volatility.

To see Spark’s full report on MD stock, click here.