Pediatrix Medical Group (MD) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: N/A
• Average Volume (3M): 902.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: -1.13%
• EPS Growth: -17.77%
• Country: US
• Employees: 4,120
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Care Facilities
• EPS (TTM): 0.33
• Shares Outstanding: 85,905,730
• 10 Day Avg. Volume: 707,800
• 30 Day Avg. Volume: 902,570
• PEG Ratio: -0.38
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.04
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 4.44
• Enterprise Value/Ebitda: -4.45
• 1Y Price Target: $15.33
• Price Target Upside: 6.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: $15.50 ▲(8.16%Upside)

Pediatrix Medical Group's overall stock score reflects a combination of cautious optimism from strong Q1 earnings and effective cost management. Despite valuation challenges and declining revenues, the company's solid balance sheet and positive cash flow provide a stable foundation. The technical analysis shows moderate bullish momentum, supporting the stock's stability.

Positive Factors

Financial Performance

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

Payer Mix Trends

Florida payer mix data shows commercial births increased 4.0% year-over-year, which is encouraging for the company's payer mix.

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 increased 0.3% y/y in April, down from March birth trends (+1.0% y/y), indicating a slowdown in growth.

Sustainability 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.

Volume Growth

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 (MD) is a leading provider of specialized healthcare services for infants, children, and expectant mothers. The company operates in the healthcare sector, focusing primarily on neonatal, maternal-fetal, pediatric cardiology, and other pediatric subspecialties. Pediatrix Medical Group is renowned for its commitment to delivering high-quality, compassionate care through a network of healthcare professionals and facilities across the United States.

How the Company Makes Money

Pediatrix Medical Group generates revenue through the provision of specialized medical services in neonatal and pediatric care. The company primarily earns money by billing healthcare payers, including insurance companies, government programs, and patients, for the medical services it provides. Key revenue streams include professional fees for physician services, hospital-based services, and outpatient services. Additionally, Pediatrix Medical Group benefits from partnerships with hospitals and healthcare systems, which can provide stable patient referral sources and collaborative opportunities in care delivery. These partnerships often enhance the company's ability to negotiate favorable reimbursement rates and expand its service offerings across various regions.

Pediatrix Medical Group Financial Statement Overview

Summary

Pediatrix Medical Group shows a mixed financial performance with revenue and profitability challenges, as indicated by declining revenues and negative net income. However, stability is noted in the balance sheet with manageable debt levels, and positive cash flow metrics suggest effective cash management.

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	1.98B	2.01B	1.99B	1.97B	1.91B	1.73B
Gross Profit	446.44M	454.34M	421.56M	467.03M	513.24M	449.32M
EBITDA	-47.54M	-28.37M	29.89M	235.64M	249.88M	200.37M
Net Income	-82.37M	-99.07M	-60.41M	66.33M	130.96M	-9.58M
Balance Sheet
Total Assets	1.99B	2.15B	2.22B	2.35B	2.72B	3.35B
Cash, Cash Equivalents and Short-Term Investments	219.18M	348.51M	177.74M	9.82M	387.39M	1.23B
Total Debt	655.32M	662.31M	701.65M	753.57M	1.07B	1.80B
Total Liabilities	1.20B	1.39B	1.37B	1.46B	1.83B	2.60B
Stockholders Equity	789.19M	764.94M	849.06M	891.63M	896.69M	747.72M
Cash Flow
Free Cash Flow	203.21M	184.55M	104.00M	137.23M	44.49M	175.83M
Operating Cash Flow	223.22M	206.57M	137.32M	166.94M	76.74M	204.62M
Investing Cash Flow	-26.63M	-35.41M	-48.18M	-56.95M	-53.07M	815.51M
Financing Cash Flow	-96.72M	-14.48M	-25.71M	-487.55M	-760.12M	-4.16M

Pediatrix Medical Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.33
• 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 14.33 is above the 20-day moving average (MA) of 13.85, above the 50-day MA of 13.75, and above the 200-day MA of 13.71, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 58.97 is Neutral, neither overbought nor oversold. The STOCH value of 88.05 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	78 Outperform	$1.66B	15.57	11.19%	2.39%	19.16%	31.92%
USPH	71 Outperform	$1.22B	37.09	6.72%	2.30%	14.30%	76.89%
PNTG	68 Neutral	$931.35M	35.25	11.28%	―	30.04%	43.47%
MD	67 Neutral	$1.21B	―	-10.01%	―	-1.13%	-17.77%
Sector *	60 Neutral	HK$15.27B	5.60	-7.43%	4.22%	11.60%	-21.06%
BKD	56 Neutral	$1.61B	―	-91.17%	―	3.88%	-34.30%
AVAH	53 Neutral	$975.47M	287.36	42.49%	―	9.05%	―

Pediatrix Medical Group Corporate Events

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.

The most recent analyst rating on (MD) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Pediatrix Medical Group stock, see the MD Stock Forecast page.

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.