Pediatrix Medical Group (MD) AI Stock Analysis

• Market Cap: $1.48B
• Dividend Yield: N/A
• Average Volume (3M): 851.86K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.36
• Revenue Growth: -3.08%
• EPS Growth: N/A
• Country: US
• Employees: 4,120
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Care Facilities
• EPS (TTM): 0.53
• Shares Outstanding: 87,084,190
• 10 Day Avg. Volume: 813,740
• 30 Day Avg. Volume: 851,857
• 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: 1.03
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: 7.51
• 1Y Price Target: $16.75
• Price Target Upside: -1.87% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: $18.00 ▲(5.45% 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

Earnings Guidance

The company raised its 2025 EBITDA guidance, indicating potential for upside despite maintaining a conservative outlook for the second half of the year.

Financial Performance

Reported EBITDA exceeded Street forecasts by over 22%, and the company took up the guidance range.

Stock Buybacks

The company's stock is considered more intriguing due to a mounting cash balance and a team signaling a desire to increase buybacks.

Negative Factors

Birth Rate Trends

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

Caution on Trends

Analyst remains reasonably cautious on the sustainability of favorable mix trends and incremental improvements.

Pricing Sustainability

Uncertainty remains regarding the sustainability of pricing given the subsidy cliff in 2026.

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 adolescents across the United States. The company operates within the pediatric healthcare sector, focusing on neonatology, pediatric cardiology, and other subspecialties. Pediatrix Medical Group offers a range of services including hospital-based care, outpatient services, and telehealth solutions to ensure comprehensive care for its young patients and their families.

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: Positive
• Last Price: 17.07
• 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 Positive. The current price of 17.07 is above the 20-day moving average (MA) of 16.27, above the 50-day MA of 14.40, and above the 200-day MA of 14.12, indicating a bullish trend. The MACD of 0.84 indicates Positive momentum. The RSI at 68.71 is Neutral, neither overbought nor oversold. The STOCH value of 63.76 is Neutral, 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
MD	77 Outperform	$1.48B	13.27	14.27%	―	-3.08%	―
USPH	71 Outperform	$1.30B	37.54	7.02%	2.09%	16.24%	116.58%
PNTG	71 Outperform	$832.25M	31.06	11.44%	―	30.58%	24.86%
NHC	69 Neutral	$1.78B	17.17	10.65%	2.15%	25.19%	13.44%
AVAH	59 Neutral	$1.69B	109.31	42.49%	―	11.53%	―
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
BKD	46 Neutral	$1.82B	―	-108.91%	―	3.99%	-14.74%

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.