Medical Facilities (DR) AI Stock Analysis

• Market Cap: $380.31M
• Dividend Yield: 2.23%
• Average Volume (3M): 134.18K
• Price to Earnings (P/E): 2.7
• Beta (1Y): 0.20
• Revenue Growth: -24.96%
• EPS Growth: 549.36%
• Country: CA
• Employees: 1,593
• Sector: Healthcare
• Sector Strength: 62
• Industry: Medical - Care Facilities
• EPS (TTM): 6.47
• Shares Outstanding: 22,924,162
• 10 Day Avg. Volume: 87,348
• 30 Day Avg. Volume: 134,176
• PEG Ratio: 0.00494
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.77
• Price to Cash Flow (P/CF): 3.00
• P/FCF Ratio: 3.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$17.00
• Price Target Upside: 2.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Medical Facilities Corporation has a solid foundation with strong profitability and valuation metrics. However, the recent revenue decline and weak technical indicators pose concerns. The company's strategic asset sales and shareholder returns bolster its financial position, but attention to revenue growth and operational challenges is necessary to maintain momentum.

Medical Facilities Business Overview & Revenue Model

Company Description

Medical Facilities (DR) is a company operating in the healthcare sector, primarily focused on owning and managing surgical facilities. The company provides a range of services including outpatient surgery, diagnostics, and other related healthcare services. Their facilities are designed to offer high-quality medical care in a cost-effective manner, catering to both patients and healthcare providers.

How the Company Makes Money

Medical Facilities generates revenue primarily through the operation of its surgical facilities. The company earns money by providing surgical and diagnostic services to patients, with reimbursement from insurance companies, government programs, and patient payments. Key revenue streams include fees for surgical procedures, diagnostic services, and other ancillary services offered at their facilities. Additionally, the company may benefit from partnerships with clinics, hospitals, and healthcare providers, as well as potential agreements with insurance companies to secure patient flow and ensure steady revenue streams.

Medical Facilities Financial Statement Overview

Summary

Medical Facilities shows strong profitability and cash flow generation capabilities, with improvements in net profit margin and return on equity. However, the recent revenue decline is a concern despite the stable balance sheet and solid cash flows. Continued focus on revenue growth and asset management will be crucial to maintain financial health.

Income Statement

The company's revenue has shown fluctuations with a notable decline in 2024, reducing from $445.58M in 2023 to $331.53M in 2024. Despite this, the gross profit margin is relatively strong at approximately 66.3% in 2024. The net profit margin improved significantly to about 22.16% in 2024, indicating effective cost management. However, the revenue growth trajectory is concerning due to the recent drop.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.61 in 2024, suggesting a balanced approach to leveraging. The return on equity has improved significantly to around 60.24% in 2024, showcasing impressive profitability from the equity base. Equity ratio is 35.23%, indicating a stable financial structure. However, the decrease in total assets over recent years indicates potential asset management challenges.

Cash Flow

Operating cash flow has been consistently strong, with a notable increase to $83.28M in 2024. Free cash flow growth is robust, increasing to $76.22M in 2024. The operating cash flow to net income ratio is favorable, indicating efficient cash conversion. However, reliance on operating cash flow amidst revenue decline could be a potential risk.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
331.53M	445.58M	424.55M	398.63M	363.85M
	Gross Profit
219.88M	296.68M	280.63M	268.61M	242.94M
	EBIT
61.64M	67.11M	46.94M	77.36M	67.79M
	EBITDA
82.57M	90.36M	67.70M	103.40M	96.05M
	Net Income Common Stockholders
73.49M	18.50M	12.29M	46.49M	37.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
108.50M	24.11M	34.93M	61.04M	66.18M
	Total Assets
346.29M	354.88M	377.79M	446.97M	457.00M
	Total Debt
73.94M	116.81M	142.95M	140.90M	161.95M
	Net Debt
-34.56M	92.70M	108.03M	79.86M	95.77M
	Total Liabilities
198.84M	236.58M	263.10M	267.29M	281.83M
	Stockholders Equity
122.02M	85.99M	79.13M	134.08M	127.53M
Cash Flow		Free Cash Flow
76.22M	56.66M	50.30M	67.22M	79.57M
	Operating Cash Flow
83.28M	72.71M	57.01M	75.64M	87.09M
	Investing Cash Flow
85.42M	-13.67M	-5.78M	-8.69M	18.31M
	Financing Cash Flow
-84.26M	-69.83M	-77.35M	-72.06M	-71.15M

Medical Facilities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DR, the sentiment is Positive. The current price of 16.59 is above the 20-day moving average (MA) of 16.17, above the 50-day MA of 16.56, and above the 200-day MA of 14.71, indicating a bullish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 74.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DR.

Medical Facilities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRX	82 Outperform	C$208.29M	3.91	36.75%	0.41%	19.21%	105.30%
LIF	78 Outperform	C$1.88B	10.76	26.88%	10.16%	3.67%	-6.05%
EXE	74 Outperform	C$1.09B	14.56	70.86%	3.71%	12.36%	123.26%
DR	71 Outperform	$380.31M	2.71	23.77%	2.23%	-24.96%	549.36%
COV	71 Outperform	C$59.77M	11.94	19.57%	―	38.28%	―
SIA	61 Neutral	C$1.53B	32.98	8.99%	5.60%	13.72%	429.22%
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%

Medical Facilities Corporate Events

Medical Facilities Corporation Declares First Quarter Dividend

Medical Facilities Corporation has announced a cash dividend of Cdn $0.09 per common share, payable on April 15, 2025, to shareholders of record as of March 31, 2025. This announcement reflects the company’s ongoing commitment to providing shareholder value and may influence investor perceptions positively, reinforcing its stable financial health and strategic positioning in the healthcare industry.

Medical Facilities Corporation Strengthens Financial Position with Strategic Sale and Share Repurchase

Medical Facilities Corporation reported its financial results for the fourth quarter and full year 2024, highlighting a strong year marked by the sale of Black Hills Surgical Hospital, which bolstered its financial position. The company ended the year with a cash position of $108.5 million, repurchased shares worth $16.6 million, and fully repaid its corporate credit facility. Despite a slight decline in surgical case volumes due to an industry-wide shortage of intravenous saline fluids, the company achieved growth in income from operations and adjusted EBITDA. The sale of BHSH significantly enhanced the company’s ability to return capital to shareholders and focus on operational excellence and quality care.

Medical Facilities Corporation Completes Substantial Issuer Bid

Medical Facilities Corporation announced the completion of a substantial issuer bid, repurchasing approximately 14.7% of its outstanding common shares for cancellation at a total cost of around $60.7 million. This move is expected to reduce the number of issued and outstanding shares to approximately 19.5 million, potentially enhancing shareholder value and impacting the company’s market positioning. The corporation’s normal course issuer bid, which was suspended during the offer period, will resume shortly, allowing for continued share repurchases until November 2025.

Medical Facilities Corporation Announces Strategic Board Changes

Medical Facilities Corporation announced changes to its Board of Directors, appointing Peter Brimm and Jeremy Klaperman while Yanick Blanchard resigned. The Board will consist of five directors after the next AGM, with Brimm and Klaperman joining the Audit Committee, and Klaperman replacing Blanchard as Chair. These changes are part of a strategic refresh to enhance financial expertise and leadership as the company continues to execute its strategy.

Medical Facilities Corporation Increases Share Buyback Offer Price

Medical Facilities Corporation has announced an amendment to its substantial issuer bid, increasing the price range for purchasing its common shares from shareholders. The new price range is set between $16.50 and $18.00 per share, representing a significant premium over previous valuations. The offer, which aims to repurchase up to 21.3% of the company’s outstanding shares, has been extended to March 11, 2025. This move is part of the company’s strategy to return capital to shareholders, with any unused funds from the offer to be distributed as a special dividend. Shareholders who previously tendered their shares must retender them to participate under the new terms.

Medical Facilities Corporation to Release 2024 Financial Results

Medical Facilities Corporation is set to announce its fourth-quarter and full-year 2024 financial results on March 13, 2025, with an earnings call scheduled the same morning. The announcement may impact stakeholders by providing insights into the company’s financial health and strategic direction, which could influence its positioning within the healthcare industry.

Medical Facilities Granted Flexibility in Issuer Bid by Ontario Securities Commission

Medical Facilities Corporation has announced that the Ontario Securities Commission has granted an order allowing the company to extend its substantial issuer bid without needing to first take up any common shares previously deposited. While the company has not yet decided to extend the offer, the current expiration remains set for February 24, 2025. The decision has potential implications for shareholder engagement and corporate operations, as it provides flexibility in their strategic financial maneuvers.

Medical Facilities Announces $80.75M Share Buyback

Medical Facilities Corporation announced a substantial issuer bid to purchase and cancel up to $80,750,000 of its common shares. This decision follows the sale of Black Hills Surgical Hospital, with proceeds being used for the offer, reflecting the Board’s view that this move aligns with the company’s strategy to return capital to shareholders. The offer, structured as a modified Dutch auction, allows shareholders to tender shares within a specified price range or at a determined purchase price, ensuring the company retains sufficient resources for ongoing operations.