Medical Facilities Corporation (TSE:DR)
TSX:DR
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Medical Facilities
(TSX:DR)
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Rating:74Outperform
Price Target:
C$19.00
▲(11.37% Upside)
Action:Upgraded
Date:05/09/26
The score is driven primarily by solid fundamentals (strong cash flow and improved leverage) and attractive valuation (low P/E with a moderate dividend). Technicals add moderate support with price holding above key moving averages, though momentum indicators are mixed and revenue/earnings variability remains the main fundamental risk.
Positive Factors
Strong cash generation
Robust operating and free cash flow in the trailing twelve months underpin durable internal funding for operations. Strong cash conversion supports capex, dividends and debt repayment capacity, giving management flexibility to allocate capital through business cycles over months to years.
Negative Factors
Revenue decline and choppiness
A declining and inconsistent revenue trend undermines predictability of future cash flows and complicates planning for staffing, capital projects and acquisitions. Persistent top-line weakness can pressure margins and limit the company’s ability to steadily deleverage or reinvest.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust operating and free cash flow in the trailing twelve months underpin durable internal funding for operations. Strong cash conversion supports capex, dividends and debt repayment capacity, giving management flexibility to allocate capital through business cycles over months to years.
Read all positive factors
Medical Facilities (DR) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$306.25M
Dividend Yield2.35%
Average Volume (3M)28.55K
Price to Earnings (P/E)6.8
Beta (1Y)0.51
Revenue Growth-0.15%
EPS Growth-50.57%
CountryCA
Employees1,721
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)2.36
Shares Outstanding17,550,250
10 Day Avg. Volume25,496
30 Day Avg. Volume28,554
Financial Highlights & Ratios
PEG Ratio1.83
Price to Book (P/B)2.99
Price to Sales (P/S)0.87
P/FCF Ratio5.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$19.00Price Target Upside11.37% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.08
Revenue Forecast (FY)C$268.03M
Medical Facilities Business Overview & Revenue Model
Company Description
Medical Facilities Corporation, through its subsidiaries, owns and operates specialty surgical hospitals and an ambulatory surgery center in the United States. The company's specialty surgical hospitals provide surgical, imaging, diagnostic, and o...
How the Company Makes Money
Medical Facilities Corporation generates earnings primarily from the operating results of the hospitals in which it holds ownership interests. Its revenue exposure is therefore tied to patient-service activity at those facilities (e.g., hospital-b...
Medical Facilities Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were notable achievements such as awards for Sioux Falls, substantial shareholder returns, and a new credit agreement, significant challenges were highlighted, particularly the revenue impact from Sioux Falls' relocation and decreased surgical volumes. Despite some areas of strong performance when excluding Sioux Falls, the financial metrics overall showed declines.Positive Updates
Sioux Falls Recognized for Excellence
Sioux Falls Specialty Hospital received the 2025 Outstanding Patient Experience and Patient Safety Excellence Awards from Healthgrades for the third consecutive year.
Negative Updates
Impact of Sioux Falls Relocation
Sioux Falls Specialty Hospital was negatively impacted by a $3.9 million revenue decline due to the relocation of a primary physician group's clinic affecting surgical case volume.
Read all updates
Q2-2025 Updates
Positive
Negative
Sioux Falls Recognized for Excellence
Sioux Falls Specialty Hospital received the 2025 Outstanding Patient Experience and Patient Safety Excellence Awards from Healthgrades for the third consecutive year.
Read all positive updates
Company Guidance
During the 2025 second quarter earnings call for Medical Facilities Corporation, several metrics were discussed, providing insight into the company's financial performance and strategic initiatives. Facility service revenue decreased by 1.3% to $80.6 million, primarily due to challenges at Sioux Falls Specialty Hospital, which saw a revenue drop of $3.9 million. However, excluding Sioux Falls, facility service revenue rose by 6.5%, driven by higher volumes and favorable payer mix. Surgical case volumes overall dipped by 0.9%, with inpatient cases dropping 8.6%, and observation cases decreasing by 1.8%, while outpatient cases rose slightly by 0.7%. Pain management cases were down 4.5%, notably impacted by changes at Arkansas Surgical Hospital. Total operating expenses fell by $0.5 million, with income from operations down 5% to just under $12 million, though excluding Sioux Falls, income from operations surged by 98.9%. EBITDA was reported at $16 million, a 4.7% decline year-over-year. On the capital front, $6.9 million was returned to shareholders through share repurchases, totaling $52.2 million in the first half of the year, reducing outstanding shares by 18%. The company also finalized a new three-year $40 million credit agreement with CIBC, offering an option to increase the facility by up to $25 million under certain conditions.Medical Facilities Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
72
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 305.39M | 258.62M | 331.53M | 445.58M | 424.55M | 398.63M |
| Gross Profit | 136.02M | 98.20M | 219.88M | 296.68M | 280.63M | 268.61M |
| EBITDA | 75.52M | 59.41M | 82.57M | 72.43M | 51.15M | 103.40M |
| Net Income | 25.98M | 21.08M | 73.49M | 18.50M | -4.41M | 15.50M |
Balance Sheet | ||||||
| Total Assets | 278.03M | 272.14M | 346.29M | 354.88M | 377.79M | 446.97M |
| Cash, Cash Equivalents and Short-Term Investments | 86.36M | 43.37M | 108.50M | 24.11M | 34.93M | 61.04M |
| Total Debt | 57.24M | 58.74M | 73.94M | 116.81M | 142.95M | 140.90M |
| Total Liabilities | 160.55M | 171.76M | 198.84M | 236.58M | 263.10M | 273.82M |
| Stockholders Equity | 96.87M | 75.32M | 122.02M | 85.99M | 79.13M | 127.55M |
Cash Flow | ||||||
| Free Cash Flow | 43.17M | 40.99M | 76.22M | 56.66M | 50.30M | 67.22M |
| Operating Cash Flow | 48.89M | 45.95M | 83.28M | 72.71M | 57.01M | 75.64M |
| Investing Cash Flow | 38.46M | -4.14M | 85.42M | -13.67M | -5.78M | -8.69M |
| Financing Cash Flow | -67.77M | -107.30M | -84.26M | -69.83M | -77.35M | -72.06M |
Medical Facilities Technical Analysis
Positive
17.06
Price Trends
16.89
Positive
16.45
Positive
15.50
Positive
Market Momentum
0.12
Negative
55.47
Neutral
83.96
Negative
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 17.06 is below the 20-day moving average (MA) of 17.08, above the 50-day MA of 16.89, and above the 200-day MA of 15.50, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 55.47 is Neutral, neither overbought nor oversold. The STOCH value of 83.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DR.
Medical Facilities Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$306.25M | 6.82 | 27.57% | 2.35% | -0.15% | -50.57% | |
69 Neutral | C$3.16B | 15.41 | 45.35% | 2.28% | 18.81% | 50.80% | |
64 Neutral | C$218.14M | 50.45 | 27.47% | 1.03% | 2.20% | ― | |
62 Neutral | C$2.20B | 32.90 | 6.44% | 4.47% | 16.69% | 11.12% | |
62 Neutral | C$1.01B | -19.76 | 3.15% | ― | 50.09% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Medical Facilities Corporate Events
Business Operations and StrategyDividends
Medical Facilities Corporation Declares C$0.09 First-Quarter Dividend
Positive
Mar 12, 2026
Medical Facilities Corporation has declared a cash dividend of C$0.09 per common share, payable on April 15, 2026, to shareholders of record as of March 31, 2026. The dividend has been designated as an eligible dividend under Canadian tax law, off...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Medical Facilities boosts earnings, sheds assets and accelerates share buybacks
Positive
Mar 12, 2026
Medical Facilities Corporation reported 2025 facility service revenue of $342.2 million, up 3.2% year over year, with fourth-quarter revenue rising 6.9%. Income from operations for the year increased 6.1% to $58.0 million and adjusted EBITDA grew ...
Financial DisclosuresRegulatory Filings and Compliance
Medical Facilities to Release 2025 Results and Host Investor Call on March 12
Neutral
Feb 19, 2026
Medical Facilities Corporation said it will publish its fourth quarter and full-year 2025 financial results before markets open on March 12, 2026, with the accompanying financial statements and management discussion to be made available on the com...
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.