Medical Facilities (DR) AI Stock Analysis

• Market Cap: $269.31M
• Dividend Yield: 2.47%
• Average Volume (3M): 23.55K
• Price to Earnings (P/E): 2.1
• Beta (1Y): 0.34
• Revenue Growth: -35.35%
• EPS Growth: 948.72%
• Country: CA
• Employees: 1,721
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.28
• Shares Outstanding: 18,509,548
• 10 Day Avg. Volume: 23,949
• 30 Day Avg. Volume: 23,551
• 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: 1.55
• Enterprise Value/Revenue: 1.50
• Enterprise Value/Gross Profit: 2.30
• Enterprise Value/Ebitda: 5.71
• 1Y Price Target: $17.00
• Price Target Upside: 16.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: C$15.50 ▲(6.16% Upside)

The overall stock score of 59 reflects a combination of strong profitability and valuation metrics, offset by technical weaknesses and mixed earnings call results. The company's high profitability is a strength, but declining revenue and cash flow growth pose risks. Technical indicators suggest bearish momentum, while the low P/E ratio indicates potential undervaluation.

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 other pain management procedures; and other ancillary services, such as urgent care and occupational health. It also offers ambulatory surgery center, which performs scheduled outpatient surgical procedures. The company was incorporated in 2004 and is headquartered in Toronto, Canada.

How the Company Makes Money

Medical Facilities (DR) generates revenue primarily through the provision of surgical and outpatient services at its facilities. Key revenue streams include patient billings for surgeries, diagnostic procedures, and outpatient treatments, which are often reimbursed by government and private insurance plans. Additionally, the company may earn revenue through facility fees charged for the use of its operating rooms and equipment. Strategic partnerships with healthcare providers and insurance companies also contribute to its earnings by ensuring a steady flow of patients and optimizing reimbursement rates. Furthermore, the company may engage in value-based care initiatives that can enhance profitability through improved patient outcomes and reduced costs.

Medical Facilities Financial Statement Overview

Summary

Medical Facilities demonstrates strong profitability with high profit margins and return on equity. However, challenges include declining revenue and free cash flow growth, which could impact future financial stability. The balance sheet reflects moderate leverage, but high ROE suggests potential vulnerability if earnings decrease.

Income Statement

The income statement shows a mixed performance. The company has a strong gross profit margin of 65.8% TTM, indicating efficient cost management. However, the revenue growth rate is negative at -8.7% TTM, reflecting a decline in sales. The net profit margin improved to 24.7% TTM, suggesting better profitability, but the EBIT and EBITDA margins have remained relatively stable. Overall, the company demonstrates profitability but faces challenges in revenue growth.

Balance Sheet

The balance sheet indicates moderate financial stability. The debt-to-equity ratio is 0.88 TTM, showing a manageable level of leverage. The return on equity is high at 84.4% TTM, reflecting strong profitability relative to shareholder equity. However, the equity ratio is not provided, limiting a full assessment of asset financing. The company maintains a balanced approach to debt and equity, but the high ROE suggests potential risk if earnings decline.

Cash Flow

The cash flow statement reveals some concerns. The free cash flow growth rate is negative at -15.9% TTM, indicating a decrease in cash available after capital expenditures. The operating cash flow to net income ratio is 0.93 TTM, showing that operating cash flow is closely aligned with net income. The free cash flow to net income ratio is 0.92 TTM, suggesting efficient cash generation relative to profits. Despite solid cash flow ratios, declining free cash flow growth is a potential risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	278.37M	331.53M	445.58M	424.55M	398.63M	363.85M
Gross Profit	181.07M	219.88M	296.68M	280.63M	268.61M	242.94M
EBITDA	73.03M	82.57M	72.43M	51.15M	103.40M	96.05M
Net Income	80.45M	73.49M	18.50M	-4.41M	15.50M	8.81M
Balance Sheet
Total Assets	274.24M	346.29M	354.88M	377.79M	446.97M	457.00M
Cash, Cash Equivalents and Short-Term Investments	49.03M	108.50M	24.11M	34.93M	61.04M	66.18M
Total Debt	67.63M	73.94M	116.81M	142.95M	140.90M	161.95M
Total Liabilities	173.54M	198.84M	236.58M	263.10M	273.82M	281.83M
Stockholders Equity	76.21M	122.02M	85.99M	79.13M	127.55M	127.53M
Cash Flow
Free Cash Flow	57.59M	76.22M	56.66M	50.30M	67.22M	79.57M
Operating Cash Flow	61.17M	83.28M	72.71M	57.01M	75.64M	87.09M
Investing Cash Flow	88.90M	85.42M	-13.67M	-5.78M	-8.69M	18.31M
Financing Cash Flow	-118.86M	-84.26M	-69.83M	-77.35M	-72.06M	-71.15M

Medical Facilities Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 14.6 is below the 20-day moving average (MA) of 14.67, below the 50-day MA of 14.74, and below the 200-day MA of 15.51, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 45.39 is Neutral, neither overbought nor oversold. The STOCH value of 35.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DR.

Medical Facilities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXE	69 Neutral	1.27B	14.62	55.86%	3.36%	8.68%	39.93%
DR	59 Neutral	$269.31M	2.09	41.13%	2.47%	-35.35%	948.72%
SIA	59 Neutral	1.72B	46.11	5.55%	5.01%	10.13%	1.30%
CRRX	53 Neutral	219.43M	-117.91	-2.09%	0.57%	-0.16%	75.25%
WELL	46 Neutral	1.29B	-9.84	-15.57%	―	20.36%	-186.10%
PHA	41 Neutral	1.94M	-0.17	233.69%	―	-22.61%	7.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Medical Facilities Corporate Events

Medical Facilities Corporation Declares Third Quarter Dividend

Medical Facilities Corporation announced a cash dividend of Cdn $0.09 per common share, payable on October 15, 2025, to shareholders of record as of September 30, 2025. This dividend is designated as an ‘eligible dividend’ under Canadian tax law. This announcement reflects the company’s ongoing commitment to providing shareholder value and may influence investor perceptions and market positioning.

The most recent analyst rating on (TSE:DR) stock is a Hold with a C$16.00 price target. To see the full list of analyst forecasts on Medical Facilities stock, see the TSE:DR Stock Forecast page.

Medical Facilities Corporation Reports Q2 2025 Results and Secures New Credit Agreement

Medical Facilities Corporation reported a mixed financial performance for the second quarter of 2025, with a 1.3% decrease in facility service revenue primarily due to the relocation of a key physician group’s clinic affecting Sioux Falls Specialty Hospital. Despite this, the company saw a significant increase in net income from continuing operations, attributed to variations in non-cash finance costs and income taxes. The company also announced a new $40 million credit agreement to provide future financial flexibility, signaling a strategic move to strengthen its financial position.

The most recent analyst rating on (TSE:DR) stock is a Hold with a C$16.00 price target. To see the full list of analyst forecasts on Medical Facilities stock, see the TSE:DR Stock Forecast page.

Medical Facilities Corporation to Release Q2 2025 Financial Results

Medical Facilities Corporation is set to announce its second quarter 2025 financial results on August 7, 2025, before the market opens. The results will be available on SEDAR+ and the company’s website, followed by an earnings conference call. This announcement is a routine disclosure that provides stakeholders with insights into the company’s financial performance and operational health, potentially impacting investor decisions and market perceptions.

The most recent analyst rating on (TSE:DR) stock is a Hold with a C$16.00 price target. To see the full list of analyst forecasts on Medical Facilities stock, see the TSE:DR Stock Forecast page.