Medical Facilities (DR) AI Stock Analysis

• Market Cap: C$297.41M
• Dividend Yield: 2.31%
• Average Volume (3M): 29.22K
• Price to Earnings (P/E): 2.4
• Beta (1Y): 0.26
• Revenue Growth: -29.54%
• EPS Growth: 667.77%
• Country: CA
• Employees: 1,721
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Care Facilities
• EPS (TTM): 0.24
• Shares Outstanding: 19,052,750
• 10 Day Avg. Volume: 39,371
• 30 Day Avg. Volume: 29,220
• PEG Ratio: -0.20
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.46
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 1.41
• Enterprise Value/Ebitda: 0.78
• 1Y Price Target: C$16.94
• Price Target Upside: 6.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: C$17.50 ▲(10.41%Upside)

The overall score reflects solid financial performance with strong profitability and operational efficiency. The company’s undervalued nature and proactive corporate actions, like share buybacks and dividends, further bolster its attractiveness. However, the lack of growth in revenue and free cash flow introduces some caution.

Medical Facilities Business Overview & Revenue Model

Company Description

Medical Facilities Corporation (DR) is a healthcare services company that owns and operates a diverse portfolio of surgical facilities across the United States. The company focuses on providing high-quality, cost-effective healthcare services through its network of specialty surgical hospitals and ambulatory surgery centers. These facilities offer a wide range of surgical procedures, including orthopedics, neurosurgery, and pain management, catering to the growing demand for outpatient services.

How the Company Makes Money

Medical Facilities Corporation generates revenue primarily through the provision of surgical services at its owned and operated facilities. The company's key revenue streams include payments from private health insurance providers, government healthcare programs like Medicare and Medicaid, and out-of-pocket payments from patients. The company also benefits from strategic partnerships with physicians and healthcare organizations, which help drive patient referrals and enhance operational efficiencies. Additionally, Medical Facilities Corporation focuses on optimizing its cost structure and expanding its service offerings to increase profitability and shareholder value.

Medical Facilities Financial Statement Overview

Summary

The company exhibits strong profitability with high gross and net profit margins and an impressive ROE. However, the decline in revenue and free cash flow growth is concerning, despite maintaining a stable balance sheet with moderate leverage.

Income Statement

The company shows a strong gross profit margin of 65.8% and a robust net profit margin of 24.7% for TTM. Revenue has decreased by 7.9% over the past year, indicating a contraction. The EBIT margin stands at 18.8%, reflecting a solid operational efficiency, while the EBITDA margin is 25.7%, demonstrating good earnings before non-cash expenses. However, the decline in revenue growth poses a concern.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.88, indicating balanced leverage. The return on equity (ROE) is notably high at 93.7%, which suggests effective use of equity to generate profits. The equity ratio is 27.4%, showing a decent proportion of assets financed by shareholders' equity. Overall, the balance sheet reflects a stable financial position with some leverage.

Cash Flow

The free cash flow has decreased by 10.2% over the past year. The operating cash flow to net income ratio is 0.99, indicating efficient cash generation relative to net earnings. The free cash flow to net income ratio is 0.91, signifying strong cash conversion from profits. Despite the decline in free cash flow, cash flow metrics remain solid.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
304.99M	331.53M	445.58M	424.55M	398.63M	363.85M
	Gross Profit
200.69M	219.88M	296.68M	280.63M	268.61M	242.94M
	EBIT
57.24M	61.64M	67.11M	34.94M	77.36M	67.79M
	EBITDA
78.35M	82.57M	72.43M	51.15M	103.40M	96.05M
	Net Income Common Stockholders
75.45M	73.49M	18.50M	-4.41M	15.50M	8.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
65.72M	108.50M	24.11M	34.93M	61.04M	66.18M
	Total Assets
293.85M	346.29M	354.88M	377.79M	446.97M	457.00M
	Total Debt
71.11M	73.94M	116.81M	142.95M	140.90M	161.95M
	Net Debt
5.38M	-34.56M	92.70M	108.03M	79.86M	95.77M
	Total Liabilities
189.13M	198.84M	236.58M	263.10M	273.82M	281.83M
	Stockholders Equity
80.53M	122.02M	85.99M	79.13M	127.55M	127.53M
Cash Flow		Free Cash Flow
68.44M	76.22M	56.66M	50.30M	67.22M	79.57M
	Operating Cash Flow
74.52M	83.28M	72.71M	57.01M	75.64M	87.09M
	Investing Cash Flow
86.41M	85.42M	-13.67M	-5.78M	-8.69M	18.31M
	Financing Cash Flow
-120.71M	-84.26M	-69.83M	-77.35M	-72.06M	-71.15M

Medical Facilities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.85
• 50DMA: Positive
• 100DMA: Negative
• 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 15.85 is above the 20-day moving average (MA) of 15.56, above the 50-day MA of 15.34, and above the 200-day MA of 15.30, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 59.67 is Neutral, neither overbought nor oversold. The STOCH value of 46.97 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
EXE	73 Outperform	C$1.18B	15.44	71.61%	3.57%	9.38%	117.85%
DR	73 Outperform	C$297.41M	2.36	33.87%	2.31%	-29.54%	667.77%
SIA	72 Outperform	C$1.70B	43.52	6.93%	5.08%	8.76%	14.05%
CRRX	61 Neutral	C$176.87M	―	-4.48%	―	-0.69%	8.08%
WELL	59 Neutral	C$1.02B	30.45	-3.53%	―	17.19%	-191.01%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
PHA	46 Neutral	C$3.61M	―	-239.50%	―	3.03%	-410.90%

Medical Facilities Corporate Events

Medical Facilities Corporation Announces 2025 Shareholder Meeting Results

Medical Facilities Corporation announced the results of its 2025 Annual Meeting of Shareholders, where all five nominees for the board of directors were elected. Additionally, shareholders approved the appointment of Raymond Chabot Grant Thornton LLP as auditors. This outcome ensures continuity in the company’s leadership and financial oversight, potentially strengthening its operational stability and investor confidence.

Medical Facilities Corporation Declares Second Quarter Dividend

Medical Facilities Corporation announced a cash dividend of Cdn $0.09 per common share, payable on July 15, 2025, to shareholders of record as of June 30, 2025. This dividend is designated as an ‘eligible dividend’ under Canadian tax law, potentially benefiting shareholders with favorable tax treatment. The announcement reflects the company’s ongoing commitment to providing shareholder value and may enhance its attractiveness to investors seeking income through dividends.

Medical Facilities Corporation Reports Stable Q1 2025 Results and Significant Shareholder Returns

Medical Facilities Corporation reported stable financial results for the first quarter of 2025, with facility service revenue remaining flat at $81.7 million despite one less surgical day. The company saw a 2.2% increase in surgical cases and a slight rise in EBITDA to $17.3 million. A significant highlight was the return of $44.3 million to shareholders through share repurchases, reflecting a strategic focus on capital return. The company’s strong cash position, with $65.7 million in cash and equivalents, supports its ongoing operations and shareholder value initiatives.

Medical Facilities Corporation to Release Q1 2025 Financial Results

Medical Facilities Corporation is set to announce its first quarter 2025 financial results on May 8, 2025, before the market opens. The results will be accessible on SEDAR+ and the company’s website, with an earnings conference call scheduled for the same morning. This announcement is crucial for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations.

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.