Medical Facilities (DR) AI Stock Analysis

• Market Cap: C$297.22M
• Dividend Yield: 2.31%
• Average Volume (3M): 27.36K
• Price to Earnings (P/E): 2.4
• Beta (1Y): 0.24
• Revenue Growth: -29.54%
• EPS Growth: 667.77%
• Country: CA
• Employees: 1,721
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Care Facilities
• EPS (TTM): 0.23
• Shares Outstanding: 19,052,750
• 10 Day Avg. Volume: 23,577
• 30 Day Avg. Volume: 27,363
• PEG Ratio: 2.65
• Price to Book (P/B): 3.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.17
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 1.11
• Enterprise Value/Ebitda: 0.61
• 1Y Price Target: C$16.99
• Price Target Upside: 8.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: C$17.50 ▲(12.18%Upside)

The overall stock score is driven by a strong valuation due to low P/E and attractive dividend yield. While financial performance is solid, concerns about declining revenue and free cash flow growth exist. Technical analysis indicates a neutral trend, and positive corporate events bolster investor confidence.

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 Corporation primarily generates revenue through the provision of surgical and ancillary services at its facilities. The company earns money by billing patients and insurance providers for the medical procedures and services rendered. Revenue streams include payments from private health insurers, government health programs like Medicare and Medicaid, and out-of-pocket payments from patients. Additionally, the company may benefit from strategic partnerships with physician groups and healthcare networks, which help in attracting a consistent flow of patients and optimizing operational efficiency.

Medical Facilities Financial Statement Overview

Summary

Medical Facilities demonstrates solid profitability and operational efficiency, supported by strong margins and ROE. However, the decline in revenue and free cash flow growth raises concerns. The company maintains a stable balance sheet with moderate leverage, ensuring a sound financial foundation despite recent growth challenges.

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	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
EBITDA	82.57M	72.43M	51.15M	103.40M	96.05M
Net Income	73.49M	18.50M	-4.41M	15.50M	8.81M
Balance Sheet
Total Assets	346.29M	354.88M	377.79M	446.97M	457.00M
Cash, Cash Equivalents and Short-Term Investments	108.50M	24.11M	34.93M	61.04M	66.18M
Total Debt	73.94M	116.81M	142.95M	140.90M	161.95M
Total Liabilities	198.84M	236.58M	263.10M	273.82M	281.83M
Stockholders Equity	122.02M	85.99M	79.13M	127.55M	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: Neutral
• Last Price: 15.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DR, the sentiment is Neutral. The current price of 15.6 is below the 20-day moving average (MA) of 15.82, above the 50-day MA of 15.57, and above the 200-day MA of 15.48, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 4.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DR.

Medical Facilities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DR	73 Outperform	C$297.22M	2.36	33.87%	2.31%	-29.54%	667.77%
SIA	68 Neutral	C$1.74B	44.44	6.93%	4.97%	8.76%	14.05%
EXE	68 Neutral	C$1.09B	14.24	71.61%	3.87%	9.38%	117.85%
WELL	62 Neutral	C$1.24B	30.45	-3.53%	―	17.19%	-191.01%
CRRX	61 Neutral	C$181.96M	―	-4.48%	―	-0.69%	8.08%
Sector *	60 Neutral	HK$16.12B	5.55	-7.44%	3.87%	11.55%	-28.15%
PHA	40 Underperform	C$2.78M	―	-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.