Medical Facilities (DR) AI Stock Analysis

• Market Cap: C$278.20M
• Dividend Yield: 2.34%
• Average Volume (3M): 28.55K
• Price to Earnings (P/E): 2.2
• Beta (1Y): 0.50
• Revenue Growth: -40.05%
• EPS Growth: 558.77%
• Country: CA
• Employees: 1,721
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.32
• Shares Outstanding: 18,053,349
• 10 Day Avg. Volume: 25,496
• 30 Day Avg. Volume: 28,554
• PEG Ratio: <0.01
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 2.63
• 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: 10.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: C$18.00 ▲(16.81% Upside)

The overall stock score is driven by strong valuation metrics and positive technical indicators. While financial performance shows profitability, challenges in revenue and cash flow growth pose risks. Corporate events highlight operational strength and shareholder commitment, further supporting the stock's positive outlook.

Positive Factors

Operational Efficiency

The reduction in operating expenses indicates improved cost management, which can enhance profitability and provide a competitive edge in the long term.

Shareholder Returns

Significant shareholder returns through buybacks reflect strong cash management and commitment to enhancing shareholder value, which can boost investor confidence.

Financial Flexibility

The new credit agreement provides enhanced financial flexibility, allowing the company to invest in growth opportunities and manage liquidity effectively.

Negative Factors

Revenue Decline

A decline in revenue growth indicates challenges in maintaining sales momentum, which could impact long-term financial stability and market position.

Free Cash Flow Decline

Declining free cash flow growth suggests reduced cash availability for reinvestment and debt servicing, potentially affecting future operational flexibility.

Surgical Volume Decline

A decrease in surgical volumes indicates potential challenges in patient acquisition and retention, which could hinder revenue growth and market competitiveness.

Medical Facilities Business Overview & Revenue Model

Company Description

Medical Facilities (DR) is a healthcare management company focused on enhancing the quality and efficiency of medical services across various sectors, including surgical facilities, outpatient care, and diagnostic services. The company operates a network of ambulatory surgery centers and provides a range of core services such as surgical procedures, anesthesia, and patient care, aimed at delivering high-quality and cost-effective healthcare solutions to patients and healthcare providers.

How the Company Makes Money

Medical Facilities (DR) generates revenue primarily through patient services, which include fees for surgical procedures, consultations, and outpatient services. The company bills insurance companies, Medicare, and patients directly for these services. Key revenue streams include facility fees, surgeon fees, and anesthesia fees, allowing the company to capitalize on the increasing demand for outpatient surgical procedures. Additionally, Medical Facilities (DR) may engage in partnerships with healthcare providers and insurance companies to offer bundled payment solutions, further enhancing its revenue potential. Cost management and operational efficiencies also play a significant role in maintaining profitability.

Medical Facilities Financial Statement Overview

Summary

Medical Facilities demonstrates strong profitability and efficient cost management, with high profit margins and return on equity. However, challenges with declining revenue and free cash flow growth 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	288.51M	331.53M	445.58M	424.55M	398.63M	363.85M
Gross Profit	146.69M	219.88M	296.68M	280.63M	268.61M	242.94M
EBITDA	64.62M	82.57M	72.43M	51.15M	103.40M	96.05M
Net Income	84.40M	73.49M	18.50M	-4.41M	15.50M	8.81M
Balance Sheet
Total Assets	374.96M	346.29M	354.88M	377.79M	446.97M	457.00M
Cash, Cash Equivalents and Short-Term Investments	46.81M	108.50M	24.11M	34.93M	61.04M	66.18M
Total Debt	65.09M	73.94M	116.81M	142.95M	140.90M	161.95M
Total Liabilities	159.40M	198.84M	236.58M	263.10M	273.82M	281.83M
Stockholders Equity	86.13M	122.02M	85.99M	79.13M	127.55M	127.53M
Cash Flow
Free Cash Flow	53.81M	76.22M	56.66M	50.30M	67.22M	79.57M
Operating Cash Flow	58.46M	83.28M	72.71M	57.01M	75.64M	87.09M
Investing Cash Flow	87.84M	85.42M	-13.67M	-5.78M	-8.69M	18.31M
Financing Cash Flow	-118.21M	-84.26M	-69.83M	-77.35M	-72.06M	-71.15M

Medical Facilities Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.41
• 50DMA: Positive
• 100DMA: Positive
• 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 15.41 is below the 20-day moving average (MA) of 15.74, above the 50-day MA of 14.92, and above the 200-day MA of 15.06, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 47.36 is Neutral, neither overbought nor oversold. The STOCH value of 13.09 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	72 Outperform	C$278.20M	2.15	39.85%	2.34%	-40.05%	558.77%
EXE	71 Outperform	C$1.84B	20.42	65.57%	2.26%	11.59%	41.99%
SIA	63 Neutral	C$1.91B	45.38	7.07%	4.44%	11.47%	6.45%
CRRX	59 Neutral	C$235.38M	3,750.00	0.11%	0.52%	0.19%	―
WELL	58 Neutral	C$990.14M	-22.34	-5.11%	―	26.20%	-156.86%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PHA	42 Neutral	C$1.11M	-0.12	-1473.72%	―	-22.61%	7.72%

Medical Facilities Corporate Events

Medical Facilities Corporation Declares Fourth Quarter Dividend

Medical Facilities Corporation has announced a cash dividend of Cdn $0.09 per common share, payable on January 15, 2026, to shareholders of record as of December 31, 2025. This dividend is designated as an ‘eligible dividend’ under Canadian tax law. The announcement reflects the company’s ongoing commitment to providing value to its shareholders and highlights its stable financial position, which is supported by its portfolio of surgical facilities in the U.S.

Medical Facilities Corporation Reports Strong Q3 2025 Financial Results

Medical Facilities Corporation reported a 7.5% increase in facility service revenue for Q3 2025, driven by higher surgical case volumes and favorable payor mix. The company’s income from operations rose by 17.1%, and EBITDA increased by 10.2%, reflecting operational strength. Additionally, MFC returned $5.6 million to shareholders through share buybacks, highlighting its commitment to shareholder value. Despite fluctuations in net income due to non-cash finance costs and income taxes, the company maintains a strong balance sheet with significant cash reserves, indicating a positive outlook for stakeholders.

Medical Facilities Corporation Reports Strong Q3 2025 Results

Medical Facilities Corporation reported a 7.5% increase in facility service revenue for the third quarter of 2025, driven by higher surgical case volumes and favorable payor rate changes. The company’s income from operations rose by 17.1%, and EBITDA increased by 10.2%, reflecting the strength of its surgical facilities. Additionally, the company returned $5.6 million to shareholders through share repurchases, indicating a strong financial position and commitment to shareholder value.

Medical Facilities Corporation to Release Q3 2025 Financial Results

Medical Facilities Corporation announced it will release its third quarter 2025 financial results on November 6, 2025, before the market opens. The company will host an earnings conference call to discuss the results, providing stakeholders with insights into its financial performance. This announcement is significant as it offers an opportunity for investors and analysts to evaluate the company’s operational and financial health, potentially impacting its market positioning and stakeholder decisions.