MD  Mednax Inc

Exchange

NYSE

Sector

Health Care

Industry

Hospital/Nursing Management

Market Cap.

4.10B

Vuru Grade

79.87/100

Current Price

$44.51
+0.00 (+0.00%)

Growth Price

$74.42
Undervalued by 67.19%

Stability Price

$25.98
Overvalued by 41.63%

Company Metrics

  • P/E 14.18
  • P/S 1.23
  • P/B 1.45
  • EPS 3.14
  • Cash ROIC 11.38%
  • Cash Ratio 0.15
  • Dividend 0 / N/A %
  • Avg. Vol. 1.28M
  • Shares 92.11M
  • Market Cap. 4.10B

Company Description

MEDNAX, Inc., through its subsidiary, Pediatrix Medical Group, Inc. provides neonatal, maternal-fetal, other pediatric subspecialty and anesthesia physician services in the United States and Puerto Rico. The company's neonatal care services include clinical care to babies born prematurely or with complications through neonatologists, neonatal nurse practitioners, and other pediatric clinicians. It... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

MEDNAX Announces Acquisition of Leading Texas Radiology Practice
Business Wire (press release) - Oct 18, 2017
BUSINESS WIRE)--MEDNAX, Inc. (NYSE: MD), today announced the acquisition of Synergy Radiology Associates, PA, a private radiology physician group based in Houston, Texas.
MEDNAX, Inc. (MD) – Stock Bulletin
StandardOracle - 23 hours ago
MEDNAX, Inc. (MD) escalated 5.65% and closed its last trading session at $44.5. Its opening price on the last trading day was $42.12.
Shelton Capital Management Buys Shares of 7011 Mednax, Inc (NYSE:MD) - The Ledger Gazette
MEDNAX Inc (MD)'s Stock Formed A Several Months Bearish Multiple Bottom Chart ... - BZ Weekly
Mednax Inc. (MD) Moves Higher on Volume Spike for October 16
Equities.com (blog) - Oct 16, 2017
Mednax Inc. (MD) traded on unusually high volume on Oct. 16, as the stock gained 0.28% to close at $42.29. On the day, Mednax Inc. saw 2.02 million shares trade hands on 9,110 trades. Considering that the stock averages only a daily volume of 1.34 ...
Mednax, Inc (MD) Holdings Boosted by Grandeur Peak Global Advisors LLC - TrueBlueTribune
Stock Under Consideration: MEDNAX, Inc. (MD) - TRA
Hermes Investment Management Ltd Adjusts Its Position in Mednax, Inc. (MD)
HugoPress - 3 hours ago
Hermes Investment Management Ltd sold 37,806 shares last quarter decreasing its holdings in Mednax, Inc. by 6.0%. Its stake was valued at $25,463,000 a decrease of 32.9% according to the filing.
Hermes Investment Management Ltd Marginally Decreases Its Stake in Mednax, Inc ... - First News 24
Hermes Investment Management Ltd Decreases Its Ownership in Mednax, Inc. (MD) - Modern Readers
MEDNAX's American Anesthesiology to Exhibit at the ANESTHESIOLOGY® 2017 Annual ...
Business Wire (press release) - Oct 20, 2017
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--MEDNAX, Inc. (NYSE: MD), the national health solutions partner specializing in anesthesiology, neonatology, maternal-fetal medicine, other pediatric services, radiology, and management services, will exhibit ...
MEDNAX Announces Acquisition of Pediatric Urology Practice in South Florida
Business Wire (press release) - Oct 2, 2017
MEDNAX, Inc. is a national health solutions partner based in Sunrise, Fla. comprised of the nation's leading providers of physician services.
MEDNAX Announces Acquisition of Leading Connecticut Radiology Practice
Business Wire (press release) - Sep 28, 2017
BUSINESS WIRE)--MEDNAX, Inc. (NYSE: MD), today announced the acquisition of Jefferson Radiology, PC and Jefferson Imaging Associates, LLC based in Hartford, Conn.
How Does MEDNAX, Inc. (MD) Stack Up Right Now?
StockNewsJournal - Oct 4, 2017
MEDNAX, Inc. (MD) is an interesting player in the Healthcare space, with a focus on Specialized Health Services. The stock has been active on the tape, currently trading at $44.80, up from yesterday's close by 1.17%.
MEDNAX, Inc. (MD): Examining the Technicals
Economic News - Oct 17, 2017
Over the last few days fluctuation in the stock of MEDNAX, Inc. (NYSE:MD) was the main talking point of investors. Many experts agree that the truth about a stock is best reflected in the way it moves on the chart.
Stocks on the Move: MEDNAX, Inc. (MD), MEI Pharma, Inc. (MEIP)
TRA - 20 hours ago
MEDNAX, Inc. (MD) ended its previous trading session at $44.51 with the Gain of 5.67%. The company's market cap is $4.22 Billion, and the average volume is $1.27 Million.
Overview Of Different Chart Patterns: MEDNAX, Inc. (MD), MEI Pharma, Inc. (MEIP) - AllStockNews
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for MD to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate MD's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$44.51 Current Price

$74.42 Growth Price (DCF)

Undervalued by 67.19%


Growth Rate Assumed by Market: -18.04%


Future Free Cash Flow Growth Rate: 11.3%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$25.98 Stability Price (EPV)

Overvalued by 41.63%


Discount Rate: 15.0%

$79.53 Book Price

Undervalued by 78.69%


Shrinking Cash Return on Invested Capital over the past 5 years

MD has less efficiently invested its financial resources in buildings, projects, and equipment, resulting in increasingly weaker returns. Look at its Annual Reports to determine whether this decrease has been caused by one-time events or a more general decrease in investment returns.

MD has created $11.38 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 311.20M 389.74M 404.58M 341.63M 404.51M
divided by
Invested Capital 2.45B 2.69B 3.14B 4.06B 4.82B
Cash ROIC 12.68% 14.52% 12.89% 8.42% 8.39%

Satisfactory Return on Equity over the past 5 years

MD has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

MD has generated $12.67 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 240.91M 280.52M 317.20M 335.69M 324.60M
divided by
Stockholders' Equity 2.04B 2.34B 2.26B 2.44B 2.76B
Return on Equity 11.84% 11.97% 14.01% 13.77% 11.76%

Excellent Business Performance over the past 10 years

MD has been able to maintain profitability in good times and bad. This could mean MD has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

MD has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 180.01M 165.71M 226.43M 228.45M 239.69M 311.20M 389.74M 404.58M 341.63M 404.51M

Good Balance Sheet

MD's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 120.89M 35.11M 31.88M 43.63M 22.74M 27.86M 37.59M 53.96M 60.43M 66.98M
Current Assets 364.13M 284.90M 292.67M 296.01M 337.27M 359.04M 408.84M 467.05M 527.77M 587.13M
Total Assets 1.30B 1.50B 1.69B 2.04B 2.27B 2.75B 3.05B 3.61B 4.55B 5.34B
Current Liabilities 264.89M 317.13M 346.70M 320.85M 254.30M 268.34M 326.79M 416.27M 428.77M 448.95M
Total Liabilities 343.75M 531.74M 499.25M 590.19M 541.63M 714.97M 706.44M 1.34B 2.11B 2.58B
Stockholder' Equity 959.05M 965.14M 1.19B 1.45B 1.73B 2.04B 2.34B 2.26B 2.44B 2.76B
Current Ratio 1.37 0.90 0.84 0.92 1.33 1.34 1.25 1.12 1.23 1.31
TL-to-TA 0.26 0.36 0.30 0.29 0.24 0.26 0.23 0.37 0.46 0.48

Consistent Reinvestment of Profits over the past 10 years

MD has consistently retained profits. This may put MD in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, MD can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 401.73M 409.39M 585.19M 787.88M 1.01B 1.25B 1.48B 1.38B 1.51B 1.79B
Retained Earnings Growth - 1.91% 42.94% 34.64% 27.67% 23.95% 19.03% -7.23% 9.70% 18.22%

Potential Competitive Advantage over the past 10 years

MD potentially has a competitive advantage. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at its future prospects to determine sustainability and whether the economic moat will strengthen.

$13.48 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 142.72M 169.20M 175.80M 202.69M 218.00M 240.91M 280.52M 317.20M 335.69M 324.60M
divided by
Revenue 917.64M 1.07B 1.29B 1.40B 1.59B 1.82B 2.15B 2.44B 2.78B 3.18B
Net Profit Margin 15.55% 15.84% 13.65% 14.46% 13.73% 13.26% 13.02% 13.01% 12.08% 10.20%

Satisfactory Pricing Power over the past 10 years

Consistency is vital. MD has been able to maintain gross margins fairly consistently, which is a strong indication of their ability to raise prices with inflation. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$34.42 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 350.26M 380.07M 452.54M 489.13M 551.04M 613.88M 710.31M 806.52M 928.01M 1.03B
divided by
Revenue 917.64M 1.07B 1.29B 1.40B 1.59B 1.82B 2.15B 2.44B 2.78B 3.18B
Gross Margin 38.17% 35.58% 35.13% 34.90% 34.69% 33.79% 32.98% 33.07% 33.38% 32.47%

Low Capital Intensity over the past 10 years

MD has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that MD may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

8.15% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 8.51M 15.68M 14.95M 12.11M 31.33M 14.50M 15.65M 18.06M 27.07M 39.26M
divided by
Net Income 142.72M 169.20M 175.80M 202.69M 218.00M 240.91M 280.52M 317.20M 335.69M 324.60M
Capital Expenditure Ratio 5.96% 9.27% 8.50% 5.98% 14.37% 6.02% 5.58% 5.69% 8.06% 12.10%

No Dividend History over the past 10 years

MD has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 49.90M 47.16M 46.47M 47.57M 48.80M 99.38M 100.97M 99.89M 93.96M 93.11M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 68.14 32.50 60.53 68.08 72.01 79.36 52.88 66.72 72.10 66.66
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

MD has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 49.90M 47.16M 46.47M 47.57M 48.80M 99.38M 100.97M 99.89M 93.96M 93.11M
Stock Bought Back - 5.82% 1.48% -2.31% -2.51% -50.90% -1.57% 1.08% 6.31% 0.91%
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Posted by alexrasmussen  (on March 22, 2012)
http://seekingalpha.com/article/445411-identifying-8-predictable-cash-machines One of 8 cash machines I identified recently.