Pediatrix Medical Group, Inc. (MD) stock analysis

P/E above its 5-year median

Pediatrix Medical's P/E of 17.1 is above its own 5-year median of 12.9.

P/E below the industry

Pediatrix Medical's P/E of 17.1 is below the Health Services median of 23.9.

EV/EBITDA above its 5-year median

Pediatrix Medical's EV/EBITDA of 11.0 is above its 5-year median of 8.3.

P/B below the industry

Pediatrix Medical's price-to-book of 2.89 is below the Health Services median of 3.52.

Trading above fair value

The share price of $31.45 is above our fair value estimate of $29.34.

Margin of safety under 20%

The price is 7.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -1.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 34.9% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 1.9% over the last twelve months; the Health Services median is 4.0%.

Guidance issued

The latest outlook (full year 2026 Adjusted EBITDA, Oct 29, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 17.2% over the last twelve months and averaged 4.9% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 15.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Pediatrix Medical's return on equity of 17.2% is above the Health Services median of 4.6%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 7.7% over the last twelve months, against a 5-year average of 2.2%.

Net margin above the industry

Pediatrix Medical's net margin of 7.7% is above the Health Services median of -2.6%.

High debt

Debt is 68.0% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 39.3% of total debt.

Interest well covered

Operating income covers interest expense 6.4 times.

Short-term assets cover short-term debts

Current assets are 1.28 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.47; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Pediatrix Medical has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.