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Medical Facilities Corporation (TSE:DR)
TSX:DR
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Medical Facilities
(TSX:DR)
73Outperform
Medical Facilities (DR) vs. S&P 500 (SPY)
Market Cap
$396.82M
Dividend Yield2.19%
Average Volume (3M)126.63K
Price to Earnings (P/E)15.5
Beta (1Y)0.21
Revenue Growth0.54%
EPS Growth276.35%
CountryCA
Employees1,529
SectorHealthcare
Sector Strength78
IndustryHealthcare Providers & Services
Share Statistics
EPS (TTM)1.09
Shares Outstanding22,924,162
10 Day Avg. Volume165,660
30 Day Avg. Volume126,627
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)N/A
Price to Sales (P/S)0.64
Price to Cash Flow (P/CF)4.80
P/FCF Ratio6.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$17.00Price Target Upside-1.77% Downside
Rating ConsensusHold
Number of Analyst Covering0
Medical Facilities Business Overview & Revenue Model
Company DescriptionMedical Facilities (DR) is a company operating in the healthcare sector, primarily focused on owning and managing surgical facilities. The company provides a range of services including outpatient surgery, diagnostics, and other related healthcare services. Their facilities are designed to offer high-quality medical care in a cost-effective manner, catering to both patients and healthcare providers.
How the Company Makes MoneyMedical Facilities generates revenue primarily through the operation of its surgical facilities. The company earns money by providing surgical and diagnostic services to patients, with reimbursement from insurance companies, government programs, and patient payments. Key revenue streams include fees for surgical procedures, diagnostic services, and other ancillary services offered at their facilities. Additionally, the company may benefit from partnerships with clinics, hospitals, and healthcare providers, as well as potential agreements with insurance companies to secure patient flow and ensure steady revenue streams.
Medical Facilities Financial Statement Overview
Summary
The company exhibits a solid financial foundation with strong cash flow performance and efficient cost management. However, profitability remains a concern with relatively low net profit margins and return on equity. The balance sheet reflects moderate leverage, which needs careful monitoring to ensure long-term financial health.Income Statement
The company's gross profit margin is strong at 68.1%, reflecting efficient cost management. However, the net profit margin is relatively low at 4.4%, indicating challenges in translating revenue to profits. The revenue growth has been inconsistent, with a slight decline in the TTM compared to the previous year. EBIT and EBITDA margins are moderate, suggesting stable operational performance but room for improvement in profitability.72
Positive
Balance Sheet
The debt-to-equity ratio of 1.26 indicates a moderately leveraged position, which could pose risks if not managed carefully. The return on equity is relatively low at 25.3%, suggesting limited returns for shareholders. The equity ratio stands at 23.3%, highlighting low equity financing, which could affect the company's financial stability.65
Positive
Cash Flow
The company demonstrates strong cash flow management with a robust free cash flow growth rate of 30.4% in the TTM. The operating cash flow to net income ratio of 4.15 indicates efficient conversion of income to cash. Free cash flow to net income ratio is excellent at 3.78, showcasing a healthy cash generation capability relative to net earnings.78
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 441.27M | 445.58M | 424.55M | 398.63M | 363.85M | 398.10M | Gross Profit |
| 300.60M | 296.68M | 280.63M | 268.61M | 242.94M | 269.66M | EBIT |
| 86.42M | 67.11M | 46.94M | 77.36M | 67.79M | 111.28M | EBITDA |
| 106.38M | 90.36M | 67.70M | 103.40M | 96.05M | 124.83M | Net Income Common Stockholders |
| 19.53M | 18.50M | 12.29M | 46.49M | 37.42M | 59.68M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 24.11M | 24.11M | 34.93M | 61.04M | 66.18M | 31.99M | Total Assets |
| 354.88M | 354.88M | 377.79M | 446.97M | 457.00M | 470.55M | Total Debt |
| 116.81M | 116.81M | 142.95M | 140.90M | 161.95M | 218.77M | Net Debt |
| 92.70M | 92.70M | 108.03M | 79.86M | 95.77M | 186.78M | Total Liabilities |
| 236.58M | 236.58M | 263.10M | 267.29M | 281.83M | 297.20M | Stockholders Equity |
| 85.99M | 85.99M | 79.13M | 134.08M | 127.53M | 125.05M |
| Cash Flow | Free Cash Flow | ||||
| 73.90M | 56.66M | 50.30M | 67.22M | 79.57M | 64.81M | Operating Cash Flow |
| 81.15M | 72.71M | 57.01M | 75.64M | 87.09M | 77.38M | Investing Cash Flow |
| -7.25M | -13.67M | -5.78M | -8.69M | 18.31M | 1.37M | Financing Cash Flow |
| -82.15M | -69.83M | -77.35M | -72.06M | -71.15M | -83.69M |
Medical Facilities Technical Analysis
Positive
17.31
Price Trends
16.58
Positive
15.91
Positive
14.53
Positive
Market Momentum
0.20
Positive
54.54
Neutral
51.30
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 17.31 is above the 20-day moving average (MA) of 17.27, above the 50-day MA of 16.58, and above the 200-day MA of 14.53, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 51.30 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
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | C$219.21M | 4.15 | 36.75% | 0.39% | 19.21% | 105.30% | |
81 Outperform | C$1.09B | 14.65 | 70.86% | 3.67% | 12.36% | 123.26% | |
76 Outperform | C$1.93B | 9.93 | 30.01% | 9.96% | 6.15% | 8.44% | |
73 Outperform | $396.82M | 15.50 | 25.19% | 2.19% | 0.54% | 276.35% | |
73 Outperform | C$63.88M | 12.64 | 19.57% | ― | 38.28% | ― | |
66 Neutral | C$1.47B | 31.76 | 8.99% | 5.85% | 13.72% | 429.22% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
TSE:DR
Medical Facilities
17.31
8.23
90.68%
TSE:DRX
ADF Group Inc. SV
7.63
-1.65
-17.78%
TSE:EXE
Extendicare
13.09
6.08
86.73%
TSE:SIA
Sienna Senior Living
15.81
3.49
28.33%
TSE:COV
Covalon Technologies
2.39
1.05
78.36%
TSE:LIF
Labrador Iron Ore
30.17
4.05
15.51%
Medical Facilities Earnings Call Summary
Earnings Call Date: Nov 7, 2024 | % Change Since: 18.61% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive quarter for Medical Facilities Corporation with significant revenue growth driven by government stimulus income and strong performance in surgical and pain management volumes. However, challenges such as the decline in inpatient cases and increased salary expenses were noted. The overall sentiment is positive due to the outweighing highlights of revenue growth, debt reduction, and operational achievements.Highlights
Government Stimulus Recognition
The company recognized government stimulus income of $11.4 million due to the full forgiveness of all outstanding PPP loans by the U.S. Small Business Administration.
Revenue and Income Growth
Total revenue and other income increased by $11.6 million or 11.2% to $115 million. Income from operations increased 11.7% to $14.2 million, and EBITDA rose by 8.3% to $19.1 million.
Surgical and Pain Management Volume Increase
Total surgical cases increased by 3.1%, with observation cases up 13% and outpatient cases up 6.5%. Pain management cases grew by 13.4%.
Debt Reduction and Share Repurchase
The company reduced its corporate debt by $2 million for the quarter and $12 million over the first 9 months. Additionally, 554,900 shares were repurchased in the quarter, returning $5.7 million to shareholders.
Arkansas Surgical Hospital Achievement
Arkansas Surgical Hospital was ranked as one of the top 10 hospitals in the U.S. for low readmission rates by CMS, being the only hospital in Arkansas on the list.
Lowlights
Inpatient Cases Decline
Inpatient cases declined by 22.1% in the third quarter, offsetting some of the gains in other areas.
Increased Salaries and Benefits
Consolidated salaries and benefits rose by 4.5% due to annual merit increases, full-time equivalent increases, market wage pressures, and higher physician salaries.
Reduction in Net Working Capital
Net working capital decreased to $11.4 million from $19.8 million at year-end, and cash and cash equivalents dropped from $24.1 million to $18.7 million.
Company Guidance
In the third quarter of 2024, Medical Facilities Corporation (DR.TO) reported a significant increase in total revenue and other income by $11.6 million or 11.2% to reach $115 million, largely due to the recognition of $11.4 million in government stimulus income following full forgiveness of PPP loans. The facility service revenue remained relatively stable at approximately $103.6 million. The company achieved an 11.7% rise in income from operations to $14.2 million and an 8.3% increase in EBITDA, reaching $19.1 million. Additionally, the company repurchased 554,900 shares during the quarter, returning $5.7 million to shareholders, and further reduced its corporate credit facility by $2 million, achieving a $12 million decrease over the first nine months of the year. Notably, Arkansas Surgical Hospital was recognized among the top 10 U.S. hospitals for low readmission rates.Medical Facilities Corporate Events
Medical Facilities Announces $80.75M Share Buyback
Jan 17, 2025
Medical Facilities Corporation announced a substantial issuer bid to purchase and cancel up to $80,750,000 of its common shares. This decision follows the sale of Black Hills Surgical Hospital, with proceeds being used for the offer, reflecting the Board’s view that this move aligns with the company’s strategy to return capital to shareholders. The offer, structured as a modified Dutch auction, allows shareholders to tender shares within a specified price range or at a determined purchase price, ensuring the company retains sufficient resources for ongoing operations.
Medical Facilities Corporation Announces Dividend Payment
Dec 18, 2024
Medical Facilities Corporation has declared a cash dividend of Cdn $0.09 per share, payable on January 15, 2025, to shareholders of record by December 31, 2024. The company owns and operates high-quality surgical facilities in the U.S., partnering with physicians to deliver various medical procedures and services.
Medical Facilities Corporation Announces New Board Chair
Nov 28, 2024
Medical Facilities Corporation has implemented governance changes following the sale of Black Hills Surgical Hospital, with Adina Storch appointed as the new independent Chair of the Board. These changes aim to align with corporate governance best practices, ensuring continued success and value creation for shareholders.
Medical Facilities Sells Hospital to Sanford Health
Nov 14, 2024
Medical Facilities Corporation has announced the sale of its specialty surgical hospital, Black Hills Surgical Hospital, to Sanford Health for $194 million. This move is part of the company’s strategy to focus on core assets and strengthen its financial position. The transaction is expected to generate significant value for shareholders and enhance MFC’s operational flexibility.
Medical Facilities Corporation Reports Q3 2024 Financial Growth
Nov 7, 2024
Medical Facilities Corporation reported a slight increase in facility service revenue and a significant boost in income from operations in the third quarter of 2024, aided by government stimulus income. The company also repurchased a substantial number of its shares and made progress in reducing its corporate debt.
Medical Facilities Corporation Shows Strong Q3 Performance
Nov 7, 2024
Medical Facilities Corporation reported a modest increase in facility service revenue and a significant boost in income from operations for the third quarter of 2024, thanks largely to government stimulus income. The company actively repurchased its common shares and reduced corporate debt, showcasing a strong financial strategy to benefit shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.