Medifast Stock Analysis, Valuation (NYSE:MED)

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$154.81 $0.51 (0.33%) MED stock closing price Jun 22, 2018 (Closing)

Watch the robo advisor video of Medifast stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for MED stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Medifast Inc Stock Rating 3.2/5

Amigobulls MED stock analysis takes into account various financial ratios like relative valuation, Medifast revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Medifast dividend performance. We compare Medifast valuation with its sector peers to gauge relative attractiveness of MED stock. Our Medifast stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy MED stock?

  • Medifast's revenue growth came in at 39.6% in 2018-03.
  • Medifast's average operating margin of 13.87 was exceptional.
  • LTM Net margins were good at 10.3% for Medifast.
  • Medifast generates a high return on invested capital of 265.5.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Medifast at 31.7.
  • The company has a good Free Cash Flow (FCF) margin of 17.

Should you sell MED stock?

  • The company saw an average annual sales decline of -2 in sales over the last 5 years.
  • Trading at a PE ratio of 55.5, MED stock is overvalued in comparison to sector average multiple of 22.
  • The company is trading at a price to sales multiple of 5.7, which is overvalued in comparison to the Consumer Staples sector average multiple of 1.7.

Comments on this video and Medifast stock

Investors can make use of the Amigobulls Medifast stock analysis to ascertain how MED stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, Medifast revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about MED stock.