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Pediatrix Medical Group
(NYSE:MD)
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Rating:73Outperform
Price Target:
$32.00
▲(18.74% Upside)
Action:Reiterated
Date:10/29/26
The score is primarily supported by improved financial fundamentals (return to solid profitability, strong TTM growth, healthy free cash flow and improving leverage) and constructive technical momentum with price above major moving averages. The main constraints are signs of cost/mix pressure and softer recent free cash flow, plus earnings-call risks around volume declines, higher G&A, and a fading RCM collections tailwind. Valuation appears reasonable at ~13.7x earnings, but no dividend yield data is available to add support.
Positive Factors
Improved profitability and growth
The shift from losses to roughly 9% TTM net margin alongside 43.6% revenue growth indicates materially stronger earnings capacity and expanding service demand. If profitability remains supported, it can fund investment, reinforce hospital relationships, and provide a more durable base for operating leverage over the next several quarters.
Negative Factors
Declining service volumes
Lower same-unit volumes and declining NICU days can constrain revenue growth because Pediatrix generates fees when affiliated clinicians deliver patient care. Persistent birth-rate or utilization pressure could reduce operating leverage, make staffing economics less favorable, and offset gains from pricing and payer mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability and growth
The shift from losses to roughly 9% TTM net margin alongside 43.6% revenue growth indicates materially stronger earnings capacity and expanding service demand. If profitability remains supported, it can fund investment, reinforce hospital relationships, and provide a more durable base for operating leverage over the next several quarters.
Read all positive factors
Pediatrix Medical Group (MD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.35B
Dividend YieldN/A
Average Volume (3M)729.02K
Price to Earnings (P/E)13.7
Beta (1Y)0.58
Revenue Growth0.51%
EPS Growth63.71%
CountryUS
Employees4,280
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.85
Shares Outstanding81,253,270
10 Day Avg. Volume658,592
30 Day Avg. Volume729,016
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)2.11
Price to Sales (P/S)0.95
P/FCF Ratio7.22
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue1.16
Enterprise Value/Gross Profit6.23
Enterprise Value/Ebitda11.52
Forecast
1Y Price Target
$27.40Price Target Upside1.67% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)2.35
Revenue Forecast (FY)$1.96B
Pediatrix Medical Group Business Overview & Revenue Model
Company Description
Pediatrix Medical Group, Inc. delivers specialized medical services for newborns, expectant mothers, and pediatric patients across the United States and Puerto Rico. The company offers crucial neonatal care to critically ill or prematurely born in...
How the Company Makes Money
Pediatrix makes money primarily by billing and collecting fees for medical services delivered by its affiliated clinicians. Revenue is generated when Pediatrix-employed or affiliated physicians and other clinicians provide patient care (often in h...
Pediatrix Medical Group Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Positive
The call presented several meaningful positives: solid adjusted EBITDA ($76M), reaffirmed full-year guidance ($280M–$300M), improved payer mix and pricing, a strong balance sheet with $289M cash and low leverage (~1x), ongoing share buybacks, and strategic expansion into telehybrid services leveraging a large national footprint. Offsetting these positives are modest volume declines (same-unit volumes down 2%, NICU days down 3%), lower operating cash flow YoY, higher practice-level SW&B and G&A (including executive transition costs), and management’s expectation that the favorable RCM collections tailwind will ease in H2 2026. Overall, the call emphasized financial strength, disciplined capital allocation and strategic growth initiatives while acknowledging near-term volume and expense headwinds.Positive Updates
Strong Adjusted EBITDA and Reaffirmed Full-Year Outlook
Adjusted EBITDA of $76 million in Q2 2026; company reaffirmed full-year 2026 adjusted EBITDA guidance of $280 million to $300 million.
Negative Updates
Decline in Same-Unit Volumes and Neonatology Utilization
Same-unit patient service volumes were down 2% year-over-year; NICU days (neonatology) were down 3%, contributing to modestly lower volumes in the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Adjusted EBITDA and Reaffirmed Full-Year Outlook
Adjusted EBITDA of $76 million in Q2 2026; company reaffirmed full-year 2026 adjusted EBITDA guidance of $280 million to $300 million.
Read all positive updates
Company Guidance
Management reaffirmed full‑year 2026 adjusted EBITDA guidance of $280–$300 million (Q2 adjusted EBITDA was $76 million) and said results should be fairly ratable in Q3 and Q4; using the midpoint, net debt of just over $295 million implies leverage of just above 1x. Liquidity and capital deployment metrics include cash of $289 million, total debt of $584 million, share repurchases of just under 2 million in the quarter (7 million since August 2025) and shares outstanding down to ~81 million from 87 million a year ago. Operational drivers cited: consolidated revenue +4% (same‑unit +2%), same‑unit pricing +4% (driven ~95% by RCM collections, payer mix and acuity), payer mix +135 bps YoY (+120 bps vs Q1), same‑unit volumes −2% with NICU days down 3%, accounts receivable DSO 42.5 days (down ~4 days YoY), and operating cash flow of $126 million (vs. $138 million prior year). On costs, Q2 G&A was $5.8 million, full‑year G&A is expected to be $230–$240 million (likely toward the high end), salary growth is tracking ~3–3.5%, and management expects the RCM collections tailwind to dissipate in H2 while acuity and payer mix remain supportive.Pediatrix Medical Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.96B | 1.91B | 2.01B | 1.99B | 1.97B | 1.91B |
| Gross Profit | 365.79M | 471.88M | 454.34M | 421.56M | 467.03M | 513.24M |
| EBITDA | 197.75M | 274.22M | -28.37M | 29.89M | 156.70M | 236.10M |
| Net Income | 150.09M | 165.39M | -99.07M | -60.41M | 66.33M | 130.96M |
Balance Sheet | ||||||
| Total Assets | 2.14B | 2.25B | 2.15B | 2.22B | 2.35B | 2.72B |
| Cash, Cash Equivalents and Short-Term Investments | 425.84M | 499.72M | 348.51M | 177.74M | 103.06M | 487.11M |
| Total Debt | 612.00M | 660.30M | 662.31M | 701.65M | 717.08M | 1.07B |
| Total Liabilities | 1.29B | 1.38B | 1.39B | 1.37B | 1.46B | 1.83B |
| Stockholders Equity | 849.62M | 865.85M | 764.94M | 849.06M | 891.63M | 896.49M |
Cash Flow | ||||||
| Free Cash Flow | 211.34M | 252.63M | 184.55M | 104.00M | 137.23M | 44.49M |
| Operating Cash Flow | 228.64M | 271.09M | 206.57M | 137.32M | 166.94M | 76.74M |
| Investing Cash Flow | -20.88M | -18.30M | -35.41M | -48.18M | -56.95M | -53.07M |
| Financing Cash Flow | -234.14M | -107.49M | -14.48M | -25.71M | -487.55M | -760.12M |
Pediatrix Medical Group Technical Analysis
Positive
26.95
Price Trends
26.80
Positive
26.18
Positive
23.79
Positive
Market Momentum
0.74
Negative
65.69
Neutral
63.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MD, the sentiment is Positive. The current price of 26.95 is below the 20-day moving average (MA) of 27.37, above the 50-day MA of 26.80, and above the 200-day MA of 23.79, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 65.69 is Neutral, neither overbought nor oversold. The STOCH value of 63.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MD.
Pediatrix Medical Group Risk Analysis
Pediatrix Medical Group disclosed 41 risk factors in its most recent earnings report. Pediatrix Medical Group reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pediatrix Medical Group Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.35B | 13.70 | 19.89% | ― | 0.51% | 63.71% | |
70 Outperform | $21.62B | 10.28 | 50.63% | ― | 5.43% | 65.86% | |
70 Outperform | $10.15B | 7.14 | 19.54% | 0.46% | 8.00% | 13.14% | |
60 Neutral | $1.68B | 21.69 | 5.21% | ― | 3.34% | -69.26% | |
59 Neutral | $100.29B | 56.22 | -100.45% | 0.66% | 5.82% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
41 Neutral | $375.08M | -0.69 | 39.88% | 0.70% | -5.25% | ― |
* Healthcare Sector Average
MD
Pediatrix Medical Group
28.91
11.04
61.78%
CYH
Community Health
2.66
-1.55
-36.82%
HCA
HCA Healthcare
463.22
-2.00
-0.43%
THC
Tenet Healthcare
268.50
59.36
28.38%
UHS
Universal Health
172.18
-52.14
-23.24%
ARDT
Ardent Health Partners, Inc.
11.93
-3.08
-20.52%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.