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Pediatrix Medical Group, Inc. (MD)
:MD

Pediatrix Medical Group (MD) AI Stock Analysis

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MD

Pediatrix Medical Group

(NYSE:MD)

Rating:64Neutral
Price Target:
$15.00
▲(8.54%Upside)
The overall score reflects a mixed financial performance with challenges in revenue and profitability, partially offset by positive cash flow and stable debt levels. Technical analysis shows no clear trend, while valuation indicates profitability issues. An optimistic earnings call with improved guidance and effective cost management provides some positive outlook despite economic uncertainties.
Positive Factors
Financial Performance
Pediatrix released first quarter 2025 financial results that were above Street expectations.
Payer Mix
Florida payer mix data shows commercial births increased 4.0% year-over-year, which is encouraging for the company's payer mix.
Profit Outlook
Management raised its outlook for 2025 profit, with adjusted EBITDA expected to register in the range of $220 million to $240 million compared to previous guidance.
Negative Factors
Birth Trends
Births declined 1.8% y/y in February, down from January birth trends (+4.6% y/y) and 4Q birth trends (+3.4% y/y).
Sustainability of Trends
Concerns remain about the sustainability of the favorable payer mix trends and the company's ability to create long-term growth if these trends moderate or end.
Volume Growth
MD had embedded no volume growth in its 2025 guidance, indicating caution in future expectations.

Pediatrix Medical Group (MD) vs. SPDR S&P 500 ETF (SPY)

Pediatrix Medical Group Business Overview & Revenue Model

Company DescriptionPediatrix Medical Group, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States and Puerto Rico. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians. The company also provides maternal-fetal care services, including inpatient and office-based clinical care to expectant mothers and unborn babies through affiliated maternal-fetal medicine subspecialists, as well as obstetricians and other clinicians, including maternal-fetal nurse practitioners, certified nurse mid-wives, ultrasonographers, and genetic counselors. In addition, it offers pediatric cardiology care services comprising inpatient and office-based pediatric cardiology care of the fetus, infant, child, and adolescent patient with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through affiliated pediatric cardiologist subspecialists and other related clinical professionals; and specialized cardiac care to the fetus, neonatal and pediatric patients. Further, the company provides other pediatric subspecialty care services through pediatric subspecialists, such as pediatric intensivists, pediatric hospitalists, pediatric surgeons, and pediatric ophthalmologists, as well as pediatric ear, nose, and throat physicians; and support services in the areas of hospitals, primarily in the pediatric emergency rooms, labor and delivery areas, and nursery and pediatric departments. As of February 17, 2022, it operated a network of approximately 2,700 physicians. The company was formerly known as MEDNAX, Inc. and changed its name to Pediatrix Medical Group, Inc. in July 2022. Pediatrix Medical Group, Inc. was founded in 1979 and is based in Sunrise, Florida.
How the Company Makes MoneyPediatrix Medical Group generates revenue through the provision of specialized medical services in neonatal and pediatric care. The company primarily earns money by billing healthcare payers, including insurance companies, government programs, and patients, for the medical services it provides. Key revenue streams include professional fees for physician services, hospital-based services, and outpatient services. Additionally, Pediatrix Medical Group benefits from partnerships with hospitals and healthcare systems, which can provide stable patient referral sources and collaborative opportunities in care delivery. These partnerships often enhance the company's ability to negotiate favorable reimbursement rates and expand its service offerings across various regions.

Pediatrix Medical Group Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 6.72%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call showcased strong first-quarter performance, with significant growth in same-unit revenues and effective cost management leading to an upward revision of the full-year outlook. However, challenges such as a decrease in consolidated revenue due to portfolio restructuring and economic uncertainties were noted. Overall, the highlights slightly outweighed the lowlights, indicating a cautiously optimistic outlook.
Q1-2025 Updates
Positive Updates
Exceeding Expectations in Q1 2025
First quarter results exceeded expectations with a same-unit revenue growth of over 6% and adjusted EBITDA of just over $49 million, leading to an upward revision of the full-year 2025 adjusted EBITDA outlook to $220 million to $240 million.
Cost Management Success
Practice-level operating expenses reflect favorable impacts from cost management initiatives, with same-unit salary expense trends decelerating for the fourth consecutive quarter.
NICU and Hospital-Based Service Growth
NICU days increased by 2%, with strong volumes in hospital-based services contributing to overall growth.
Improved Cash Collections
Accounts receivable DSO improved by over four days year-over-year due to better cash collections at existing units.
Interest Income Boost
Interest income increased due to cash parked in attractive rate vehicles, contributing to other income.
Negative Updates
7% Revenue Decrease
Consolidated revenue decreased by over 7% due to non-same-unit activity, which declined by about $63 million related to portfolio restructuring.
Economic and Healthcare Uncertainty
The company remains cautious due to ongoing uncertainty in healthcare and the broader economy, impacting future guidance.
Practice-Level Expenses Increase
While practice-level SW&B expenses declined overall, same-unit expenses increased year-over-year due to higher incentive compensation and salary increases.
Company Guidance
During the conference call, Pediatrix Medical Group provided updated guidance for fiscal year 2025, reflecting stronger-than-expected first-quarter performance. The company reported a same-unit revenue growth of over 6%, with NICU days increasing by 2%, and adjusted EBITDA exceeding expectations at just over $49 million. Consequently, Pediatrix raised its full-year adjusted EBITDA outlook from a range of $215 million to $235 million to a new range of $220 million to $240 million. The call highlighted the impact of strategic portfolio management in 2024 and emphasized a focus on strengthening relationships with hospital partners and enhancing recruitment and retention efforts. Despite a 7% decrease in consolidated revenue due to portfolio restructuring, same-unit pricing rose by 4.6%, driven by favorable payer mix shifts and robust RCM cash collections. The company maintained a conservative stance on future guidance amid ongoing economic and healthcare uncertainties, while noting improved cash collections and a stable DSO of under 48 days.

Pediatrix Medical Group Financial Statement Overview

Summary
Pediatrix Medical Group shows a mixed financial performance with revenue and profitability challenges, as indicated by declining revenues and negative net income. However, stability is noted in the balance sheet with manageable debt levels, and positive cash flow metrics suggest effective cash management.
Income Statement
55
Neutral
The income statement reflects a declining revenue trend with a decrease from $2.01 billion in 2024 to $1.98 billion in TTM (Trailing-Twelve-Months) 2025. Gross profit margin has declined to 22.59% from 22.57% in 2024. The company struggled with profitability, showing a negative net income and EBITDA, indicating challenges in cost management and operational efficiency. Despite these issues, there was a slight improvement in EBIT margin from -3.41% in 2024 to 7.79% in TTM 2025.
Balance Sheet
68
Positive
The balance sheet indicates a stable equity position with a debt-to-equity ratio of 0.83 in TTM 2025, slightly improved from 0.87 in 2024. The equity ratio of 39.58% is a positive indicator of the company's reliance on equity financing. However, total assets have decreased, and liabilities remain high, which could pose risks if the trend continues.
Cash Flow
72
Positive
Cash flow analysis shows a positive free cash flow growth of 10.11% in TTM 2025, enhancing liquidity. The operating cash flow to net income ratio is strong at 2.71, indicating effective cash generation from operations despite negative net income. The free cash flow to net income ratio also shows resilience, highlighting effective capital expenditure management.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.98B2.01B1.99B1.97B1.91B1.73B
Gross Profit
446.44M454.34M421.56M467.03M513.24M449.32M
EBIT
153.98M-68.71M7.32M172.69M202.92M173.52M
EBITDA
-47.54M-28.37M29.89M235.64M249.88M200.37M
Net Income Common Stockholders
-82.37M-99.07M-60.41M66.33M130.96M-9.58M
Balance SheetCash, Cash Equivalents and Short-Term Investments
219.18M348.51M177.74M9.82M387.39M1.23B
Total Assets
1.99B2.15B2.22B2.35B2.72B3.35B
Total Debt
655.32M662.31M701.65M753.57M1.07B1.80B
Net Debt
556.34M432.37M628.39M743.74M678.44M680.87M
Total Liabilities
1.20B1.39B1.37B1.46B1.83B2.60B
Stockholders Equity
789.19M764.94M849.06M891.63M896.69M747.72M
Cash FlowFree Cash Flow
203.21M184.55M104.00M137.23M44.49M175.83M
Operating Cash Flow
223.22M206.57M137.32M166.94M76.74M204.62M
Investing Cash Flow
-26.63M-35.41M-48.18M-56.95M-53.07M815.51M
Financing Cash Flow
-96.72M-14.48M-25.71M-487.55M-760.12M-4.16M

Pediatrix Medical Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.82
Price Trends
50DMA
13.69
Positive
100DMA
14.07
Negative
200DMA
13.54
Positive
Market Momentum
MACD
0.05
Positive
RSI
49.56
Neutral
STOCH
76.78
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 13.82 is below the 20-day moving average (MA) of 14.18, above the 50-day MA of 13.69, and above the 200-day MA of 13.54, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 76.78 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 40 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

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
NHNHC
77
Outperform
$1.60B14.9111.19%2.37%19.16%31.92%
70
Outperform
$1.17B35.436.72%2.34%14.30%76.89%
69
Neutral
$981.68M37.1611.28%30.04%43.47%
MDMD
64
Neutral
$1.19B-10.01%-1.13%-17.77%
BKBKD
56
Neutral
$1.60B-91.17%3.88%-34.30%
54
Neutral
$5.34B3.27-45.10%3.30%16.80%0.02%
44
Neutral
$957.91M282.1842.49%9.05%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MD
Pediatrix Medical Group
13.82
6.32
84.27%
BKD
Brookdale Senior Living
6.74
0.13
1.97%
NHC
National Healthcare
102.33
-0.23
-0.22%
USPH
US Physical Therapy
77.34
-16.84
-17.88%
PNTG
Pennant Group
28.48
5.63
24.64%
AVAH
Aveanna Healthcare Holdings
4.92
2.07
72.63%

Pediatrix Medical Group Corporate Events

Executive/Board ChangesShareholder Meetings
Pediatrix Medical Group Holds Annual Shareholders’ Meeting
Neutral
May 8, 2025

On May 8, 2025, Pediatrix Medical Group held its Annual Shareholders’ Meeting, where all nominees for the Board of Directors were elected to serve until the 2026 meeting. Additionally, shareholders ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025 and approved the executive compensation for the 2024 fiscal year on a non-binding, advisory basis.

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.