Pediatrix Medical Group (MD) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: -1.13%
• EPS Growth: -17.77%
• Country: US
• Employees: 4,120
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Care Facilities
• EPS (TTM): 0.33
• Shares Outstanding: 85,905,730
• 10 Day Avg. Volume: 678,324
• 30 Day Avg. Volume: 1,094,272
• PEG Ratio: -0.38
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.04
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 4.44
• Enterprise Value/Ebitda: -4.45
• 1Y Price Target: $15.33
• Price Target Upside: 10.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• 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 Business Overview & Revenue Model

Company Description

Pediatrix 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 Money

Pediatrix 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 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.98B	2.01B	1.99B	1.97B	1.91B	1.73B
	Gross Profit
446.44M	454.34M	421.56M	467.03M	513.24M	449.32M
	EBIT
153.98M	-68.71M	7.32M	172.69M	202.92M	173.52M
	EBITDA
-47.54M	-28.37M	29.89M	235.64M	249.88M	200.37M
	Net Income Common Stockholders
-82.37M	-99.07M	-60.41M	66.33M	130.96M	-9.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
219.18M	348.51M	177.74M	9.82M	387.39M	1.23B
	Total Assets
1.99B	2.15B	2.22B	2.35B	2.72B	3.35B
	Total Debt
655.32M	662.31M	701.65M	753.57M	1.07B	1.80B
	Net Debt
556.34M	432.37M	628.39M	743.74M	678.44M	680.87M
	Total Liabilities
1.20B	1.39B	1.37B	1.46B	1.83B	2.60B
	Stockholders Equity
789.19M	764.94M	849.06M	891.63M	896.69M	747.72M
Cash Flow		Free Cash Flow
203.21M	184.55M	104.00M	137.23M	44.49M	175.83M
	Operating Cash Flow
223.22M	206.57M	137.32M	166.94M	76.74M	204.62M
	Investing Cash Flow
-26.63M	-35.41M	-48.18M	-56.95M	-53.07M	815.51M
	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 Price: 13.82
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	77 Outperform	$1.60B	14.91	11.19%	2.37%	19.16%	31.92%
USPH	70 Outperform	$1.17B	35.43	6.72%	2.34%	14.30%	76.89%
PNTG	69 Neutral	$981.68M	37.16	11.28%	―	30.04%	43.47%
MD	64 Neutral	$1.19B	―	-10.01%	―	-1.13%	-17.77%
BKD	56 Neutral	$1.60B	―	-91.17%	―	3.88%	-34.30%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
AVAH	44 Neutral	$957.91M	282.18	42.49%	―	9.05%	―

Pediatrix Medical Group Corporate Events

Pediatrix Medical Group Holds Annual Shareholders’ Meeting

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.