Want to see MD full AI Analyst Report?
Top Page
Pediatrix Medical Group
(NYSE:MD)
Select Model
Select Model
Rating:71Outperform
Price Target:
$29.00
▲(10.43% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by improved financial performance (profitability recovery and solid cash generation), supported by constructive technical trends (price above key moving averages with healthy momentum). Valuation is reasonable on P/E but lacks dividend support, while the earnings call was net positive due to reaffirmed guidance, strong liquidity and buybacks, tempered by volume softness, higher expense expectations, and an easing RCM collections tailwind.
Positive Factors
Cash generation
Consistent operating and free cash flow (free cash flow roughly 90%+ of net income) gives the company durable internal funding for working capital, debt reduction, buybacks and selective investments. Strong cash conversion supports flexibility through volume cycles and funds strategic initiatives.
Negative Factors
Choppy revenue trend
Top-line instability—periodic declines and uneven momentum—reduces visibility on sustainable growth. For a utilization-driven provider, inconsistent revenue growth complicates capacity planning, pressures per-unit economics and raises the risk that margins and cash generation could revert if volumes weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating and free cash flow (free cash flow roughly 90%+ of net income) gives the company durable internal funding for working capital, debt reduction, buybacks and selective investments. Strong cash conversion supports flexibility through volume cycles and funds strategic initiatives.
Read all positive factors
Pediatrix Medical Group (MD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.18B
Dividend YieldN/A
Average Volume (3M)796.25K
Price to Earnings (P/E)12.9
Beta (1Y)0.64
Revenue Growth-2.25%
EPS GrowthN/A
CountryUS
Employees6,575
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)2.11
Shares Outstanding82,121,910
10 Day Avg. Volume793,429
30 Day Avg. Volume796,255
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$27.00Price Target Upside2.82% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)2.32
Revenue Forecast (FY)$1.95B
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 delivering medical services through its employed/contracted clinicians and billing payors for those services. A significant portion of revenue is generated from professional fees for physician and advanced practi...
Pediatrix Medical Group Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
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
72
Positive
Balance Sheet
64
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.95B | 1.91B | 2.01B | 1.99B | 1.97B | 1.91B |
| Gross Profit | 861.45M | 471.88M | 454.34M | 421.56M | 467.03M | 513.24M |
| EBITDA | 277.54M | 274.22M | -28.37M | 29.89M | 156.70M | 236.10M |
| Net Income | 174.81M | 165.39M | -99.07M | -60.41M | 66.33M | 130.96M |
Balance Sheet | ||||||
| Total Assets | 2.13B | 2.25B | 2.15B | 2.22B | 2.35B | 2.72B |
| Cash, Cash Equivalents and Short-Term Investments | 404.20M | 499.72M | 348.51M | 177.74M | 103.06M | 487.11M |
| Total Debt | 619.96M | 660.30M | 662.31M | 701.65M | 717.08M | 1.07B |
| Total Liabilities | 1.25B | 1.38B | 1.39B | 1.37B | 1.46B | 1.83B |
| Stockholders Equity | 880.98M | 865.85M | 764.94M | 849.06M | 891.63M | 896.49M |
Cash Flow | ||||||
| Free Cash Flow | 228.96M | 252.63M | 184.55M | 104.00M | 137.23M | 44.49M |
| Operating Cash Flow | 247.21M | 271.09M | 206.57M | 137.32M | 166.94M | 76.74M |
| Investing Cash Flow | -9.64M | -18.30M | -35.41M | -48.18M | -56.95M | -53.07M |
| Financing Cash Flow | -173.88M | -107.49M | -14.48M | -25.71M | -487.55M | -760.12M |
Pediatrix Medical Group Technical Analysis
Positive
26.26
Price Trends
24.81
Positive
23.37
Positive
22.28
Positive
Market Momentum
0.29
Positive
55.19
Neutral
66.74
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 26.26 is above the 20-day moving average (MA) of 26.03, above the 50-day MA of 24.81, and above the 200-day MA of 22.28, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 55.19 is Neutral, neither overbought nor oversold. The STOCH value of 66.74 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.53B | 28.32 | 11.68% | 1.15% | 11.40% | 13.96% | |
76 Outperform | $1.60B | 13.47 | 24.12% | ― | 5.22% | 1109.87% | |
71 Outperform | $2.18B | 12.87 | 19.89% | ― | -2.25% | ― | |
69 Neutral | $2.04B | 7.41 | 241.47% | ― | 20.49% | 4335.46% | |
67 Neutral | $1.76B | 57.58 | 3.88% | ― | 56.69% | -15.92% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
MD
Pediatrix Medical Group
26.51
12.03
83.08%
HCSG
Healthcare Services
22.05
8.32
60.60%
NHC
National Healthcare
219.45
124.67
131.54%
ASTH
Astrana Health
34.13
12.67
59.04%
AVAH
Aveanna Healthcare Holdings
9.31
3.50
60.24%
Pediatrix Medical Group Corporate Events
Executive/Board Changes
Pediatrix Medical Group Announces General Counsel Leadership Transition
Neutral
Jul 24, 2026
On May 1, 2026, Pediatrix Medical Group and longtime executive Mary Ann E. Moore agreed she would step down from her roles as Executive Vice President, General Counsel, Chief Administrative Officer and Secretary by year-end, and on July 21, 2026, ...
Executive/Board ChangesShareholder Meetings
Pediatrix Shareholders Reelect Board and Approve Governance Measures
Positive
May 7, 2026
On May 7, 2026, Pediatrix Medical Group held its Annual Meeting, at which shareholders representing a quorum of the outstanding common stock voted to re-elect all nominated directors to the board for terms running until the 2027 annual meeting. Th...
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.