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Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
17.5%
Sector: -43.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Pediatrix Medical Group, Inc. (MD) receives a "Hold" rating with a composite score of 52.2/100, ranked #324 out of 4446 stocks. Key factor scores: Quality 50/100, Value 75/100, Momentum 57/100. This is quantitative analysis only — not investment advice.
Pediatrix Medical Group, Inc. (MD) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Pediatrix Medical Group, Inc. Do?
MEDNAX, 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 founded in 1979 and is based in Sunrise, Florida. Pediatrix Medical Group, Inc. (MD) is classified as a small-cap stock in the Healthcare sector. The company is led by CEO Mark S. Ordan and employs approximately 7,850 people, headquartered in SUNRISE, Florida. With a market capitalization of $1.7B, MD is one of the notable companies in the Healthcare sector.
Pediatrix Medical Group, Inc. (MD) Stock Rating — Hold (April 2026)
As of April 2026, Pediatrix Medical Group, Inc. receives a Hold rating with a composite score of 52.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.MD ranks #324 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, Pediatrix Medical Group, Inc. ranks #14 of 838 stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
MD Stock Price and 52-Week Range
Pediatrix Medical Group, Inc. (MD) currently trades at $21.32. The stock lost $0.02 (0.1%) in the most recent trading session. The 52-week high for MD is $24.99, which means the stock is currently trading -14.7% from its annual peak. The 52-week low is $11.84, putting the stock 80.1% above its annual trough. Recent trading volume was 21K shares, suggesting relatively thin trading activity.
Is MD Overvalued or Undervalued? — Valuation Analysis
Pediatrix Medical Group, Inc. (MD) carries a value factor score of 75/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 11.95x, compared to the Healthcare sector average of 23.63x — a discount of 49%. The price-to-book ratio stands at 2.09x, versus the sector average of 2.75x. The price-to-sales ratio is 0.94x, compared to 1.66x for the average Healthcare stock. On an enterprise value basis, MD trades at 9.32x EV/EBITDA, versus 6.34x for the sector.
Based on these multiples, Pediatrix Medical Group, Inc. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Pediatrix Medical Group, Inc. Profitability — ROE, Margins, and Quality Score
Pediatrix Medical Group, Inc. (MD) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 17.5%, compared to the Healthcare sector average of -43.5%, which is within a healthy range. Return on assets (ROA) comes in at 6.7% versus the sector average of -33.1%.
On a margin basis, Pediatrix Medical Group, Inc. reports gross margins of 100.0%, compared to 71.5% for the sector. The operating margin is 10.1% (sector: -66.1%). Net profit margin stands at 7.8%, versus -58.7% for the average Healthcare stock. Revenue growth is running at -2.3% on a trailing basis, compared to 10.6% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
MD Debt, Balance Sheet, and Financial Health
Pediatrix Medical Group, Inc. has a debt-to-equity ratio of 159.0%, compared to the Healthcare sector average of 32.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.66x, suggesting adequate working capital coverage. Cash and equivalents stand at $340M.
MD has a beta of 0.31, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Pediatrix Medical Group, Inc. is 64/100, reflecting average volatility within the normal range for its sector.
Pediatrix Medical Group, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Pediatrix Medical Group, Inc. reported revenue of $1.93B and earnings per share (EPS) of $1.97. Net income for the quarter was $151M. Operating income came in at $194M.
In FY 2025, Pediatrix Medical Group, Inc. reported revenue of $1.91B and earnings per share (EPS) of $1.97. Net income for the quarter was $165M. Revenue grew -4.9% year-over-year compared to FY 2024. Operating income came in at $209M.
In Q3 2025, Pediatrix Medical Group, Inc. reported revenue of $493M and earnings per share (EPS) of $0.85. Net income for the quarter was $72M. Revenue grew -3.6% year-over-year compared to Q3 2024. Operating income came in at $68M.
In Q2 2025, Pediatrix Medical Group, Inc. reported revenue of $469M and earnings per share (EPS) of $0.46. Net income for the quarter was $39M. Revenue grew -7.0% year-over-year compared to Q2 2024. Operating income came in at $60M.
Over the past 8 quarters, Pediatrix Medical Group, Inc. has demonstrated a growth trajectory, with revenue expanding from $504M to $1.93B. Investors analyzing MD stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
MD Dividend Yield and Income Analysis
Pediatrix Medical Group, Inc. (MD) does not currently pay a dividend. This is common among smaller companies in the Healthcare industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Healthcare dividend stocks may want to explore other Healthcare stocks or use the stock screener to filter by dividend yield.
MD Momentum and Technical Analysis Profile
Pediatrix Medical Group, Inc. (MD) has a momentum factor score of 57/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 18/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
MD vs Competitors — Healthcare Sector Ranking and Peer Comparison
Comparing MD against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full MD vs S&P 500 (SPY) comparison to assess how Pediatrix Medical Group, Inc. stacks up against the broader market across all factor dimensions.
MD Next Earnings Date
No upcoming earnings date has been announced for Pediatrix Medical Group, Inc. (MD) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy MD? — Investment Thesis Summary
Pediatrix Medical Group, Inc. presents a balanced picture with arguments on both sides. The value score of 75/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 64/100) reduces downside risk.
In summary, Pediatrix Medical Group, Inc. (MD) earns a Hold rating with a composite score of 52.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on MD stock.
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Institutional Research Dossier
Pediatrix Medical Group, Inc. (MD) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Pediatrix Medical Group (MD). While the company exhibits attractive valuation metrics, particularly relative to its sector, concerns regarding revenue growth and historical profitability issues temper our enthusiasm. The company's specialized healthcare services, focused on neonatal and maternal-fetal care, provide a degree of defensibility, but the lack of free cash flow data and inconsistent profitability necessitate a cautious approach.
The primary takeaway is that MD presents a mixed picture. Its low valuation multiples and relatively stable business model are appealing, but the negative revenue growth and past net losses raise questions about its long-term growth prospects and ability to consistently generate profits. Investors should closely monitor revenue trends and profitability improvements before considering a more bullish stance.
Business Strategy & Overview
Pediatrix Medical Group operates a network of physicians specializing in newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services. The company's core business revolves around providing clinical care within hospital settings, primarily in neonatal intensive care units (NICUs), labor and delivery areas, and pediatric emergency rooms. This focus on specialized, high-acuity care differentiates it from general healthcare providers.
The company generates revenue through contracts with hospitals and healthcare systems to provide physician staffing and management services. These contracts typically involve a combination of fee-for-service and capitated payment models. The company's strategy involves expanding its network of affiliated physicians and extending its service offerings to capture a larger share of the market for specialized pediatric care.
A key aspect of Pediatrix's strategy is its focus on building strong relationships with hospitals and healthcare systems. By providing high-quality clinical care and efficient management services, the company aims to become a trusted partner for these institutions. This allows Pediatrix to secure long-term contracts and expand its presence within existing hospital networks.
The healthcare industry is undergoing significant changes, including increasing consolidation and a shift towards value-based care. Pediatrix is adapting to these trends by investing in technology and data analytics to improve clinical outcomes and reduce costs. The company is also exploring opportunities to expand its service offerings into new areas, such as telehealth and home-based care.
Pediatrix's business model is inherently tied to birth rates and the prevalence of neonatal and pediatric health conditions. While birth rates have been declining in some regions, the increasing complexity of medical care for newborns and children is driving demand for specialized services. The company's focus on high-acuity care positions it to benefit from this trend.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-2.3%
Sector: 10.6%
-121% VS SCTR
Economic Moat Analysis
Pediatrix's economic moat is likely Narrow. The company's specialization in neonatal and maternal-fetal care creates a degree of differentiation, but the barriers to entry are not insurmountable. While establishing a network of qualified physicians and building relationships with hospitals requires time and investment, competitors can replicate this model.
One potential source of competitive advantage is the company's reputation for providing high-quality clinical care. Hospitals are often willing to pay a premium for providers with a proven track record of improving patient outcomes. However, this advantage is dependent on maintaining consistent quality across its network of physicians and managing clinical risk effectively.
Switching costs for hospitals are moderate. While changing physician staffing providers can be disruptive, hospitals are not locked into long-term contracts and can switch providers if they are dissatisfied with the quality of care or the cost of services. This limits Pediatrix's ability to raise prices without risking losing contracts.
The company's network of affiliated physicians could create a network effect, but this effect is limited. While a larger network allows Pediatrix to offer a wider range of services and geographic coverage, the benefits of adding additional physicians diminish as the network grows. Furthermore, the network effect is not as strong as in other industries, such as social media or e-commerce.
Intangible assets, such as brand recognition and intellectual property, are not a significant source of competitive advantage for Pediatrix. The company's brand is not widely recognized by consumers, and it does not own any significant intellectual property that protects its business from competition.
Efficient scale is not a major factor in the company's industry. While there are economies of scale in managing a large network of physicians, these economies are not significant enough to create a barrier to entry for smaller competitors. Overall, while Pediatrix possesses some advantages due to its specialization and reputation, these advantages are not strong enough to warrant a Wide moat rating.
Financial Health & Profitability
Pediatrix's financial health presents a mixed picture. While the company's current ratio of 1.66 indicates a healthy level of liquidity, its historical revenue growth has been inconsistent. The TTM revenue of $1.91 billion represents a decline of 2.3% compared to the previous year's $2.01 billion. This negative revenue growth is a concern, particularly in a sector that is generally experiencing growth.
The company's profitability has also been volatile. While the TTM net income of $165.39 million is a significant improvement over the previous year's net loss of $99.07 million, the historical data reveals periods of both profitability and losses. The operating margin has fluctuated significantly, ranging from -31.3% to 13.8% on a quarterly basis. This volatility raises questions about the sustainability of the company's profitability.
Compared to the healthcare sector, Pediatrix's profitability metrics are generally favorable. The company's ROE of 17.5% is significantly higher than the sector average of -42.5%. Similarly, its gross margin of 100.0%, operating margin of 10.1%, and net margin of 7.8% are all substantially better than the sector averages. However, it's important to note that a 100% gross margin is unusual and warrants further investigation to understand its composition and sustainability.
The company's debt-to-equity ratio of 159.00 is significantly higher than the sector average of 30.00. This indicates that Pediatrix is more leveraged than its peers, which could increase its financial risk. However, the absence of total debt data makes it difficult to fully assess the company's leverage position.
The lack of free cash flow data is a significant limitation in assessing the company's financial health. Free cash flow is a key indicator of a company's ability to generate cash and fund its operations. Without this data, it is difficult to determine whether Pediatrix is generating sufficient cash to cover its expenses and invest in future growth.
Overall, Pediatrix's financial health is characterized by inconsistent revenue growth, volatile profitability, and a relatively high level of leverage. While the company's profitability metrics are currently favorable compared to the sector, the historical data suggests that these metrics may not be sustainable. The lack of free cash flow data further complicates the assessment of the company's financial health.
Valuation Assessment
Pediatrix's valuation appears attractive based on several key metrics. The company's P/E ratio of 10.0x is significantly lower than the healthcare sector average of 24.3x, suggesting that the stock is undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 2.0x is substantially lower than the sector average of 6.4x, further supporting the notion that the stock is undervalued.
However, it's crucial to consider the company's historical performance and future growth prospects when assessing its valuation. The negative revenue growth and volatile profitability raise questions about whether the company can sustain its current earnings level. If earnings decline in the future, the P/E ratio could increase, making the stock less attractive.
The company's low valuation multiples may reflect investor concerns about its long-term growth prospects. The healthcare industry is undergoing significant changes, and Pediatrix faces challenges such as increasing competition and pressure to reduce costs. These challenges could limit the company's ability to grow its earnings in the future.
Without free cash flow data, it is difficult to assess the company's intrinsic value using discounted cash flow analysis. Free cash flow is a key driver of value, and the absence of this data makes it challenging to determine whether the stock is trading at a discount to its fair value.
Compared to its historical valuation, Pediatrix's current P/E ratio is relatively low. However, it's important to note that the company's historical earnings have been volatile, making it difficult to establish a reliable baseline for comparison. The company's current valuation may reflect a period of improved profitability, but it's uncertain whether this improvement is sustainable.
Overall, Pediatrix's valuation appears attractive based on its P/E and EV/EBITDA ratios. However, investors should exercise caution due to the company's negative revenue growth, volatile profitability, and lack of free cash flow data. The stock may be undervalued, but it also carries significant risks that could limit its upside potential.
Risk & Uncertainty
Several risks and uncertainties could negatively impact Pediatrix's business and financial performance. One of the most significant risks is the potential for changes in healthcare regulations and reimbursement policies. The healthcare industry is heavily regulated, and changes in regulations could affect the company's revenue and profitability. For example, changes in Medicare or Medicaid reimbursement rates could reduce the amount that Pediatrix receives for its services.
Competition is another significant risk. The market for specialized pediatric care is competitive, and Pediatrix faces competition from other physician staffing companies, hospitals, and academic medical centers. Increased competition could lead to lower prices and reduced market share.
The company's reliance on contracts with hospitals and healthcare systems creates concentration risk. If Pediatrix were to lose a significant contract, its revenue and profitability could be negatively impacted. The company's ability to renew its contracts on favorable terms is also uncertain.
Clinical risk is an inherent risk in the healthcare industry. Pediatrix's physicians provide care to critically ill newborns and children, and there is always a risk of medical errors or adverse outcomes. These events could lead to lawsuits and reputational damage.
The company's relatively high level of leverage could increase its financial risk. If Pediatrix's earnings decline, it may have difficulty meeting its debt obligations. This could lead to financial distress or even bankruptcy.
Bulls Say / Bears Say
The Bull Case
BULL VIEWPediatrix's low valuation multiples provide a margin of safety and offer significant upside potential if the company can improve its revenue growth and profitability.
BULL VIEWThe company's specialization in neonatal and maternal-fetal care provides a degree of defensibility and positions it to benefit from the increasing complexity of medical care for newborns and children.
BULL VIEWPediatrix's focus on building strong relationships with hospitals and healthcare systems creates a competitive advantage and allows it to secure long-term contracts.
The Bear Case
BEAR VIEWPediatrix's negative revenue growth and volatile profitability raise concerns about its long-term growth prospects and ability to consistently generate profits.
BEAR VIEWThe company's relatively high level of leverage increases its financial risk and could limit its ability to invest in future growth.
BEAR VIEWChanges in healthcare regulations and reimbursement policies could negatively impact Pediatrix's revenue and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score MD and 4,400+ other equities.
Pediatrix Medical Group, Inc. exhibits a 17% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
6.7%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
100.0%
Sector: 71.5%
Operating Margin
Core business profitability
10.1%
Sector: -66.1%
Net Margin
Bottom-line profitability
7.8%
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
