MEDIFAST INC Price To Earning vs. Return On Equity

MED Stock  USD 20.98  0.78  3.58%   
Based on the measurements of profitability obtained from MEDIFAST INC's financial statements, MEDIFAST INC is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess MEDIFAST INC's ability to earn profits and add value for shareholders. As of December 12, 2024, Price To Sales Ratio is expected to decline to 0.65. In addition to that, Days Sales Outstanding is expected to decline to 0.25. At present, MEDIFAST INC's Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 135.2 M, whereas Non Operating Income Net Other is projected to grow to (39.3 K).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.540.7237
Way Down
Very volatile
Net Profit Margin0.09740.0927
Sufficiently Up
Slightly volatile
Operating Profit Margin0.120.1179
Fairly Up
Slightly volatile
Pretax Profit Margin0.130.1201
Significantly Up
Slightly volatile
Return On Assets0.340.3208
Notably Up
Slightly volatile
Return On Equity0.840.4934
Way Up
Slightly volatile
For MEDIFAST INC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MEDIFAST INC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MEDIFAST INC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MEDIFAST INC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MEDIFAST INC over time as well as its relative position and ranking within its peers.
  

MEDIFAST INC's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
For information on how to trade MEDIFAST Stock refer to our How to Trade MEDIFAST Stock guide.
Is Personal Care Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of MEDIFAST INC. If investors know MEDIFAST will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about MEDIFAST INC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.95)
Earnings Share
0.67
Revenue Per Share
61.769
Quarterly Revenue Growth
(0.41)
Return On Assets
0.0477
The market value of MEDIFAST INC is measured differently than its book value, which is the value of MEDIFAST that is recorded on the company's balance sheet. Investors also form their own opinion of MEDIFAST INC's value that differs from its market value or its book value, called intrinsic value, which is MEDIFAST INC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because MEDIFAST INC's market value can be influenced by many factors that don't directly affect MEDIFAST INC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between MEDIFAST INC's value and its price as these two are different measures arrived at by different means. Investors typically determine if MEDIFAST INC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MEDIFAST INC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

MEDIFAST INC Return On Equity vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining MEDIFAST INC's current stock value. Our valuation model uses many indicators to compare MEDIFAST INC value to that of its competitors to determine the firm's financial worth.
MEDIFAST INC is considered to be number one stock in price to earning category among its peers. It also is considered to be number one stock in return on equity category among its peers . The ratio of Price To Earning to Return On Equity for MEDIFAST INC is about  382.24 . At present, MEDIFAST INC's Return On Equity is projected to increase slightly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value MEDIFAST INC by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

MEDIFAST Return On Equity vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

MEDIFAST INC

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
13.99 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

MEDIFAST INC

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0366
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

MEDIFAST Return On Equity Comparison

MEDIFAST INC is currently under evaluation in return on equity category among its peers.

MEDIFAST INC Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in MEDIFAST INC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MEDIFAST INC will eventually generate negative long term returns. The profitability progress is the general direction of MEDIFAST INC's change in net profit over the period of time. It can combine multiple indicators of MEDIFAST INC, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income248 K260.4 K
Operating Income126.4 M132.7 M
Income Before Tax128.8 M135.2 M
Total Other Income Expense Net2.4 M2.5 M
Net Income99.4 M104.4 M
Income Tax Expense29.4 M30.9 M
Net Income Applicable To Common Shares165.1 M173.4 M
Net Income From Continuing Ops119.9 M73.5 M
Non Operating Income Net Other-41.4 K-39.3 K
Interest Income2.5 M2.6 M
Net Interest Income1.1 M1.2 M
Change To Netincome14.1 M14.8 M
Net Income Per Share 9.13  9.59 
Income Quality 1.49  0.96 
Net Income Per E B T 0.77  0.81 

MEDIFAST Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on MEDIFAST INC. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of MEDIFAST INC position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the MEDIFAST INC's important profitability drivers and their relationship over time.

Use MEDIFAST INC in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if MEDIFAST INC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MEDIFAST INC will appreciate offsetting losses from the drop in the long position's value.

MEDIFAST INC Pair Trading

MEDIFAST INC Pair Trading Analysis

The ability to find closely correlated positions to MEDIFAST INC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace MEDIFAST INC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back MEDIFAST INC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling MEDIFAST INC to buy it.
The correlation of MEDIFAST INC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as MEDIFAST INC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if MEDIFAST INC moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for MEDIFAST INC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your MEDIFAST INC position

In addition to having MEDIFAST INC in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Conservative Funds Thematic Idea Now

Conservative Funds
Conservative Funds Theme
Funds or Etfs that invest using buy-and-hold investment strategy in companies with consistent growth over many years of operation. The Conservative Funds theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Conservative Funds Theme or any other thematic opportunities.
View All  Next Launch
When determining whether MEDIFAST INC is a strong investment it is important to analyze MEDIFAST INC's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact MEDIFAST INC's future performance. For an informed investment choice regarding MEDIFAST Stock, refer to the following important reports:
Check out Correlation Analysis.
For information on how to trade MEDIFAST Stock refer to our How to Trade MEDIFAST Stock guide.
You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
To fully project MEDIFAST INC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of MEDIFAST INC at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include MEDIFAST INC's income statement, its balance sheet, and the statement of cash flows.
Potential MEDIFAST INC investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although MEDIFAST INC investors may work on each financial statement separately, they are all related. The changes in MEDIFAST INC's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on MEDIFAST INC's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.