Medifast, Inc. reflects attractive technical aspects that could allow investors to expect a trend reversal over the medium term.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
● The company's Refinitiv ESG score, based on a relative ranking of the company within its sector, comes out particularly poor.
Strengths
● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
● The company is in a robust financial situation considering its net cash and margin position.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● The divergence of price targets given by the various analysts who make up the consensus is relatively low, suggesting a consensus method of evaluating the company and its prospects.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● The valuation of the company is particularly high given the cash flows generated by its activity.
● The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
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Medifast, Inc. is a health and wellness company. The Company provides a habit-based and coach-guided lifestyle solution OPTAVIA, which provides people with a comprehensive approach to help them achieve lasting optimal health and wellbeing. OPTAVIA's lifestyle plans deliver clinically proven health benefits as well as evidence-based tools, including scientifically developed products and a framework for habit creation reinforced by independent coaches and community support. Through a collaboration with the virtual primary care provider LifeMD, Inc (LifeMD), OPTAVIA customers have access to board-certified affiliated clinicians and medications, such as GLP-1s, that support treatment plans for obesity and other health conditions. OPTAVIA Coaches introduce customers to a set of healthy habits, and offer OPTAVIA-branded products, including Fuelings as well as OPTAVIA ACTIVE, a line of essential amino acid supplements and protein powders. Its operations are conducted through its subsidiaries.