Pediatrix Medical Group Inc. Common Stock (MD)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on October 13, 2026, Pediatrix traded at $26.61, giving a market value of about $2.2 billion. FairStock's P/E is 12.73, P/B 2.40, and EV/EBITDA 8.80. That is not demanding for a company with a trailing free cash flow yield of 10.6%, or $228.6 million of free cash flow. But Graham's math is less forgiving: the Graham Number is $22.59, so the price carries a negative margin of safety of about 18%. The Lynch classification is TURNAROUND, because it returned to profit after losses within the last three years. In fiscal 2025, the year ended 2025-12-31, Pediatrix earned $165.4 million, compared with a fiscal 2024 net loss of $99.1 million and a fiscal 2023 net loss of $60.4 million. Revenue, however, slipped to $1.9 billion in fiscal 2025 from $2.0 billion in fiscal 2024. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $487.8 million, net income $39.8 million, and diluted EPS $0.49, versus fiscal Q2 2025, the quarter ended 2025-06-30, revenue of $468.8 million, net income of $39.3 million, and diluted EPS $0.46. That is modest progress, not rapid growth: FairStock shows revenue growth of 4.04% and profit growth of 1.48%, with a PEG of 8.60. ROE is 20.39%, but ROCE is 7.11%, and Altman Z-Score of 1.45 plus debt-to-equity of 0.70 means the balance sheet deserves attention. The business has a narrow moat at best: specialized neonatal and maternal-fetal care is not easy to replicate, but hospital contracts and payers hold much of the pricing power. At this price, the cash flow is attractive, but the margin of safety is thin. I would want the turnaround to keep compounding before calling it a bargain.

In plain English: Pediatrix provides specialized medical care for newborn babies, mothers, and children, mostly in hospital settings. The business lost money in 2023 and 2024 but earned a profit in 2025 and in the first half of 2026, and it turns a meaningful amount of profit into cash. At the recent price of $26.61, the stock looks a little expensive compared with a simple value check based on earnings and assets, though the cash flow makes it not obviously overpriced.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer