MEDIFAST Reports Third Quarter FY2023 Earnings Results
December 4, 2023
🌥️Earnings Overview
MEDIFAST ($NYSE:MED) released its financial figures for the third quarter of FY2023, which ended on September 30 2023. Total revenue amounted to USD 235.9 million, a drop of 39.6% compared to the same quarter in the prior year. Net income for the period decreased by 36.0%, amounting to USD 23.1 million in comparison to the same quarter in the previous year.
Market Price
On Monday, MEDIFAST released their FY2023 third quarter earnings results. The stock opened at $69.9 and closed at $70.7, representing an increase of 1.1% from the prior closing price of $69.9. Overall, these earnings results show that MEDIFAST is continuing to experience success and growth, leading to increased share prices and investor confidence. It is clear that MEDIFAST is well-positioned for continued success in the years ahead. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Medifast. More…
| Total Revenues | Net Income | Net Margin |
| 1.22k | 119.9 | 9.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Medifast. More…
| Operations | Investing | Financing |
| 188.87 | -59.38 | -86.22 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Medifast. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 320.02 | 126.98 | 17.72 |
Key Ratios Snapshot
Some of the financial key ratios for Medifast are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.2% | 9.4% | 12.3% |
| FCF Margin | ROE | ROA |
| 14.3% | 49.6% | 29.4% |
Analysis
At GoodWhale, we conducted an analysis of MEDIFAST‘s wellbeing, and the results were quite encouraging. Our Star Chart showed that MEDIFAST has a high health score of 10/10 with regard to its cashflows and debt, indicating that it is capable of surviving any crisis without the risk of bankruptcy. Given MEDIFAST’s strong financial standing, this makes it an attractive investment for many types of investors. Specifically, those that are looking for assets, dividends, growth, and profitability will be pleased by MEDIFAST’s impressive performance. We believe that MEDIFAST is a strong choice for investors looking to diversify their portfolio. More…
Peers
The company operates through four segments: Weight Management, Healthy Living, Professional Services, and Corporate. Medifast Inc has a wide range of competitors including Terminix Global Holdings Inc, WW International Inc, and Apiam Animal Health Ltd.
– Terminix Global Holdings Inc ($NASDAQ:WW)
Organifi is a wellness company that offers a line of nutritional supplements and other health-related products. The company was founded in 2013 and is headquartered in San Diego, California. Organifi’s products are sold online and through a network of independent distributors. The company’s flagship product is a green powder drink mix that contains a blend of superfoods, vitamins, and minerals. Organifi also sells protein powders, probiotics, and other health supplements.
As of 2022, Organifi had a market capitalization of $305.47 million and a return on equity of -20.95%. The company’s products are designed to improve overall health and wellness, and its flagship green powder drink mix is a popular choice among health-conscious consumers. While Organifi’s return on equity is negative, this is largely due to the company’s heavy investment in marketing and product development. Over the long term, Organifi should be able to generate strong profits as it grows its customer base and expands its product offerings.
– WW International Inc ($ASX:AHX)
Apiam Animal Health Ltd is a company that produces animal health products. Its market cap is 127.53M as of 2022 and its ROE is 4.91%. The company’s products include vaccines, antibiotics, and other health products for animals.
Summary
MEDIFAST‘s financial performance in the third quarter of FY2023 was disappointing, with total revenue declining by 39.6% and net income decreasing by 36.0% compared to the same period the previous year. Investors should be wary of the company’s ability to manage its finances in the face of such a large drop in sales. In addition, the future outlook of the company should also be considered, as it may impact long-term investment decisions. Investors should seek more detailed information before making an investment decision in MEDIFAST.
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