MED

Medifast Inc

Consumer, Healthcare


Presented:04/26/2019
Price:$155.10
Cap:$1.85B
Current Price:$17.80
Cap:$0.19B

Presented

Date04/26/2019
Price$155.10
Market Cap$1.85B
Ent Value$1.40B
P/E Ratio33.63x
Book Value$9.19
Div Yield1.93%
Shares O/S11.90M
Ave Daily Vol241,780
Short Int21.89%

Current

Price$17.80
Market Cap$0.19B
Medifast, Inc. is a health and wellness company, which engages in the manufacture and distribution of healthy living products and programs. Its product lines include weight loss, weight management and healthy living meal replacements, snacks, hydration products, and vitamins. The company was founded by William Vitale in 1980 and is headquartered in Baltimore, MD.

Publicly traded companies mentioned herein: Herbalife Nutrition Ltd (HLF), Medifast Inc (MED), Nu Skin Enterprises Inc (NUS), Tivity Health Inc (TVTY)

Highlights

The presenter is long shares of Medifast Corp (MED), the dietary supplement provider that operates a direct-selling model. MED has one main product, the 5 &1 Plan, a caloric deficit diet of prepackaged foods similar to Nutrisystem. The plan costs ~$400 per month, which breaks out to less than $5 per meal, and the company sends a collection of prepackaged foods. The presenter notes the diet’s proven efficacy but adds that this hasn’t precluded the stock from trading down since it peaked at ~$250 per share in September 2018 due to a “factually incorrect” short thesis. At its current ~$150 share price, ~15x consensus EBITDA and ~23x consensus earnings estimates for 2019 - he finds the stock attractive. There could be significant upside for shareholders over the next 12 – 24 months on the back of a recovery in the trading multiples if i) quality concerns ease, ii) results exceed conservative growth estimates, and iii) management can execute on the international growth opportunity.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.