📊 MED Key Takeaways
Is Medifast Inc. (MED) a Good Investment?
Medifast is experiencing severe operational deterioration with revenue collapsing 36% YoY and the company posting negative operating and net income despite maintaining high gross margins of 68.1%. While the balance sheet remains fortress-like with zero debt and $71.5M in cash, the company is burning cash with negative free cash flow of -$836K and generating minimal operating cash flow, indicating fundamental business challenges that cannot be offset by balance sheet strength alone.
Medifast Inc. Key Strengths (MED)
- Fortress balance sheet with zero long-term debt and $71.5M cash reserves
- Exceptional liquidity with 4.8x current ratio and 4.3x quick ratio
- High gross margin of 68.1% demonstrates pricing power in core products
MED Stock Risks: Medifast Inc. Investment Risks
- Catastrophic 36% year-over-year revenue decline signals severe demand destruction
- Company is unprofitable with negative operating margin of -4.3% and net margin of -2.8%
- Negative free cash flow of -$836K despite $51.8M gross profit indicates operational dysfunction
- Minimal operating cash generation of only $260K suggests fundamental business model stress
- Return on equity and assets both deeply negative at -1.1% and -0.8% respectively
Key Metrics to Watch
- Quarterly revenue stabilization - continued monitoring of YoY revenue trends to assess demand recovery
- Path to operating profitability - when/if operating margin returns to positive territory
- Cash burn rate and runway - free cash flow trajectory and months of cash remaining at current burn rate
Medifast Inc. (MED) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.80x current ratio provides a solid financial cushion.
MED Profit Margin, ROE & Profitability Analysis
MED vs Consumer Sector: How Medifast Inc. Compares
How Medifast Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Medifast Inc. Stock Overvalued? MED Valuation Analysis 2026
Based on fundamental analysis, Medifast Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Medifast Inc. Balance Sheet: MED Debt, Cash & Liquidity
MED Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Medifast Inc.'s revenue has declined by 33% over the 5-year period, indicating business contraction. The most recent EPS of $9.10 reflects profitable operations.
MED Revenue Growth, EPS Growth & YoY Performance
MED Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $76.0M | -$772.0K | $-0.07 |
| Q3 2025 | $89.4M | -$553.0K | $-0.05 |
| Q2 2025 | $105.6M | $163.0K | $0.01 |
| Q1 2025 | $115.7M | -$772.0K | $-0.07 |
| Q3 2024 | $140.2M | $1.1M | $0.10 |
| Q2 2024 | $168.6M | $163.0K | $0.01 |
| Q1 2024 | $174.7M | $8.3M | $0.76 |
| Q3 2023 | $235.9M | $23.1M | $2.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Medifast Inc. Dividends, Buybacks & Capital Allocation
MED SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Medifast Inc. (CIK: 0000910329)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MED
What is the AI rating for MED?
Medifast Inc. (MED) has an AI grade of D with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MED's key strengths?
Claude: Fortress balance sheet with zero long-term debt and $71.5M cash reserves. Exceptional liquidity with 4.8x current ratio and 4.3x quick ratio.
What are the risks of investing in MED?
Claude: Catastrophic 36% year-over-year revenue decline signals severe demand destruction. Company is unprofitable with negative operating margin of -4.3% and net margin of -2.8%.
What is MED's revenue and growth?
Medifast Inc. reported revenue of $76.0M.
Does MED pay dividends?
Medifast Inc. pays dividends, with $0.1M distributed to shareholders in the trailing twelve months.
Where can I find MED SEC filings?
Official SEC filings for Medifast Inc. (CIK: 0000910329) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MED's EPS?
Medifast Inc. has a diluted EPS of $-0.19.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is MED's fundamental grade?
Based on our AI fundamental analysis in June 2026, Medifast Inc. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is MED stock overvalued or undervalued?
Valuation metrics for MED: ROE of -1.1% (sector avg: 18%), net margin of -2.8% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is MED's AI grade for 2026?
Our dual AI analysis gives Medifast Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MED's free cash flow?
Medifast Inc.'s operating cash flow is $260.0K, with capital expenditures of $1.1M. FCF margin is -1.1%.
How does MED compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -2.8% (avg: 8%), ROE -1.1% (avg: 18%), current ratio 4.80 (avg: 1.5).