Pediatrix Medical Group, Inc. (MD) AI Stock Analysis
MD AI stock analysis summary
AI ResearchPediatrix Medical Group, Inc. (MD) provides specialized newborn, maternal-fetal, and pediatric cardiology services in hospital units and outpatient settings. The company produced $1.95B in trailing twelve-month revenue with a profit margin of 9.0%. MD generated $252.6M in free cash flow in FY2025 and trades at a forward P/E of 9.3x.
- Market cap
- $2.22B
- Revenue (TTM)
- $1.95B
- P/E
- 13.1x fwd 9.3x
- 1Y return
- 69.0% S&P 500 16.8%
- Avg. target
- $26.33 -3.8% vs last close
Bull case
- Free cash flow expanded to $252.6M in FY2025 from $104.0M in FY2023.
- Valuation multiples remain discounted relative to the US-listed Healthcare median, with a forward P/E of 9.3x and a PEG of 0.24.
- The 1-year stock return of 69.0% outperformed the S&P 500 benchmark return of 16.8%.
Bear case
- Revenue fell 4.9% in FY2025 to $1.91B, reflecting a modest 5-year revenue CAGR of 2.0%.
- The consensus analyst mean price target of $26.33 stands 3.8% below the last close of $27.38.
- Past operating volatility led to net losses of -$60.4M in FY2023 and -$99.1M in FY2024.
What Pediatrix Medical does
Pediatrix Medical Group, Inc., formerly known as MEDNAX, Inc., delivers newborn, maternal-fetal, pediatric cardiology, and related pediatric subspecialty care across the United States and Puerto Rico. Its offerings center on neonatal care within dedicated hospital units for premature infants or those with complications, delivered by neonatal physician subspecialists and nurse practitioners. The company also provides maternal-fetal care for expectant mothers and unborn babies across both inpatient and office environments. Additionally, Pediatrix manages pediatric cardiology services for patients ranging from fetuses to adolescents with congenital or acquired heart conditions, operating a clinical network of approximately 2,700 physicians as of February 2022.
Growth and profitability
Pediatrix recorded a 5-year revenue CAGR of 2.0% from FY2020 to FY2025. Annual revenue grew to $1.97B in FY2022, $1.99B in FY2023, and $2.01B in FY2024 before decreasing 4.9% to $1.91B in FY2025. After net losses of -$60.4M in FY2023 and -$99.1M in FY2024, profitability rebounded in FY2025 with net income of $165.4M and an operating margin of 12.1%. For the trailing twelve months, revenue was $1.95B and diluted EPS was $2.09. In the latest quarter ended June 30, 2026, quarterly revenue grew 4.0% year-over-year while quarterly earnings expanded 6.5%.
Balance sheet and cash flow
As of June 30, 2026, Pediatrix held $404.2M in cash and short-term investments alongside total debt of $620.0M, resulting in net debt of $215.8M. Total assets stood at $2.13B against shareholders' equity of $881.0M, with a current ratio of 1.32 and a debt-to-equity ratio of 0.70. Operating cash flow reached $271.1M in FY2025. The company deployed cash toward $18.5M in capital expenditures and $86.7M in share buybacks during FY2025, contributing to a 5-year share count decline of -5.8%.
Valuation and performance
Pediatrix trades at a trailing P/E of 13.1x and a forward P/E of 9.3x, both below the US-listed Healthcare median of 24.6x trailing and 17.3x forward. Its enterprise value to EBITDA ratio is 8.2x compared to the peer median of 12.0x, while its price-to-sales ratio sits at 1.1x versus the peer median of 4.1x. Over the past year, the stock returned 69.0%, outpacing the S&P 500 return of 16.8%. Over a 5-year period, MD gained 4.3% compared to an 83.0% return for the benchmark.
What analysts expect
Wall Street coverage includes 1 Strong Buy and 6 Hold ratings. The mean price target is $26.33, which is 3.8% below the last closing price of $27.38. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.96B and EPS of $2.35, representing 15.1% annual EPS growth. For the following fiscal year, 6 analysts forecast revenue of $2.01B and EPS of $2.44. MD has beaten EPS estimates in 3 of the last 4 quarters, with the next earnings release scheduled for November 2, 2026.
Key risks and what to watch
- Total debt of $620.0M results in a debt-to-equity ratio of 0.70 with net debt of $215.8M.
- Short interest stands at 8.1% of the float as of October 16, 2026.
- Long-term shareholder returns have lagged the broader market, with a 5-year return of 4.3% versus 83.0% for the S&P 500.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this MD AI stock analysis
This page is an AI-written research summary of Pediatrix Medical Group, Inc. (MD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: MD income statement, MD balance sheet, MD key metrics, MD analyst forecast, MD chart. See the MD stock overview for the latest quote and news.
MD AI stock analysis FAQ
Does Pediatrix Medical Group pay a dividend?
Pediatrix Medical Group does not currently pay a dividend. The company returned capital to shareholders through $86.7M of share buybacks in FY2025.
What is Pediatrix's current valuation compared to peers?
Pediatrix carries an enterprise value of $2.32B and trades at a forward P/E of 9.3x and EV/EBITDA of 8.2x. Both figures are lower than the median of its US-listed Healthcare peers, which trade at 17.3x and 12.0x, respectively.
What are analysts forecasting for Pediatrix's upcoming earnings?
For the fiscal year ending December 31, 2026, analysts estimate EPS of $2.35 on revenue of $1.96B. The company is scheduled to report earnings on November 2, 2026.
How leveraged is Pediatrix's balance sheet?
As of June 30, 2026, the company held $404.2M in cash and short-term investments against $620.0M in total debt, yielding net debt of $215.8M and a debt-to-equity ratio of 0.70.