Medifast, Inc. (MED) AI Stock Analysis

Medifast, Inc. and its subsidiaries specialize in manufacturing and distributing weight loss, weight management, and healthy living products, along with consumable health and nutritional items. Its portfolio spans bars, bites, pretzels, puffs, cereals, drinks, hearty choices, oatmeal, pancakes, puddings, soft serves, shakes, smoothies, soft bakes, and soups. Medifast markets these offerings under brands including OPTAVIA, Optimal Health by Take Shape for Life, and Flavors of Home. Operating primarily through ecommerce platforms, the company relies on direct point-of-sale transactions across the United States and the Asia-Pacific region. Founded in 1980, the Baltimore, Maryland-based company focuses on nutritional support solutions.

Medifast's financial performance has contracted sharply since FY2022, when revenue peaked at $1.60B with an operating margin of 11.6%. By FY2025, annual revenue fell 36.0% to $385.8M, resulting in an operating loss of -3.7% and a net loss of -$18.7M. Over the five years from FY2020 to FY2025, revenue posted a compound annual growth rate of -16.2%. The contraction persisted in the trailing twelve months ended June 30, 2026, where revenue reached $316.9M and EPS stood at -$2.33. In the quarter ended June 30, 2026, quarterly revenue fell 27.6% year-over-year while quarterly earnings dropped 87.2%.

Medifast maintains a liquid capital structure with minimal leverage. As of June 30, 2026, cash and short-term investments stood at $169.8M against total debt of $27.6M, resulting in net cash of $142.2M. The company reported a current ratio of 4.86 and a debt-to-equity ratio of 0.14 against shareholders' equity of $196.4M. For FY2025, operating cash flow was $6.9M and free cash flow was $1.2M. Cash allocations during FY2025 included $5.6M in capital expenditures, $369,000 for share buybacks, and $195,000 in dividends paid.

Medifast carries a market capitalization of $132.8M and an enterprise value of $642,844. The stock trades at a forward P/E of 12.5x, below the 14.1x median of its US-listed Consumer Cyclical peers. Its price-to-sales multiple is 0.4x compared to the peer median of 0.7x, while its EV-to-EBITDA stands at 0.0x versus 11.1x for peers. Over the past year, Medifast stock declined 7.6%, underperforming the 16.8% return of the S&P 500 (SPY). Over a five-year horizon, the stock dropped 93.1% compared to an 83.0% gain for the S&P 500.

Wall Street coverage on Medifast is limited, with 1 Hold rating and no Buy or Sell ratings reported. The mean price target is $12.00, representing a 1.0% premium over the last close of $11.88. For the fiscal year ending December 31, 2026, analysts estimate revenue of $287.7M and EPS of -$1.15. For the next fiscal year, projected revenue falls 4.9% to $273.7M alongside an EPS estimate of -$0.28. Medifast beat EPS estimates in 3 of the last 4 quarters, with its next earnings date scheduled for October 26, 2026.

This page is an AI-written research summary of Medifast, Inc. (MED). 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.

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