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Medifast (MED)

Medifast is the global company behind one of the fastest-growing health and wellness communities, OPTAVIA®, which offers scientifically developed products, clinically proven plans and the support of Coaches and a Community to help Clients achieve Lifelong Transformation, One Healthy Habit at a Time®. Based on nearly 40 years of experience, Medifast has redefined direct selling by combining the best aspects of the model. Its community of thousands of independent OPTAVIA Coaches teach Clients how to develop holistic healthy habits through the proprietary Habits of Health® Transformational System. Medifast is ranked second on FORTUNE's 100 Fastest-Growing Companies list in 2020. The company was also named to Forbes' 100 Most Trustworthy Companies in America list in 2017.

Company profile

Ticker
MED
Exchange
CEO
Daniel Chard
Employees
Incorporated
Location
Fiscal year end
Former names
HEALTHRITE INC
SEC CIK
Subsidiaries
Corporate Events, Inc. • Jason Enterprises, Inc. • Jason Pharmaceuticals, Inc. • Jason Properties, LLC • Medifast Franchise Systems, Inc. • OPTAVIA, LLC • OPTAVIA Health Consultation (Shanghai) Co., Ltd. • OPTAVIA (Hong Kong) Limited • OPTAVIA (Singapore) PTE. LTD • Seven Crondall Associates, LLC ...
IRS number
133714405

MED stock data

Analyst ratings and price targets

Last 3 months
Current price
Average target
$214.00
Low target
$150.00
High target
$278.00
DA Davidson
Maintains
Buy
$278.00
4 Aug 22
Jefferies
Downgraded
Hold
$150.00
4 Aug 22

Calendar

3 Aug 22
9 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 61.07M 61.07M 61.07M 61.07M 61.07M 61.07M
Cash burn (monthly) 18.98M 10.91M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 25.46M 14.64M n/a n/a n/a n/a
Cash remaining 35.61M 46.43M n/a n/a n/a n/a
Runway (months of cash) 1.9 4.3 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
20 Jul 22 Maloney James P. Common Stock Payment of exercise Dispose F No No 174.44 115 20.06K 2,944
16 Jun 22 Hoer Michael A. Common Stock Grant Acquire A No No 0 1,350 0 5,130
16 Jun 22 Brown Jeffrey J Common Stock Grant Acquire A No No 0 1,580 0 2,345
16 Jun 22 Hallquist Constance J. Common Stock Grant Acquire A No No 0 1,432 0 7,874
16 Jun 22 Thomas Andrea B Common Stock Grant Acquire A No No 0 1,366 0 3,006
89.4% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 277 291 -4.8%
Opened positions 33 45 -26.7%
Closed positions 47 40 +17.5%
Increased positions 98 86 +14.0%
Reduced positions 100 111 -9.9%
13F shares Current Prev Q Change
Total value 2.61B 2.17B +20.0%
Total shares 9.85M 9.74M +1.1%
Total puts 76.6K 115.9K -33.9%
Total calls 37.7K 65.6K -42.5%
Total put/call ratio 2.0 1.8 +15.0%
Largest owners Shares Value Change
BLK Blackrock 2.13M $364.53M +6.9%
Vanguard 1.52M $259.92M +1.5%
Renaissance Technologies 771.31K $131.72M -3.3%
STT State Street 374.57K $64.57M +1.1%
Dimensional Fund Advisors 346.29K $59.14M +0.1%
Rice Hall James & Associates 326.04K $55.68M -0.2%
PFG Principal Financial Group Inc - Registered Shares 217.85K $37.2M +4.0%
Pictet Asset Management 210.52K $35.95M +2.4%
Geode Capital Management 199.26K $34.03M -13.1%
BK Bank Of New York Mellon 182.44K $31.16M +0.2%
Largest transactions Shares Bought/sold Change
BLK Blackrock 2.13M +138.6K +6.9%
Norges Bank 0 -111.74K EXIT
Acadian Asset Management 30.27K -90.59K -75.0%
J.W. Cole Advisors 86.62K +86.62K NEW
Candlestick Capital Management 77.04K +77.04K NEW
American Century Companies 63.19K +60.57K +2311.6%
Cooper Creek Partners Management 149.86K +56.55K +60.6%
Systematic Financial Management 49.86K +49.86K NEW
Victory Capital Management 71.5K +48.23K +207.2%
Balyasny Asset Management 46.59K +46.59K NEW

Financial report summary

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Risks
  • Our direct selling model may be challenged both domestically and abroad which could harm our business.
  • We have experienced rapid growth and expect our growth to continue, which could place significant strain on our management, systems, resources, and results of operations.
  • We rely on third parties to provide us with a majority of the products we sell and we manufacture the remaining portion. We also rely on third parties to distribute and deliver our products. The inability to obtain the necessary products from our third-party manufacturers, produce the products we manufacture in-house or distribute and deliver our products could cause our revenue, earnings or reputation to suffer.
  • Our ability to source quality ingredients and other products is critical to our business, and any disruption to our supply or supply chain could materially adversely affect our business.
  • We may be subject to health or advertising related claims from our clients.
  • The weight management industry is highly competitive. If any of our competitors or a new entrant into the market with significant resources pursues a weight management program similar to ours, our business could be significantly affected.
  • New weight loss products or services may put us at a competitive disadvantage and our business may suffer.
  • If we do not continue to develop innovative new products or if our products do not continue to appeal to the market, or if we are unable to successfully expand or respond to consumer trends, our business may suffer.
  • We may not be able to successfully implement new strategic initiatives, which could adversely impact our business.
  • We are dependent on our key executives for future success. If we lose the services of any of our key executives and we are unable to timely retain a qualified replacement, our business could be harmed.
  • Any failure of our technology or systems to perform satisfactorily could result in an adverse impact on our business.
  • Our business is subject to online security risks, including security breaches and identity theft.
  • Third parties may infringe on our brand, trademarks and other intellectual property rights, which may have an adverse impact on our business.
  • We may in the future be subject to intellectual property rights claims.
  • The sale of our products in markets outside of the United States may subject us to risks.
  • Expansion into international markets increases our operational, regulatory and other risks.
  • Our business in Hong Kong and Singapore is subject to sensitive economic, political, regulatory and market conditions.
  • Changes in consumer preferences could negatively impact our operating results.
  • The weight loss industry is subject to adverse publicity, which could harm our business.
  • Our industry is subject to governmental regulation that could increase in severity and hurt results of operations.
  • The manufacture and sale of ingested products are subject to product liability claims and other risks.
  • Actions of activist stockholders could cause us to incur substantial costs, divert management's attention and resources, and have an adverse effect on our business.
  • There can be no assurance that we will continue to declare cash dividends at all or in any particular amounts.
  • Provisions in our certificate of incorporation may deter or delay an acquisition of us or prevent a change in control, even if an acquisition or a change of control would be beneficial to our stockholders.
  • The global outbreak of the COVID-19 virus may adversely impact our business.
  • Our sales may be adversely impacted by the health and stability of the general economy.
  • Our stock price fluctuates from time to time and may fall below expectations of securities analysts and investors, and could subject us to litigation, which may result in you suffering a loss on your investment.
  • If we do not maintain effective internal control over financial reporting, we could fail to report our financial results accurately.
Management Discussion
  • Revenue: Revenue increased $591.2 million, or 63.2%, to $1.526 billion in 2021 from $934.8 million in 2020. The average revenue per active earning OPTAVIA Coach increased 6.6% to $6,321 for the three months ended December 31, 2021 from $5,932 for the three months ended December 31, 2020. Increase in the productivity per active earning OPTAVIA Coach for the quarter continued to be driven by an increase in both the number of clients supported by each Coach as well as an increase in average client spend. The year-over-year growth in revenue was primarily driven by the continued growth in active earning OPTAVIA Coach count and increase in the productivity per active earning OPTAVIA Coach.
  • Costs of Sales: Cost of sales increased $161.5 million, or 68.1%, to $398.5 million in 2021 from $237.0 million in 2020. This increase in cost of sales was primarily driven by an increase in OPTAVIA product sales, higher product costs and shipping costs resulting from inflation in raw ingredient, freight and labor costs. In addition, acceleration of demand in OPTAVIA-branded products led to the increase in the Company’s use of co-manufacturers, which further increased cost of sales.
  • Gross Profit: In 2021, gross profit increased $429.8 million, or 61.6%, to $1.128 billion from $697.8 million in 2020. The increase in gross profit was primarily attributable to higher revenue partially offset by increased cost of sales. As a percentage of sales, gross profit decreased 70 basis points to 73.9% for 2021 from 74.6% for 2020. The decrease in gross margin percentage was primarily the result of higher product and shipping costs resulting from inflation in raw ingredient, freight and labor costs.

Content analysis

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Positive
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Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
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Removed: agency, deposited, Eurodollar, fall, invested, managed, marketable, municipal, North, policy, portfolio, rated, replacement, shipping, spend, spent, successor