New Lifetime High Today: Mednax (MD)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Mednax ( MD) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Mednax as such a stock due to the following factors:

  • MD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $46.4 million.
  • MD has traded 18,925 shares today.
  • MD is trading at a new lifetime high.

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More details on MD:

MEDNAX, Inc., together with its subsidiaries, provides neonatal, anesthesia, maternal-fetal, and other pediatric subspecialties physician services in the United States and Puerto Rico. MD has a PE ratio of 23. Currently there are 10 analysts that rate Mednax a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Mednax has been 519,700 shares per day over the past 30 days. Mednax has a market cap of $6.9 billion and is part of the health care sector and health services industry. The stock has a beta of 0.87 and a short float of 6.9% with 10.26 days to cover. Shares are up 11.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Mednax as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • MEDNAX INC has improved earnings per share by 14.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MEDNAX INC increased its bottom line by earning $3.17 versus $2.78 in the prior year. This year, the market expects an improvement in earnings ($3.58 versus $3.17).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Health Care Providers & Services industry average. The net income increased by 7.9% when compared to the same quarter one year prior, going from $63.66 million to $68.71 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.0%. Since the same quarter one year prior, revenues rose by 12.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, MD has a quick ratio of 1.56, which demonstrates the ability of the company to cover short-term liquidity needs.

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