ValueInvest_Pro

MED - underrated stock?

Long
NYSE:MED   MEDIFAST INC
Hello my dear subscribers

Finally I am back with new investing candidates.

Today we will talk about Medifast Inc.
It is personal services company, which made own product OPTAVIA for peoples, which want change their lifestyle and habbits on healthy and strong.
Levels for entry are here:
From 1-year profile we have 2 levels.
First level is at 188.42 to 197 USD. That is lower part of market profile and price haven't fallen lower. And from that levels price jumped up. Here we can buy stocks with cheaper prices.
Second level is at 223 to 235 USD. That was most popular price with biggest volumes and value for market. It is chance to breaking POC to grow up - it can be positive for both swing traders and long-term investors.

Ok, now reasons - why I am thinking that MED will grow fine(source - Guru Focus service)?
First: all 2018-2021 year company acts good with good financial result.
Net margin is 11,18% and operating margin has meaning 14,67%
ROE has meaning 91,53%
Last 3 years EPS growth at 56% - which is unique for that industry.
And here is no manipultion with financial results. Medifast Inc DO NOT provide activity, which is unusual for that industry.

Second: really stable financial situation
Low debts (10%), enough cash to pay for debts, high interest coverage and extremely high meaning ROIC (274%) cause strong financial stability for Medifast Inc.

Third: well organized business
Company works with clients directly, without any third parties. And allow work from home for couches and sellers. This new organization caused 92% of sellings.

Company has good PEG ratio (0,44) and fast-circling product.
Medifast Inc continue to buyback her stocks and makes strong investing in growth.

In official statements Medifast Inc plans to move on Asia-Pacific markets. Strongest points are Hong Kong and Singapour.

They are reasons, why at my opinion price and value of the company will grow after new year.
So just expecting financial statement 10-K at 31 december.

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