MD - Embedded Expectations Analysis - 2021 04 19
MEDNAX, Inc. (MD:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 17.9x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may be concerned about commercial and payer mix declines, the potential of their NightLight acquisition, and pandemic-related headwindsSpecifically, management may lack confidence in their ability to mitigate revenue declines and meet EBITDA targets, and they may be concerned about the pandemic's impact on their business and consumer behavior across geographic segments. They may also be concerned about commercial and payer mix declines due to health plan discontinuations. Moreover, management may lack confidence in their ability to sustain NICU volume improvements, fill the needs of patients across all their core pediatric subspecialties, and provide better healthcare access by adding telehealth services. Finally, they may be exaggerating their leadership position in child and mother care and the potential of their NightLight acquisition
MEDNAX provides physician services including newborn, anesthesia, maternal-fetal, radiology and teleradiology, pediatric cardiology and other pediatric subspecialty care. The company's network comprised of physicians, including physicians who provide neonatal clinical care, primarily within hospital-based neonatal intensive care units, to babies born prematurely or with medical complications. The company also provides radiology services and teleradiology services. In addition to its national physician network, the company provides services to healthcare facilities and physicians, including the company's, through complementary businesses, consisting of a management services organization and a consulting services company.
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