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ZYBERNO

Stock Report

Updated Aug 20, 2026

Medinotec Inc. (MDNC)

Healthcare • OTC

$5.00

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

72.0/100

GOOD BUSINESS

Medinotec Inc. (MDNC) scores 72/100 — strong fundamentals with solid profitability and healthy cash flow generation.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full MDNC quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

-19.3%

Market Overestimates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full MDNC valuation analysis · → View full MDNC Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):EXCELLENT (24.9%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.00x)

Operating Margin (Operational Efficiency):GOOD (17.6%)

Return on Capital (Capital Efficiency):EXCELLENT (30.3%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

Medinotec Inc. (MDNC) stock report — Zyberno Score 72/100 (GOOD BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, Medinotec Inc. (MDNC) shows a Brina Gap of -19.3%, which weakens the case: based on the company's ROIC (30.3%) and reinvestment rate (-5.9%), the business can fundamentally grow at -1.8% — but the current enterprise value implies the market expects 17.6%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:5.00

Market Cap:$58.78M

Valuation Multiples (4)

P/E Ratio:

62.50x

📊 Click to view full MDNC P/E analysis →

P/B Ratio:10.04x

P/S Ratio:5.74x

Peg Ratio:-999.00x

Enterprise Metrics (3)

Enterprise Value:$57.39M

Ev Ebitda Ratio:30.23x

Pfcf Ratio:64.92x

Price Action & Momentum (1)

% of 52-Week High:100.0%

B. Profitability Assessment

Return Metrics (7)

ROE:

24.9%

📊 Click to view full MDNC ROE analysis →

ROA:20.2%

Roic:

30.3%

📊 Click to view full MDNC ROIC analysis →

Reinvestment Rate:-5.9%

Fundamental Growth Rate (g):-1.8%

Market-Implied Growth Rate:17.6%

Brina Gap:

-19.3%

☷ Click to view full MDNC Brina Gap analysis →

Margin Analysis (3)

Operating Margin Ttm:17.6%

Net Margin Ttm:13.3%

Ebitda Margin:18.5%

TTM Performance (3)

Gross Margin Ttm:53.8%

Operating Margin Ttm:17.6%

Net Margin Ttm:13.3%

Yield Metrics (2)

Earnings Yield:$1.60

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):70.7%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):100.0%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-50.0%

Operating Cash Flow Growth Rate (Linear):49.5%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):100.0%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:5.81x

Quick Ratio:4.55x

Cash Ratio:2.22x

Leverage Analysis (3)

Debt To Equity Ttm:0.00x

Debt-to-Equity Ratio:0.00x

Debt To Ebitda:0.60x

Coverage Ratios (2)

Interest Coverage Ratio:17.50x

Times Interest Earned:17.50

Capital Structure (4)

Working Capital:5,441,145.00

Cash And Cash Equivalents:2,518,315.00

Long Term Debt:$8.83K

Net Debt:-$1.38M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $10.25M

Linear Growth: 70.7%

📊 Click to view full MDNC Revenue analysis & methodology →

Cost Of Revenue Ttm:$7.15M

Profitability Breakdown (2)

Gross profit TTM: $5.51M

Linear Growth: 61.5%

📊 Click to view full MDNC Gross Profit analysis & methodology →

Operating income TTM: $1.80M

Linear Growth: 100.0%

📊 Click to view full MDNC Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $1.36M

Linear Growth: 100.0%

📊 Click to view full MDNC Net Income analysis & methodology →

Income Before Tax:$1.81M

Ebitda Ttm:1,898,598.00

Operating Expenses (5)

Operating Expenses:-4,512,520.00

R And D Expense:206,842.00

Sga Expense:3,481,096.00

Income Tax Expense:-$274.69K

Interest Expense:62,538.00

Expense Ratios (3)

R And D To Revenue Percentage:7.8%

Sga To Revenue Percentage:131.3%

Ebitda Margin:18.5%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$6.99M

Current Assets:$6.57M

Ppe Net:1,685,366.00

Goodwill:0.00

Intangible Assets:$0.00

Liability Structure (4)

Total Liabilities:1,132,678.00

Current Liabilities:1,132,184.00

Long Term Debt:$8.83K

Short Term Debt:$1.13M

Equity & Capital (3)

Equity:$5.85M

Retained Earnings:$0.00

Common Stock:200,000,000.00

Working Capital Items (3)

Accounts Receivable:2,513,601.00

Inventory:1,425,422.00

Accounts Payable:1,126,255.00

Special Items (2)

Contract Liabilities:120,156.00

Stock Based Compensation:0.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $1.49M

Linear Growth: 49.5%

Free cash flow TTM: $905.44K

Linear Growth: -50.0%

📊 Click to view full MDNC Free Cash Flow analysis & methodology →

Investment Activities (1)

Investing Cash Flow:-$40.35K

Financing Activities (3)

Financing Cash Flow:$25.00

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$983.00K

Non-Cash Items (1)

Depreciation Amortization Ttm:94,649.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (2)

EPS (Basic TTM):0.08

Earnings Per Share Ttm:$0.12

Revenue & Cash Per Share (2)

Sales Per Share Ttm:0.87

Operating Cash Flow Per Share:$0.08

Book Value & Capital (2)

Book Value Per Share:$0.50

Cash Per Share:0.21

Dividend Policy (1)

Dividend Payout Ratio:0.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:1.52x

Working Capital Turnover Ttm:1.88x

Receivables Management (2)

Receivables Turnover Ttm:4.08x

Days Sales Outstanding Ttm:89.54

Inventory Management (2)

Inventory Turnover Ttm:5.02x

Days Inventory Outstanding Ttm:72.73

Payables & Cash Cycle (2)

Days Payable Outstanding:57.47

Cash Conversion Cycle:104.80

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:95.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Damodaran Growth Analysis (4)

Reinvestment Rate:-5.9%

Fundamental Growth Rate (g):-1.8%

Market-Implied Growth Rate:17.6%

Brina Gap:

-19.3%

☷ Click to view full MDNC Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):70.7%

Net Income Growth Rate (Linear):100.0%

Operating Income Growth Rate (Linear):100.0%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-50.0%

Operating Cash Flow Growth Rate (Linear):49.5%

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):61.5%

Book Value Growth Rate (Linear):33.3%

C. Company Profile & Context

Corporate Information (6)

Symbol:MDNC

Company Name:Medinotec Inc.

Sector:Healthcare

Industry:Medical Devices

Exchange:OTC

Country:Unknown

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:11.76M

Shares Outstanding Basic:11.76M

Shares Outstanding Diluted:0

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-20 06:18:09 UTC

Data Timestamp:2026-08-20T06:18:09.468392