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ZYBERNO

Stock Report

Updated Jun 13, 2026

VERADIGM INC. (MDRX)

Technology • Over The Counter

$4.80

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

27.0/100

POOR BUSINESS

VERADIGM INC. (MDRX) scores 27/100 — concerning metrics indicating significant structural or financial risks.

📊 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 MDRX 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?

+40.3%

Undervalued

Growth gap unavailable — insufficient data for reverse DCF calculation.

⚠ Significant divergence between Owner Earnings and Free Cash Flow (3.73×). Intrinsic Value and Brina Gap are likely overstated — acquisition-related D&A is inflating Owner Earnings. Verify earnings quality before acting.

🎯 Expected Annual Return →

15.7%

5-year annualised assuming price converges to intrinsic value

💰 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 MDRX valuation analysis · → View full MDRX 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):CRITICAL (0.0%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.03x)

Operating Margin (Operational Efficiency):CRITICAL (0.0%)

Return on Capital (Capital Efficiency):CRITICAL (-18.8%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

VERADIGM INC. (MDRX) stock report — Zyberno Score 27/100 (POOR BUSINESS), Margin of Safety +40.3%, 16% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, VERADIGM INC. (MDRX) trades at $4.80 against an estimated intrinsic value per share of $8.21 — a +40.3% Margin of Safety based on Owner Earnings of $58.94M TTM, projected at 4.3% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of 15.7% annually.

Over the trailing twelve months, MDRX generated $58.94M in Owner Earnings. Capital was deployed as follows: $57.39M returned via share buybacks. Reinvestment rate: -43.2%. Owner Earnings have grown at 4.3% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:4.80

Market Cap:$549.19M

Valuation Multiples (2)

P/B Ratio:0.54x

Peg Ratio:-999.00x

Enterprise Metrics (1)

Enterprise Value:$309.60M

B. Profitability Assessment

Return Metrics (3)

Roic:

-18.8%

📊 Click to view full MDRX ROIC analysis →

Reinvestment Rate:-43.2%

Fundamental Growth Rate (g):8.1%

Margin Analysis (1)

Ebitda Margin:-25.0%

Yield Metrics (3)

Earnings Yield:-$999.00

Owner Earnings Yield:$10.73

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

-0.24

📊 Click to view full MDRX Earnings Surprise analysis →

EPS Surprise vs Expected:-75.0%

Latest Earnings Filed:2022-11-07

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-25.3%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):59.1%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-0.9%

Operating Cash Flow Growth Rate (Linear):-5.0%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):63.9%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:2.95x

Quick Ratio:2.95x

Cash Ratio:1.94x

Leverage Analysis (3)

Debt To Equity Ttm:0.03x

Debt-to-Equity Ratio:0.03x

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:-24.69x

Times Interest Earned:-24.69

Capital Structure (4)

Working Capital:449,335,000.00

Cash And Cash Equivalents:446,593,000.00

Long Term Debt:$200.40M

Net Debt:-$239.59M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $594.41M

Linear Growth: -25.3%

📊 Click to view full MDRX Revenue analysis & methodology →

Cost Of Revenue Ttm:$292.17M

Profitability Breakdown (2)

Gross profit TTM: $302.25M

Linear Growth: -19.2%

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

Operating income TTM: -$194.66M

Linear Growth: 63.9%

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

Bottom Line Performance (3)

Net income TTM: -$291.54M

Linear Growth: 59.1%

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

Income Before Tax:-$16.48M

Ebitda Ttm:-148,885,000.00

Operating Expenses (5)

Operating Expenses:0.00

R And D Expense:100,378,000.00

Sga Expense:201,678,000.00

Income Tax Expense:$20.29M

Interest Expense:7,885,000.00

Expense Ratios (3)

R And D To Revenue Percentage:69.1%

Sga To Revenue Percentage:138.9%

Ebitda Margin:-25.0%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$1.50B

Current Assets:$679.65M

Ppe Net:9,460,000.00

Goodwill:532,640,000.00

Intangible Assets:$89.33M

Liability Structure (4)

Total Liabilities:487,217,000.00

Current Liabilities:230,313,000.00

Long Term Debt:$200.40M

Short Term Debt:$6.61M

Equity & Capital (3)

Equity:$1.02B

Retained Earnings:$645.81M

Common Stock:349,000,000.00

Working Capital Items (3)

Accounts Receivable:119,147,000.00

Inventory:0.00

Accounts Payable:30,841,000.00

Special Items (2)

Contract Liabilities:90,098,000.00

Stock Based Compensation:5,761,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: -$20.03M

Linear Growth: -5.0%

Free cash flow TTM: -$21.58M

Linear Growth: -88.0%

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

Investment Activities (1)

Investing Cash Flow:-$114.08M

Financing Activities (3)

Financing Cash Flow:-$3.76M

Dividends Paid Ttm:0.00

Stock Repurchase:57,394,000.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (1)

Earnings Per Share Ttm:-$2.60

Revenue & Cash Per Share (2)

Sales Per Share Ttm:5.30

Operating Cash Flow Per Share:-$0.18

Book Value & Capital (2)

Book Value Per Share:$9.08

Cash Per Share:3.98

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.32x

Working Capital Turnover Ttm:1.32x

Receivables Management (2)

Receivables Turnover Ttm:4.99x

Days Sales Outstanding Ttm:73.16

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:38.53

Cash Conversion Cycle:-964.37

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:40.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $58.94M

Linear Growth: 4.3%

📊 Click to view full MDRX Owner Earnings analysis & methodology →

Owner Earnings Per Share:$0.53

Owner Earnings Yield:$10.73

Growth Assessment (1)

Owner Earnings Growth Rate:$4.33

Damodaran Growth Analysis (2)

Reinvestment Rate:-43.2%

Fundamental Growth Rate (g):8.1%

Intrinsic Value Models (1)

Intrinsic Value:

$920.06M

📊 Click to view full MDRX DCF valuation →

Margin of Safety (1)

Margin Of Safety:

40.3%

📊 Click to view full MDRX valuation analysis →

Return Scenarios (1)

Theoretical 5-Year Return:

15.7%

📊 Click to view full MDRX expected return analysis →

Investment Assessment (1)

Buffett Assessment:Excellent margin of safety

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):-25.3%

Net Income Growth Rate (Linear):59.1%

Operating Income Growth Rate (Linear):63.9%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-0.9%

Operating Cash Flow Growth Rate (Linear):-5.0%

Other Growth Rates (3)

Gross Profit Growth Rate (Linear):-19.2%

Book Value Growth Rate (Linear):0.7%

Owner Earnings Growth Rate:$4.33

C. Company Profile & Context

Corporate Information (6)

Symbol:MDRX

Company Name:VERADIGM INC.

Sector:Technology

Industry:Technology Consulting

Exchange:Over The Counter

Country:Unknown

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:112.08M

Shares Outstanding Basic:112.08M

Shares Outstanding Diluted:112.08M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-06-13 05:28:24 UTC

Data Timestamp:2026-06-03T14:17:29.182802