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ZYBERNO

Stock Report

Updated Aug 31, 2026

Medifast, Inc. (MED)

Consumer Staples • NYSE

$12.19

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

32.0/100

WEAK BUSINESS

Medifast, Inc. (MED) scores 32/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 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 MED quality analysis & detailed breakdown

VALUATION SIGNAL

N/A (Requires more data)

Requires fair value calculation and current price data

💰 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 MED valuation analysis · → View full MED 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 (-12.7%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.28x)

Operating Margin (Operational Efficiency):CRITICAL (-6.2%)

Return on Capital (Capital Efficiency):CRITICAL (-8.0%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

Medifast, Inc. (MED) stock report — Zyberno Score 32/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

Over the trailing twelve months, MED generated -$1.47M in Owner Earnings. Capital was deployed as follows: $88.00K paid as dividends, $5.19M invested in capital expenditures. Reinvestment rate: 59.0%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:12.19

Market Cap:$135.74M

Valuation Multiples (3)

P/B Ratio:0.69x

P/S Ratio:0.43x

Peg Ratio:-999.00x

Enterprise Metrics (1)

Enterprise Value:$122.69M

Price Action & Momentum (3)

12-1 Momentum:

-29.2% (20th pctile)

📈 Click to view full MED Momentum analysis →

Momentum Percentile:20 / 100

% of 52-Week High:83.1%

B. Profitability Assessment

Return Metrics (5)

ROE:

-12.7%

📊 Click to view full MED ROE analysis →

ROA:-10.0%

Roic:

-8.0%

📊 Click to view full MED ROIC analysis →

Reinvestment Rate:59.0%

Fundamental Growth Rate (g):-4.7%

Margin Analysis (3)

Operating Margin Ttm:-6.2%

Net Margin Ttm:-8.1%

Ebitda Margin:-1.6%

TTM Performance (3)

Gross Margin Ttm:69.2%

Operating Margin Ttm:-6.2%

Net Margin Ttm:-8.1%

Yield Metrics (2)

Earnings Yield:-$20.21

Dividend Yield:0.1%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.44

📊 Click to view full MED Earnings Surprise analysis →

EPS Surprise vs Expected:63.6%

Latest Earnings Filed:2026-08-03

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-37.9%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-50.0%

Cash Flow Growth (Linear) (2)

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

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

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):-50.0%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:4.86x

Quick Ratio:4.35x

Cash Ratio:1.73x

Leverage Analysis (3)

Debt To Equity Ttm:0.28x

Debt-to-Equity Ratio:0.28x

Debt To Ebitda:-999.00x

Coverage Ratios (1)

Times Interest Earned:-999.00

Capital Structure (4)

Working Capital:160,470,000.00

Cash And Cash Equivalents:71,910,000.00

Long Term Debt:$22.46M

Net Debt:-$13.04M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $316.93M

Linear Growth: -37.9%

📊 Click to view full MED Revenue analysis & methodology →

Cost Of Revenue Ttm:$97.48M

Profitability Breakdown (2)

Gross profit TTM: $219.45M

Linear Growth: -38.4%

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

Operating income TTM: -$19.51M

Linear Growth: -50.0%

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

Bottom Line Performance (3)

Net income TTM: -$25.60M

Linear Growth: -50.0%

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

Income Before Tax:-$13.97M

Ebitda Ttm:-5,062,000.00

Operating Expenses (5)

Operating Expenses:0.00

R And D Expense:4,300,000.00

Sga Expense:238,957,000.00

Income Tax Expense:$11.63M

Interest Expense:0.00

Expense Ratios (3)

R And D To Revenue Percentage:5.6%

Sga To Revenue Percentage:312.8%

Ebitda Margin:-1.6%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$260.40M

Current Assets:$202.03M

Ppe Net:27,980,000.00

Goodwill:0.00

Intangible Assets:$0.00

Liability Structure (4)

Total Liabilities:64,024,000.00

Current Liabilities:41,564,000.00

Long Term Debt:$22.46M

Short Term Debt:$36.41M

Equity & Capital (3)

Equity:$196.38M

Retained Earnings:$153.05M

Common Stock:20,000,000.00

Working Capital Items (3)

Accounts Receivable:0.00

Inventory:21,181,000.00

Accounts Payable:36,406,000.00

Special Items (2)

Contract Liabilities:384,000.00

Stock Based Compensation:1,818,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $3.72M

Linear Growth: -50.0%

Free cash flow TTM: -$1.47M

Linear Growth: -50.0%

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

Investment Activities (2)

Investing Cash Flow:-$17.13M

Capital Expenditures Ttm:5,188,000.00

Financing Activities (3)

Financing Cash Flow:-$901.00K

Dividends Paid Ttm:88,000.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:14,445,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-2.33

Eps diluted TTM: -$2.32

Linear Growth: -50.0%

📊 Click to view full MED EPS analysis & methodology →

Earnings Per Share Ttm:-$2.30

Revenue & Cash Per Share (2)

Sales Per Share Ttm:28.46

Operating Cash Flow Per Share:$0.62

Book Value & Capital (2)

Book Value Per Share:$17.64

Cash Per Share:6.46

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:1.23x

Working Capital Turnover Ttm:1.98x

Receivables Management (2)

Receivables Turnover Ttm:-999.00x

Days Sales Outstanding Ttm:-999.00

Inventory Management (2)

Inventory Turnover Ttm:4.60x

Days Inventory Outstanding Ttm:79.31

Payables & Cash Cycle (2)

Days Payable Outstanding:136.31

Cash Conversion Cycle:-1,056.01

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:50.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (1)

-$1.47M

Damodaran Growth Analysis (2)

Reinvestment Rate:59.0%

Fundamental Growth Rate (g):-4.7%

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):-37.9%

Net Income Growth Rate (Linear):-50.0%

Operating Income Growth Rate (Linear):-50.0%

Cash Flow Growth Rates (2)

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

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

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):-38.4%

Book Value Growth Rate (Linear):6.0%

C. Company Profile & Context

Corporate Information (6)

Symbol:MED

Company Name:Medifast, Inc.

Sector:Consumer Staples

Industry:Miscellaneous Food Preparations & Kindred Products

Exchange:NYSE

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:medium

Volume Category:N/A

Share Structure (3)

Shares Outstanding:11.14M

Shares Outstanding Basic:11.14M

Shares Outstanding Diluted:11.14M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-31 14:00:31 UTC

Data Timestamp:2026-08-19T09:03:27.439329