Latest Ratios: P/E Ratio -6.4x · EV/EBITDA N/A · ROE -9.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $121M | $117M | $193M | $734M | $1.3B | $2.5B | $2.3B | $1.3B | $1.5B | $844M | $497M |
| Enterprise Value | $49M | $45M | $118M | $662M | $1.2B | $2.4B | $2.2B | $1.3B | $1.4B | $769M | $446M |
| P/E Ratio → | -6.41 | — | 92.74 | 7.39 | 9.06 | 15.08 | 22.62 | 17.04 | 27.06 | 30.48 | 27.94 |
| P/S Ratio | 0.31 | 0.30 | 0.32 | 0.68 | 0.81 | 1.62 | 2.49 | 1.86 | 3.01 | 2.80 | 1.81 |
| P/B Ratio | 0.60 | 0.59 | 0.92 | 3.64 | 8.39 | 12.22 | 14.80 | 12.67 | 13.84 | 7.77 | 5.18 |
| P/FCF | 96.95 | 93.90 | 11.35 | 5.20 | 7.31 | 41.00 | 16.70 | 17.89 | 27.03 | 21.10 | 22.13 |
| P/OCF | 17.64 | 17.09 | 7.89 | 4.97 | 6.68 | 26.17 | 16.02 | 15.76 | 24.83 | 19.52 | 19.62 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.12 | 0.20 | 0.62 | 0.78 | 1.57 | 2.33 | 1.77 | 2.85 | 2.55 | 1.62 |
| EV / EBITDA | — | — | 7.59 | 4.74 | 6.33 | 10.77 | 15.70 | 13.22 | 19.44 | 17.54 | 13.81 |
| EV / EBIT | — | — | 41.13 | 5.23 | 6.71 | 11.11 | 16.21 | 13.89 | 20.69 | 19.40 | 16.59 |
| EV / FCF | — | 35.84 | 6.95 | 4.69 | 6.97 | 39.82 | 15.61 | 17.04 | 25.57 | 19.22 | 19.83 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 71.3% | 71.3% | 73.8% | 72.4% | 71.3% | 73.9% | 74.6% | 75.2% | 75.8% | 75.5% | 74.9% |
| Operating Margin | -3.7% | -3.7% | 0.5% | 11.8% | 11.6% | 14.2% | 14.4% | 12.8% | 13.8% | 13.1% | 9.8% |
| Net Profit Margin | -4.8% | -4.8% | 0.3% | 9.3% | 9.0% | 10.7% | 11.0% | 10.9% | 11.1% | 9.2% | 6.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -9.1% | -9.1% | 1.0% | 55.8% | 80.3% | 91.2% | 78.5% | 72.8% | 51.3% | 27.1% | 19.3% |
| ROA | -6.9% | -6.9% | 0.7% | 31.8% | 40.2% | 48.6% | 43.7% | 42.8% | 35.4% | 20.8% | 15.0% |
| ROIC | -8.1% | -8.1% | 1.6% | 85.2% | 123.6% | 239.3% | 436.1% | 197.3% | 169.1% | 76.3% | 44.2% |
| ROCE | -6.5% | -6.5% | 1.3% | 64.3% | 91.5% | 110.0% | 95.8% | 81.2% | 63.4% | 38.6% | 28.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.08 | 0.08 | 0.08 | 0.11 | 0.17 | 0.16 | 0.07 | 0.13 | — | — | 0.01 |
| Debt / EBITDA | — | — | 1.03 | 0.16 | 0.13 | 0.15 | 0.08 | 0.14 | — | — | 0.02 |
| Net Debt / Equity | — | -0.36 | -0.36 | -0.36 | -0.40 | -0.35 | -0.97 | -0.60 | -0.75 | -0.69 | -0.54 |
| Net Debt / EBITDA | — | — | -4.80 | -0.52 | -0.31 | -0.32 | -1.10 | -0.66 | -1.11 | -1.71 | -1.60 |
| Debt / FCF | — | -58.06 | -4.39 | -0.51 | -0.35 | -1.19 | -1.10 | -0.85 | -1.46 | -1.88 | -2.30 |
| Interest Coverage | — | — | — | — | 263.57 | — | — | — | — | — | — |
Net cash position: cash ($89M) exceeds total debt ($17M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.69 | 4.69 | 3.34 | 2.43 | 1.58 | 1.81 | 2.10 | 1.94 | 2.41 | 3.37 | 4.15 |
| Quick Ratio | 4.22 | 4.22 | 2.68 | 1.84 | 0.74 | 0.75 | 1.62 | 1.33 | 1.77 | 2.85 | 3.40 |
| Cash Ratio | 3.89 | 3.89 | 2.53 | 1.63 | 0.62 | 0.65 | 1.57 | 1.17 | 1.67 | 2.66 | 3.15 |
| Asset Turnover | — | 1.50 | 2.12 | 3.46 | 5.06 | 3.83 | 3.39 | 3.67 | 2.96 | 2.07 | 2.26 |
| Inventory Turnover | 5.47 | 5.47 | 3.72 | 5.43 | 3.85 | 2.21 | 4.44 | 3.63 | 3.11 | 3.82 | 3.76 |
| Days Sales Outstanding | — | — | — | — | — | — | 0.23 | 0.73 | 0.74 | 0.70 | 1.84 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.2% | 0.2% | 0.4% | 9.9% | 5.5% | 2.6% | 2.3% | 2.7% | 1.5% | 1.8% | 2.4% |
| Payout Ratio | — | — | 34.2% | 73.4% | 49.9% | 38.9% | 51.7% | 45.4% | 41.5% | 55.5% | 66.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 1.1% | 13.5% | 11.0% | 6.6% | 4.4% | 5.9% | 3.7% | 3.3% | 3.6% |
| FCF Yield | 1.0% | 1.1% | 8.8% | 19.2% | 13.7% | 2.4% | 6.0% | 5.6% | 3.7% | 4.7% | 4.5% |
| Buyback Yield | 0.3% | 0.3% | 0.4% | 0.9% | 9.8% | 2.5% | 0.2% | 3.6% | 2.0% | 0.3% | 0.3% |
| Total Shareholder Yield | 0.5% | 0.5% | 0.8% | 10.9% | 15.3% | 5.1% | 2.5% | 6.2% | 3.6% | 2.1% | 2.7% |
| Shares Outstanding | — | $11M | $11M | $11M | $11M | $12M | $12M | $12M | $12M | $12M | $12M |
Structural demand obsolescence
According to current market data, Medifast trades at a price-to-sales multiple of 0.30, a valuation level that suggests investors are heavily discounting the company's ability to pivot its business model in the face of rapid revenue contraction and the rise of pharmaceutical weight loss alternatives.
The absence of a positive P/E ratio and the depressed P/B of 0.58 indicate that the market views the company as a potential value trap rather than a turnaround candidate. This valuation implies that the market is pricing in a permanent impairment of the OPTAVIA brand's earning power rather than a temporary cyclical downturn.
As reported in recent financial statements, Medifast's ROIC has deteriorated from a peak of 5.6% in 2023Q4 to -1.8% in 2026Q1, illustrating a sharp decline in the company's ability to generate returns on its invested capital as the core coaching-led distribution model faces significant competitive pressure.
The transition from positive compounding returns to negative territory suggests that the company's historical moat, built on social friction and coach-led retention, is losing its efficacy. Investors should monitor whether the current pivot to clinical partnerships can stabilize these returns or if the capital base will continue to erode under the weight of declining operational scale.
Based on quarterly filings, Medifast's asset turnover has declined from 0.61 in 2023Q4 to 0.30 in 2026Q1, indicating that the company is struggling to maintain the productivity of its asset base as revenue volume collapses across its primary OPTAVIA segment.
The increase in days inventory outstanding to 77 days, despite lower sales, suggests a potential mismatch between production levels and actual consumer demand. This inefficiency in working capital management may necessitate further inventory write-downs, which would place additional pressure on the company's already strained operating margins.
As disclosed in recent balance sheet data, Medifast maintains a current ratio of 4.80, providing a substantial liquidity cushion that appears to insulate the firm from immediate insolvency risks despite the ongoing 35.96% year-over-year revenue decline observed in recent reporting periods.
While the high current ratio suggests a fortress-like liquidity position, this metric may be misleading if a significant portion of current assets is tied up in slow-moving inventory. The company's ability to maintain this liquidity without further eroding its cash position will depend on its success in rightsizing its cost structure to match the current, lower revenue environment.
Market participants frequently misapply standard multi-level marketing valuation metrics to Medifast, failing to account for the unique structural threat posed by GLP-1 pharmaceutical adoption which renders historical coach-productivity benchmarks largely irrelevant for forecasting future cash flows in the current weight loss landscape.
Analysts should prioritize 'contribution margin per coach' over traditional revenue growth metrics, as the latter obscures the underlying churn within the OPTAVIA network. Relying on historical P/E or EV/EBITDA multiples is particularly dangerous here, as these ratios assume a stable business model that is currently undergoing a fundamental, and potentially permanent, transformation.
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Quick answers to the most common questions about buying MED stock.
Medifast, Inc.'s current P/E ratio is -6.4x. The historical average is 25.0x.
Medifast, Inc.'s return on equity (ROE) is -9.1%. The historical average is 19.5%.
Based on historical data, Medifast, Inc. is trading at a P/E of -6.4x. Compare with industry peers and growth rates for a complete picture.
Medifast, Inc.'s current dividend yield is 0.16%.
Medifast, Inc. has 71.3% gross margin and -3.7% operating margin.