Daily Stock Analysis: Medical Facilities

TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.


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Medical Facilities Corp bears the ticker symbol MFCSF, and this is my first mention of Medical Facilities Corp for this new Viking Portfolio. I have however selected MFCSF for one or more of my previous seven dog of the week portfolios.

Medical Facilities Corp owns a diverse portfolio of surgical facilities in the United States. Through its wholly-owned subsidiaries, the company owns controlling interests in four specialty hospitals and six ambulatory surgery centers.

The hospitals offer a range of non-emergency surgical, imaging, diagnostic, and pain management procedures, and other ancillary services. Its key revenue source is the facility service income. The corporation's operations are based in the United States.

The company was incorporated in 2004 and is headquartered in Toronto, Canada.

Three key data points gauge Medical Facilities Corp:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

MFCSF Price

MFCSF’s price per share was $6.23 at Wednesday’s market close. In the past year, Medical Facilities' share price dropped by $1.68 or about 21%.

If MFCSF stock trades in the range of $4.00 to $10.00 this next year, its recent $6.23 share price might reach  $6.65 by next year. That upside estimate of $0.42 is within $0.01 of the valuation from historical multiples calculated by YCharts.
 

MFCSF Dividends

Medical Facilities' most recent quarterly dividend of $0.06 casts a forward annual yield of 3.8%.
 

MFCSF Returns

Adding the $0.24 annual estimated MFCSFs dividend to my one-year price upside estimate of $0.42 reveals a $0.66 potential gross gain estimate per share.

At Tuesday’s $6.23 closing price, a little over $1000 would buy 161 shares.

A $10 broker fee (if charged), paid half at purchase and a half at the sale, might cost us about $0.06 per share.

Subtracting that maybe $0.06 brokerage cost from my estimated $0.66 gross gain makes a net gain of $0.60 X 161 shares = $96.60 for a 9.6% net gain including a 3.8% annual dividend yield.

In the next year, our $1K investment in shares of Medical Facilities Corp would generate $38.00 in cash dividends. Of course, a single share of MFCSF stock at Wednesday's $6.23 price is over six times less than the estimated annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this looks like a good time to buy Medical Facilities Corp shares based on their dividends for 2023. The current dividend from $1K invested is 6.1 times greater than the MFCSF single share price. Consider yourself alerted.   

All of the estimates above are speculation based on the past history of investment in shares of Medical Facilities Corp. Only time and money invested in this stock will determine its future market value.


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Disclaimer:  Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall ...

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