Added to YB: 2026-03-24
Pitch date: 2026-03-21
DR.TO [bullish]
Medical Facilities Corporation
+1.33%
current return
Author Info
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Company Info
Medical Facilities Corporation, through its subsidiaries, owns and operates specialty surgical hospitals in the United States.
Market Cap
CAD 210.9M
Pitch Price
CAD 16.50
Price Target
31.31 (+87%)
Dividend
2.20%
EV/EBITDA
4.03
P/E
20.36
EV/Sales
0.99
Sector
Health Care Providers and Services
Category
special_situation
The Doctor Will See You Now: Why Medical Facilities Corporation (TSX: DR) Is the Quiet Compounder You're Ignoring
DR.TO: Canadian-listed holding co owning 51% stakes in 2 five-star US specialty surgical hospitals (ASH, SFSH). Sold 3 facilities at 9x EBITDA, returned 31% of mkt cap to shareholders in 2025 via buybacks+divs. Trades 4.7x EV/EBITDA vs 9-11x M&A comps. NAV $26-31/sh (+56-87% upside) if remaining hospitals sold at precedent multiples. 2.2% yield, 22% payout ratio. Recession-resistant: medically necessary surgeries, USD revenue, Medicare rate +2.6%. Risks: Medicaid cuts, tariffs on medical supplies, physician retention. Endgame: full asset sale or takeout.
Read full article (12 min)