Metropolitan Health Networks, Inc. (MDF)

Metropolitan Health Networks, Inc. provides comprehensive health care services to people with Medicare in Florida. The company currently cares for approximately 35,000 customers in 18 counties in South and Central Florida. Metropolitan Health’s team of physicians, professionals, and associates are committed to serving customers with the highest standards of medical treatment and personal service. The company aims to always exceed expectations.

For decades, Florida has been a highly attractive and rapidly growing market. In 2005, the state’s population of those 65 and older was 3.0 million and was forecasted to increase to 3.4 million by 2010 and to 4.7 million by 2020. Florida is also the second largest Medicare population in the U.S. with an estimated 3.2 million eligible beneficiaries. In addition to rising demand, the company intends to continue growing by investing in the development of healthcare provider networks in other counties.

The company has outstanding financial stability with a debt/equity ratio of just 0.01. As of last report, the company held $9.6 million in cash and cash equivalents, and $80.7 million in other assets. Total current and long-term liabilities were reported at $7.2 million. Metropolitan Health also boasts a respectable 35.3% Return on Assets (ROA) and 39.1% Return on Equity (ROE).

Generating $374.6 million in sales, the company trades at a market cap of only $185.42 million. Insiders own approximately 23% of shares outstanding while institutions hold 53.30%. Investor sentiment is almost entirely bullish with less than 5% of the float sold short. Currently, one analyst rates the company a “Strong Buy”, another rates it a “Buy”, and one has issued a “Hold” recommendation.

Key statistics (9/6/11):

Market cap: $185.42 Million
P/E Ratio: 7.2 versus industry average of 10.8
P/S Ratio: 0.50 versus industry average of 0.45
Price/Cash Flow Ratio: 6.70 versus industry average of 8.50

Debt/Equity Ratio: 0.01 versus industry average of 0.64
Current Ratio: 10.5 versus industry average of 0.4
Quick Ratio: 12.7 versus industry average of 0.1
Book Value/Share: $2.01 versus current market price of $4.51

Return on Equity: 39.1% versus industry average of 21.9%
Return on Assets: 35.3% versus industry average of 7.5%
Return on Capital: 38.7% versus industry average of 5.4%
5-Year average ROE: 28.1% versus industry average of 20.9%

Tags: Featured Stocks