Medical Facilities Corp. (DR.TO) Buy, Sell or…

Medical Facilities Corp. (DR.TO)

17.51

+0.06 (0.34%)

as of Jun 4, 2026, 2:00:14 pm Market Open.

141 watching

BUY

He owns this and tries to buy it under $14 and selling over $16, while collecting a fat dividend. Their recent earnings were less profitable and the company says things will improve going forward. In South Dakota there could be competitive pressure as a large hospital facility has been built. He thinks there is no end of demand for users. He would buy here.

DON'T BUY

Did they raise the dividend just to keep investors interested, and is that 9.28% yield stable? Their payout ratio is beyond 100%, a concern. He has owned this in the past. They missed earnings. Decent valuation at 5x EBITDA and cash flow. Balance sheet is okay. They might be able to maintain that dividend. The stock price is a challenge--can it rise? And they need a highly valued stock in order to be a growth-by-acqusition stock. (He isn't aware of a dividend increase, though.)

BUY

He sold it around $16-17, but still owns it. He would add more shares now. Their Q1 numbers were poor with low Medicare reimbursement rates. The street is worried about new competition. Look at the next earnings, which could boost the stock.

PARTIAL SELL

The 12% drop on May 9 has continued and not recovered. Markets have a lot of concern about the dividend. Be very careful. Reduce your position for sure. If it drops below $12, could really tumble. Lots of risk right here. Volume is weak.

HOLD

They had a weak quarter. People are worried about the debt level which is high. He likes the business model. It will work out over the long term. He will probably buy in 2-3 months when he gets more comfortable with the situation.

WATCH

He feels the pain in the sell off as he owns it. It trades 6 times cash flow. He doesn't think they are over levered, but feels the dividend may be at risk. Watch this closely. Yield 7%.

WATCH

He's researched this a lot. It's a roll-up strategy buying hospital centres which he likes; it has a decent runway. Their last few acquisitions have dogged them with weak growth. They need to execute in the next few quarters before he steps in. They need to get over the hump.

HOLD

5-year outlook He's trimmed his holdings as it rallied to $16. There's competition coming in South Dakota. Long-term it depends on how well they acquire new surgical centres.

BUY

The company operates a series of surgical clinics and drop in clinics. The dividend is safe. Their debt is high but they own a lot of real estate so that justifies it.

HOLD

Pretty good and boring. Hold during market downturns. A sideways trend and a high yield is positive. In a $14-16 trading range. A pretty safe stock. If it breaks through $14, sell.

PAST TOP PICK

(A Top Pick Dec 11/17, Up 21%) Pays over 7% dividend. This stock could really go. They own little surgical hospitals and outpatient clinics. They have a deal where doctors own the real estate and manage, while they share in the profits with DR. A very good model

PAST TOP PICK

(A Top Pick December 11/17 - Up 5%.) 12% up including the dividend. Owns specialty surgical hospitals and ambulatory surgery centers in the United States. They like the doctors to own still 49- 50 % of the facilities and they share the fees. They are making ore money then what they need to pay the dividend, so they are probably going to look for more opportunities. If it traded in the US, it would be trading at 2-3% dividend yield. Lots of upside in the stock. One of his better holdings.

DON'T BUY

Got hurt. Margin compression. In US, it matters what can you get paid from Medicare. Missed numbers last 2 quarters, got clocked, now trying to get back onside. A “show me” stock. Stay away for at least another 6-12 months.

PAST TOP PICK

(A Past Top Pick on Sept. 20, 2017, Up 5%) They own small medical buildings in the U.S midwest. He likes it for its 7.7% divdend. It weathered some negative publicity in South Dakota where a couple non-profit hospitals opened in their area, leading to a loss of profit. He buys it below $14 and sells around $16.

COMMENT

The risk is they own a bunchof U.S. real estate tied to medical practices and there were changes in the competitive landscape in some states. They bought a company recently that spiked the stock. He's met and likes the management. But they carry a lot of debt. He believes they'll sail through it, but the debt is risky. Pays almost a 9% dividend,

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Medical Facilities Corp. (DR.TO)