Deep Value: cash covers more than 100% of the stock price

This company holds roughly $169.8M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Stock

Medifast

MED

Personal Products & Services · Consumer Cyclical

Also trades as: 0K05.L GBP 0.12 (-2.22%)

Price

$11.87

-0.30 (-2.47%)

Market Cap

$132.7M

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Oct 24, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality

Mixed

8/30

Growth

Weak

1/20

Cash Flow

Weak

1/10

Stability

Good

5/10

Valuation

Data not available

0/10

Ownership

Good

10/15

Dividends

Not counted

n/a

25 of 95 counted points = Winston Score 26. Pillars marked n/a do not apply to this company and are left out of the total.

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Share count falling — buybacks

−7.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 11.8M (2021) → 11.0M (2025)

§Winston Score History

The full picture

Medifast is a US company that makes and sells weight loss and nutrition products. Its main brand is OPTAVIA, which offers meal replacement items like shakes, bars, and "fuelings" — pre-packaged low-calorie foods designed to help people lose weight. The company sells directly to everyday consumers who want a structured diet program.

Medifast makes most of its money through a network of independent coaches — regular people who buy OPTAVIA products themselves and then sell them to friends, family, and clients. This coach-driven sales model keeps traditional advertising costs low but also creates risk, since revenue depends heavily on recruiting and retaining active coaches. The company operates almost entirely in the United States and has a market cap of roughly $100 million, a sharp drop from its peak. The rise of GLP-1 weight loss drugs like Ozempic is a serious threat, as many potential customers may choose medication over meal replacement programs instead.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-27.6% YoY

YoY Growth Rate

Revenue declining

Reported EPS Growth

-221.7% YoY

Quarterly reporting periods ended:

30 Jun 2025: $0.23

30 Jun 2026: $-0.28

Reported/statutory EPS, not adjusted or underlying earnings. One-off items can affect this figure. Provider rounding can affect the growth rate.

YoY Growth Rate

Reported EPS decreased year over year

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

24.3%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

$170M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Medifast's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

69.9%

Premium pricing power — 69.9% gross margin

Profit after running costs

Operating Margin

-5.7%

Losing money on operations — -5.7%

Return on the money invested

ROCE

-7.7%

Weak — -7.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-34.0%

Shrinking sales (-34.0% YoY)

Profit growth

EPS YoY

-806.1%

Earnings shrinking (-806.1% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

1/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

1.3%

Thin free cash flow (1.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.14

Conservative — low debt load (0.14)

Covers its interest

Interest Cover

N/A

—

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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