Medical Facilities is a very cheap, cash-generating hospital owner whose buyback is spent; a sale or new capital return could close the gap.
Medical Facilities owns 51% of two surgical hospitals, and its shares rose 93.6% in five years against 61.7% for peers and 74.8% for the S&P 500. It has sold its other hospitals, and its buyback limit is used up. The question is what closes the gap now. The numbers show a very cheap, cash-generating business at 3.3× operating income, with buybacks done and a sale only possible.
The last five years on the numbers
Where DR.TO has ranked among investable US stocks each quarter since 2021. Hollow dot: five years ago; solid dot: the latest quarter. The share price over the same years is in the five-year record below.
Metric history isn't available for this stock.
Cheap on earnings and cash, with a solid return on assets.
EV to operating income is 3.3×; operating earnings yield 30.8% against a 5.0% 10-year Treasury. Free cash flow yield is 26.3%. Return on assets is 13.5%. Net debt is C$16M, 5.9% of market cap.
Price v Return
What the shares and assets earn, against the 10-year Treasury.
Its industry against its own history
Patient Care report →Compared with US peers: Acquirer's Multiple at the 45th percentile, cheaper than in 27% of quarters since 1999 (dearer than usual); return on assets weaker than usual (34th percentile); free cash flow yield usual (56th percentile).
| Metric | Percentile now | Usual range | Against its history | Last 10 years |
|---|---|---|---|---|
| Acquirer's Multiple | 45th | 23rd–53rd | Dearer than usual | |
| Free cash flow yield | 56th | 46th–76th | Usual range | |
| Shareholder yield | 41st | 31st–49th | Usual range | |
| Dividend yield | 26th | 24th–30th | Usual range | |
| Return on assets, 5-yr | 34th | 26th–59th | Weaker than usual | |
| Debt to equity | 71st | 53rd–71st | Most debt on record | |
| Company size | 47th | 32nd–53rd | Larger than usual |
The industry's median stock as a percentile of all investable US stocks on each number. For the Acquirer's Multiple and debt to equity, lower is better: the 10th percentile is cheaper than 90% of the market. For yields, returns and size, higher is bigger. Usual range covers the middle 80% of quarters since 1999; it's the shaded band in each chart. Each chart is zoomed to its own range (the numbers on the left): green shading marks the metric's better side and red its worse side, the dashed line is the 50th percentile, and the dot is today, coloured by where it sits. DR.TO is not US-listed; the comparison is with its US peers.
Buyback is spent; unallocated cash and a possible sale remain.
The 10% NCIB was fully used by mid-July; corporate cash is $60.7 million with no new payout announced. Converium urged selling the remaining hospitals in 2024; no bid or review found.
Catalyst check
Likelihood of a catalyst: ModerateNo live catalyst: the buyback is spent, but unallocated cash, past activist pressure and rich peer deals leave real signals.
Concentration in two hospitals and no live catalyst are the risks.
The business is now two hospitals; physicians own 49% of each and their rights are unknown. Surgical case volume fell 1.6%. Illustrative: C$13.36 if operating income falls 20% at today's multiple. No controlling shareholder found.
Value-trap check
Grades can't see that profits come from only two hospitals, with physician partners owning 49% of each, so one setback hits hard.
The gains are the company's own, driven by capital returns and sales.
Shares rose 93.6% in five years against peers at 61.7%. Five of six researched turning points were company-driven: strategy change in 2022, asset sales, issuer bids. The early-2022 fall tracked the market.
Five years of moves
DR.TO +93.6% since 2021-11-03, against the median of SGRY, THC, UHS +61.7%, its sector fund — and the S&P 500 (SPY) +74.8%. Numbered dots mark inflections (peaks and troughs); shaded bands mark divergences from the sector or market.
What drove each turning point
| # | Turning point | DR.TO | Peers | Sector | S&P 500 | Driver |
|---|---|---|---|---|---|---|
| 1 | Divergence vs market · 2021-11-26 → 2022-03-11 | +51.1% | +21.5% | — | −8.2% | Company |
| Q4 2021 results beat estimates and MFC planned to lift its buyback limit to 10%; DR.TO rose 51.1% while peers gained 21.5% and the market fell 8.2%. Company-driven. newswire.ca (1708 days ago); cantechletter.com (1707 days ago) | ||||||
| 2 | Peak · 2022-04-08 → 2022-06-17 | −33.5% | −37.1% | — | −17.9% | Market |
| No news found; the shares fell 33.5% with peers (−37.1%) and the market (−17.9%), so this was a market-wide move, not company news. | ||||||
| 3 | Divergence vs market · 2022-05-27 → 2022-09-30 | +30.7% | −29.2% | — | −13.3% | Company |
| Not among the most significant turning points; not researched. | ||||||
| 4 | Trough · 2022-06-17 → 2022-11-04 | +40.8% | −8.5% | — | +3.3% | Company |
| A September 2022 shift from acquisitions to returning capital, after talks with Converium, and a $34.5 million issuer bid preceded a 40.8% rebound; peers fell 8.5%. Company-driven. newswire.ca (1521 days ago); canadianlawyermag.com (1514 days ago) | ||||||
| 5 | Divergence vs market · 2022-09-30 → 2023-07-21 | −21.2% | +69.2% | — | +28.1% | Company |
| Not among the most significant turning points; not researched. | ||||||
| 6 | Peak · 2022-11-04 → 2022-11-25 | −30.0% | +10.3% | — | +6.9% | Company |
| Q3 2022 results on Nov. 10 showed income from operations down 37.0%, a $9.4 million loan impairment and higher labour costs; shares fell 30.0% while peers rose 10.3%. Company-driven. marketscreener.com (1463 days ago); stockhouse.com (1463 days ago) | ||||||
| 7 | Trough · 2022-11-25 → 2026-06-05 | +166.2% | +11.2% | — | +92.1% | Company |
| Asset sales (Black Hills, Oklahoma Spine), a 2025 issuer bid and rising profits, with about CAD 219.6 million returned, accompanied a 166.2% rise; peers gained 11.2%, market 92.1%. Company-driven. medicalfacilitiescorp.ca (831 days ago); Yahoo Finance (608 days ago); tipranks.com (609 days ago); medicalfacilitiescorp.ca; Investing.com (0 days ago) | ||||||
| 8 | Divergence vs market · 2024-03-08 → 2025-04-04 | +74.7% | −0.3% | — | +0.3% | Company |
| The Black Hills sale ($96.1 million proceeds), Converium's call for aggressive buybacks, and an issuer bid of up to $80,750,000 accompanied a 74.7% gain; peers fell 0.3%. Company-driven. Yahoo Finance (608 days ago); Business Wire; tipranks.com (664 days ago) | ||||||
Prices: daily closes. Peers chosen by the AI analyst as the closest US-listed businesses. Moves are over each window: for a peak or trough, the move that followed it. Driver is Company, Sector or Market; see Definitions below.
Every report on DR.TO
Each AI analyst report as it was published, with the share price that day and the move since (today C$16.67). Past performance is not a guide to the future.
| Report | Price then | Since | What it said |
|---|---|---|---|
| Nov 12, 2026Latest | C$16.67 | +0.0% | Buyback spent, cash unallocated: surgical hospital owner trades at 3.3× operating income · Catalyst: Moderate |
| Nov 4, 2026 | C$15.12 | ▲ +10.3% | Buybacks and an activist's sale push meet a hospital operator at 3.0× operating income · Catalyst: Moderate |
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Definitions
- Acquirer's Multiple®
- Enterprise value ÷ operating income (trailing 12 months). What an acquirer would pay for the whole business against what it earns before interest and tax. Lower is cheaper.
- Enterprise value
- Market cap at today's price, plus debt, preferred stock and minority interests, less cash.
- Operating income
- Trailing 12 months, after depreciation and amortization.
- Operating earnings yield
- Operating income ÷ enterprise value: the Acquirer's Multiple turned upside down.
- Free cash flow yield
- Trailing 12-month free cash flow (cash from operations less capital spending) ÷ market cap.
- Shareholder yield
- Trailing 12-month dividends plus net buybacks (shares bought back less shares issued) ÷ market cap. Dividend yield and buyback yield are its two parts.
- Return on assets
- Trailing 12-month operating income ÷ total assets at the latest quarter.
- Net debt : market cap
- Debt less cash, as a share of market cap. Negative means net cash.
- E(r)
- Expected annual return if the Acquirer's Multiple doesn't change. It has three parts: return on assets (what the business earns on what it owns); incremental growth (return on assets × the reinvestment rate, where the reinvestment rate is five-year average capital spending ÷ five-year average total assets: what reinvested capital adds); and shareholder yield (what is paid out through dividends and buybacks). E(r) = return on assets × (1 + reinvestment rate) + shareholder yield.
- 10-year Treasury
- The latest monthly 10-year US Treasury yield, the risk-free rate the yields are compared with.
- Percentiles
- Where the stock sits among investable US stocks (price above $3, market cap above $75M, average daily trading above $850,000, no ADRs or MLPs), updated each week. Each is the percentile of the number itself: for the Acquirer's Multiple (here EBIT ÷ enterprise value) and debt (total debt ÷ book equity), lower is better; for yields, five-year average return on assets and market cap, higher is bigger. Stocks outside the investable set, such as ADRs, are placed against it.
- Industry and sector
- FactSet RBICS industry. Industry and sector medians are the middle investable stock's percentile. Industry history is that median each quarter since 1999; the usual range is the middle 80% of quarters.
- Turning points
- Inflection points are the peaks and troughs where the stock's trend reversed by about 25% or more on weekly closes; each is compared over the move that followed. Divergences are stretches where the stock pulled away from its sector fund or the S&P 500 by about 20% or more. Each is set against its peers' median, its sector fund and the S&P 500 over the same window. Driver: Market if the market moved with it (same way, at least half as far) and so did its peers or sector; Sector if only its peers or sector did; Company otherwise.
- Value-trap grades
- Return on assets: Strong at 10% or more, Mixed at 5% or more. Net debt : market cap: Strong at 30% or less, Mixed at 100% or less. Free cash flow yield: Strong at 10% or more, Mixed at 5% or more. Shareholder yield: Strong at 8% or more, Mixed at 3% or more.