MFCSF - Medical Facilities: 9% Plus Yield From A Healthcare Play
Note: All amounts are in Canadian dollars unless indicated otherwise
When we last covered Medical Facilities Corporation (MFCSF), we had downgraded the stock to a "hold" on valuation and a small degree of underperformance relative to our expectations.
MFCSF has also struggled to deliver growth in EBITDA in spite of big revenue jumps and acquisitions. MFCSF delivered $1.58 in CAFD for the year. This was below our estimates, in spite of MFCSF having a much weaker Canadian dollar helping it. When we combine these facts, we assess a fair value at about 10-12X