2024-05-24 09:17:15 ET
Summary
- Medifast's financial performance is deteriorating rapidly due to the emergence of drug-weight loss competitors.
- The company reported a significant decline in revenue and earnings in Q1 2023.
- Medifast is laying off employees and may need to further reduce its workforce to match the revenue drop.
- My valuation analysis suggests that the stock is significantly undervalued, but I consider this fair given all the challenges.
Investment thesis
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Medifast: Significant Undervaluation Even As Struggles Persist