C

Pediatrix Medical Group, Inc. — Earnings Quality Grade C

MD · Healthcare

Some red flags

Revenue
$1.9B
2025
Net Income
$165M
2025
Gross Margin
25.8%
Free Cash Flow
$253M
01

Screening Summary

16
Passed
1
Watch
1
Failed
-2.86
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 44 days, change -3 days YoY

A2AR vs Revenue Growth

AR growth -11.7% vs revenue growth -4.9%

A3Revenue vs CFFO

Revenue -4.9%, CFFO 31.2%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth -16.2% vs revenue -4.9%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 48.8%. Normal

B4Gross Margin

Gross margin 25.8%, change +3.2pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.64. Profits backed by cash

C2Free Cash Flow

FCF $0.3B, FCF/NI = 1.53

C3Accruals Ratio

Accruals ratio = -4.7%. Low accruals

!
C4Cash vs Debt

Cash $0.5B covers 79% of debt $0.6B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $1.3B = 148% of equity. Over 50%

D2Leverage

Debt/EBITDA = 2.3x. Healthy

D3Soft Asset Growth

Other assets -24.1% vs revenue -4.9%. Normal

D4Asset Impairment

Write-offs normal

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 2% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.86 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-2.86
-4.0 Clean-2.22 Grey-1.78 Danger0
0.929
DSRI
AR growing faster than revenue?
0.875
GMI
Gross margin declining?
0.941
AQI
Asset quality deteriorating?
0.951
SGI
Revenue growth rate
1.272
DEPI
Depreciation slowing?
1.062
SGAI
SG&A ratio changing?
-0.047
TATA
Accruals level
0.958
LVGI
Leverage increasing?
05

Altman Z-Score

2.18
Grey Zone
0 Distress1.102.605.0+ Safe
0.1356
Liquidity
-0.037
Cumulative profit
0.1123
Operating efficiency
0.627
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25