Pediatrix Medical Group, Inc. (MD) Stock

Pediatrix Medical Group, Inc. (MD) is a Healthcare stock trading at $27.00 (as of 2026-08-25), with a market capitalization of $2.19B and a trailing P/E of 12.9. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Pediatrix Medical Group, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States and Puerto Rico. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians. The company also provides maternal-fetal care services, including inpatient and office-based clinical care to expectant mothers and unborn babies through affiliated maternal-fetal medicine subspecialists, as well as obstetricians and other clinicians, including maternal-fetal nurse practitioners, certified nurse mid-wives, ultrasonographers, and genetic counselors. In addition, it offers pediatric cardiology care services comprising inpatient and office-based pediatric cardiology care of the fetus, infant, child, and adolescent patient with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through affiliated pediatric cardiologist subspecialists and other related clinical professionals; and specialized cardiac care to the fetus, neonatal and pediatric patients. Further, the company provides other pediatric subspecialty care services through pediatric subspecialists, such as pediatric intensivists, pediatric hospitalists, pediatric surgeons, and pediatric ophthalmologists, as well as pediatric ear, nose, and throat physicians; and support services in the areas of hospitals, primarily in the pediatric emergency rooms, labor and delivery areas, and nursery and pediatric departments. As of February 17, 2022, it operated a network of approximately 2,700 physicians. The company was formerly known as MEDNAX, Inc. and changed its name to Pediatrix Medical Group, Inc. in July 2022. Pediatrix Medical Group, Inc. was founded in 1979 and is based in Sunrise, Florida.

Understand Pediatrix Medical Group, Inc.: how it makes money

Pediatrix is a physician group that provides neonatal, maternal-fetal, and pediatric subspecialty care embedded inside partner hospitals, earning revenue by billing commercial and government payors per service rendered. The business is anchored to hospital-based NICU and maternal-fetal workflows, where per-service pricing driven by reimbursement policy matters more than raw patient volume.

Pediatrix earns as the clinical staffing layer embedded in hospital delivery and NICU units, so its operating margin expands when reimbursement rates rise per service even if patient volumes are flat or declining.

Business quality (Mixed): A staffing-layer model with 12% operating margin and 19% ROE: capital-light but growth is capped by hospital partner networks, and recent volume trends mean pricing is doing all the heavy lifting.

Valuation: At 13× earnings, MD trades 50% below the Healthcare Services average (25×). Note: the low multiple may reflect one-time earnings items.

Bull case

Pricing outpaces volume decline: Management attributed Q4 pricing gains to revenue-cycle improvements and favorable acuity, lifting same-unit net reimbursement-related revenue growth to 4.4% even as volumes slipped. This decoupling of price from volume is the core structural advantage of being the embedded clinical layer.
OB hospital medicine as new lever: Management flagged obstetric hospital medicine as a growth avenue that reuses the existing hospital relationships Pediatrix already maintains for neonatal and maternal-fetal care, requiring minimal incremental infrastructure. This gives a path to grow revenue without the capex of new service lines.
Valuation at half the sector: At 12.7x earnings Pediatrix trades 50% below the Healthcare Services industry average of 25x. For a stable, owned-physician group with 12% operating margin and 19% ROE, that discount leaves substantial room if volume stabilizes.

Bear case

Volume erosion is the real threat: Patient service volumes declined nearly 3% year over year in Q4, with same-unit revenue from volume at negative 1.6% and NICU days down 0.7%. If reimbursement growth stalls while volumes keep sliding, the pricing tailwind that has masked the decline disappears.
ACA outcome is a wild card: Management acknowledged that ACA subsidy and enrollment outcomes remain difficult to quantify. For a group whose commercial and other non-government payor reimbursement share is already showing pressure, a policy shift could hit per-service pricing directly.
Thin margin leaves little cushion: Operating margin sits at 12% (rounded from 11.7%), modest for a physician group, and 2026 guidance excludes any acquisition contribution. With management also signaling materially less share repurchase than 2025, the equity story rests almost entirely on pricing holding steady.

Valuation — source: SEC EDGAR (first-party)
Price	$27.00
Market Cap	$2.19B
P/E Ratio	12.9
EV / EBITDA	8.2
Price / Book	2.49
Price / Sales	1.13
DCF Value (model)	$38.83
DCF Upside vs Price	43.8%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$1.91B
Net Margin	8.6%
Revenue Growth (YoY)	-4.9%
EPS Growth (YoY)	-265.5%

Financial Health — source: SEC EDGAR
Altman Z-Score	2.24 (grey)

Valuation vs Sector & Industry
Stock P/E	12.9
Sector P/E (Healthcare)	21.9
Industry P/E (Healthcare Services)	25.4
vs Sector	-41.4%
vs Industry	-49.4%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock, Inc. ($290.36M)
Institutional Holders Tracked	10

Company
Sector	Healthcare
Industry	Healthcare Services
CEO	Kasandra H. Rossi
Employees	4,120
Country	US
IPO Date	1995-09-20

Related Companies (Healthcare Services; 8 comparable companies)

Data as of 2026-08-25.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.