MEDIFAST INC MED

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
40/100
Developing

About MEDIFAST INC

Medifast, Inc., through its subsidiaries, operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address weight loss in the United States. The company offers weight loss, weight management, and healthy living products comprising bars, cereals, snack straws, hot chocolate, hearty choices, oatmeal, pancakes, puddings, soft serves, shakes, smoothies, soft bakes, soups, essential amino acid … Full MED analysis →

Competitive advantage assessment

Key risks

  • ROIC Below WACC or Peers ROIC at 26.7th percentile suggests inefficient capital deployment.
  • Revenue Volatility Signals Weak Stickiness Revenue volatility is high (stability score 0.14), suggesting weak customer stickiness.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Developing
41

Where MED ranks in Personal Services

MEDIFAST INC ranks #10 of 16 scored companies in Personal Services by moat score — the top 62%. The widest moat in the group is Rollins, Inc. (ROL) at 82/100.

Moat scores for companies ranked near MED in Personal Services
# Company Moat score Rating
6 Bright Horizons Family Solution BFAM 67/100 Moderate
7 Regis Corporation RGS 56/100 Moderate
8 WW International, Inc. WW 47/100 Developing
9 Smart Share Global Limited EM 41/100 Developing
10 MEDIFAST INC MED 40/100 Developing
11 MEDIROM Healthcare Technologies MRM 40/100 Developing
12 YY Group Holding Limited YYGH 35/100 Developing
13 CLICK HOLDINGS LIMITED CLIK 33/100 Developing
14 E-Home Household Service Holdin EJH 26/100 Developing

See every General Corporate company ranked by moat score →

How MED scores on the Corporate Default defenses

Pricing Power

Score 41 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 23 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 32 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 35 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 73 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 40 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding MED's moat

What is MEDIFAST INC's moat score?

MEDIFAST INC (MED) scores 40 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #10 of 16 scored companies in Personal Services, the top 62%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 15 companies in Personal Services. Its strongest defense is Resilience (73/100) and its weakest is Cost Advantage (23/100).

How does MEDIFAST INC compare with other Personal Services companies?

MEDIFAST INC ranks #10 of 16 scored companies in Personal Services by moat score. The widest moat in Personal Services is Rollins, Inc. (ROL) at 82/100. The companies ranked closest are Smart Share Global Limited (EM) at 41 just above it and MEDIROM Healthcare Technologies (MRM) at 40 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 15 companies in Personal Services. The defenses are then weighted to produce the overall score out of 100.

Why is MEDIFAST INC scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for MEDIFAST INC?

The Corporate Default template measures 6 defenses, and MED scores: Pricing Power (41), Cost Advantage (23), Customer Stickiness (32), Capital Efficiency (35), Resilience (73), Scale & Market Position (40). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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