Metropolitan Health Networks, Inc. provides comprehensive health care services to people with Medicare in Florida. The company currently cares for approximately 33,000 customers in 18 counties in South and Central Florida. Metropolitan Health’s team of physicians, professionals, and associates are committed to serving customers with the highest standards of medical treatment and personal service. The company aims to always exceed expectations.

For decades, Florida has been a highly attractive and rapidly growing market. In 2005, the state’s population of those 65 and older was 3.0 million and was forecasted to increase to 3.4 million by 2010 and to 4.7 million by 2020. Florida is also the second largest Medicare population in the U.S. with an estimated 3.2 million eligible beneficiaries. In addition to rising demand, the company intends to continue growing by investing in the development of healthcare provider networks in other counties.

Over the past five years, sales have increased at an average rate of 17.13% while net income has grown at an average of 11.81%. As of last report, the company held $5.2 million in cash and cash equivalents, and $44.6 million in other assets. Total current and long-term liabilities were reported at $7.8 million. Metropolitan Health boasts a respectable 23.3% Return on Assets (ROA) and 27.4% Return on Equity (ROE).

Generating $345.7 million in sales, the company trades at a market cap of only $93.59 million. Insiders own approximately 34.54% of shares outstanding while institutions hold 26.80%. Investor sentiment is almost entirely bullish with only 2.5% of the float sold short. Currently, one analyst rates the company a “Strong Buy”, another rates it a “Buy”, and the final analyst rates it a “Hold”.

In an effort to increase efficiency, the company recently announced its initiative to implement a unified electronic medical records and practice management solution for nine of its medicine offices. The solution will allow physicians secured access to paperless patient information anytime, anywhere. Users will be able to easily access and review complete patient histories, including past visits, current medications, allergies, labs, and charts.

Key statistics (2/9/10):

Market cap: $93.17 Million
P/E Ratio: 8.7 versus industry average of 8.7
P/S Ratio: 0.27 versus industry average of 0.39
Price/Cash Flow Ratio: 7.20 versus industry average of 20.80

Debt/Equity Ratio: 0.02 versus industry average of 0.36
Current Ratio: 5.5 versus industry average of 0.6
Quick Ratio: 5.4 versus industry average of 0.6
Book Value/Share: $0.97 versus current market price of $2.20

Return on Equity: 27.4% versus industry average of 15.0%
Return on Assets: 23.3% versus industry average of 5.9%
Return on Capital: 27.0% versus industry average of 5.2%
5-Year average ROE: 26.5% versus industry average of 15.2%

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