📊 MDRR Key Takeaways
Is MDRR a Good Investment? Thesis Analysis
Medalist Diversified is a deeply distressed REIT with deteriorating fundamentals, negative profitability, and unsustainable leverage that poses severe financial risk. The company is burning equity value despite positive operating cash flow, with an interest coverage ratio of 0.2x indicating acute debt servicing concerns. The negative net margin of -23% and collapsing earnings (-6433% YoY) demonstrate fundamental operational distress that cannot be offset by modest revenue growth.
Why Buy MDRR? Key Strengths
- Positive operating cash flow of $1.5M provides near-term liquidity buffer
- Revenue growth of 6.8% YoY shows modest operational activity
- Free cash flow margin of 14.7% relative to revenue suggests cash generation capability
MDRR Investment Risks to Consider
- Catastrophic interest coverage of 0.2x indicates inability to service $51.4M long-term debt from operating income
- Extreme leverage with 5.45x debt-to-equity ratio and $53.6M liabilities against only $9.4M equity
- Deteriorating profitability with -$2.4M net income and -25.3% ROE showing value destruction
- Negative operating margin relative to net income indicates non-operating losses are substantial
- Severely depleted cash position of only $2.6M inadequate for $51.4M debt obligations
Key Metrics to Watch
- Interest coverage ratio - must improve above 1.5x minimum
- Debt-to-equity ratio - target below 2.0x for financial stability
- Net income trend - path to profitability critical for equity survival
- Cash balance - monitoring for covenant violations or refinancing needs
MDRR Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
MDRR Profitability Ratios
MDRR vs Default Sector
How Medalist Diversified REIT, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is MDRR Overvalued or Undervalued?
Based on fundamental analysis, Medalist Diversified REIT, Inc. shows some fundamental concerns relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
MDRR Balance Sheet & Liquidity
MDRR 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Medalist Diversified REIT, Inc.'s revenue has remained relatively flat over the 5-year period, with a 9% decline. The most recent EPS of $0.03 reflects profitable operations.
MDRR Growth Metrics (YoY)
MDRR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.3M | $308.7K | $0.28 |
| Q2 2025 | $2.3M | -$456.4K | $-0.34 |
| Q1 2025 | $2.3M | -$1.0M | $-0.74 |
| Q3 2024 | $2.3M | $308.7K | $0.28 |
| Q2 2024 | $2.3M | -$521.7K | $-0.47 |
| Q1 2024 | $2.5M | -$1.2M | $-0.55 |
| Q3 2023 | $2.6M | -$1.8M | $-0.80 |
| Q2 2023 | $2.5M | -$877.7K | $-0.40 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
MDRR Capital Allocation
MDRR SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Medalist Diversified REIT, Inc. (CIK: 0001654595)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MDRR
What is the AI rating for MDRR?
Medalist Diversified REIT, Inc. (MDRR) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MDRR's key strengths?
Claude: Positive operating cash flow of $1.5M provides near-term liquidity buffer. Revenue growth of 6.8% YoY shows modest operational activity.
What are the risks of investing in MDRR?
Claude: Catastrophic interest coverage of 0.2x indicates inability to service $51.4M long-term debt from operating income. Extreme leverage with 5.45x debt-to-equity ratio and $53.6M liabilities against only $9.4M equity.
What is MDRR's revenue and growth?
Medalist Diversified REIT, Inc. reported revenue of $10.4M.
Does MDRR pay dividends?
Medalist Diversified REIT, Inc. pays dividends, with $0.5M distributed to shareholders in the trailing twelve months.
Where can I find MDRR SEC filings?
Official SEC filings for Medalist Diversified REIT, Inc. (CIK: 0001654595) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MDRR's EPS?
Medalist Diversified REIT, Inc. has a diluted EPS of $-1.90.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MDRR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Medalist Diversified REIT, Inc. has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MDRR stock overvalued or undervalued?
Valuation metrics for MDRR: ROE of -25.3% (sector avg: 15%), net margin of -23.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy MDRR stock in 2026?
Our dual AI analysis gives Medalist Diversified REIT, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MDRR's free cash flow?
Medalist Diversified REIT, Inc.'s operating cash flow is $1.5M, with capital expenditures of N/A. FCF margin is 14.7%.
How does MDRR compare to other Default stocks?
Vs Default sector averages: Net margin -23.0% (avg: 12%), ROE -25.3% (avg: 15%), current ratio N/A (avg: 1.8).