📊 MDRR Key Takeaways
Is Medalist Diversified REIT, Inc. (MDRR) a Good Investment?
Despite reported profitability, Medalist Diversified exhibits severe earnings quality concerns with negative operating cash flow of -$508.4K offset against positive net income of $9.0M, indicating non-cash or non-recurring gains. The impossible operating margin of 569.5% (operating income $12.3M on revenue of only $2.2M) and extreme net margin of 415.3% suggest significant data anomalies or one-time items that do not reflect sustainable operational performance. The company's inability to generate positive free cash flow fundamentally undermines viability regardless of reported accounting profits.
Why Buy Medalist Diversified REIT, Inc. Stock? MDRR Key Strengths
- Exceptional interest coverage ratio of 27.0x demonstrates strong debt servicing capacity
- Reported positive operating income of $12.3M and net income of $9.0M
- Moderate debt-to-equity ratio of 1.20x with $8.6M cash position provides liquidity buffer
MDRR Stock Risks: Medalist Diversified REIT, Inc. Investment Risks
- Critical: Negative operating cash flow of -$508.4K and negative FCF margin of -23.5% indicate company is burning cash operationally despite reported profits—signals poor earnings quality
- Operating income ($12.3M) is 5.6x total revenue ($2.2M), which is mathematically inconsistent with normal REIT operations and suggests inflated metrics from non-operating gains or accounting adjustments
- Extreme net margin of 415.3% and operating margin of 569.5% are unrealistic and point to data quality issues, one-time items, or unsustainable accounting treatments
Key Metrics to Watch
- Operating cash flow trend and reconciliation to operating income volatility
- Composition of operating income (identify recurring vs. non-recurring and non-cash components)
- Revenue growth acceleration—current 6.8% YoY growth is insufficient for $2.2M base
Medalist Diversified REIT, Inc. (MDRR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
MDRR Profit Margin, ROE & Profitability Analysis
MDRR vs Real Estate Sector: How Medalist Diversified REIT, Inc. Compares
How Medalist Diversified REIT, Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Medalist Diversified REIT, Inc. Stock Overvalued? MDRR Valuation Analysis 2026
Based on fundamental analysis, Medalist Diversified REIT, Inc. appears fundamentally strong relative to the Real Estate 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.
Medalist Diversified REIT, Inc. Balance Sheet: MDRR Debt, Cash & Liquidity
MDRR Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
MDRR Quarterly Earnings & 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.
Medalist Diversified REIT, Inc. Dividends, Buybacks & Capital Allocation
MDRR SEC Filings: Latest 10-K & 10-Q 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 SELL with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MDRR's key strengths?
Claude: Exceptional interest coverage ratio of 27.0x demonstrates strong debt servicing capacity. Reported positive operating income of $12.3M and net income of $9.0M.
What are the risks of investing in MDRR?
Claude: Critical: Negative operating cash flow of -$508.4K and negative FCF margin of -23.5% indicate company is burning cash operationally despite reported profits—signals poor earnings quality. Operating income ($12.3M) is 5.6x total revenue ($2.2M), which is mathematically inconsistent with normal REIT operations and suggests inflated metrics from non-operating gains or accounting adjustments.
What is MDRR's revenue and growth?
Medalist Diversified REIT, Inc. reported revenue of $2.2M.
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 $4.85.
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 May 2026, Medalist Diversified REIT, Inc. has a SELL rating with 68% 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 40.2% (sector avg: 8%), net margin of 415.3% (sector avg: 20%). Higher ROE suggests strong returns relative to peers.
Should I buy MDRR stock in 2026?
Our dual AI analysis gives Medalist Diversified REIT, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is MDRR's free cash flow?
Medalist Diversified REIT, Inc.'s operating cash flow is $-508.4K, with capital expenditures of N/A. FCF margin is -23.5%.
How does MDRR compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 415.3% (avg: 20%), ROE 40.2% (avg: 8%), current ratio N/A (avg: 1.5).
Why is MDRR's return on equity (ROE) so high?
Medalist Diversified REIT, Inc. has a return on equity of 40.2%, significantly above the Real Estate sector average of 8%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 415.3% net margin.