MEDPACE HOLDINGS INC (MEDP)
US58506Q1094 - Common Stock
Overall MEDP gets a fundamental rating of 7 out of 10. We evaluated MEDP against 58 industry peers in the Life Sciences Tools & Services industry. MEDP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MEDP is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes MEDP very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
MEDP had positive earnings in the past year.
MEDP had a positive operating cash flow in the past year.
In the past 5 years MEDP has always been profitable.
MEDP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.39%, MEDP belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
Looking at the Return On Equity, with a value of 46.50%, MEDP belongs to the top of the industry, outperforming 98.28% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 36.14%, MEDP belongs to the top of the industry, outperforming 98.28% of the companies in the same industry.
MEDP had an Average Return On Invested Capital over the past 3 years of 31.51%. This is significantly above the industry average of 11.27%.
The last Return On Invested Capital (36.14%) for MEDP is above the 3 year average (31.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.39% | ||
| ROE | 46.5% | ||
| ROIC | 36.14% |
ROA(3y)15.37%
ROA(5y)13.06%
ROE(3y)44.35%
ROE(5y)32.97%
ROIC(3y)31.51%
ROIC(5y)24.63%
1.3 Margins
With an excellent Profit Margin value of 15.91%, MEDP belongs to the best of the industry, outperforming 87.93% of the companies in the same industry.
MEDP's Profit Margin has improved in the last couple of years.
MEDP has a Operating Margin of 18.07%. This is amongst the best in the industry. MEDP outperforms 84.48% of its industry peers.
In the last couple of years the Operating Margin of MEDP has grown nicely.
The Gross Margin of MEDP (27.99%) is worse than 77.59% of its industry peers.
MEDP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.07% | ||
| PM (TTM) | 15.91% | ||
| GM | 27.99% |
OM growth 3Y-0.33%
OM growth 5Y4.5%
PM growth 3Y-1.43%
PM growth 5Y7.69%
GM growth 3Y-2.6%
GM growth 5Y-1.88%
2. Health
2.1 Basic Checks
MEDP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
MEDP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MEDP has less shares outstanding
MEDP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
MEDP has an Altman-Z score of 7.89. This indicates that MEDP is financially healthy and has little risk of bankruptcy at the moment.
MEDP has a better Altman-Z score (7.89) than 89.66% of its industry peers.
MEDP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.89 |
ROIC/WACC2.93
WACC12.35%
2.3 Liquidity
A Current Ratio of 0.78 indicates that MEDP may have some problems paying its short term obligations.
With a Current ratio value of 0.78, MEDP is not doing good in the industry: 94.83% of the companies in the same industry are doing better.
MEDP has a Quick Ratio of 0.78. This is a bad value and indicates that MEDP is not financially healthy enough and could expect problems in meeting its short term obligations.
MEDP's Quick ratio of 0.78 is on the low side compared to the rest of the industry. MEDP is outperformed by 93.10% of its industry peers.
MEDP does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.18% over the past year.
Measured over the past years, MEDP shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.94% on average per year.
MEDP shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.57%.
The Revenue has been growing by 21.76% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)24.18%
EPS 3Y31.33%
EPS 5Y27.94%
EPS Q2Q%40.97%
Revenue 1Y (TTM)25.57%
Revenue growth 3Y26.76%
Revenue growth 5Y21.76%
Sales Q2Q%17.72%
3.2 Future
The Earnings Per Share is expected to grow by 17.32% on average over the next years. This is quite good.
MEDP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.80% yearly.
EPS Next Y29.1%
EPS Next 2Y22.82%
EPS Next 3Y21.09%
EPS Next 5Y17.32%
Revenue Next Year15.03%
Revenue Next 2Y15.58%
Revenue Next 3Y15.25%
Revenue Next 5Y13.8%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 39.38 indicates a quite expensive valuation of MEDP.
Based on the Price/Earnings ratio, MEDP is valued a bit cheaper than 72.41% of the companies in the same industry.
MEDP's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.05.
Based on the Price/Forward Earnings ratio of 28.84, the valuation of MEDP can be described as expensive.
Based on the Price/Forward Earnings ratio, MEDP is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MEDP to the average of the S&P500 Index (20.07), we can say MEDP is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.38 | ||
| Fwd PE | 28.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEDP is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
MEDP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MEDP is cheaper than 87.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.29 | ||
| EV/EBITDA | 30.21 |
4.3 Compensation for Growth
MEDP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MEDP has an outstanding profitability rating, which may justify a higher PE ratio.
MEDP's earnings are expected to grow with 21.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)1.41
EPS Next 2Y22.82%
EPS Next 3Y21.09%
5. Dividend
5.1 Amount
No dividends for MEDP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MEDPACE HOLDINGS INC
NASDAQ:MEDP (5/31/2024, 7:00:00 PM)
After market: 386.34 0 (0%)386.34
+0.64 (+0.17%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.97B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.38 | ||
| Fwd PE | 28.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.35
PEG (5Y)1.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.39% | ||
| ROE | 46.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.07% | ||
| PM (TTM) | 15.91% | ||
| GM | 27.99% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)24.18%
EPS 3Y31.33%
EPS 5Y
EPS Q2Q%
EPS Next Y29.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.57%
Revenue growth 3Y26.76%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
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