MEDPACE HOLDINGS INC (MEDP)
US58506Q1094 - Common Stock
We assign a fundamental rating of 7 out of 10 to MEDP. MEDP was compared to 58 industry peers in the Life Sciences Tools & Services industry. MEDP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MEDP is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make MEDP a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year MEDP was profitable.
In the past year MEDP had a positive cash flow from operations.
In the past 5 years MEDP has always been profitable.
Each year in the past 5 years MEDP had a positive operating cash flow.
1.2 Ratios
MEDP's Return On Assets of 17.39% is amongst the best of the industry. MEDP outperforms 96.55% of its industry peers.
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.
The Return On Invested Capital of MEDP (36.14%) is better than 98.28% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MEDP is significantly above the industry average of 9.86%.
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
MEDP's Profit Margin of 15.91% is amongst the best of the industry. MEDP outperforms 87.93% of its industry peers.
In the last couple of years the Profit Margin of MEDP has grown nicely.
MEDP has a Operating Margin of 18.07%. This is amongst the best in the industry. MEDP outperforms 84.48% of its industry peers.
MEDP's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 27.99%, MEDP is doing worse than 79.31% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MEDP is creating value.
The number of shares outstanding for MEDP has been reduced compared to 1 year ago.
Compared to 5 years ago, MEDP has less shares outstanding
There is no outstanding debt for MEDP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
MEDP has an Altman-Z score of 8.11. This indicates that MEDP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.11, MEDP belongs to the best of the industry, outperforming 91.38% of the companies in the same industry.
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 | 8.11 |
ROIC/WACC2.96
WACC12.19%
2.3 Liquidity
MEDP has a Current 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 Current ratio of 0.78 is on the low side compared to the rest of the industry. MEDP is outperformed by 96.55% of its industry peers.
A Quick Ratio of 0.78 indicates that MEDP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.78, MEDP is doing worse than 94.83% of the companies in the same industry.
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.
Looking at the last year, MEDP shows a very strong growth in Revenue. The Revenue has grown by 25.57%.
MEDP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.76% yearly.
EPS 1Y (TTM)24.18%
EPS 3Y31.33%
EPS 5Y27.94%
EPS growth Q2Q40.97%
Revenue 1Y (TTM)25.57%
Revenue growth 3Y26.76%
Revenue growth 5Y21.76%
Revenue growth Q2Q17.72%
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 Y21.87%
EPS Next 2Y20.71%
EPS Next 3Y19.63%
EPS Next 5Y17.32%
Revenue Next Year15.91%
Revenue Next 2Y16.1%
Revenue Next 3Y15.66%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 40.39, MEDP can be considered very expensive at the moment.
MEDP's Price/Earnings ratio is a bit cheaper when compared to the industry. MEDP is cheaper than 72.41% of the companies in the same industry.
MEDP is valuated rather expensively when we compare the Price/Earnings ratio to 28.31, which is the current average of the S&P500 Index.
MEDP is valuated quite expensively with a Price/Forward Earnings ratio of 30.62.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEDP indicates a somewhat cheap valuation: MEDP is cheaper than 75.86% of the companies listed in the same industry.
MEDP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.48, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.39 | ||
| Fwd PE | 30.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEDP is valued a bit cheaper than 67.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MEDP is valued cheaper than 89.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.93 | ||
| EV/EBITDA | 31.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MEDP does not grow enough to justify the current Price/Earnings ratio.
MEDP has an outstanding profitability rating, which may justify a higher PE ratio.
MEDP's earnings are expected to grow with 19.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.85
PEG (5Y)1.45
EPS Next 2Y20.71%
EPS Next 3Y19.63%
5. Dividend
5.1 Amount
MEDP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MEDPACE HOLDINGS INC
NASDAQ:MEDP (5/10/2024, 11:11:10 AM)
396.2
-3 (-0.75%)
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 Cap12.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.39 | ||
| Fwd PE | 30.62 | ||
| 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)1.85
PEG (5Y)1.45
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)
Growth
EPS 1Y (TTM)24.18%
EPS 3Y31.33%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.57%
Revenue growth 3Y26.76%
Revenue growth 5Y
Revenue growth 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
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y