MEDPACE HOLDINGS INC (MEDP) Stock Fundamental Analysis
NASDAQ:MEDP - Nasdaq - US58506Q1094 - Common Stock - Currency: USD
Overall MEDP gets a fundamental rating of 7 out of 10. We evaluated MEDP against 56 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 not valued too expensively and it also shows a decent growth rate. These ratings would make MEDP suitable for 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.
MEDP had positive earnings in each of the past 5 years.
MEDP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MEDP (21.95%) is better than 98.21% of its industry peers.
MEDP has a Return On Equity of 70.14%. This is amongst the best in the industry. MEDP outperforms 98.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 49.81%, MEDP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MEDP is significantly above the industry average of 12.97%.
The 3 year average ROIC (38.75%) for MEDP is below the current ROIC(49.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.95% | ||
| ROE | 70.14% | ||
| ROIC | 49.81% |
ROA(3y)18.14%
ROA(5y)15.16%
ROE(3y)54.33%
ROE(5y)40%
ROIC(3y)38.75%
ROIC(5y)29.27%
1.3 Margins
MEDP has a better Profit Margin (19.31%) than 96.43% of its industry peers.
In the last couple of years the Profit Margin of MEDP has grown nicely.
MEDP's Operating Margin of 21.16% is amongst the best of the industry. MEDP outperforms 89.29% of its industry peers.
In the last couple of years the Operating Margin of MEDP has grown nicely.
MEDP's Gross Margin of 31.51% is on the low side compared to the rest of the industry. MEDP is outperformed by 73.21% of its industry peers.
MEDP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.16% | ||
| PM (TTM) | 19.31% | ||
| GM | 31.51% |
OM growth 3Y6.82%
OM growth 5Y7.46%
PM growth 3Y6.48%
PM growth 5Y10.5%
GM growth 3Y2.7%
GM growth 5Y1.75%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MEDP is creating value.
MEDP has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MEDP has been reduced compared to 5 years ago.
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 5.44. This indicates that MEDP is financially healthy and has little risk of bankruptcy at the moment.
MEDP's Altman-Z score of 5.44 is amongst the best of the industry. MEDP outperforms 87.50% 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 | 5.44 |
ROIC/WACC4.66
WACC10.7%
2.3 Liquidity
MEDP has a Current Ratio of 0.73. This is a bad value and indicates that MEDP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MEDP (0.73) is worse than 92.86% of its industry peers.
A Quick Ratio of 0.73 indicates that MEDP may have some problems paying its short term obligations.
MEDP's Quick ratio of 0.73 is on the low side compared to the rest of the industry. MEDP is outperformed by 87.50% 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 | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.54% over the past year.
MEDP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.22% yearly.
Looking at the last year, MEDP shows a quite strong growth in Revenue. The Revenue has grown by 9.87% in the last year.
Measured over the past years, MEDP shows a quite strong growth in Revenue. The Revenue has been growing by 19.62% on average per year.
EPS 1Y (TTM)33.54%
EPS 3Y37.96%
EPS 5Y33.22%
EPS Q2Q%14.69%
Revenue 1Y (TTM)9.87%
Revenue growth 3Y22.68%
Revenue growth 5Y19.62%
Sales Q2Q%9.3%
3.2 Future
MEDP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.55% yearly.
MEDP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.29% yearly.
EPS Next Y2.47%
EPS Next 2Y3.06%
EPS Next 3Y5.7%
EPS Next 5Y9.55%
Revenue Next Year3.63%
Revenue Next 2Y3.54%
Revenue Next 3Y5.31%
Revenue Next 5Y9.29%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.51, the valuation of MEDP can be described as rather expensive.
Based on the Price/Earnings ratio, MEDP is valued a bit cheaper than the industry average as 73.21% of the companies are valued more expensively.
MEDP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.98 indicates a rather expensive valuation of MEDP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEDP indicates a somewhat cheap valuation: MEDP is cheaper than 73.21% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, MEDP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 21.98 |
4.2 Price Multiples
MEDP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MEDP is cheaper than 80.36% of the companies in the same industry.
87.50% of the companies in the same industry are more expensive than MEDP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.67 | ||
| EV/EBITDA | 16.55 |
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.
PEG (NY)9.1
PEG (5Y)0.68
EPS Next 2Y3.06%
EPS Next 3Y5.7%
5. Dividend
5.1 Amount
No dividends for MEDP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
294.89
+1.86 (+0.63%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners84.94%
Inst Owner Change-2.4%
Ins Owners0.5%
Ins Owner Change6.32%
Market Cap8.48B
Analysts70.59
Price Target306.75 (4.02%)
Short Float %11.72%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.73%
Min EPS beat(2)17.84%
Max EPS beat(2)21.62%
EPS beat(4)4
Avg EPS beat(4)12.98%
Min EPS beat(4)6.19%
Max EPS beat(4)21.62%
EPS beat(8)7
Avg EPS beat(8)11.62%
EPS beat(12)11
Avg EPS beat(12)14.86%
EPS beat(16)15
Avg EPS beat(16)14.75%
Revenue beat(2)1
Avg Revenue beat(2)1.21%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)4.04%
Revenue beat(4)1
Avg Revenue beat(4)-0.75%
Min Revenue beat(4)-3.35%
Max Revenue beat(4)4.04%
Revenue beat(8)3
Avg Revenue beat(8)-0.2%
Revenue beat(12)7
Avg Revenue beat(12)0.82%
Revenue beat(16)8
Avg Revenue beat(16)0.41%
PT rev (1m)-2.02%
PT rev (3m)-13.62%
EPS NQ rev (1m)-1.34%
EPS NQ rev (3m)-2.51%
EPS NY rev (1m)3.42%
EPS NY rev (3m)2.57%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 21.98 | ||
| P/S | 3.93 | ||
| P/FCF | 15.67 | ||
| P/OCF | 14.56 | ||
| P/B | 14.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.55 |
EPS(TTM)13.1
EY4.44%
EPS(NY)13.42
Fwd EY4.55%
FCF(TTM)18.82
FCFY6.38%
OCF(TTM)20.25
OCFY6.87%
SpS75.04
BVpS20.65
TBVpS-3.58
PEG (NY)9.1
PEG (5Y)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.95% | ||
| ROE | 70.14% | ||
| ROCE | 58.88% | ||
| ROIC | 49.81% | ||
| ROICexc | 115.73% | ||
| ROICexgc | N/A | ||
| OM | 21.16% | ||
| PM (TTM) | 19.31% | ||
| GM | 31.51% | ||
| FCFM | 25.08% |
ROA(3y)18.14%
ROA(5y)15.16%
ROE(3y)54.33%
ROE(5y)40%
ROIC(3y)38.75%
ROIC(5y)29.27%
ROICexc(3y)71.87%
ROICexc(5y)52.56%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)47.22%
ROCE(5y)35.45%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y64.05%
ROICexc growth 5Y48.31%
OM growth 3Y6.82%
OM growth 5Y7.46%
PM growth 3Y6.48%
PM growth 5Y10.5%
GM growth 3Y2.7%
GM growth 5Y1.75%
F-Score8
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 140.62% | ||
| Cap/Sales | 1.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 119.87% | ||
| Profit Quality | 129.91% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 5.44 |
F-Score8
WACC10.7%
ROIC/WACC4.66
Cap/Depr(3y)142.96%
Cap/Depr(5y)144.54%
Cap/Sales(3y)2.07%
Cap/Sales(5y)2.41%
Profit Quality(3y)141.71%
Profit Quality(5y)142.32%
High Growth Momentum
Growth
EPS 1Y (TTM)33.54%
EPS 3Y37.96%
EPS 5Y33.22%
EPS Q2Q%14.69%
EPS Next Y2.47%
EPS Next 2Y3.06%
EPS Next 3Y5.7%
EPS Next 5Y9.55%
Revenue 1Y (TTM)9.87%
Revenue growth 3Y22.68%
Revenue growth 5Y19.62%
Sales Q2Q%9.3%
Revenue Next Year3.63%
Revenue Next 2Y3.54%
Revenue Next 3Y5.31%
Revenue Next 5Y9.29%
EBIT growth 1Y28.65%
EBIT growth 3Y31.04%
EBIT growth 5Y28.55%
EBIT Next Year10.29%
EBIT Next 3Y8.11%
EBIT Next 5Y12.73%
FCF growth 1Y40.57%
FCF growth 3Y34.54%
FCF growth 5Y25.47%
OCF growth 1Y37.94%
OCF growth 3Y32.23%
OCF growth 5Y24.7%