Taking everything into account, MEDP scores 7 out of 10 in our fundamental rating. 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 would make MEDP suitable for growth and quality investing!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Each year in the past 5 years MEDP has been profitable.
Each year in the past 5 years MEDP had a positive operating cash flow.

1.2 Ratios

The Return On Assets of MEDP (24.70%) is better than 100.00% of its industry peers.
MEDP's Return On Equity of 147.46% is amongst the best of the industry. MEDP outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 91.45%, MEDP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
MEDP had an Average Return On Invested Capital over the past 3 years of 38.75%. This is significantly above the industry average of 13.29%.
The 3 year average ROIC (38.75%) for MEDP is below the current ROIC(91.45%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	24.7%
ROE	147.46%
ROIC	91.45%

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

With an excellent Profit Margin value of 18.36%, MEDP belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
MEDP's Profit Margin has improved in the last couple of years.
MEDP has a better Operating Margin (21.50%) than 89.66% 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 31.11%, MEDP is doing worse than 70.69% of the companies in the same industry.
In the last couple of years the Gross Margin of MEDP has grown nicely.

		Industry Rank	Sector Rank
OM	21.5%
PM (TTM)	18.36%
GM	31.11%

OM growth 3Y6.82%

OM growth 5Y7.46%

PM growth 3Y6.48%

PM growth 5Y10.5%

GM growth 3Y2.7%

GM growth 5Y1.75%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 8.42. This indicates that MEDP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.42, MEDP belongs to the top of the industry, outperforming 87.93% 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	8.42

ROIC/WACC8.26

WACC11.07%

2.3 Liquidity

A Current Ratio of 0.57 indicates that MEDP may have some problems paying its short term obligations.
MEDP's Current ratio of 0.57 is on the low side compared to the rest of the industry. MEDP is outperformed by 94.83% of its industry peers.
MEDP has a Quick Ratio of 0.57. 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 0.57 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	0.57
Quick Ratio	0.57

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

MEDP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.22%, which is quite impressive.
The Earnings Per Share has been growing by 33.22% on average over the past years. This is a very strong growth
Looking at the last year, MEDP shows a quite strong growth in Revenue. The Revenue has grown by 13.88% in the last year.
The Revenue has been growing by 19.62% on average over the past years. This is quite good.

EPS 1Y (TTM)25.22%

EPS 3Y37.96%

EPS 5Y33.22%

EPS Q2Q%28.24%

Revenue 1Y (TTM)13.88%

Revenue growth 3Y22.68%

Revenue growth 5Y19.62%

Sales Q2Q%23.74%

3.2 Future

The Earnings Per Share is expected to grow by 12.31% on average over the next years. This is quite good.
Based on estimates for the next years, MEDP will show a quite strong growth in Revenue. The Revenue will grow by 12.31% on average per year.

EPS Next Y19.52%

EPS Next 2Y15.37%

EPS Next 3Y13.96%

EPS Next 5Y12.31%

Revenue Next Year19.17%

Revenue Next 2Y15.52%

Revenue Next 3Y13.12%

Revenue Next 5Y12.31%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 42.12, the valuation of MEDP can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MEDP is on the same level as its industry peers.
MEDP's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.82.
MEDP is valuated quite expensively with a Price/Forward Earnings ratio of 35.83.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEDP indicates a somewhat cheap valuation: MEDP is cheaper than 62.07% of the companies listed in the same industry.
MEDP's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.95.

		Industry Rank	Sector Rank
PE	42.12
Fwd PE	35.83

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MEDP indicates a somewhat cheap valuation: MEDP is cheaper than 60.34% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MEDP indicates a somewhat cheap valuation: MEDP is cheaper than 79.31% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	25.07
EV/EBITDA	31.15

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 13.96% in the coming years. This may justify a more expensive valuation.