MEDPACE HOLDINGS INC (MEDP) Stock Fundamental Analysis
NASDAQ:MEDP - Nasdaq - US58506Q1094 - Common Stock - Currency: USD
MEDP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 55 industry peers in the Life Sciences Tools & Services industry. Both the health and profitability get an excellent rating, making MEDP a very profitable company, without any liquidiy or solvency issues. MEDP has a correct valuation and a medium 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.
Each year in the past 5 years MEDP has been profitable.
In the past 5 years MEDP always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 21.95%, MEDP belongs to the best of the industry, outperforming 98.18% of the companies in the same industry.
Looking at the Return On Equity, with a value of 70.14%, MEDP belongs to the top of the industry, outperforming 98.18% of the companies in the same industry.
With an excellent Return On Invested Capital value of 49.81%, MEDP belongs to the best 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 13.60%.
The last Return On Invested Capital (49.81%) for MEDP is above the 3 year average (38.75%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 19.31%, MEDP belongs to the best of the industry, outperforming 96.36% 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 (21.16%) than 89.09% of its industry peers.
In the last couple of years the Operating Margin of MEDP has grown nicely.
The Gross Margin of MEDP (31.51%) is worse than 72.73% of its industry peers.
In the last couple of years the Gross Margin of MEDP has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MEDP is creating value.
MEDP has less shares outstanding than it did 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
An Altman-Z score of 5.82 indicates that MEDP is not in any danger for bankruptcy at the moment.
MEDP's Altman-Z score of 5.82 is amongst the best of the industry. MEDP outperforms 87.27% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.82 |
ROIC/WACC4.7
WACC10.6%
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.
MEDP has a worse Current ratio (0.73) than 92.73% of its industry peers.
A Quick Ratio of 0.73 indicates that MEDP may have some problems paying its short term obligations.
With a Quick ratio value of 0.73, MEDP is not doing good in the industry: 87.27% of the companies in the same industry are doing better.
The current and quick ratio evaluation for MEDP is rather negative, while it does have 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.
Measured over the past years, MEDP shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.22% on average per year.
MEDP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.87%.
MEDP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.62% yearly.
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
The Earnings Per Share is expected to grow by 8.31% on average over the next years. This is quite good.
MEDP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.53% yearly.
EPS Next Y2.91%
EPS Next 2Y3.1%
EPS Next 3Y5.56%
EPS Next 5Y8.31%
Revenue Next Year3.72%
Revenue Next 2Y3.54%
Revenue Next 3Y5.16%
Revenue Next 5Y6.53%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
MEDP is valuated rather expensively with a Price/Earnings ratio of 24.69.
Compared to the rest of the industry, the Price/Earnings ratio of MEDP indicates a somewhat cheap valuation: MEDP is cheaper than 74.55% of the companies listed in the same industry.
MEDP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 24.10 indicates a rather expensive valuation of MEDP.
74.55% of the companies in the same industry are more expensive than MEDP, based on the Price/Forward Earnings ratio.
MEDP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.69 | ||
| Fwd PE | 24.1 |
4.2 Price Multiples
MEDP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MEDP is cheaper than 78.18% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MEDP indicates a rather cheap valuation: MEDP is cheaper than 87.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.19 | ||
| EV/EBITDA | 18.24 |
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)8.5
PEG (5Y)0.74
EPS Next 2Y3.1%
EPS Next 3Y5.56%
5. Dividend
5.1 Amount
No dividends for MEDP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
323.5
-4.74 (-1.44%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.98%
Inst Owner Change-0.04%
Ins Owners0.54%
Ins Owner Change5.95%
Market Cap9.30B
Analysts70
Price Target306.75 (-5.18%)
Short Float %13.56%
Short Ratio6.72
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)0%
PT rev (3m)-13.19%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)-1.68%
EPS NY rev (1m)0.42%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.69 | ||
| Fwd PE | 24.1 | ||
| P/S | 4.31 | ||
| P/FCF | 17.19 | ||
| P/OCF | 15.98 | ||
| P/B | 15.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.24 |
EPS(TTM)13.1
EY4.05%
EPS(NY)13.43
Fwd EY4.15%
FCF(TTM)18.82
FCFY5.82%
OCF(TTM)20.25
OCFY6.26%
SpS75.04
BVpS20.65
TBVpS-3.58
PEG (NY)8.5
PEG (5Y)0.74
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 | 5.82 |
F-Score8
WACC10.6%
ROIC/WACC4.7
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 Y2.91%
EPS Next 2Y3.1%
EPS Next 3Y5.56%
EPS Next 5Y8.31%
Revenue 1Y (TTM)9.87%
Revenue growth 3Y22.68%
Revenue growth 5Y19.62%
Sales Q2Q%9.3%
Revenue Next Year3.72%
Revenue Next 2Y3.54%
Revenue Next 3Y5.16%
Revenue Next 5Y6.53%
EBIT growth 1Y28.65%
EBIT growth 3Y31.04%
EBIT growth 5Y28.55%
EBIT Next Year10.29%
EBIT Next 3Y8.11%
EBIT Next 5Y9.37%
FCF growth 1Y40.57%
FCF growth 3Y34.54%
FCF growth 5Y25.47%
OCF growth 1Y37.94%
OCF growth 3Y32.23%
OCF growth 5Y24.7%