MEDPACE HOLDINGS INC (MEDP)
US58506Q1094 - Common Stock
We assign a fundamental rating of 7 out of 10 to MEDP. MEDP was compared to 57 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 is growing strongly while it is still valued neutral. This is a good combination! With these ratings, MEDP could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year MEDP was profitable.
MEDP had a positive operating cash flow in the past year.
Each year in the past 5 years MEDP has been profitable.
MEDP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MEDP has a better Return On Assets (17.54%) than 98.25% of its industry peers.
MEDP has a Return On Equity of 41.47%. This is amongst the best in the industry. MEDP outperforms 100.00% of its industry peers.
MEDP has a better Return On Invested Capital (33.52%) than 98.25% of its industry peers.
MEDP had an Average Return On Invested Capital over the past 3 years of 31.51%. This is significantly above the industry average of 9.66%.
The 3 year average ROIC (31.51%) for MEDP is below the current ROIC(33.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.54% | ||
| ROE | 41.47% | ||
| ROIC | 33.52% |
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 17.65% is amongst the best of the industry. MEDP outperforms 92.98% of its industry peers.
MEDP's Profit Margin has improved in the last couple of years.
The Operating Margin of MEDP (19.74%) is better than 85.96% of its industry peers.
In the last couple of years the Operating Margin of MEDP has grown nicely.
Looking at the Gross Margin, with a value of 29.69%, MEDP is doing worse than 70.18% of the companies in the same industry.
In the last couple of years the Gross Margin of MEDP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.74% | ||
| PM (TTM) | 17.65% | ||
| GM | 29.69% |
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.
The number of shares outstanding for MEDP has been reduced compared to 5 years ago.
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
An Altman-Z score of 6.99 indicates that MEDP is not in any danger for bankruptcy at the moment.
The Altman-Z score of MEDP (6.99) is better than 85.96% 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 | 6.99 |
ROIC/WACC2.95
WACC11.35%
2.3 Liquidity
MEDP has a Current Ratio of 0.99. This is a bad value and indicates that MEDP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.99, MEDP is doing worse than 91.23% of the companies in the same industry.
A Quick Ratio of 0.99 indicates that MEDP may have some problems paying its short term obligations.
The Quick ratio of MEDP (0.99) is worse than 80.70% 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 | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.72% over the past year.
The Earnings Per Share has been growing by 27.94% on average over the past years. This is a very strong growth
MEDP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.24%.
Measured over the past years, MEDP shows a very strong growth in Revenue. The Revenue has been growing by 21.76% on average per year.
EPS 1Y (TTM)33.72%
EPS 3Y31.33%
EPS 5Y27.94%
EPS Q2Q%35.59%
Revenue 1Y (TTM)16.24%
Revenue growth 3Y26.76%
Revenue growth 5Y21.76%
Sales Q2Q%8.29%
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 16.08% yearly.
MEDP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.23% yearly.
EPS Next Y37.19%
EPS Next 2Y20.07%
EPS Next 3Y18.33%
EPS Next 5Y16.08%
Revenue Next Year11.75%
Revenue Next 2Y8.74%
Revenue Next 3Y9.89%
Revenue Next 5Y11.23%
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.
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
With a Price/Earnings ratio of 30.03, MEDP can be considered very expensive at the moment.
Based on the Price/Earnings ratio, MEDP is valued cheaper than 80.70% of the companies in the same industry.
When comparing the Price/Earnings ratio of MEDP to the average of the S&P500 Index (27.55), we can say MEDP is valued inline with the index average.
MEDP is valuated quite expensively with a Price/Forward Earnings ratio of 26.78.
Based on the Price/Forward Earnings ratio, MEDP is valued a bit cheaper than 77.19% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, MEDP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.03 | ||
| Fwd PE | 26.78 |
4.2 Price Multiples
MEDP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MEDP is cheaper than 78.95% of the companies in the same industry.
91.23% 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 | 19.9 | ||
| EV/EBITDA | 22.84 |
4.3 Compensation for Growth
MEDP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of MEDP may justify a higher PE ratio.
A more expensive valuation may be justified as MEDP's earnings are expected to grow with 18.33% in the coming years.
PEG (NY)0.81
PEG (5Y)1.07
EPS Next 2Y20.07%
EPS Next 3Y18.33%
5. Dividend
5.1 Amount
MEDP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MEDPACE HOLDINGS INC
NASDAQ:MEDP (12/26/2024, 8:28:00 PM)
After market: 342.92 0 (0%)342.92
+0.23 (+0.07%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners85.75%
Inst Owner Change0.34%
Ins Owners0.41%
Ins Owner Change1.27%
Market Cap10.66B
Analysts75
Price Target360.77 (5.21%)
Short Float %4.46%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)6.24%
Min EPS beat(2)6.19%
Max EPS beat(2)6.29%
EPS beat(4)4
Avg EPS beat(4)12.07%
Min EPS beat(4)6.19%
Max EPS beat(4)27.27%
EPS beat(8)7
Avg EPS beat(8)11.68%
EPS beat(12)11
Avg EPS beat(12)14.48%
EPS beat(16)15
Avg EPS beat(16)13.41%
Revenue beat(2)0
Avg Revenue beat(2)-2.7%
Min Revenue beat(2)-3.35%
Max Revenue beat(2)-2.06%
Revenue beat(4)0
Avg Revenue beat(4)-2.42%
Min Revenue beat(4)-3.35%
Max Revenue beat(4)-2.02%
Revenue beat(8)4
Avg Revenue beat(8)0.25%
Revenue beat(12)6
Avg Revenue beat(12)0.37%
Revenue beat(16)8
Avg Revenue beat(16)0.23%
PT rev (1m)-7.42%
PT rev (3m)-13.08%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)2.92%
EPS NY rev (1m)0.21%
EPS NY rev (3m)3.07%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-7.61%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.03 | ||
| Fwd PE | 26.78 | ||
| P/S | 5.15 | ||
| P/FCF | 19.9 | ||
| P/OCF | 18.55 | ||
| P/B | 12.09 | ||
| P/tB | 57.82 | ||
| EV/EBITDA | 22.84 |
EPS(TTM)11.42
EY3.33%
EPS(NY)12.8
Fwd EY3.73%
FCF(TTM)17.24
FCFY5.03%
OCF(TTM)18.49
OCFY5.39%
SpS66.63
BVpS28.36
TBVpS5.93
PEG (NY)0.81
PEG (5Y)1.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.54% | ||
| ROE | 41.47% | ||
| ROCE | 39.21% | ||
| ROIC | 33.52% | ||
| ROICexc | 90.59% | ||
| ROICexgc | N/A | ||
| OM | 19.74% | ||
| PM (TTM) | 17.65% | ||
| GM | 29.69% | ||
| FCFM | 25.87% |
ROA(3y)15.37%
ROA(5y)13.06%
ROE(3y)44.35%
ROE(5y)32.97%
ROIC(3y)31.51%
ROIC(5y)24.63%
ROICexc(3y)42.48%
ROICexc(5y)32.99%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)38.27%
ROCE(5y)29.66%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y40.79%
ROICexc growth 5Y36.37%
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%
F-Score6
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 135.03% | ||
| Cap/Sales | 1.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 131.29% | ||
| Profit Quality | 146.53% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 6.99 |
F-Score6
WACC11.35%
ROIC/WACC2.95
Cap/Depr(3y)146.02%
Cap/Depr(5y)134.98%
Cap/Sales(3y)2.32%
Cap/Sales(5y)2.48%
Profit Quality(3y)137.72%
Profit Quality(5y)150.74%
High Growth Momentum
Growth
EPS 1Y (TTM)33.72%
EPS 3Y31.33%
EPS 5Y27.94%
EPS Q2Q%35.59%
EPS Next Y37.19%
EPS Next 2Y20.07%
EPS Next 3Y18.33%
EPS Next 5Y16.08%
Revenue 1Y (TTM)16.24%
Revenue growth 3Y26.76%
Revenue growth 5Y21.76%
Sales Q2Q%8.29%
Revenue Next Year11.75%
Revenue Next 2Y8.74%
Revenue Next 3Y9.89%
Revenue Next 5Y11.23%
EBIT growth 1Y25.44%
EBIT growth 3Y26.35%
EBIT growth 5Y27.24%
EBIT Next Year38.58%
EBIT Next 3Y17.53%
EBIT Next 5Y17.1%
FCF growth 1Y87.56%
FCF growth 3Y20.38%
FCF growth 5Y23.06%
OCF growth 1Y78.26%
OCF growth 3Y18.77%
OCF growth 5Y22.58%