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. 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!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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 (24.70%) than 100.00% of its industry peers.
MEDP has a Return On Equity of 147.46%. This is amongst the best in 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 last Return On Invested Capital (91.45%) for MEDP is above the 3 year average (38.75%), which is a sign of increasing profitability.

		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

Looking at the Profit Margin, with a value of 18.36%, MEDP belongs to the top 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 Operating Margin of 21.50%. This is amongst the best in the industry. MEDP outperforms 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

MEDP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MEDP has less shares outstanding
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 8.32. This indicates that MEDP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MEDP (8.32) is better than 87.93% 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	8.32

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.
Looking at the Current ratio, with a value of 0.57, MEDP is doing worse than 94.83% of the companies in the same industry.
A Quick Ratio of 0.57 indicates that MEDP may have some problems paying its short term obligations.
MEDP has a Quick ratio of 0.57. This is amonst the worse of the industry: MEDP underperforms 93.10% of its industry peers.
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	0.57
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

The Earnings Per Share has grown by an impressive 25.22% over the past year.
The Earnings Per Share has been growing by 33.22% on average over the past years. This is a very strong growth
The Revenue has grown by 13.88% in the past year. This is quite good.
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

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

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 40.73, the valuation of MEDP can be described as expensive.
MEDP's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of MEDP to the average of the S&P500 Index (28.30), we can say MEDP is valued slightly more expensively.
A Price/Forward Earnings ratio of 34.65 indicates a quite 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 62.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, MEDP is valued a bit more expensive.

		Industry Rank	Sector Rank
PE	40.73
Fwd PE	34.65

4.2 Price Multiples

MEDP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MEDP is cheaper than 60.34% 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 81.03% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	24.25
EV/EBITDA	30.66

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MEDP has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MEDP's earnings are expected to grow with 13.96% in the coming years.