MEDP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 57 industry peers in the Life Sciences Tools & Services industry. MEDP gets an excellent profitability rating and is at the same time showing great financial health properties. MEDP is growing strongly while it is still valued neutral. This is a good combination! This makes MEDP very considerable 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

MEDP had positive earnings in the past year.
MEDP had a positive operating cash flow in the past year.
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

Looking at the Return On Assets, with a value of 24.70%, MEDP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 147.46%, MEDP belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of MEDP (91.45%) is better than 100.00% of its industry peers.
MEDP had an Average Return On Invested Capital over the past 3 years of 38.75%. This is significantly above the industry average of 13.77%.
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

The Profit Margin of MEDP (18.36%) is better than 91.23% of its industry peers.
MEDP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.50%, MEDP belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
MEDP's Operating Margin has improved in the last couple of years.
MEDP has a worse Gross Margin (31.11%) than 70.18% of its industry peers.
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.
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

MEDP has an Altman-Z score of 8.20. 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 8.20, MEDP belongs to the top of the industry, outperforming 87.72% 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	8.2

ROIC/WACC8.27

WACC11.06%

2.3 Liquidity

MEDP has a Current 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.
With a Current ratio value of 0.57, MEDP is not doing good in the industry: 94.74% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.57, MEDP is doing worse than 92.98% of the companies in the same industry.
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.
MEDP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.22% yearly.
The Revenue has grown by 13.88% in the past year. This is quite good.
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)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.
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

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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

MEDP is valuated quite expensively with a Price/Earnings ratio of 40.73.
MEDP's Price/Earnings is on the same level as the industry average.
MEDP's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.32.
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 63.16% 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 25.57.

		Industry Rank	Sector Rank
PE	40.73
Fwd PE	34.65

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as MEDP.
82.46% 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	24.25
EV/EBITDA	30.11

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.
A more expensive valuation may be justified as MEDP's earnings are expected to grow with 13.96% in the coming years.