Medpace Holdings, Inc.
Medpace Holdings, Inc. Fundamental Analysis
Medpace Holdings, Inc. (MEDP) shows moderate financial fundamentals with a PE ratio of 28.28, profit margin of 17.83%, and ROE of 1.19%. The company generates $2.5B in annual revenue with strong year-over-year growth of 11.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MEDP's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMEDP demonstrates superior asset utilization.
Valuation Score
WeakMEDP trades at a premium to fair value.
Growth Score
ExcellentMEDP delivers strong and consistent growth momentum.
Financial Health Score
ModerateMEDP shows balanced financial health with some risks.
Profitability Score
ExcellentMEDP achieves industry-leading margins.
Key Financial Metrics
Is MEDP Expensive or Cheap?
P/E Ratio
MEDP trades at 28.28 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MEDP's PEG of 4.15 indicates potential overvaluation.
Price to Book
The market values Medpace Holdings, Inc. at 27.79 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.64 times EBITDA. This signals the market has high growth expectations.
How Well Does MEDP Make Money?
Net Profit Margin
For every $100 in sales, Medpace Holdings, Inc. keeps $17.83 as profit after all expenses.
Operating Margin
Core operations generate 21.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.19 in profit for every $100 of shareholder equity.
ROA
Medpace Holdings, Inc. generates $22.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Medpace Holdings, Inc. generates strong operating cash flow of $715.50M, reflecting robust business health.
Free Cash Flow
Medpace Holdings, Inc. generates strong free cash flow of $710.95M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $25.05 in free cash annually.
FCF Yield
MEDP converts 5.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
27.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.19
vs 25 benchmark
ROA
Return on assets percentage
0.23
vs 25 benchmark
ROCE
Return on capital employed
0.85
vs 25 benchmark
How MEDP Stacks Against Its Sector Peers
| Metric | MEDP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.28 | 29.43 | Neutral |
| ROE | 118.82% | 800.00% | Weak |
| Net Margin | 17.83% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.55 | 0.30 | Weak (High Leverage) |
| Current Ratio | 0.74 | 4.64 | Weak Liquidity |
| ROA | 22.84% | -17936.00% (disorted) | Strong |
MEDP outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Medpace Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
183.93%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
366.64%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
249.56%
Industry Style: Defensive, Growth, Innovation
High Growth