NasdaqGS:MDSO

Stock Analysis Report

Executive Summary

Medidata Solutions, Inc. provides cloud-based solutions for life sciences worldwide.

Rewards

Earnings are forecast to grow 40.02% per year

Risk Analysis

Profit margins (6.4%) are lower than last year (9.7%)

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Medidata Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MDSO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

MDSO

1.6%

US Healthcare Services

1.8%

US Market


1 Year Return

31.2%

MDSO

24.2%

US Healthcare Services

20.1%

US Market

Return vs Industry: MDSO exceeded the US Healthcare Services industry which returned 28.6% over the past year.

Return vs Market: MDSO exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

MDSOIndustryMarket
7 Day0.5%1.6%1.8%
30 Day0.8%3.6%1.4%
90 Day0.9%12.1%8.8%
1 Year31.2%31.2%24.4%24.2%22.7%20.1%
3 Year96.9%96.9%91.2%90.3%50.1%40.4%
5 Year112.5%112.5%55.9%54.6%72.9%53.9%

Price Volatility Vs. Market

How volatile is Medidata Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Medidata Solutions undervalued compared to its fair value and its price relative to the market?

124.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MDSO ($92.22) is trading above our estimate of fair value ($51.35)

Significantly Below Fair Value: MDSO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MDSO is poor value based on its PE Ratio (124.5x) compared to the Healthcare Services industry average (63x).

PE vs Market: MDSO is poor value based on its PE Ratio (124.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: MDSO is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: MDSO is overvalued based on its PB Ratio (8.4x) compared to the US Healthcare Services industry average (3.7x).


Next Steps

Future Growth

How is Medidata Solutions forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

40.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDSO's forecast earnings growth (40% per year) is above the savings rate (2.7%).

Earnings vs Market: MDSO's earnings (40% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MDSO's revenue (15% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: MDSO's revenue (15% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MDSO's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has Medidata Solutions performed over the past 5 years?

40.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDSO has high quality earnings.

Growing Profit Margin: MDSO's current net profit margins (6.4%) are lower than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: MDSO's earnings have grown significantly by 40.1% per year over the past 5 years.

Accelerating Growth: MDSO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MDSO had negative earnings growth (-22.7%) over the past year, making it difficult to compare to the Healthcare Services industry average (0.6%).


Return on Equity

High ROE: MDSO's Return on Equity (6.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Medidata Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: MDSO's short term assets ($466.2M) exceed its short term liabilities ($181.8M).

Long Term Liabilities: MDSO's short term assets ($466.2M) exceed its long term liabilities ($181.5M).


Debt to Equity History and Analysis

Debt Level: MDSO's debt to equity ratio (13.8%) is considered satisfactory.

Reducing Debt: MDSO's debt to equity ratio has reduced from 93.9% to 13.8% over the past 5 years.

Debt Coverage: MDSO's debt is well covered by operating cash flow (105.3%).

Interest Coverage: MDSO's interest payments on its debt are well covered by EBIT (16.6x coverage).


Balance Sheet

Inventory Level: MDSO has a low level of unsold assets or inventory.

Debt Coverage by Assets: MDSO's debt is covered by short term assets (assets are 5.1x debt).


Next Steps

Dividend

What is Medidata Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MDSO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MDSO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MDSO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MDSO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MDSO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Medidata Solutions has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Rouven Bergmann
CFO & Executive VP4.4yrsUS$4.43m0.19% $10.8m
Michael Pray
Executive Vice President of Global Sales3yrsUS$3.64m0.095% $5.3m
Jill Larsen
Executive Officer0yrsUS$4.66m0.075% $4.2m
Rama Kondru
Executive VP0.8yrsno datano data
Rachel Sherman
Chief Scientific & Medical Advisor0.5yrsno datano data
Betsy Frank
Head of Investors Relation0yrsno datano data
Michael Otner
Executive VP11.9yrsUS$1.79m0.14% $7.6m
Steven Goldberg
Senior Vice President of Corporate Development3.6yrsno datano data
Takeru Yamamoto
Senior Vice President of Asia-Pacific Region0yrsno datano data
Tony Hewer
Principal of Global Compliance & Strategy0yrsno datano data

3.3yrs

Average Tenure

47yo

Average Age

Experienced Management: MDSO's management team is considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.


Top Shareholders

Company Information

Medidata Solutions, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Medidata Solutions, Inc.
  • Ticker: MDSO
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: US$5.568b
  • Shares outstanding: 60.38m
  • Website: https://www.medidata.com

Number of Employees


Location

  • Medidata Solutions, Inc.
  • 350 Hudson Street
  • 9th Floor
  • New York
  • New York
  • 10014
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MDSONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2009
2M9DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2009

Biography

Medidata Solutions, Inc. provides cloud-based solutions for life sciences worldwide. It offers the Medidata Clinical Cloud, a platform, pioneering analytics, and clinical technology for the development and commercialization of new therapies. The company’s platform solutions include data capture and management, and trial planning and management. It also provides professional services, such as implementation, sponsor enablement, strategic consulting, partner support, and e-learning and training. The company markets and sells its cloud-based solutions through a direct sales force and through relationships with channel and strategic partners. It serves pharmaceutical, biotechnology, medical device, and diagnostics companies; academic research centers, government, and other non-profit organizations; other non-profit organizations; and contract research organizations and other entities engaged in clinical trials. The company has a strategic collaboration with Mapi Research Trust. Medidata Solutions, Inc. was founded in 1999 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/30 00:21
End of Day Share Price2019/10/28 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.