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Medidata Solutions

Nasdaq:MDSO
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MDSO
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Medidata Solutions, Inc. provides cloud-based solutions for life sciences worldwide. The last earnings update was 20 days ago. More info.


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MDSO Share Price and Events
7 Day Returns
3.3%
NasdaqGS:MDSO
-4.9%
US Healthcare Services
-3.4%
US Market
1 Year Returns
4.9%
NasdaqGS:MDSO
28.6%
US Healthcare Services
10%
US Market
MDSO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Medidata Solutions (MDSO) 3.3% 3.4% -9.9% 4.9% 61.4% 20.5%
US Healthcare Services -4.9% -2.8% -6.3% 28.6% 92.3% 51.4%
US Market -3.4% -0.6% -4.3% 10% 55.8% 96.7%
1 Year Return vs Industry and Market
  • MDSO underperformed the Healthcare Services industry which returned 28.6% over the past year.
  • MDSO underperformed the Market in United States of America which returned 10% over the past year.
Price Volatility
MDSO
Industry
5yr Volatility vs Market

Value

 Is Medidata Solutions undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Medidata Solutions to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Medidata Solutions.

NasdaqGS:MDSO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:MDSO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Healthcare Services Unlevered Beta Simply Wall St/ S&P Global 1.15
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.152 (1 + (1- 21%) (2.13%))
1.171
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.171 * 7.05%)
11.21%

Discounted Cash Flow Calculation for NasdaqGS:MDSO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Medidata Solutions is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:MDSO DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 89.97 117.63 148.00 188.00 218.08
Source Analyst x3 Analyst x3 Analyst x1 Analyst x1 Est @ 16%, capped from 16.38%
Present Value
Discounted (@ 11.21%)
80.90 95.12 107.61 122.92 128.22
Present value of next 5 years cash flows $534.76
NasdaqGS:MDSO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $218.08 × (1 + 2.95%) ÷ (11.21% – 2.95%)
$2,718.88
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $2,718.88 ÷ (1 + 11.21%)5
$1,598.52
NasdaqGS:MDSO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $534.76 + $1,598.52
$2,133.28
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,133.28 / 61.19
$34.86
NasdaqGS:MDSO Discount to Share Price
Calculation Result
Value per share (USD) From above. $34.86
Current discount Discount to share price of $72.45
= -1 x ($72.45 - $34.86) / $34.86
-107.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Medidata Solutions is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Medidata Solutions's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Medidata Solutions's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:MDSO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $0.89
NasdaqGS:MDSO Share Price ** NasdaqGS (2018-11-16) in USD $72.45
United States of America Healthcare Services Industry PE Ratio Median Figure of 11 Publicly-Listed Healthcare Services Companies 61.28x
United States of America Market PE Ratio Median Figure of 2,977 Publicly-Listed Companies 17.93x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Medidata Solutions.

NasdaqGS:MDSO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MDSO Share Price ÷ EPS (both in USD)

= 72.45 ÷ 0.89

80.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Medidata Solutions is overvalued based on earnings compared to the US Healthcare Services industry average.
  • Medidata Solutions is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Medidata Solutions's expected growth come at a high price?
Raw Data
NasdaqGS:MDSO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 80.99x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
21.5%per year
United States of America Healthcare Services Industry PEG Ratio Median Figure of 10 Publicly-Listed Healthcare Services Companies 2.85x
United States of America Market PEG Ratio Median Figure of 2,096 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

NasdaqGS:MDSO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 80.99x ÷ 21.5%

3.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Medidata Solutions is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Medidata Solutions's assets?
Raw Data
NasdaqGS:MDSO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $10.03
NasdaqGS:MDSO Share Price * NasdaqGS (2018-11-16) in USD $72.45
United States of America Healthcare Services Industry PB Ratio Median Figure of 35 Publicly-Listed Healthcare Services Companies 4.47x
United States of America Market PB Ratio Median Figure of 4,980 Publicly-Listed Companies 1.85x
NasdaqGS:MDSO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MDSO Share Price ÷ Book Value per Share (both in USD)

= 72.45 ÷ 10.03

7.22x

* Primary Listing of Medidata Solutions.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Medidata Solutions is overvalued based on assets compared to the US Healthcare Services industry average.
X
Value checks
We assess Medidata Solutions's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare Services industry average (and greater than 0)? (1 check)
  5. Medidata Solutions has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Medidata Solutions expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Medidata Solutions expected to grow at an attractive rate?
  • Medidata Solutions's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Medidata Solutions's earnings growth is expected to exceed the United States of America market average.
  • Medidata Solutions's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:MDSO Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:MDSO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 21.5%
NasdaqGS:MDSO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 13.7%
United States of America Healthcare Services Industry Earnings Growth Rate Market Cap Weighted Average 27.3%
United States of America Healthcare Services Industry Revenue Growth Rate Market Cap Weighted Average 12.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:MDSO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:MDSO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 1,075 100 2
2021-12-31 972 84 2
2020-12-31 874 174 82 8
2019-12-31 753 141 56 11
2018-12-31 637 82 45 11
NasdaqGS:MDSO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 611 87 51
2018-06-30 587 85 54
2018-03-31 567 104 45
2017-12-31 546 122 44
2017-09-30 527 132 41
2017-06-30 508 106 36
2017-03-31 487 97 34
2016-12-31 463 89 29
2016-09-30 438 79 25
2016-06-30 421 103 22
2016-03-31 404 86 18
2015-12-31 393 89 13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Medidata Solutions's earnings are expected to grow significantly at over 20% yearly.
  • Medidata Solutions's revenue is expected to grow by 13.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:MDSO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Medidata Solutions Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MDSO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 1.55 1.55 1.55 1.00
2021-12-31 1.32 1.32 1.32 1.00
2020-12-31 1.27 1.39 1.08 5.00
2019-12-31 0.89 1.00 0.80 9.00
2018-12-31 0.73 0.81 0.58 9.00
NasdaqGS:MDSO Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 0.89
2018-06-30 0.94
2018-03-31 0.79
2017-12-31 0.79
2017-09-30 0.74
2017-06-30 0.64
2017-03-31 0.62
2016-12-31 0.52
2016-09-30 0.45
2016-06-30 0.41
2016-03-31 0.32
2015-12-31 0.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Medidata Solutions is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Medidata Solutions's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Medidata Solutions has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Medidata Solutions performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Medidata Solutions's growth in the last year to its industry (Healthcare Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Medidata Solutions has delivered over 20% year on year earnings growth in the past 5 years.
  • Medidata Solutions's 1-year earnings growth is less than its 5-year average (24.2% vs 38.4%)
  • Medidata Solutions's earnings growth has not exceeded the US Healthcare Services industry average in the past year (24.2% vs 48.3%).
Earnings and Revenue History
Medidata Solutions's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Medidata Solutions Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MDSO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 611.43 51.42 250.33 155.47
2018-06-30 586.96 53.77 237.32 151.05
2018-03-31 567.09 44.73 228.18 146.15
2017-12-31 545.53 44.38 220.28 138.56
2017-09-30 527.09 41.40 212.72 130.10
2017-06-30 508.20 35.72 206.90 121.92
2017-03-31 486.79 34.39 197.48 114.30
2016-12-31 463.38 28.98 187.97 112.60
2016-09-30 437.78 24.96 182.31 108.22
2016-06-30 420.83 22.28 179.46 104.38
2016-03-31 404.30 17.59 180.98 98.64
2015-12-31 392.51 13.17 181.17 92.32
2015-09-30 382.85 11.80 175.68 87.60
2015-06-30 365.73 7.28 169.52 81.09
2015-03-31 350.87 8.06 159.66 75.88
2014-12-31 335.07 6.09 152.55 71.76
2014-09-30 320.43 1.22 157.88 66.84
2014-06-30 305.38 6.34 150.09 62.29
2014-03-31 290.23 9.15 142.50 57.09
2013-12-31 276.85 16.66 131.85 51.20
2013-09-30 260.90 22.67 110.65 47.59
2013-06-30 245.80 21.45 101.44 45.70
2013-03-31 231.25 19.95 92.74 44.23
2012-12-31 218.35 18.02 85.52 42.28
2012-09-30 206.91 30.16 81.90 39.88
2012-06-30 197.37 33.59 77.96 35.95
2012-03-31 194.06 39.98 75.54 32.36
2011-12-31 184.46 39.40 72.98 29.57

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Medidata Solutions has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Medidata Solutions used its assets more efficiently than the US Healthcare Services industry average last year based on Return on Assets.
  • Medidata Solutions has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Medidata Solutions's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Medidata Solutions has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Medidata Solutions's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Medidata Solutions's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Medidata Solutions is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Medidata Solutions's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Medidata Solutions's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Medidata Solutions Company Filings, last reported 1 month ago.

NasdaqGS:MDSO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 593.99 94.41 198.58
2018-06-30 561.36 382.55 407.90
2018-03-31 522.20 379.84 523.40
2017-12-31 497.43 375.94 484.29
2017-09-30 467.69 274.35 397.79
2017-06-30 442.79 270.65 367.11
2017-03-31 411.37 267.00 365.02
2016-12-31 401.99 263.40 374.80
2016-09-30 379.11 259.85 330.07
2016-06-30 314.65 256.35 318.28
2016-03-31 294.35 252.90 323.53
2015-12-31 284.16 249.49 269.69
2015-09-30 302.15 249.75 287.31
2015-06-30 288.48 246.75 265.99
2015-03-31 271.39 243.80 297.61
2014-12-31 264.70 240.89 272.80
2014-09-30 249.14 238.02 258.11
2014-06-30 234.23 235.23 218.19
2014-03-31 225.20 232.45 221.55
2013-12-31 225.81 229.71 241.22
2013-09-30 215.40 227.12 358.62
2013-06-30 160.88 0.13 140.38
2013-03-31 154.14 0.14 120.38
2012-12-31 142.09 0.00 122.55
2012-09-30 128.71 0.17 123.63
2012-06-30 119.05 0.19 113.90
2012-03-31 113.73 0.22 111.23
2011-12-31 104.12 0.25 107.68
  • Medidata Solutions's level of debt (15.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (105.4% vs 15.9% today).
  • Debt is well covered by operating cash flow (92.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.2x coverage).
X
Financial health checks
We assess Medidata Solutions's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Medidata Solutions has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Medidata Solutions dividends. Estimated to be 0% next year.
If you bought $2,000 of Medidata Solutions shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Medidata Solutions's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Medidata Solutions's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:MDSO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Global Healthcare Services Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1977 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:MDSO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00
2018-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Medidata Solutions has not reported any payouts.
  • Unable to verify if Medidata Solutions's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Medidata Solutions's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Medidata Solutions has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Medidata Solutions's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Medidata Solutions's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Medidata Solutions afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Medidata Solutions has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Medidata Solutions's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tarek Sherif
COMPENSATION $9,281,980
AGE 56
TENURE AS CEO 17.8 years
CEO Bio

Mr. Tarek A. Sherif co-founded Medidata Solutions, Inc., in 1999 and has been its Chief Executive Officer since 2001. He has been Chairman of the Board of Medidata Solutions, Inc. since 2009. From December 13, 2017, he is holding responsibility of Chief Operating Officer in Medidata Solutions, Inc Mr. Sherif is involved in business development, as well as general and strategic management including budgets, sales and marketing, product development, finance, human resources and customer and partner relations. He served as the President of Medidata Solutions, Inc. Prior to forming Medidata Solutions, he was the managing member of a partnership focused on public and private investments in technology and life science companies. He has founded and managed a variety of technology and services organizations. Previously, he co-managed a privately held equity fund specializing in publicly traded technology companies, including those in the healthcare and information technology fields. He has been involved with a variety of technology and service driven businesses, focusing on strategic initiatives, financial management and analysis. From 1997 to 999, Mr. Sherif served as the Managing Member of Sherif Partners L.L.C. focused on public and private investments in technology and life science companies. Prior to that, Mr. Sherif served as portfolio manager at R.D.L. Securities. Mr. Sherif has also served as Assistant Vice President of corporate finance at General Electric Capital Corporation and mergers and acquisitions analyst at Brown Brothers Harriman & Company. From 1992 to 1997, he co-managed a privately held equity fund specializing in publicly traded technology companies, including companies in the healthcare and information technology fields. He serves as the Co-Chairman of New York City Investment Fund Manager, Inc. He served as a Director of the firm. Mr. Sherif has 16 years of broad-based financial and managerial experience. Mr. Sherif received his B.A. in Economics from Yale University in 1984. Following a career on Wall Street, Mr. Sherif attended Columbia Business School where he earned MBA in Business Administration and Finance and graduated first in a class of 650 students in 1991.

CEO Compensation
  • Tarek's compensation has been consistent with company performance over the past year.
  • Tarek's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Medidata Solutions management team in years:

3.1
Average Tenure
47
Average Age
  • The tenure for the Medidata Solutions management team is about average.
Management Team

Tarek Sherif

TITLE
Co-Founder
COMPENSATION
$9M
AGE
56
TENURE
17.8 yrs

Glen de Vries

TITLE
Co-Founder
COMPENSATION
$9M
AGE
46
TENURE
10.8 yrs

Rouven Bergmann

TITLE
CFO & Chief Accounting Officer
COMPENSATION
$4M
AGE
45
TENURE
3.5 yrs

Michael Otner

TITLE
Executive VP
COMPENSATION
$2M
AGE
47
TENURE
11 yrs

Michael Pray

TITLE
Executive Vice President of Sales
COMPENSATION
$2M
AGE
52
TENURE
2.1 yrs

Julie Iskow

TITLE
Executive VP of Product Development & CTO
TENURE
2.7 yrs

Betsy Frank

TITLE
Head of Investors Relation

Steve Goldberg

TITLE
Senior Vice President of Corporate Development
TENURE
2.7 yrs

Simon Mouyal

TITLE
Executive VP & Chief Marketing Officer
TENURE
2.3 yrs

Jill Larsen

TITLE
Executive VP & Chief Human Resources Officer
Board of Directors Tenure

Average tenure and age of the Medidata Solutions board of directors in years:

10.3
Average Tenure
59
Average Age
  • The average tenure for the Medidata Solutions board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Glen de Vries

TITLE
Co-Founder
COMPENSATION
$9M
AGE
46
TENURE
19.8 yrs

Neil Kurtz

TITLE
Independent Director
COMPENSATION
$317K
AGE
67
TENURE
16.8 yrs

Tarek Sherif

TITLE
Co-Founder
COMPENSATION
$9M
AGE
56
TENURE
9.8 yrs

Bob Taylor

TITLE
Lead Director
COMPENSATION
$346K
AGE
70
TENURE
3.3 yrs

George McCulloch

TITLE
Director
COMPENSATION
$311K
AGE
41
TENURE
14.8 yrs

Lee Shapiro

TITLE
Director
COMPENSATION
$308K
AGE
62
TENURE
7.8 yrs

Carlos Dominguez

TITLE
Director
COMPENSATION
$299K
AGE
59
TENURE
10.8 yrs

Maria Rivas

TITLE
Director
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
23. May 18 Sell Rouven Bergmann Individual 21. May 18 21. May 18 -3,000 $75.52 $-226,560
20. Nov 17 Sell Michael Pray Individual 17. Nov 17 17. Nov 17 -5,944 $70.47 $-418,874
X
Management checks
We assess Medidata Solutions's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Medidata Solutions has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

What Should Investors Know About Medidata Solutions Inc's (NASDAQ:MDSO) Capital Returns?

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Therefore, looking at how efficiently Medidata Solutions is able to use capital to create earnings will help us understand your potential return. … Medidata Solutions's Return On Capital Employed

Simply Wall St -

Medidata Solutions Inc's (NASDAQ:MDSO) Most Important Factor To Consider

If you are currently a shareholder in Medidata Solutions Inc (NASDAQ:MDSO), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … I’ve analysed below, the health and outlook of Medidata Solutions’s cash flow, which will help you understand the stock from a cash standpoint. … There are two methods I will use to evaluate the quality of Medidata Solutions’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Is Medidata Solutions Inc (NASDAQ:MDSO) Attractive At This PE Ratio?

Medidata Solutions Inc (NASDAQ:MDSO) is currently trading at a trailing P/E of 75, which is higher than the industry average of 66.1. … Although some investors may see this as unappealing, it is important to understand the assumptions behind the P/E ratio before making judgments. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio

Simply Wall St -

Does Medidata Solutions Inc's (NASDAQ:MDSO) August Stock Price Reflect Its Future Growth?

Medidata Solutions Inc (NASDAQ:MDSO) closed yesterday at $80.06, which left some investors asking whether the high earnings potential can still be justified at this price. … View our latest analysis for Medidata Solutions? … If you are bullish about Medidata Solutions's growth potential then you are certainly not alone

Simply Wall St -

Medidata Solutions Inc (NASDAQ:MDSO): Earnings Growth Remains Elusive

Looking at Medidata Solutions Inc's (NASDAQ:MDSO) earnings update in June 2018, … with earnings expected to decline by -7.85% in the upcoming year … the past 5-year average growth rate of 7.13%.

Simply Wall St -

Medidata Solutions Inc (NASDAQ:MDSO): Time For A Financial Health Check

Mid-caps stocks, like Medidata Solutions Inc (NASDAQ:MDSO) with a market capitalization of US$5.15b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

What Should You Know About Medidata Solutions Inc's (NASDAQ:MDSO) Return On Capital?

and want a simplistic look at the return on Medidata Solutions Inc (NASDAQ:MDSO) stock. … Owing to this, it is important that the underlying business is producing a sufficient amount of income from the capital invested by stockholders … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided.

Simply Wall St -

Medidata Solutions Inc (NASDAQ:MDSO) Investors Are Paying Above The Intrinsic Value

In this article I am going to calculate the intrinsic value of Medidata Solutions Inc (NASDAQ:MDSO). … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Is Medidata Solutions Inc's (NASDAQ:MDSO) PE Ratio A Signal To Sell For Investors?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between Medidata Solutions Inc (NASDAQ:MDSO)’s fundamentals and stock market performance. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind

Simply Wall St -

Is It Time To Buy Medidata Solutions Inc (NASDAQ:MDSO)?

Medidata Solutions Inc (NASDAQ:MDSO), a healthcare services company based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGS. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … If you believe MDSO should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.

Simply Wall St -

Company Info

Map
Description

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 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 and ongoing support, and e-learning and training. The company markets and sells its cloud-based solutions through a direct sales force, as well as through relationships with contract research organizations (CROs) and other strategic partners. It serves pharmaceutical, biotechnology, medical device, and diagnostics companies; academic research centers, government, and other non-profit organizations; and CROs and other entities engaged in clinical trials. Medidata Solutions, Inc. was founded in 1999 and is headquartered in New York, New York.

Details
Name: Medidata Solutions, Inc.
MDSO
Exchange: NasdaqGS
Founded: 1999
$4,433,505,300
61,194,000
Website: http://www.mdsol.com
Address: Medidata Solutions, Inc.
350 Hudson Street,
9th Floor,
New York,
New York, 10014,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MDSO Common Stock Nasdaq Global Select US USD 25. Jun 2009
DB 2M9 Common Stock Deutsche Boerse AG DE EUR 25. Jun 2009
Number of employees
Current staff
Staff numbers
1,680
Medidata Solutions employees.
Industry
Health Care Technology
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/11/19 02:00
End of day share price update: 2018/11/16 00:00
Last estimates confirmation: 2018/10/25
Last earnings filing: 2018/10/30
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.