NasdaqGS:MEDP

Stock Analysis Report

Executive Summary

Medpace Holdings, Inc., a clinical contract research organization, provides scientifically-driven outsourced clinical development services to the biotechnology, pharmaceutical, and medical device industries worldwide.

Rewards

Earnings are forecast to grow 16.93% per year

Earnings grew by 51.5% over the past year

Risk Analysis

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Medpace Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MEDP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.6%

MEDP

1.2%

US Life Sciences

0.5%

US Market


1 Year Return

45.0%

MEDP

20.2%

US Life Sciences

20.3%

US Market

Return vs Industry: MEDP exceeded the US Life Sciences industry which returned 20.2% over the past year.

Return vs Market: MEDP exceeded the US Market which returned 20.3% over the past year.


Shareholder returns

MEDPIndustryMarket
7 Day2.6%1.2%0.5%
30 Day10.1%-0.9%2.0%
90 Day33.9%8.9%9.4%
1 Year45.0%45.0%20.4%20.2%22.8%20.3%
3 Year182.1%182.1%95.2%93.9%50.1%40.4%
5 Yearn/a124.5%121.4%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Medpace Holdings undervalued compared to its fair value and its price relative to the market?

38.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MEDP ($100.3) is trading above our estimate of fair value ($72.32)

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


Price To Earnings Ratio

PE vs Industry: MEDP is poor value based on its PE Ratio (38.5x) compared to the Life Sciences industry average (38.1x).

PE vs Market: MEDP is poor value based on its PE Ratio (38.5x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: MEDP is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: MEDP is good value based on its PB Ratio (5.2x) compared to the US Life Sciences industry average (5.9x).


Next Steps

Future Growth

How is Medpace Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MEDP's forecast earnings growth (16.9% per year) is above the savings rate (1.7%).

Earnings vs Market: MEDP's earnings (16.9% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: MEDP's earnings are forecast to grow, but not significantly.

Revenue vs Market: MEDP's revenue (11.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: MEDP's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MEDP's Return on Equity is forecast to be low in 3 years time (16.5%).


Next Steps

Past Performance

How has Medpace Holdings performed over the past 5 years?

67.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MEDP has high quality earnings.

Growing Profit Margin: MEDP's current net profit margins (11.3%) are higher than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: MEDP has become profitable over the past 5 years, growing earnings by 67.3% per year.

Accelerating Growth: MEDP's earnings growth over the past year (51.5%) is below its 5-year average (67.3% per year).

Earnings vs Industry: MEDP earnings growth over the past year (51.5%) exceeded the Life Sciences industry 13.7%.


Return on Equity

High ROE: MEDP's Return on Equity (13.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Medpace Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MEDP's short term assets ($250.4M) do not cover its short term liabilities ($314.4M).

Long Term Liabilities: MEDP's short term assets ($250.4M) exceed its long term liabilities ($65.9M).


Debt to Equity History and Analysis

Debt Level: MEDP is debt free.

Reducing Debt: MEDP had no debt 5 years ago.

Debt Coverage: MEDP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MEDP has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if MEDP's debt is covered by short term assets.


Next Steps

Dividend

What is Medpace Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.3%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate MEDP'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 MEDP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MEDP'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 MEDP'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?

8.3yrs

Average management tenure


CEO

August Troendle (63yo)

27.6yrs

Tenure

US$528,290

Compensation

Dr. August James Troendle, M.D. has been the Chairman, Chief Executive Officer and President at Medpace Holdings, Inc. since July 1992. Dr. Troendle founded Medpace Holdings, Inc. in July 1992. He founded  ...


CEO Compensation Analysis

Compensation vs Market: August's total compensation ($USD528.29K) is below average for companies of similar size in the US market ($USD4.89M).

Compensation vs Earnings: August's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
August Troendle
Chairman27.6yrsUS$528.29k23.46% $842.6m
Jesse Geiger
CFO & Chief Operating Officer of Laboratory Operations8.9yrsUS$676.54kno data
Susan Burwig
Executive Vice President of Operations3.1yrsUS$729.75k0.12% $4.5m
Stephen Ewald
Chief Compliance Officer7.6yrsno datano data
Todd Meyers
Vice President of Business Development & Marketing0yrsno datano data
Weimin Gai
Senior Vice President of Biometrics0yrsno datano data
Daniel O'Leary
Senior Vice President of Medical Department0yrsno datano data
Steven Johnson
Sr. Vice-President of Scientific & Strategic Development0yrsno datano data
John Wynne
Senior Vice President of Commercial Operations & Clinical Pharmacology Unit0yrsno datano data
Kevin Brady
Executive Director of Finance0yrsno datano data

8.3yrs

Average Tenure

53yo

Average Age

Experienced Management: MEDP's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
August Troendle
Chairman27.6yrsUS$528.29k23.46% $842.6m
Fred Davenport
Independent Director1.5yrsUS$86.75k0.0042% $150.5k
Cornelius McCarthy
Independent Director1.5yrsUS$83.87kno data
Thomas King
Director0.3yrsno datano data
Robert Kraft
Independent Director3.6yrsUS$144.99kno data
Brian Carley
Independent Director3.6yrsUS$149.99kno data
Ashley Keating
Director0.8yrsno datano data

1.5yrs

Average Tenure

63yo

Average Age

Experienced Board: MEDP's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Medpace Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Medpace Holdings, Inc.
  • Ticker: MEDP
  • Exchange: NasdaqGS
  • Founded: 1992
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$3.592b
  • Shares outstanding: 35.81m
  • Website: https://www.medpace.com

Number of Employees


Location

  • Medpace Holdings, Inc.
  • 5375 Medpace Way
  • Cincinnati
  • Ohio
  • 45227
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
01PDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2016
MEDPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2016
MEDP *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 2016

Biography

Medpace Holdings, Inc., a clinical contract research organization, provides scientifically-driven outsourced clinical development services to the biotechnology, pharmaceutical, and medical device industries worldwide. The company offers a suite of services supporting the clinical development process from Phase I to Phase IV in a range of therapeutic areas. Its drug development services include development plan design, coordinated central laboratory, project management, regulatory affairs, clinical monitoring, data management and analysis, pharmacovigilance new drug application submissions, and post-marketing clinical support. The company also provides bio-analytical laboratory services, clinical human pharmacology, imaging services, and electrocardiography reading support for clinical trials. Medpace Holdings, Inc. was founded in 1992 and is headquartered in Cincinnati, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 02:44
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
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.