Medpace Holdings (MEDP) AI Stock Analysis

• Market Cap: $9.00B
• Dividend Yield: N/A
• Average Volume (3M): 489.81K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 1.20
• Revenue Growth: 11.84%
• EPS Growth: 42.04%
• Country: US
• Employees: 5,900
• Sector: Healthcare
• Sector Strength: 69
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 12.63
• Shares Outstanding: 30,228,415
• 10 Day Avg. Volume: 700,820
• 30 Day Avg. Volume: 489,811
• PEG Ratio: 0.56
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.68
• Price to Cash Flow (P/CF): 13.00
• P/FCF Ratio: 13.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $349.50
• Price Target Upside: 17.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Medpace Holdings has a solid financial foundation with strong growth and profitability metrics. However, technical indicators suggest potential bearish trends, and the earnings call highlights challenges for 2025, including a flat revenue forecast and high cancellations. These factors collectively contribute to a cautious yet competent overall stock score.

Positive Factors

Disease Categories Alignment

Medpace is nicely aligned to growing disease categories including oncology, metabolic, and cardiovascular, which are well-positioned for ongoing pipeline strength.

Outsourcing Efficiency

Medpace's full service outsourcing offerings enable smaller biotech and biopharma companies to run clinical trials in the most cost- and time-efficient manner.

Negative Factors

Cancellation Rates and Trial Slowdown

Medpace's growth trajectory has been impacted due to industry-wide elevated cancellation rates and a broad slowdown in new clinical trial starts.

Challenging Customer Dynamics

The change in customer dynamics tied to the choppier funding environment adds a greater element of uncertainty to Medpace's near-term results.

Competitive Landscape

MEDP noticed a level of heightened competition in the biotech space, presenting a challenge.

Medpace Holdings Business Overview & Revenue Model

Company Description

Medpace Holdings, Inc. provides clinical research-based drug and medical device development services in North America, Europe, and Asia. It offers a suite of services supporting the clinical development process from Phase I to Phase IV in various therapeutic areas. The company also provides clinical development services to the pharmaceutical, biotechnology, and medical device industries; and 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 services. In addition, it offers bio-analytical laboratory services, clinical human pharmacology, imaging services, and electrocardiography reading support for clinical trials. The company was founded in 1992 and is based in Cincinnati, Ohio.

How the Company Makes Money

Medpace Holdings generates revenue primarily through its clinical research services, which are contracted by pharmaceutical, biotechnology, and medical device companies seeking to conduct clinical trials. The company's revenue model is based on contracts with clients, where it charges fees for managing and executing different phases of clinical trials. These services include project management, clinical monitoring, data management, and regulatory affairs consulting. Medpace's growth is supported by its ability to maintain long-term relationships with clients, leveraging its expertise in complex therapeutic areas to secure repeat business. Additionally, the company benefits from the rising demand for outsourced clinical development services, driven by increased research and development spending in the healthcare sector.

Medpace Holdings Financial Statement Overview

Summary

Medpace Holdings exhibits a very strong financial performance with consistent revenue growth, robust profitability margins, low leverage, and effective cash management. The company maintains impressive growth, profitability, and cash generation capabilities, indicating a solid financial foundation.

Income Statement

Medpace Holdings demonstrates strong financial performance with consistent revenue growth and robust profitability margins. The gross profit margin and net profit margin have shown substantial improvement over the years, with a recent net profit margin of 19.2% in 2024. The company has maintained a solid EBIT margin of 21.2% and EBITDA margin of the same percentage, indicating efficiency in operations. Revenue growth has been impressive, with a growth rate of 11.8% from 2023 to 2024, showcasing a positive trajectory.

Balance Sheet

The balance sheet of Medpace Holdings reflects a strong financial position with a low debt-to-equity ratio of 0.15 in 2024, indicating low leverage. The return on equity (ROE) is robust at 49.0%, highlighting effective use of shareholders' equity in generating profits. The equity ratio stands at 39.3%, suggesting a stable proportion of equity financing. Overall, the balance sheet portrays a healthy mix of assets and liabilities, with substantial equity backing.

Cash Flow

Cash flow analysis for Medpace Holdings shows excellent management of cash resources, with a significant operating cash flow to net income ratio of 1.5 in 2024, indicating strong cash generation relative to earnings. Free cash flow growth is notable at 53.4% from 2023 to 2024, demonstrating efficiency in capital expenditures and cash management. The free cash flow to net income ratio of 1.5 reinforces the company's ability to sustain operations and growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.11B	1.89B	1.46B	1.14B	925.92M
	Gross Profit
656.30M	524.50M	432.44M	328.15M	278.73M
	EBIT
446.87M	336.82M	278.70M	198.62M	167.04M
	EBITDA
446.87M	363.15M	301.04M	219.73M	186.57M
	Net Income Common Stockholders
404.39M	282.81M	245.21M	181.39M	144.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
669.44M	245.45M	28.27M	461.30M	277.77M
	Total Assets
2.10B	1.66B	1.35B	1.66B	1.39B
	Total Debt
126.23M	142.12M	188.87M	130.97M	115.14M
	Net Debt
-543.20M	-103.33M	160.60M	-330.34M	-162.62M
	Total Liabilities
1.28B	1.10B	966.11M	707.01M	584.90M
	Stockholders Equity
825.54M	558.95M	386.39M	952.93M	805.78M
Cash Flow		Free Cash Flow
608.82M	396.73M	351.17M	235.06M	227.34M
	Operating Cash Flow
608.82M	433.37M	388.05M	263.33M	258.68M
	Investing Cash Flow
-28.31M	-34.63M	-38.74M	-31.36M	-31.21M
	Financing Cash Flow
-154.01M	-182.64M	-775.77M	-44.45M	-82.28M

Medpace Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 297.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MEDP, the sentiment is Negative. The current price of 297.72 is below the 20-day moving average (MA) of 308.86, below the 50-day MA of 325.96, and below the 200-day MA of 350.46, indicating a bearish trend. The MACD of -7.22 indicates Positive momentum. The RSI at 31.54 is Neutral, neither overbought nor oversold. The STOCH value of 22.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MEDP.

Medpace Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICLR	81 Outperform	$11.63B	15.10	8.44%	―	1.99%	28.86%
MEDP	77 Outperform	$9.00B	23.56	58.41%	―	11.84%	42.04%
EHC	72 Outperform	$10.31B	22.90	24.52%	0.63%	11.91%	28.47%
RDY	70 Outperform	$10.62B	16.52	18.51%	0.61%	13.26%	1.33%
TECH	66 Neutral	$8.02B	51.55	7.82%	0.63%	4.46%	-29.62%
CRL	59 Neutral	$4.90B	388.89	0.45%	―	-1.92%	-96.95%
Sector *	48 Neutral	$6.35B	1.19	-46.26%	2.67%	19.24%	1.75%