Medpace Holdings (MEDP) AI Stock Analysis

• Market Cap: $16.60B
• Dividend Yield: N/A
• Average Volume (3M): 343.10K
• Price to Earnings (P/E): 42.0
• Beta (1Y): 1.18
• Revenue Growth: 13.88%
• EPS Growth: 23.92%
• Country: US
• Employees: 5,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 3.86
• Shares Outstanding: 28,168,222
• 10 Day Avg. Volume: 277,169
• 30 Day Avg. Volume: 343,099
• PEG Ratio: 0.61
• Price to Book (P/B): 12.46
• Price to Sales (P/S): 4.88
• P/FCF Ratio: 17.97
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 6.22
• Enterprise Value/Gross Profit: 20.00
• Enterprise Value/Ebitda: 28.18
• 1Y Price Target: $524.89
• Price Target Upside: -12.92% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 14.74
• Revenue Forecast (FY): $2.51B

• Rating: 79 Outperform
• Price Target: $693.00 ▲(14.97% Upside)

Medpace Holdings demonstrates strong financial performance and positive earnings call sentiment, which are the most significant factors driving the score. Technical analysis indicates strong momentum but also suggests caution due to overbought conditions. The high P/E ratio impacts the valuation score, reflecting potential overvaluation concerns.

Positive Factors

Revenue Growth

Medpace's strong revenue growth indicates robust demand for its services, enhancing its market position and supporting long-term financial stability.

Net New Business Awards

The significant increase in new business awards suggests a strong pipeline and future revenue potential, reinforcing Medpace's competitive edge.

Cash Flow Management

Efficient cash flow generation supports Medpace's ability to invest in growth opportunities and maintain financial flexibility.

Negative Factors

Higher Effective Tax Rate

A higher effective tax rate can reduce net income, impacting profitability and potentially limiting reinvestment in business expansion.

Lower EBITDA Margin

A slight decline in EBITDA margin may indicate rising costs or pricing pressures, which could affect future profitability if not addressed.

Cancellations Impact

Cancellations can disrupt revenue streams and operational planning, posing risks to Medpace's growth trajectory and client relationships.

Medpace Holdings Business Overview & Revenue Model

Company Description

Medpace Holdings, Inc. is a global clinical contract research organization (CRO) that provides comprehensive services for the pharmaceutical, biotechnology, and medical device industries. The company specializes in managing the development of new drugs and therapies, offering expertise in clinical trial management, regulatory affairs, and data management. Medpace operates in various therapeutic areas, including oncology, cardiology, and central nervous system disorders, aiming to support its clients from the initial stages of drug development through to regulatory approval and commercialization.

How the Company Makes Money

Medpace generates revenue primarily through its clinical research services, which include the design, management, and execution of clinical trials for clients in the pharmaceutical and biotech sectors. The company's revenue model is largely fee-for-service, where it charges clients based on the scope and complexity of the services provided, often structured around milestones in the clinical trial process. Key revenue streams include clinical trial management services, laboratory services, and regulatory consulting. Additionally, Medpace has established significant partnerships with leading pharmaceutical companies, which contribute to its earnings by providing a steady stream of projects and enhancing its reputation in the market. The company's focus on specific therapeutic areas allows it to command higher fees due to its specialized knowledge and expertise.

Medpace Holdings Financial Statement Overview

Summary

Medpace Holdings presents a strong financial profile with consistent revenue growth and robust profitability margins. The balance sheet indicates a balanced leverage strategy and exceptional return on equity, while the cash flow statement underscores efficient cash generation and management. Overall, the company is well-positioned financially, with strengths in growth, profitability, and cash flow management.

Income Statement

Medpace Holdings demonstrates strong revenue growth with a TTM revenue growth rate of 5.67%. The company maintains healthy profitability margins, with a gross profit margin of 31.11% and a net profit margin of 18.36% in the TTM period. The EBIT margin of 21.47% and EBITDA margin of 22.08% indicate efficient operational management. Overall, the income statement reflects a robust financial performance with consistent growth and profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.41, indicating a balanced approach to leverage. The return on equity (ROE) is exceptionally high at 91.88%, reflecting strong profitability relative to shareholder equity. However, the equity ratio is not explicitly provided, which could provide further insights into the company's financial stability. Overall, the balance sheet suggests a strong financial position with effective use of equity.

Cash Flow

Medpace Holdings exhibits impressive cash flow management, with a free cash flow growth rate of 21.35% in the TTM period. The operating cash flow to net income ratio of 0.55 and free cash flow to net income ratio of 0.99 indicate efficient conversion of income into cash. These metrics highlight the company's ability to generate cash and sustain operations effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.36B	2.11B	1.89B	1.46B	1.14B	925.92M
Gross Profit	733.62M	656.30M	524.50M	432.44M	328.15M	278.73M
EBITDA	520.83M	476.12M	363.15M	301.04M	219.73M	186.57M
Net Income	433.01M	404.39M	282.81M	245.37M	181.85M	145.38M
Balance Sheet
Total Assets	1.75B	2.10B	1.66B	1.35B	1.66B	1.39B
Cash, Cash Equivalents and Short-Term Investments	285.35M	669.44M	245.45M	28.27M	461.30M	277.77M
Total Debt	143.97M	149.52M	142.12M	188.87M	130.97M	115.14M
Total Liabilities	1.46B	1.28B	1.10B	966.11M	707.01M	584.90M
Stockholders Equity	293.64M	825.54M	558.95M	386.39M	952.93M	805.78M
Cash Flow
Free Cash Flow	703.59M	572.27M	396.73M	351.17M	235.06M	227.34M
Operating Cash Flow	711.24M	608.82M	433.37M	388.05M	263.33M	258.68M
Investing Cash Flow	-34.23M	-28.31M	-34.63M	-38.74M	-31.36M	-31.21M
Financing Cash Flow	-1.05B	-154.01M	-182.64M	-775.77M	-44.45M	-82.28M

Medpace Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 602.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 602.77 is above the 20-day moving average (MA) of 575.05, above the 50-day MA of 532.82, and above the 200-day MA of 390.07, indicating a bullish trend. The MACD of 20.84 indicates Positive momentum. The RSI at 67.87 is Neutral, neither overbought nor oversold. The STOCH value of 76.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MEDP.

Medpace Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEDP	79 Outperform	$16.60B	41.99	73.70%	―	13.88%	23.92%
IDXX	78 Outperform	$56.66B	56.48	64.63%	―	8.39%	21.44%
RVTY	66 Neutral	$10.29B	45.40	3.04%	0.29%	3.37%	-18.80%
ICLR	64 Neutral	$12.26B	22.09	6.27%	―	-2.46%	-17.89%
CRL	56 Neutral	$8.27B	―	-2.32%	―	-0.92%	-118.96%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Medpace Holdings Corporate Events

Medpace Holdings Reports Strong Q3 2025 Results

Medpace Holdings Inc. is a global, full-service clinical contract research organization (CRO) that provides Phase I-IV clinical development services to the biotechnology, pharmaceutical, and medical device industries. Headquartered in Cincinnati, Ohio, Medpace is known for its scientifically-driven approach to accelerating the development of medical therapeutics.

Medpace Holdings Inc. Reports Strong Q3 2025 Growth

Medpace Holdings Inc. recently held its third-quarter 2025 earnings call, revealing a strong performance marked by substantial revenue growth and impressive business achievements. The sentiment during the call was predominantly positive, driven by record net new business awards and a robust net book-to-bill ratio. However, the company also faced challenges, including a higher effective tax rate, lower interest income, and some cancellations. Overall, the call underscored Medpace’s solid performance with room for improvement in certain areas.