Medpace Holdings (MEDP)
NASDAQ:MEDP
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Medpace Holdings
(NASDAQ:MEDP)
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Rating:70Outperform
Price Target:
$433.00
▼(-16.83% Downside)
Action:ReiteratedDate:04/24/26
The score is driven primarily by strong financial performance (profitability and free-cash-flow strength) and solid Q1 execution with reaffirmed guidance. This is tempered by clear technical weakness (price well below key moving averages) and earnings-call risks around cancellations and weakening longer-dated backlog coverage, while valuation (P/E ~27.6) leaves less margin for operational hiccups.
Positive Factors
Cash generation
Medpace’s very strong trailing‑twelve‑month operating and free cash flow, with near‑one‑to‑one FCF conversion, creates durable internal funding. High cash conversion supports funding working capital for trials, reinvestment in clinical capabilities, and gives flexibility for buybacks or M&A across multi‑quarter cycles.
Negative Factors
Elevated cancellations
Rising cancellations directly erode committed work and make future revenue conversion uncertain. When sponsors cancel or reprioritize trials—noted especially in oncology and cardiovascular—Medpace faces underutilized capacity, higher revenue volatility and tougher multi‑quarter planning for headcount and costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Medpace’s very strong trailing‑twelve‑month operating and free cash flow, with near‑one‑to‑one FCF conversion, creates durable internal funding. High cash conversion supports funding working capital for trials, reinvestment in clinical capabilities, and gives flexibility for buybacks or M&A across multi‑quarter cycles.
Read all positive factors
Medpace Holdings (MEDP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.11B
Dividend YieldN/A
Average Volume (3M)321.05K
Price to Earnings (P/E)27.6
Beta (1Y)1.16
Revenue Growth24.19%
EPS Growth20.19%
CountryUS
Employees5,900
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)16.24
Shares Outstanding28,559,689
10 Day Avg. Volume374,027
30 Day Avg. Volume321,051
Financial Highlights & Ratios
PEG Ratio1.82
Price to Book (P/B)35.29
Price to Sales (P/S)6.40
P/FCF Ratio23.76
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue4.33
Enterprise Value/Gross Profit14.90
Enterprise Value/Ebitda20.01
Forecast
1Y Price Target
$460.00Price Target Upside-11.64% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)16.99
Revenue Forecast (FY)$2.77B
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 ...
How the Company Makes Money
Medpace makes money by selling outsourced research and development services to life sciences sponsors, primarily for the conduct of clinical trials. Its revenue is generated through contracts with customers to perform clinical development work, wi...
Medpace Holdings Key Performance Indicators (KPIs)
Medpace Holdings Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Neutral
The call showed strong underlying financial performance in Q1 — double-digit revenue and EBITDA growth, healthy cash generation, and a sizable backlog — and management reaffirmed full-year guidance. However, elevated and persistent cancellations, weaker gross bookings/RFPs and a multi-quarter decline in beyond-12-month backlog coverage are meaningful near- to medium-term risks to sequential growth. Management pointed to a good win rate and initiatives to improve pipeline conversion, but the cadence and durability of that improvement remain uncertain.Positive Updates
Strong Revenue Growth
Q1 2026 revenue of $706.6 million, up 26.5% year-over-year (25.8% constant currency).
Negative Updates
Elevated Cancellations and Book-to-Bill Pressure
Cancellations rose again in Q1 with backlog cancellations at their highest level in over a year; net book-to-bill fell to 0.88, reflecting a combination of higher cancellations and softer gross bookings.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Q1 2026 revenue of $706.6 million, up 26.5% year-over-year (25.8% constant currency).
Read all positive updates
Company Guidance
Management reconfirmed its 2026 guidance ranges for revenue, EBITDA, net income and EPS (unchanged from the prior quarter), assuming an effective tax rate of 19–20% and $27.5M of interest income, with no additional share repurchases in guidance; underlying Q1 results that support the outlook included revenue of $706.6M (+26.5% YoY; +25.8% constant currency), EBITDA $149.4M (+25.9%; +28.6% CC) with a 21.1% margin, net income $123.9M (+8.1%), diluted EPS $4.28, operating cash flow $151.8M, net new awards of $618.4M (net book‑to‑bill 0.88), ending backlog of ~$2.9B (+2.9% YoY) with ~$1.94B expected to convert to revenue in the next 12 months (Q1 backlog conversion 23.3%), cash of $652.7M, negative net DSO of 58.8 days, and top‑5/top‑10 customer concentration of roughly 28%/37% of LTM revenue.Medpace Holdings Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.68B | 2.53B | 2.11B | 1.89B | 1.46B | 1.14B |
| Gross Profit | 778.59M | 760.62M | 656.30M | 524.50M | 432.44M | 328.15M |
| EBITDA | 579.87M | 570.50M | 476.12M | 363.15M | 301.04M | 219.73M |
| Net Income | 460.40M | 451.12M | 404.39M | 282.81M | 245.37M | 181.85M |
Balance Sheet | ||||||
| Total Assets | 2.13B | 1.98B | 2.10B | 1.66B | 1.35B | 1.66B |
| Cash, Cash Equivalents and Short-Term Investments | 652.68M | 497.05M | 669.44M | 245.45M | 28.27M | 461.30M |
| Total Debt | 146.09M | 250.50M | 149.52M | 142.12M | 188.87M | 130.97M |
| Total Liabilities | 1.53B | 1.52B | 1.28B | 1.10B | 966.11M | 707.01M |
| Stockholders Equity | 598.31M | 459.07M | 825.54M | 558.95M | 386.39M | 952.93M |
Cash Flow | ||||||
| Free Cash Flow | 737.82M | 681.87M | 572.27M | 396.73M | 351.17M | 235.06M |
| Operating Cash Flow | 739.17M | 713.22M | 608.82M | 433.37M | 388.05M | 263.33M |
| Investing Cash Flow | -27.90M | -31.14M | -28.31M | -34.63M | -38.74M | -31.36M |
| Financing Cash Flow | -501.75M | -860.39M | -154.01M | -182.64M | -775.77M | -44.45M |
Medpace Holdings Technical Analysis
Positive
520.60
Price Trends
471.52
Positive
527.42
Negative
506.34
Positive
Market Momentum
12.20
Negative
62.65
Neutral
77.12
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 520.6 is above the 20-day moving average (MA) of 488.97, above the 50-day MA of 471.52, and above the 200-day MA of 506.34, indicating a bullish trend. The MACD of 12.20 indicates Negative momentum. The RSI at 62.65 is Neutral, neither overbought nor oversold. The STOCH value of 77.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MEDP.
Medpace Holdings Risk Analysis
Medpace Holdings disclosed 37 risk factors in its most recent earnings report. Medpace Holdings reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Medpace Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $44.18B | 40.41 | 70.87% | ― | 13.08% | 25.40% | |
70 Outperform | $12.11B | 27.57 | 120.89% | ― | 24.19% | 20.19% | |
70 Outperform | $9.51B | 1,437.41 | 6.32% | ― | -2.46% | -17.89% | |
63 Neutral | $11.29B | 60.67 | 3.28% | 0.29% | 4.79% | ― | |
56 Neutral | $8.56B | -131.22 | -5.74% | ― | 0.11% | -492.25% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
MEDP
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RVTY
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Medpace Holdings Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Medpace Announces Strong Q1 Results Amid Leadership Transition
Positive
Apr 22, 2026
Medpace Holdings reported that first-quarter 2026 revenue rose 26.5% year on year to $706.6 million, with GAAP net income increasing to $123.9 million and EBITDA up 25.9% to $149.4 million, supported by strong cash generation and a modestly expand...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.