Medpace Holdings (MEDP) AI Stock Analysis

• Market Cap: $8.52B
• Dividend Yield: N/A
• Average Volume (3M): 345.48K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 1.11
• Revenue Growth: 9.87%
• EPS Growth: 32.81%
• Country: US
• Employees: 5,900
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 3.67
• Shares Outstanding: 28,741,610
• 10 Day Avg. Volume: 296,818
• 30 Day Avg. Volume: 345,484
• PEG Ratio: 6.28
• Price to Book (P/B): 15.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.75
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 12.08
• Enterprise Value/Ebitda: 4.53
• 1Y Price Target: $318.50
• Price Target Upside: 7.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 63 Neutral
• Price Target: $313.00 ▲(5.56%Upside)

The overall score reflects strong financial performance and cash flow, offset by technical analysis indicating bearish trends and challenges highlighted in the earnings call. The valuation is moderate, with no significant corporate events to influence the score.

Positive Factors

Financial Performance

Revenue of $559 million came in above the $530 million estimate, contributing to the top-line beat.

Stock Repurchase Program

The company repurchased roughly $390 million worth of shares and announced the approval of an additional $1.0 billion to its stock-repurchase program.

Negative Factors

Bookings Underperformance

Bookings expectations were missed for the fifth consecutive quarter, leading to a downgrade based on a challenging macro environment and funding issues.

Cancellations and Demand

Cancellations in the quarter, specifically pre-bookings cancellations, were significantly worse than management expectations and drove a 1Q book-to-bill of 0.90x.

Market Uncertainty

Price target is lowered from $330 to $288, with the target multiplied down from ~18x CY26 EV/EBITDA to ~16x to account for market uncertainty.

Medpace Holdings Business Overview & Revenue Model

Company Description

Medpace Holdings, Inc. is a global contract research organization (CRO) that provides comprehensive clinical development services to the biotechnology, pharmaceutical, and medical device industries. The company offers a range of services including study design, project management, clinical trial monitoring, data management, statistical analysis, and regulatory consulting. Medpace is known for its scientifically-driven approach and therapeutic expertise in various areas such as oncology, cardiology, metabolism, and infectious diseases.

How the Company Makes Money

Medpace Holdings generates revenue primarily by providing contract research services to its clients in the pharmaceutical, biotechnology, and medical device sectors. The company's revenue model is based on long-term contracts with these clients, where they charge fees for various phases of the clinical trial process, from study planning to execution and data analysis. Key revenue streams include project management, clinical monitoring, laboratory services, and regulatory consulting. Medpace's earnings are largely influenced by its ability to secure and maintain contracts with large pharmaceutical companies and biotech firms, as well as its reputation for delivering high-quality and efficient clinical trials. The company's integrated full-service model and strategic partnerships with clients play significant roles in driving its revenue growth.

Medpace Holdings Financial Statement Overview

Summary

Medpace Holdings shows strong financial health with robust revenue growth and profitability. The income statement reflects solid growth, the balance sheet is strong with zero debt, and cash flow metrics indicate excellent cash generation capabilities despite a concern over negative total assets.

Income Statement

Medpace Holdings has demonstrated strong revenue growth, with a TTM (Trailing-Twelve-Months) total revenue increase of approximately 15% from the previous year. The gross profit margin remains robust at around 31.2%, and the net profit margin is healthy at 19.3%. The EBIT and EBITDA margins are also strong, indicating efficient operations. Overall, the income statement reflects solid growth and profitability trends.

Balance Sheet

The company's balance sheet shows a strong equity position with a debt-to-equity ratio of 0, reflecting no leverage in the TTM period. Return on equity has improved to approximately 111.9%, demonstrating efficient use of shareholder equity to generate profits. However, the negative total assets in the TTM period is a concern that needs addressing, though it might be a reporting anomaly.

Cash Flow

Medpace Holdings has shown positive cash flow trends, with a significant positive free cash flow and a strong operating cash flow to net income ratio of around 1.4 in the TTM period. The free cash flow to net income ratio is approximately 1.3, indicating good cash generation relative to earnings. These metrics suggest a strong cash flow position, supporting ongoing operations and potential growth initiatives.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.16B	2.11B	1.89B	1.46B	1.14B	925.92M
	Gross Profit
679.51M	656.30M	524.50M	432.44M	328.15M	278.73M
	EBIT
456.32M	446.87M	336.82M	278.70M	198.62M	167.04M
	EBITDA
485.51M	476.12M	363.15M	301.04M	219.73M	186.57M
	Net Income Common Stockholders
416.39M	404.39M	282.81M	245.37M	181.85M	145.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.13M	669.44M	245.45M	28.27M	461.30M	277.77M
	Total Assets
1.01B	2.10B	1.66B	1.35B	1.66B	1.39B
	Total Debt
102.02M	126.23M	142.12M	188.87M	130.97M	115.14M
	Net Debt
71.89M	-543.20M	-103.33M	160.60M	-330.34M	-162.62M
	Total Liabilities
384.62M	1.28B	1.10B	966.11M	707.01M	584.90M
	Stockholders Equity
621.90M	825.54M	558.95M	386.39M	952.93M	805.78M
Cash Flow		Free Cash Flow
540.93M	572.27M	396.73M	351.17M	235.06M	227.34M
	Operating Cash Flow
581.97M	608.82M	433.37M	388.05M	263.33M	258.68M
	Investing Cash Flow
-40.83M	-28.31M	-34.63M	-38.74M	-31.36M	-31.21M
	Financing Cash Flow
-507.63M	-154.01M	-182.64M	-775.77M	-44.45M	-82.28M

Medpace Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 296.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 296.5 is below the 20-day moving average (MA) of 300.17, below the 50-day MA of 298.86, and below the 200-day MA of 330.87, indicating a bearish trend. The MACD of -0.67 indicates Negative momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 21.90 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
RDY	77 Outperform	$12.86B	19.37	18.36%	0.52%	13.26%	1.33%
TECH	72 Outperform	$7.63B	59.35	6.53%	0.66%	4.72%	-35.33%
CRL	71 Outperform	$7.11B	449.94	-0.92%	―	-2.16%	-107.31%
EHC	68 Neutral	$12.25B	25.09	25.33%	0.54%	11.21%	30.38%
ICLR	64 Neutral	$11.23B	15.14	8.01%	―	-0.48%	11.47%
MEDP	63 Neutral	$8.52B	22.63	65.82%	―	9.87%	32.81%
Sector *	54 Neutral	$5.31B	3.28	-45.10%	2.80%	16.76%	0.02%

Medpace Holdings Corporate Events

Medpace Holdings Approves Key Proposals at Annual Meeting

On May 16, 2025, Medpace Holdings, Inc. held its 2025 Annual Meeting of Stockholders, where several key proposals were approved. The stockholders approved the 2016 Amended and Restated Incentive Award Plan, which extended the expiration date to February 6, 2035, without increasing the number of shares for issuance. Additionally, the election of Class III Directors, the ratification of Deloitte & Touche LLP as the independent registered public accounting firm, and the advisory vote on executive compensation were all approved. A non-binding advisory stockholder proposal regarding simple majority voting was also passed.

The most recent analyst rating on (MEDP) stock is a Hold with a $345.00 price target. To see the full list of analyst forecasts on Medpace Holdings stock, see the MEDP Stock Forecast page.