Medpace Holdings (MEDP) AI Stock Analysis

• Market Cap: $9.23B
• Dividend Yield: N/A
• Average Volume (3M): 370.33K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 1.07
• Revenue Growth: 9.87%
• EPS Growth: 32.81%
• Country: US
• Employees: 5,900
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 3.67
• Shares Outstanding: 28,741,610
• 10 Day Avg. Volume: 514,300
• 30 Day Avg. Volume: 370,329
• PEG Ratio: 0.57
• Price to Book (P/B): 17.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.59
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 10.36
• Enterprise Value/Ebitda: 3.88
• 1Y Price Target: $315.86
• Price Target Upside: -3.12% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: $336.00 ▲(3.06%Upside)

Medpace Holdings is well-positioned in the Medical - Diagnostics & Research industry, with strong financial performance being the most significant contributor to its score. However, technical indicators and valuation present a moderate outlook, while mixed earnings call sentiment points to challenges that could impact future growth.

Positive Factors

Earnings

EPS significantly exceeded expectations due to lower-than-expected income tax expense.

Financial Performance

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

Stock Buyback

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 Performance

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

Funding Challenges

Management confirmed it has increasingly seen VC and PE firms retract their funding commitments with biotech sponsors.

Market Environment

The demand environment remains largely unchanged with variable RFP quality and delayed decision-making.

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 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 exhibits strong financial health with robust revenue and profitability growth. The company benefits from a zero debt position, though the negative total assets require further investigation. The cash flow metrics indicate excellent cash generation capabilities, supporting ongoing operations and growth.

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
EBITDA	485.51M	476.12M	363.15M	301.04M	219.73M	186.57M
Net Income	416.39M	404.39M	282.81M	245.37M	181.85M	145.38M
Balance Sheet
Total Assets	1.90B	2.10B	1.66B	1.35B	1.66B	1.39B
Cash, Cash Equivalents and Short-Term Investments	441.44M	669.44M	245.45M	28.27M	461.30M	277.77M
Total Debt	126.66M	126.23M	142.12M	188.87M	130.97M	115.14M
Total Liabilities	1.30B	1.28B	1.10B	966.11M	707.01M	584.90M
Stockholders Equity	593.61M	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: Positive
• Last Price: 326.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 326.03 is above the 20-day moving average (MA) of 306.80, above the 50-day MA of 302.38, and below the 200-day MA of 326.69, indicating a neutral trend. The MACD of 4.78 indicates Negative momentum. The RSI at 64.34 is Neutral, neither overbought nor oversold. The STOCH value of 88.37 is Negative, 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
RDY	77 Outperform	$12.44B	18.61	18.36%	0.64%	14.23%	-0.84%
EHC	75 Outperform	$12.14B	24.86	25.33%	0.55%	11.21%	30.38%
ICLR	75 Outperform	$12.02B	16.20	8.01%	―	-0.48%	11.47%
TECH	75 Outperform	$8.16B	63.48	6.53%	0.61%	4.72%	-35.33%
MEDP	72 Outperform	$9.23B	24.88	65.82%	―	9.87%	32.81%
CRL	70 Outperform	$7.58B	449.94	-0.92%	―	-2.16%	-107.31%
Sector *	50 Neutral	kr5.37B	12.51	-80.61%	5.13%	37.36%	27.71%

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.