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Medpace Holdings
(NASDAQ:MEDP)
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Rating:71Outperform
Price Target:
$616.00
▲(18.33% Upside)
Action:Reiterated
Date:06/05/26
The score is led by strong financial performance (profitability and very strong free cash flow). It is tempered by mixed technicals (below key longer-term moving averages) and a premium valuation (P/E ~27.9). Earnings-call signals are positive on current results and reaffirmed guidance, but ongoing cancellations and weaker pipeline indicators constrain upside confidence.
Positive Factors
Strong Free Cash Flow
Very high and consistent free cash flow (TTM ~$745M, ~0.99x conversion) underpins durable financial flexibility. It supports reinvestment in operations, funding of strategic initiatives or buybacks, and provides a buffer through clinical-cycle volatility, strengthening long-term resilience.
Negative Factors
Elevated Cancellations / Book-to-Bill <1
Persistent cancellations and net book-to-bill below one materially reduce the conversion of awarded work into revenue. If elevated cancellations persist, utilization and topline growth become volatile, undermining the predictability of earnings and longer-term capacity planning.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Free Cash Flow
Very high and consistent free cash flow (TTM ~$745M, ~0.99x conversion) underpins durable financial flexibility. It supports reinvestment in operations, funding of strategic initiatives or buybacks, and provides a buffer through clinical-cycle volatility, strengthening long-term resilience.
Read all positive factors
Medpace Holdings Key Performance Indicators (KPIs)
Any
Backlog
Represents the value of unfulfilled orders, showing future revenue visibility and overall product demand strength.
Represents the value of unfulfilled orders, showing future revenue visibility and overall product demand strength.
Data provided by:
The Fly
The FlyMedpace Holdings (MEDP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.92B
Dividend YieldN/A
Average Volume (3M)297.46K
Price to Earnings (P/E)34.3
Beta (1Y)1.09
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. Volume269,075
30 Day Avg. Volume297,459
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 Cap0.79
Enterprise Value/Revenue4.68
Enterprise Value/Gross Profit16.09
Enterprise Value/Ebitda20.88
Forecast
1Y Price Target
$452.22Price Target Upside-13.13% 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., founded in Cincinnati, Ohio, in 1992, functions as a contract research organization (CRO) delivering clinical development and research services. The company assists pharmaceutical, biotechnology, and medical device clients ...
How the Company Makes Money
Medpace primarily makes money by providing outsourced research and development services to life-science sponsors, generating revenue through fees for professional services and pass-through reimbursements tied to clinical trial activity. Its core r...
Medpace Holdings Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 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 | 599.90M | 570.50M | 505.17M | 362.50M | 308.11M | 223.08M |
| 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 | 122.26M | 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
451.75
Positive
461.24
Positive
513.79
Positive
Market Momentum
25.35
Negative
80.07
Negative
91.50
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 520.6 is above the 20-day moving average (MA) of 487.33, above the 50-day MA of 451.75, and above the 200-day MA of 513.79, indicating a bullish trend. The MACD of 25.35 indicates Negative momentum. The RSI at 80.07 is Negative, neither overbought nor oversold. The STOCH value of 91.50 is Negative, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $13.25B | 30.57 | 5.20% | ― | 0.77% | -76.28% | |
72 Outperform | $44.00B | 40.80 | 70.87% | ― | 13.08% | 25.40% | |
71 Outperform | $15.92B | 34.33 | 120.89% | ― | 24.19% | 20.19% | |
63 Neutral | $12.69B | 54.17 | 3.28% | 0.29% | 4.79% | -16.36% | |
61 Neutral | $11.11B | -61.52 | -5.74% | ― | 0.11% | -492.25% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
MEDP
Medpace Holdings
557.60
238.70
74.85%
CRL
Charles River Labs
230.69
76.79
49.90%
ICLR
Icon
173.06
25.47
17.26%
IDXX
Idexx Laboratories
557.80
12.24
2.24%
RVTY
Revvity
113.76
15.33
15.58%
Medpace Holdings Corporate Events
Business Operations and StrategyExecutive/Board Changes
Medpace Elevates Brad Hansman to Executive Operations Role
Positive
Jun 4, 2026
Effective June 1, 2026, Medpace Holdings, Inc. appointed long-time executive Brad W. Hansman as Executive Vice President, Operations, where he will serve as a principal operating officer alongside current Executive Vice President, Operations, Susa...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Medpace shareholders approve governance changes enhancing voting rights
Positive
May 19, 2026
At its May 15, 2026 annual meeting, Medpace Holdings, Inc. shareholders approved amendments to the company’s Restated Certificate of Incorporation to eliminate supermajority voting requirements and remove prior limits on stockholders’ ...
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.