Medpace Holdings (MEDP) AI Stock Analysis

• Market Cap: $15.36B
• Dividend Yield: N/A
• Average Volume (3M): 312.41K
• Price to Earnings (P/E): 41.7
• Beta (1Y): 1.11
• Revenue Growth: 9.94%
• EPS Growth: 25.30%
• Country: US
• Employees: 5,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 3.86
• Shares Outstanding: 28,093,025
• 10 Day Avg. Volume: 321,592
• 30 Day Avg. Volume: 312,411
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 6.56
• Enterprise Value/Gross Profit: 20.76
• Enterprise Value/Ebitda: 29.85
• 1Y Price Target: $459.00
• Price Target Upside: -23.07% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 79 Outperform
• Price Target: $626.00 ▲(4.93% Upside)

Medpace Holdings shows strong financial performance and technical momentum, driving a positive outlook. The company's robust revenue growth and efficient cash flow generation are significant strengths. However, the high P/E ratio suggests overvaluation, and the absence of a dividend yield is a drawback. The earnings call supports a positive sentiment with strong business growth, although some challenges remain.

Positive Factors

Revenue Growth

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

Cash Flow Generation

Consistent cash flow generation provides Medpace with the flexibility to invest in growth opportunities and manage debt, ensuring long-term resilience.

Specialized Expertise

Specialized expertise in key therapeutic areas enhances Medpace's competitive advantage, enabling it to secure premium contracts and sustain growth.

Negative Factors

High Debt Levels

High debt levels could strain Medpace's financial flexibility and increase risk, particularly if cash flows are constrained or interest rates rise.

Decreased Backlog

A declining backlog may signal reduced future revenue visibility, potentially impacting Medpace's ability to maintain its growth trajectory.

Reduced Win Rate

A reduced win rate for new projects could hinder Medpace's ability to capture market share, affecting long-term revenue and profitability.

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 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 demonstrates robust financial health with strong revenue and profit growth. The company maintains solid cash flow generation, supporting its operational and strategic initiatives. While the balance sheet shows a high debt-to-equity ratio, profitability and cash flow metrics remain strong, suggesting resilience against industry challenges. However, the declining equity ratio and high liabilities warrant careful monitoring.

Income Statement

The company exhibits strong revenue growth, with a notable increase from $925.93M in 2020 to $2.23B in TTM 2025. Gross profit margin has consistently improved, reaching 31.6% in TTM 2025. The net profit margin also shows a healthy trend, rising to 18.7% in TTM 2025. EBIT and EBITDA margins are strong at 21.4% and 22.0% respectively, indicating efficient operations. The company benefits from robust profitability metrics, though rising competition in the industry could pose future challenges.

Balance Sheet

The debt-to-equity ratio has fluctuated but remains manageable at 0.72 in TTM 2025. The equity ratio has declined from 57.4% in 2020 to 11.0% in TTM 2025, indicating a reduction in equity as a proportion of total assets. Return on equity has improved significantly, reaching 242.7% in TTM 2025, reflecting strong profitability. The balance sheet shows a high level of liabilities relative to equity, which could be a risk if cash flows are constrained.

Cash Flow

Operating cash flow has grown steadily, with a strong TTM 2025 figure of $614.10M. Free cash flow growth is positive, with a notable increase from $227.34M in 2020 to $595.92M in TTM 2025. The operating cash flow to net income ratio is 1.47, indicating efficient conversion of income into cash. Free cash flow to net income remains strong at 1.42, showcasing the company's ability to generate cash relative to earnings. Cash flows are solid, although high financing cash outflows could impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.23B	2.11B	1.89B	1.46B	1.14B	925.92M
Gross Profit	705.69M	656.30M	524.50M	432.44M	328.15M	278.73M
EBITDA	490.74M	476.12M	363.15M	301.04M	219.73M	186.57M
Net Income	418.30M	404.39M	282.81M	245.37M	181.85M	145.38M
Balance Sheet
Total Assets	1.57B	2.10B	1.66B	1.35B	1.66B	1.39B
Cash, Cash Equivalents and Short-Term Investments	46.33M	669.44M	245.45M	28.27M	461.30M	277.77M
Total Debt	124.95M	126.23M	142.12M	188.87M	130.97M	115.14M
Total Liabilities	1.40B	1.28B	1.10B	966.11M	707.01M	584.90M
Stockholders Equity	172.35M	825.54M	558.95M	386.39M	952.93M	805.78M
Cash Flow
Free Cash Flow	579.82M	572.27M	396.73M	351.17M	235.06M	227.34M
Operating Cash Flow	614.10M	608.82M	433.37M	388.05M	263.33M	258.68M
Investing Cash Flow	-34.05M	-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: 596.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 596.61 is above the 20-day moving average (MA) of 528.93, above the 50-day MA of 499.85, and above the 200-day MA of 373.95, indicating a bullish trend. The MACD of 17.21 indicates Negative momentum. The RSI at 76.34 is Negative, neither overbought nor oversold. The STOCH value of 83.75 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
MEDP	79 Outperform	$15.36B	41.73	73.70%	―	9.94%	25.30%
ICLR	73 Outperform	$14.98B	24.33	6.27%	―	-2.91%	12.92%
IDXX	73 Outperform	$50.71B	53.15	64.87%	―	6.68%	18.84%
RVTY	67 Neutral	$11.11B	41.40	3.61%	0.29%	3.33%	32.86%
CRL	60 Neutral	$9.27B	―	-1.96%	―	-1.21%	-115.44%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Medpace Holdings Corporate Events

Medpace Holdings Reports Strong Q2 2025 Growth

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, the company is known for its scientifically-driven approach and expertise across various therapeutic areas.

Medpace Holdings Inc. Q2 Earnings Call Highlights

Medpace Holdings Inc. recently held its second-quarter 2025 earnings call, which conveyed a generally positive sentiment. The company reported strong revenue growth and increased EBITDA, alongside improved revenue guidance. However, the call also highlighted some challenges, including a decreased backlog, lower win rates, and higher reimbursable costs. The sustainability of this growth trajectory into 2026 remains a topic of discussion.