Medpace Holdings (MEDP) AI Stock Analysis

• Market Cap: $8.79B
• Dividend Yield: N/A
• Average Volume (3M): 628.53K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.12
• Revenue Growth: 9.87%
• EPS Growth: 32.81%
• Country: US
• Employees: 5,900
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 3.67
• Shares Outstanding: 28,741,610
• 10 Day Avg. Volume: 405,961
• 30 Day Avg. Volume: 628,526
• PEG Ratio: 6.27
• Price to Book (P/B): 15.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.73
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 12.19
• Enterprise Value/Ebitda: 4.52
• 1Y Price Target: $318.50
• Price Target Upside: 4.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

Medpace Holdings demonstrates strong financial performance with robust revenue and profit growth, supported by positive cash flow metrics. However, technical analysis indicators suggest a bearish trend, and valuation metrics show the stock is fairly valued, providing no additional upside from a dividend perspective. The recent earnings call highlighted challenges, including declining business awards and EBITDA margin, which temper growth expectations. Overall, the stock is positioned moderately well with notable strengths but faces near-term uncertainties.

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.

Market Growth

MEDP's exposure to the faster growing biotech R&D market and industry leading free cash flow generation should demand a multiple premium relative to the larger CROs.

Negative Factors

Biotech Environment

Management's sentiment on the biotech environment also weakened, as it sees pricing pressure in RFPs, lower quality of RFPs, and continued funding pressure among biotechs.

Funding Issues

Elevated pre-backlog cancels seen in 1Q place pressure on MEDP's ability to achieve a 1.15x B2B.

Order Book

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

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 exhibits strong financial health with robust growth in revenue and profitability. The company's zero debt position is commendable, although the negative total assets require further investigation. Cash flow metrics are strong, indicating excellent cash generation capabilities. Overall, Medpace Holdings is well-positioned in its industry.

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
672.28M	656.30M	524.50M	432.44M	328.15M	278.73M
	EBIT
456.32M	446.87M	336.82M	278.70M	198.62M	167.04M
	EBITDA
484.51M	476.12M	363.15M	301.04M	219.73M	186.57M
	Net Income Common Stockholders
416.39M	404.39M	282.81M	245.21M	181.39M	144.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
441.44M	669.44M	245.45M	28.27M	461.30M	277.77M
	Total Assets
1.90B	2.10B	1.66B	1.35B	1.66B	1.39B
	Total Debt
126.66M	126.23M	142.12M	188.87M	130.97M	115.14M
	Net Debt
-314.78M	-543.20M	-103.33M	160.60M	-330.34M	-162.62M
	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: Neutral
• Last Price: 305.66
• 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 Neutral. The current price of 305.66 is above the 20-day moving average (MA) of 299.37, below the 50-day MA of 306.63, and below the 200-day MA of 337.12, indicating a neutral trend. The MACD of -0.82 indicates Negative momentum. The RSI at 51.78 is Neutral, neither overbought nor oversold. The STOCH value of 44.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$11.99B	17.98	18.36%	0.56%	13.26%	1.33%
TECH	72 Outperform	$7.71B	58.80	6.53%	0.65%	4.72%	-35.33%
MEDP	69 Neutral	$8.79B	23.33	65.82%	―	9.87%	32.81%
EHC	68 Neutral	$12.18B	24.95	25.33%	0.55%	11.21%	30.38%
CRL	64 Neutral	$6.92B	449.94	-0.92%	―	-2.16%	-107.31%
ICLR	64 Neutral	$10.63B	14.32	8.01%	―	-0.48%	11.47%
Sector *	52 Neutral	$5.15B	3.02	-44.64%	2.82%	16.45%	-0.47%

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.

Spark’s Take on MEDP Stock

According to Spark, TipRanks’ AI Analyst, MEDP is a Neutral.

Medpace Holdings demonstrates strong financial performance with robust revenue and profit growth, supported by positive cash flow metrics. However, technical analysis indicators suggest a bearish trend, and valuation metrics show the stock is fairly valued, providing no additional upside from a dividend perspective. The recent earnings call highlighted challenges, including declining business awards and EBITDA margin, which temper growth expectations. Overall, the stock is positioned moderately well with notable strengths but faces near-term uncertainties.

To see Spark’s full report on MEDP stock, click here.