Medpace Holdings Inc. Common Stock (MEDP)
Fast GrowerFairStock Score: 69/100 — STEADY
Key Financials
| Current Price | $415.27 |
| Market Cap | $11.2B |
| P/E Ratio | 26.13 |
| ROE | 77.25% |
| Dividend Yield | —% |
| Sector | Healthcare |
Strengths
- Generates $472 million in annual free cash flow (4.2% yield on market cap)
- High return on equity of 70.2% demonstrating efficient capital deployment
- Conservative balance sheet with debt-to-equity of just 0.30, providing financial flexibility
- Altman Z-Score of 4.6 confirms minimal bankruptcy risk and strong solvency
- Revenue growth of 32.0% demonstrates strong top-line momentum
Concerns
- Trades significantly above Graham Number ($85) with negative 361% margin of safety—limited downside protection
AI Analysis
Medpace Holdings Inc. Common Stock is a mid-cap healthcare company valued at $11.2 billion. The business generates $2.5 billion in annual revenue with a 4.9% net margin and $472 million in free cash flow. From a quality standpoint, Medpace shows healthy Altman Z-Score of 4.6 and extraordinary 70% return on equity. On valuation, the stock is trading at a premium 25.8x earnings, with trades far above its Graham Number ($85) with no margin of safety. Growth dynamics show revenue growing at 32.0% and profit growth of 15.5%. Our composite FairStock Score of 69/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Medpace's 32% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $472 million in annual free cash flow (4.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer