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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on MEDP

Breaking News: Medpace Holdings Inc reported a recent development with Fisher Asset Management LLC reducing its stake in the company by 29.8% during Q2. The fund sold 53,245 shares, leaving it with 125,347 shares. This move comes as Medpace previously reported Q3 earnings with revenue of $478.7 million, up 15.7% year-over-year, and EPS of $2.42. Zacks Investment Research has a hold rating on Medpace, while William Blair & Company has an outperform rating and a buy recommendation from some analysts.

1.c. Company Highlights

2. Medpace's Q3 Earnings: A Strong Beat on Revenue and EPS

Medpace reported revenue of $659.9 million for the third quarter, a 23.7% year-over-year increase, driven by a strong backlog and new business awards. EBITDA was $148.4 million, a 24.9% increase from the prior year, while net income was $111.1 million, up 15.3% from the prior year. Earnings per share (EPS) came in at $3.86, beating analyst estimates of $3.5. The company's cash flow from operating activities was $246.2 million, and it had $821.7 million remaining under its share repurchase authorization program.

Publication Date: Oct -25

📋 Highlights
  • Revenue Growth:: Q3 revenue rose 23.7% YoY to $659.9M, driven by strong net new awards.
  • Net New Business Awards:: Surged 47.9% to $789.6M, achieving a 1.20 net book-to-bill ratio.
  • Profitability Expansion:: EBITDA grew 24.9% to $148.4M, outpacing net income growth of 15.3% to $111.1M.
  • Pass-Through Costs:: Remained high at 41–42% of revenue, expected to peak in Q4 2025 and decline in 2026.
  • Financial Resilience:: Generated $246.2M in cash flow from operations and retained $821.7M in share repurchase authorization.

Bookings and Backlog

Net new business awards increased 47.9% to $789.6 million, resulting in a 1.20 net book-to-bill. The ending backlog was approximately $3 billion, a 2.5% increase from the prior year. The total dollar value of awarded work not yet recognized in the backlog was up approximately 30% in Q3 on a year-over-year basis, indicating a strong pipeline of future revenue.

Guidance and Outlook

The company anticipates 2026 revenue to grow in the low double-digit range, with EBITDA growth expected at a high single-digit pace or greater. Analysts estimate next year's revenue growth at 10.5%. Pass-through costs are expected to remain high, representing 41% to 42% of revenue, but are expected to peak in Q4 and come down over 2026.

Valuation

Medpace's current valuation multiples are high, with a P/E Ratio of 40.58, P/B Ratio of 59.84, and P/S Ratio of 7.21. The EV/EBITDA multiple is 32.32, indicating a premium valuation. However, the company's strong growth prospects and improving profitability metrics, such as an ROE of 91.88% and ROIC of 85.56%, may justify this premium.

Operational Highlights

Medpace's CEO, August Troendle, noted that the company is making progress in refilling its pipeline of opportunities, with a strong win rate and improving funding environment. The company's hiring has been focused on North America and Asia Pac, with India being a significant region for growth. As Kevin Brady stated, "margins are expected to remain in a good spot, driven by improved productivity, low attrition rates, and great utilization levels."

3. NewsRoom

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Fisher Asset Management LLC Sells 53,245 Shares of Medpace Holdings, Inc. $MEDP

Dec -03

Source: defenseworld.net

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First Look: Versace deal, crypto slump, WBD bids and Airbus woes

Dec -02

Source: gurufocus.com

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Market Today: Crypto Rout, Omnicom Cuts, Nvidia--Synopsys Deal

Dec -01

Source: gurufocus.com

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August Troendle Sells 6,830 Shares of Medpace (NASDAQ:MEDP) Stock

Dec -01

Source: defenseworld.net

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Clarkston Capital Partners LLC Invests $40.57 Million in Medpace Holdings, Inc. $MEDP

Nov -28

Source: defenseworld.net

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Medpace Holdings, Inc. $MEDP Stock Holdings Decreased by Coldstream Capital Management Inc.

Nov -28

Source: defenseworld.net

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Wasatch Global Opportunities Fund Q3 2025 Contributors And Detractors

Nov -27

Source: seekingalpha.com

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Creative Planning Purchases 141 Shares of Medpace Holdings, Inc. $MEDP

Nov -27

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.07%)

6. Segments

Oncology

Expected Growth: 14.0%

Strong demand for oncology clinical trials driven by increasing cancer prevalence, innovative therapies, and regulatory approvals. Medpace's expertise in complex oncology trials, strategic partnerships, and investments in technology and talent acquisition also contribute to the 14.0% growth.

Other

Expected Growth: 12.0%

Medpace Holdings' 12.0% growth is driven by increasing demand for outsourced clinical trial services, expansion into new therapeutic areas, and strategic acquisitions. The company's expertise in rare diseases and orphan drugs, as well as its investments in digital technologies, have also contributed to its growth.

Metabolic

Expected Growth: 15.0%

Metabolic segment's 15.0% growth driven by increasing demand for clinical trials in obesity, diabetes, and rare genetic disorders. Expanding partnerships with biotech and pharma companies, coupled with Medpace's specialized expertise, fuels growth. Additionally, rising awareness of metabolic disorders and investments in precision medicine contribute to the segment's rapid expansion.

Cardiology

Expected Growth: 13.0%

Medpace Holdings, Inc.'s Cardiology segment growth of 13.0% is driven by increasing demand for cardiovascular clinical trials, advancements in medical technology, and a growing need for specialized cardiology services. Additionally, the company's strategic partnerships, expanded service offerings, and investments in digital infrastructure have contributed to its growth momentum.

Antiviral and Anti-infective

Expected Growth: 11.0%

Strong demand for infectious disease treatments, increasing R&D investments, and a growing pipeline of novel antiviral and anti-infective therapies drive Medpace Holdings' 11.0% growth. Additionally, the ongoing COVID-19 pandemic and emerging infectious diseases fuel the need for innovative solutions, further propelling segment growth.

Central Nervous System

Expected Growth: 10.0%

Central Nervous System (CNS) segment growth of 10.0% is driven by increasing demand for novel treatments in neurology and psychiatry, advancements in gene therapy, and rising prevalence of CNS disorders. Additionally, Medpace's expertise in complex CNS trials and strategic partnerships with pharmaceutical companies contribute to this growth.

7. Detailed Products

Clinical Research Services

Medpace provides comprehensive clinical research services, including study design, site selection, patient recruitment, data management, and biostatistics.

Regulatory Affairs Services

Medpace offers regulatory affairs services, including preparation and submission of regulatory filings, such as INDs, NDAs, and MAAs.

Pharmacovigilance Services

Medpace provides pharmacovigilance services, including adverse event reporting, signal detection, and risk management planning.

Clinical Trial Management Services

Medpace offers clinical trial management services, including study start-up, site management, and data management.

Biostatistics and Data Sciences Services

Medpace provides biostatistics and data sciences services, including data analysis, statistical programming, and data visualization.

Medical Affairs Services

Medpace offers medical affairs services, including medical writing, publication planning, and medical information.

8. Medpace Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Medpace Holdings, Inc. operates in a niche market, providing clinical trial services to the pharmaceutical industry. While there are some substitutes available, such as in-house clinical trial capabilities, Medpace's expertise and reputation provide a competitive advantage, reducing the threat of substitutes.

Bargaining Power Of Customers

Medpace Holdings, Inc. has a diverse customer base, including large pharmaceutical companies and smaller biotech firms. While customers have some bargaining power, Medpace's specialized services and long-term contracts reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Medpace Holdings, Inc. has a diverse supplier base, including contract research organizations and vendors providing specialized services. The company's scale and reputation reduce the bargaining power of suppliers.

Threat Of New Entrants

The clinical trial services market has high barriers to entry, including regulatory requirements, specialized expertise, and significant capital investments. These barriers reduce the threat of new entrants.

Intensity Of Rivalry

The clinical trial services market is competitive, with several established players. However, Medpace Holdings, Inc. has a strong reputation, specialized services, and a diverse customer base, which reduces the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.77%
Debt Cost 3.95%
Equity Weight 56.23%
Equity Cost 10.93%
WACC 7.87%
Leverage 77.84%

11. Quality Control: Medpace Holdings, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

548.12$

Current Price

548.12$

Potential

-0.00%

Expected Cash-Flows