Medpace Holdings, Inc. (MEDP) Fundamental Checkup
Medpace Holdings, Inc. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of September 4, 2026.
By TGMCharts Research · Data as of · Updated
Medpace Holdings, Inc. exhibits strong operational growth with a five-year revenue CAGR of 22.03% and an EPS CAGR of 30.90%, though the current price sits above the analyst DCF (FMP) reference.
The checkup weighs operating growth, shareholder conversion, cash conversion, reinvestment quality, and balance-sheet flexibility. Current ratio is 0.73x and debt-to-equity is 0.28x, so the balance-sheet read is part of the final view rather than a footnote.
- Medpace Holdings, Inc. has market cap of $16.50B and closed at $591 on September 4, 2026.
- Five-year revenue CAGR is 22.03% and five-year EPS CAGR is 30.90%.
- Five-year free-cash-flow CAGR is 23.40%.
- Net margin is 17.67% and ROIC is 77.00%.
- Current ratio is 0.73x and debt-to-equity is 0.28x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
Operational Expansion and Valuation Alignment
An objective analysis of Medpace Holdings, Inc. requires evaluating whether top-line expansion, cash generation, capital returns, and balance-sheet structures align to support a unified fundamental thesis. At the close of $591 on September 4, 2026, the equity is priced above the analyst DCF (FMP) reference, indicating that the market has priced in a high level of performance. This checkup systematically evaluates the historical data to determine if the underlying operational metrics support this valuation.
The core of the thesis rests on a five-year revenue CAGR of 22.03% and a five-year EPS CAGR of 30.90%. To confirm the health of this expansion, we contrast these metrics against a five-year free cash flow CAGR of 23.40%. A robust fundamental framework demands that earnings growth is fully backed by cash generation rather than accounting adjustments.
Current compounder snapshot · MEDP
Live supporting context; not part of the article's frozen 2026-09-04 evidence snapshot.
- Score
- 42/100
- 10Y CAGR
- 21.6%
- Median YoY
- 20.1%
- YoY volatility
- σ 16.4pp· uneven
- Quarters ≥ 20%
- 20 of 40
- Negative quarters
- 1
- Valuation vs own 10Y history
- P/S 6.1x · 10Y median 4.5x · 81st percentile · as of Sep 4, 2026
How this score is computed
- Quarters at or above 20%: 20 of 40 → 20 of 40 pts
- Steadiness (typical swing 16.4pp) → 13.3 of 25 pts
- Pace (median 20.1% YoY) → 6.8 of 20 pts
- Latest quarter (17.2% YoY) → 1.6 of 15 pts
- Score: 42 of 100
Annualized revenue (TTM) · by quarter, last 40
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
Clinical Research Sector Context and Evidence Overview
Operating within the Healthcare sector, the company serves as a contract research organization where financial performance is tied to clinical development spending. This overview aggregates key balance sheet, valuation, and profitability metrics into a single view. By examining these factors collectively, we establish a baseline of operational efficiency before analyzing individual financial statements.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
MEDP revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 22.03%. This is endpoint-to-endpoint across the five-year window — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 22.03% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Top Line Expansion Translating to Shareholder Returns
Evaluating growth conversion reveals how efficiently top-line gains reach the bottom line. The historical data shows a five-year revenue CAGR of 22.03%, which represents a steady expansion in contract volume. Over the same period, EPS grew at a CAGR of 30.90%, demonstrating that per-share profitability has expanded faster than gross sales. This positive divergence suggests operational leverage, but it requires further validation through cash flow analysis.
MEDP EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 30.90%. This is endpoint-to-endpoint across the five-year window — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 30.90% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Free Cash Flow Validating Reported Net Income
Earnings figures can be influenced by non-cash items, making free cash flow the ultimate arbiter of financial quality. The company achieved a five-year free cash flow CAGR of 23.40%, which closely tracks the EPS expansion rate. This strong cash conversion confirms that reported profits are backed by actual cash inflows, reducing the risk of aggressive revenue recognition or uncollected receivables.
MEDP free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: 23.40%. This is endpoint-to-endpoint across the five-year window — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 23.40% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
High Capital Efficiency and Operational Profitability
Profitability metrics indicate how effectively a business utilizes its assets to generate returns. The company reports a net margin of 17.67%, showing solid cost control relative to peers. Furthermore, the return on invested capital stands at 77.00%, which demonstrates exceptional efficiency in deploying capital into clinical operations. High capital returns suggest that the business can fund its own expansion without relying heavily on external markets.
MEDP net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 17.67%. The bars below are reported fiscal periods (quarterly where available).
Net margin of 17.67% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
MEDP ROIC
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 77.00%.
ROIC of 77.00% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity Constraints and Conservative Leverage Profile
The balance sheet provides the necessary guardrails for operational growth, especially during periods of macroeconomic volatility. Currently, the debt-to-equity ratio is low at 0.28x, indicating a conservative long-term leverage profile. However, the current ratio stands at 0.73x, which is below parity and suggests a tight short-term liquidity position. This working capital structure must be monitored to ensure it does not restrict operational flexibility.
MEDP debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: 0.28x.
Debt-to-equity of 0.28x and current ratio of 0.73x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Valuation Multiples Reflecting Premium Growth Expectations
The market currently demands a premium for this financial performance, as evidenced by a trailing P/E ratio of 34.64x. This multiple corresponds to an earnings yield of 2.89%. Because the stock price is above the analyst DCF (FMP) reference, current investors are accepting a lower yield in exchange for the historical growth profile, leaving a limited margin of safety if operational expansion slows.
MEDP Price Chart
Latest close: $591 as of September 4, 2026.
The close at $591 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Operational Consistency Versus Liquidity and Valuation Risks
The bullish outlook is supported by the alignment of top-line growth, rising net income, and high capital returns, with an ROIC of 77.00% indicating superior operational execution. Conversely, the bearish outlook is defined by a tight current ratio of 0.73x and a premium valuation that leaves no room for error. If clinical development spending slows, the current multiple may contract rapidly.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 22.03% and five-year EPS CAGR of 30.90% support the business case.
- Net margin of 17.67% and ROIC of 77.00% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of 23.40% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of 0.28x and current ratio of 0.73x are the balance-sheet checks that can change the view.
Analytical Conclusions and Future Monitoring Points
In conclusion, the company demonstrates strong operational fundamentals, highlighted by consistent growth and high capital returns, though short-term liquidity is tight. This analysis is based on data as of September 4, 2026 and does not constitute investment advice. Future updates to financial filings will determine if the company can maintain its growth trajectory and improve its working capital position.
FAQ
What is the fundamental read on MEDP?
Medpace Holdings, Inc. is judged through revenue growth of 22.03%, EPS growth of 30.90%, free-cash-flow growth of 23.40%, net margin of 17.67%, and ROIC of 77.00%.
Which MEDP fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this MEDP checkup refresh?
Its figures are as of September 4, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth moving away from the current five-year CAGR of 22.03%.
- Free-cash-flow growth drifting away from five-year EPS CAGR of 30.90%.
- ROIC or balance-sheet flexibility weakening from ROIC of 77.00% and debt-to-equity of 0.28x.
The bottom line
Medpace Holdings, Inc. fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: Is Medpace Holdings, Inc. (MEDP) Fairly Valued?Valuation on Medpace Holdings, Inc. — from the same data-checked research desk.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-07-23 · period 2026-06-30 · SEC EDGAR source
- “Reimbursed out-of-pocket expenses, which can fluctuate significantly from period to period based on the timing of program initiation and closeout, increased by $65.7 million and $175.3 million for the three and six months ended June 30, 2026, compared to the same periods in the prior year.”
- “The higher personnel costs portion increased by $15.1 million and $35.8 million for the three and six months ended June 30, 2026, compared to the same periods in the prior year.”
- “Capital spending as a percentage of revenue increased by 78 basis points to 2.17% in the six months ended June 30, 2026, compared to the same period in the prior year.”
- “Included within backlog as of June 30, 2026 was approximately $1,950.0 million to $1,970.0 million that we expect to convert to net revenue over the next twelve months, with the remainder expected to convert to net revenue thereafter.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.