MEDP

Medpace Holdings Inc

Healthcare


Presented:08/15/2022
Price:$182.30
Cap:$5.65B
Current Price:$353.30
Cap:$10.95B

Presented

Date08/15/2022
Price$182.30
Market Cap$5.65B
Ent Value$5.40B
P/E Ratio31.63x
Book Value$9.14
Div Yield0%
Shares O/S31.00M
Ave Daily Vol342,855
Short Int9.05%

Current

Price$353.30
Market Cap$10.95B
Medpace Holdings, Inc. engages in the provision of outsourced clinical development services to the biotechnology, pharmaceutical and medical device industries. Its services include medical department, clinical trial management, data-driven feasibility, study-start-up, clinical monitoring, regulatory affairs, patient recruitment and retention, medical writing, biometrics and data sciences, pharmacovigilance, core laboratory, laboratories, clinics, and quality assurance. The company was founded by August James Troendle in 1992 and is headquartered in Cincinnati, OH.

Publicly traded companies mentioned herein: ICON PLC (ICLR), IQVIA Holdings Inc (IQV), Medpace Holdings Inc (MEDP)

Highlights

The presenter is short shares of Medpace Holdings Inc (MEDP), a $5.6B market cap CRO that competes with the larger players (IQV, ICLR, etc.) but with more emphasis on smaller biotech companies. His short thesis is based on biotech funding cyclicality following unprecedented levels of funding in late 2020 and 2021, and he is betting that over the next 6 months, the market will realize that we are at peak earnings evidenced by bookings declines. MEDP is trading at 28x consensus 2023 earnings, which he would consider generous even for a mid-cycle valuation let alone peak earnings. A recent rally from the group (MEDP +24% in the last month) has created an asymmetric risk/reward setup, and the presenter sees 40%+ downside to the stock with little upside risk.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.