$Medpace (MEDP.US)$ 🎯 2024.4.10 Current price 401.18, posit...

New data: 23Q4. Revenue grew rapidly and profit growth slowed.

In 2023, revenue increased by 29.2%, operating profit increased 20.9% due to declining gross margin, and net profit increased 15.3% due to income tax fluctuations. The average growth rate of net profit in 5 years was 31%; in the past 3 years, it fell to 25%, and the return on net assets increased to 60%.

The balance ratio fell from 71.4% to 66.3%, and both total assets and net assets increased significantly. On the asset side, there was mainly an increase in cash, and on the debt side, short-term loans were repaid, mainly due to an increase in interest-free debt.

Net cash flow from operations continues to be significantly higher than net investment, and shareholder surpluses are high.

Currently, the price-earnings ratio is 45, and the valuation is slightly higher within a reasonable range. Since the overall growth trend and balance sheet are excellent, there is no need for adjustments for the time being.