$Medpace (MEDP.US)$ 🎯 April 10, 2024, current price is 401....

New data: Q4 2023, revenue is growing rapidly, while profit growth rate has slowed down.

In 2023, revenue growth was 29.2%, operating profit increased by 20.9% due to a decline in gross margin, and net income increased by 15.3% due to fluctuations in income tax. The average annual growth rate of net income over 5 years is 31%, which dropped to 25% in the last 3 years, while the return on equity increased to 60%.

The debt-to-asset ratio decreased from 71.4% to 66.3%, with significant growth in total assets and net assets. The increase on the asset side is mainly in cash, while on the liability side, short-term borrowings have been paid off, and interest-free liabilities have increased slightly.

Operating net cash flow continues to significantly exceed investment net cash flow, with a lot of shareholder surplus.

Currently, the PE is 45, the valuation is slightly high in the reasonable range, due to the overall growth trend and the balance sheet being excellent, there is no need for adjustments at the moment.