Medidata Solutions Inc

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MDSO : NASDAQ : Technology
$71.87 -0.89 | -1.22%
Today's Range: 71.17 - 73.01
Avg. Daily Volume: 454200.0
05/23/17 - 4:00 PM ET

Financial Analysis


MEDIDATA SOLUTIONS INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. MEDIDATA SOLUTIONS INC is extremely liquid. Currently, the Quick Ratio is 3.69 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 39.75% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)126.82104.24
EBITDA ($mil)16.659.86
EBIT ($mil)12.176.64
Net Income ($mil)9.524.58


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)365.02323.53
Total Assets ($mil)827.43673.93
Total Debt ($mil)267.0252.9
Equity ($mil)411.37294.35


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin79.3279.4
EBITDA Margin13.129.45
Operating Margin9.66.37
Sales Turnover0.590.6
Return on Assets3.942.6
Return on Equity7.935.97
Debt Q1 FY17 Q1 FY16
Current Ratio3.94.22
Debt/Capital0.390.46
Interest Expense4.334.13
Interest Coverage2.811.61


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)58.2557.21
Div / share0.00.0
EPS0.160.08
Book value / share7.065.14
Institutional Own % n/a n/a
Avg Daily Volume451613.0458204.0

Valuation


BUY. MEDIDATA SOLUTIONS INC's P/E ratio indicates a significant premium compared to an average of 88.16 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 25.02. For additional comparison, its price-to-book ratio of 9.84 indicates a significant premium versus the S&P 500 average of 3.00 and a significant premium versus the industry average of 6.07. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, MEDIDATA SOLUTIONS INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MDSO 121.91 Peers 88.16   MDSO 40.74 Peers 35.46

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

MDSO is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

MDSO is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MDSO 45.72 Peers 43.12   MDSO 0.80 Peers 1.05

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

MDSO is trading at a premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

MDSO trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MDSO 9.84 Peers 6.07   MDSO 83.87 Peers -20.72

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MDSO is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

MDSO is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MDSO 8.33 Peers 5.79   MDSO 20.19 Peers 18.30

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

MDSO is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

MDSO has a sales growth rate that exceeds its peers.

 

 

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