Medidata Solutions Inc

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MDSO : NASDAQ : Technology
$77.44 up 0.66 | 0.86%
Today's Range: 76.82 - 77.91
Avg. Daily Volume: 706400.0
07/25/17 - 11:03 AM ET

Financial Analysis


MEDIDATA SOLUTIONS INC's gross profit margin for the second 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 3.14 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 40.72% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)137.41114.61
EBITDA ($mil)19.3314.91
EBIT ($mil)13.7411.15
Net Income ($mil)8.256.21


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)367.11318.28
Total Assets ($mil)888.86712.01
Total Debt ($mil)270.65256.35
Equity ($mil)442.79314.65


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin80.7577.86
EBITDA Margin14.0613.01
Operating Margin10.09.73
Sales Turnover0.570.59
Return on Assets4.043.12
Return on Equity8.127.08
Debt Q2 FY17 Q2 FY16
Current Ratio3.373.75
Debt/Capital0.380.45
Interest Expense4.384.18
Interest Coverage3.142.66


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)58.557.4
Div / share0.00.0
EPS0.140.11
Book value / share7.575.48
Institutional Own % n/a n/a
Avg Daily Volume705240.0496889.0

Valuation


BUY. MEDIDATA SOLUTIONS INC's P/E ratio indicates a significant premium compared to an average of 76.89 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 24.66. For additional comparison, its price-to-book ratio of 10.01 indicates a significant premium versus the S&P 500 average of 3.07 and a significant premium versus the industry average of 6.28. 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 122.23 Peers 76.89   MDSO 39.61 Peers 39.05

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.

 

Average. 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 valuation on par 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 50.19 Peers 45.44   MDSO 0.80 Peers 0.93

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 significant 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 10.01 Peers 6.28   MDSO 58.97 Peers 12.65

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 8.71 Peers 6.09   MDSO 20.89 Peers 17.98

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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