Medidata Solutions Inc

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MDSO : NASDAQ : Technology
$53.95 up 0.16 | 0.30%
Today's Range: 53.62 - 54.22
Avg. Daily Volume: 374,500
08/29/16 - 10:51 AM ET

Financial Analysis

MEDIDATA SOLUTIONS INC's gross profit margin for the second quarter of its fiscal year 2016 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 3.57 which clearly shows the ability to cover any short-term cash needs. MDSO managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 9.07% 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 FY16 Q2 FY15
Net Sales ($mil)114.6198.08
EBITDA ($mil)14.917.62
EBIT ($mil)11.154.99
Net Income ($mil)4.941.51

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)318.28265.99
Total Assets ($mil)712.01672.33
Total Debt ($mil)256.35246.75
Equity ($mil)314.65288.48

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin77.8679.3
EBITDA Margin13.017.77
Operating Margin9.735.08
Sales Turnover0.590.54
Return on Assets3.121.08
Return on Equity7.082.52
Debt Q2 FY16 Q2 FY15
Current Ratio3.753.32
Interest Expense4.184.0
Interest Coverage2.661.25

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)57.455.29
Div / share0.00.0
Book value / share5.485.22
Institutional Own % n/a n/a
Avg Daily Volume376551.0374971.0


BUY. MEDIDATA SOLUTIONS INC's P/E ratio indicates a significant premium compared to an average of 124.67 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 25.13. For additional comparison, its price-to-book ratio of 9.71 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 5.56. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MDSO 136.54 Peers 124.67   MDSO 31.57 Peers 24.73

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

MDSO is trading at a valuation on par with 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 significant premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
MDSO 42.60 Peers 36.69   MDSO 0.40 Peers 1.46

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 significant discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MDSO 9.71 Peers 5.56   MDSO 200.00 Peers 22.78

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MDSO 7.26 Peers 5.71   MDSO 15.06 Peers 54.73

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.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

MDSO significantly trails its peers on the basis of sales growth



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