Medidata Solutions Inc

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MDSO : NASDAQ : Technology
$56.73 up 0.14 | 0.25%
Today's Range: 56.45 - 56.8
Avg. Daily Volume: 445800.0
03/29/17 - 10:00 AM ET

Financial Analysis


MEDIDATA SOLUTIONS INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. MEDIDATA SOLUTIONS INC is extremely liquid. Currently, the Quick Ratio is 3.70 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.

At the same time, stockholders' equity ("net worth") has greatly increased by 41.46% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)124.4798.87
EBITDA ($mil)21.9512.56
EBIT ($mil)17.59.68
Net Income ($mil)10.846.82


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)374.8269.89
Total Assets ($mil)817.89687.48
Total Debt ($mil)263.4252.79
Equity ($mil)401.99284.16


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin79.6880.72
EBITDA Margin17.6312.69
Operating Margin14.069.79
Sales Turnover0.570.57
Return on Assets3.541.91
Return on Equity7.24.63
Debt Q4 FY16 Q4 FY15
Current Ratio3.923.16
Debt/Capital0.40.47
Interest Expense4.764.2
Interest Coverage3.682.3


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)57.7356.31
Div / share0.00.0
EPS0.190.12
Book value / share6.965.05
Institutional Own % n/a n/a
Avg Daily Volume426031.0517262.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 217.29 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 26.33. For additional comparison, its price-to-book ratio of 7.93 indicates a significant premium versus the S&P 500 average of 2.93 and a significant premium versus the industry average of 5.32. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MDSO 108.25 Peers 217.29   MDSO 35.91 Peers 23.93

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

MDSO is trading at a significant discount 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 significant 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 36.56 Peers 34.29   MDSO 0.75 Peers 0.88

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 7.93 Peers 5.32   MDSO 121.73 Peers -49.82

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 6.88 Peers 5.18   MDSO 18.05 Peers 18.48

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

MDSO is keeping pace with its peers on the basis of sales growth.

 

 

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