Medidata Solutions Inc

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MDSO : NASDAQ : Technology
$56.00 up 0.59 | 1.10%
Today's Range: 55.37 - 56.11
Avg. Daily Volume: 379,500
09/27/16 - 2:25 PM 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
Debt/Capital0.450.46
Interest Expense4.184.0
Interest Coverage2.661.25


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)57.455.29
Div / share0.00.0
EPS0.090.03
Book value / share5.485.22
Institutional Own % n/a n/a
Avg Daily Volume385118.0353196.0

Valuation


BUY. MEDIDATA SOLUTIONS INC's P/E ratio indicates a significant premium compared to an average of 128.95 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 10.32 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 5.58. 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 145.10 Peers 128.95   MDSO 33.55 Peers 25.52

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

MDSO is trading at a 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 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 45.27 Peers 37.54   MDSO 0.43 Peers 1.51

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MDSO 10.32 Peers 5.58   MDSO 200.00 Peers 22.66

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 7.72 Peers 4.93   MDSO 15.06 Peers 54.26

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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