Medpace Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Medpace Holdings's Gross Margin % or its related term are showing as below:
FRA:01P'
s Gross Margin % Range Over the Past 10 Years
Min: 27.81 Med: 30.1 Max: 43.56
Current: 27.99
During the past 11 years, the highestGross Margin % of Medpace Holdings was 43.56%. The lowest was 27.81%. And the median was 30.10%.
FRA:01P's Gross Margin % is ranked worse than 78.97% of 214
companies
in the Medical Diagnostics & Research industry
Industry Median: 45.595
vs FRA:01P: 27.99
Medpace Holdings had a gross margin of 30.36% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Medpace Holdings was -1.20% per year.
Medpace Holdings Gross Margin % Historical Data
The historical data trend for Medpace Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Medpace Holdings's Gross Margin %
For the Diagnostics & Research subindustry, Medpace Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Medpace Holdings's Gross Margin % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Medpace Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Medpace Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Medpace Holdings had a gross margin of 30.36% for the quarter that ended in Mar. 2024 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Medpace Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Medpace Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Medpace is a late-stage contract research organization, or CRO, that provides full-service drug development and clinical trial services to small and midsized biotechnology, pharmaceutical, and medical device firms. Medpace also offers ancillary services such as bio-analytical laboratory services and imaging capabilities. The company was founded over 30 years ago, and it has over 5,400 employees across 40 countries. Medpace is headquartered in Cincinnati, Ohio, and its operations are principally based in the U.S., but it also operates in Europe, Asia, South America, Africa, and Australia. Cinven, a global private equity firm, acquired Medpace for $915 million in February 2014, and it exited Medpace in August 2018.
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