Leandro
Equity Analyst at Best Anchor Stocks
Medpace's feared FY2027 revenue cliff will likely be avoided because its pipeline is filling up despite two quarters of weak book-to-bill. Backlog is a poor leading indicator of revenue, partly because Medpace also keeps a pre-backlog of business awarded but not yet certain to reach revenue. x.comÂ
Medpace's earnings are re-accelerating with clean follow-through, and most importantly its net book-to-bill is back above 1. x.comÂ
Broadwind is priced at 0.6x sales, about $96M, though US heavy-gearing capacity is slow to add, as heat-treat lines and qualified machinists take years. After selling the Abilene tower plant, it is purely a power-generation gearing and fabrication business. Q2 continuing revenue rose 67% to $24.3M, backlog rose 93%, book-to-bill hit 1.5x and net debt is $5M. The risk: trailing revenue of about $140M is still falling and orders are lumpy, so backlog must convert before old wind revenue rolls off. … Show more
