MERIT MEDICAL SYSTEMS INC (MMSI) Stock Fundamental Analysis
NASDAQ:MMSI - Nasdaq - US5898891040 - Common Stock - Currency: USD
Overall MMSI gets a fundamental rating of 6 out of 10. We evaluated MMSI against 187 industry peers in the Health Care Equipment & Supplies industry. MMSI has an excellent profitability rating, but there are some minor concerns on its financial health. MMSI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MMSI was profitable.
In the past year MMSI had a positive cash flow from operations.
Of the past 5 years MMSI 4 years were profitable.
In the past 5 years MMSI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 4.95%, MMSI belongs to the best of the industry, outperforming 83.42% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.56%, MMSI belongs to the top of the industry, outperforming 83.42% of the companies in the same industry.
With an excellent Return On Invested Capital value of 6.13%, MMSI belongs to the best of the industry, outperforming 81.28% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MMSI is below the industry average of 7.89%.
The 3 year average ROIC (5.44%) for MMSI is below the current ROIC(6.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 8.56% | ||
| ROIC | 6.13% |
ROA(3y)4.5%
ROA(5y)3.17%
ROE(3y)7.7%
ROE(5y)5.35%
ROIC(3y)5.44%
ROIC(5y)4.73%
1.3 Margins
MMSI's Profit Margin of 8.81% is amongst the best of the industry. MMSI outperforms 82.35% of its industry peers.
In the last couple of years the Profit Margin of MMSI has grown nicely.
MMSI's Operating Margin of 12.19% is fine compared to the rest of the industry. MMSI outperforms 79.68% of its industry peers.
MMSI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 47.80%, MMSI is in line with its industry, outperforming 42.25% of the companies in the same industry.
In the last couple of years the Gross Margin of MMSI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.19% | ||
| PM (TTM) | 8.81% | ||
| GM | 47.8% |
OM growth 3Y20.05%
OM growth 5Y25.17%
PM growth 3Y25.28%
PM growth 5Y74.22%
GM growth 3Y1.65%
GM growth 5Y1.76%
2. Health
2.1 Basic Checks
MMSI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MMSI has more shares outstanding than it did 1 year ago.
MMSI has more shares outstanding than it did 5 years ago.
MMSI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.76 indicates that MMSI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.76, MMSI is doing good in the industry, outperforming 75.40% of the companies in the same industry.
MMSI has a debt to FCF ratio of 4.10. This is a neutral value as MMSI would need 4.10 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.10, MMSI belongs to the top of the industry, outperforming 85.03% of the companies in the same industry.
MMSI has a Debt/Equity ratio of 0.51. This is a neutral value indicating MMSI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, MMSI is not doing good in the industry: 60.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | 4.76 |
ROIC/WACC0.75
WACC8.17%
2.3 Liquidity
MMSI has a Current Ratio of 4.87. This indicates that MMSI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.87, MMSI is in the better half of the industry, outperforming 73.26% of the companies in the same industry.
A Quick Ratio of 3.26 indicates that MMSI has no problem at all paying its short term obligations.
MMSI has a better Quick ratio (3.26) than 66.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.87 | ||
| Quick Ratio | 3.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.69% over the past year.
Measured over the past years, MMSI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.81% on average per year.
Looking at the last year, MMSI shows a quite strong growth in Revenue. The Revenue has grown by 8.18% in the last year.
The Revenue has been growing slightly by 6.40% on average over the past years.
EPS 1Y (TTM)13.69%
EPS 3Y13.66%
EPS 5Y18.81%
EPS Q2Q%11.69%
Revenue 1Y (TTM)8.18%
Revenue growth 3Y8.07%
Revenue growth 5Y6.4%
Sales Q2Q%9.84%
3.2 Future
MMSI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.35% yearly.
MMSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.60% yearly.
EPS Next Y-2.01%
EPS Next 2Y5.32%
EPS Next 3Y6.31%
EPS Next 5Y8.35%
Revenue Next Year9.78%
Revenue Next 2Y8.01%
Revenue Next 3Y7.43%
Revenue Next 5Y7.6%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.19, MMSI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, MMSI is valued a bit cheaper than 78.07% of the companies in the same industry.
When comparing the Price/Earnings ratio of MMSI to the average of the S&P500 Index (27.28), we can say MMSI is valued inline with the index average.
With a Price/Forward Earnings ratio of 24.23, MMSI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, MMSI is valued a bit cheaper than 73.80% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MMSI to the average of the S&P500 Index (21.76), we can say MMSI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.19 | ||
| Fwd PE | 24.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMSI is valued a bit cheaper than the industry average as 74.33% of the companies are valued more expensively.
81.28% of the companies in the same industry are more expensive than MMSI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.02 | ||
| EV/EBITDA | 20.24 |
4.3 Compensation for Growth
The excellent profitability rating of MMSI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.39
EPS Next 2Y5.32%
EPS Next 3Y6.31%
5. Dividend
5.1 Amount
MMSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
93.51
-0.47 (-0.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners108.77%
Inst Owner Change3.67%
Ins Owners2.26%
Ins Owner Change2.95%
Market Cap5.53B
Analysts84.71
Price Target111.08 (18.79%)
Short Float %5.67%
Short Ratio5.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.28%
Min EPS beat(2)10%
Max EPS beat(2)12.57%
EPS beat(4)4
Avg EPS beat(4)7.84%
Min EPS beat(4)3.2%
Max EPS beat(4)12.57%
EPS beat(8)8
Avg EPS beat(8)7.52%
EPS beat(12)12
Avg EPS beat(12)11.09%
EPS beat(16)16
Avg EPS beat(16)14.53%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.9%
Revenue beat(4)0
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.43%
Revenue beat(8)3
Avg Revenue beat(8)-0.19%
Revenue beat(12)6
Avg Revenue beat(12)0.67%
Revenue beat(16)10
Avg Revenue beat(16)1.34%
PT rev (1m)1.68%
PT rev (3m)-7.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-10.55%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.19 | ||
| Fwd PE | 24.23 | ||
| P/S | 3.98 | ||
| P/FCF | 31.02 | ||
| P/OCF | 24.55 | ||
| P/B | 3.87 | ||
| P/tB | 11.39 | ||
| EV/EBITDA | 20.24 |
EPS(TTM)3.57
EY3.82%
EPS(NY)3.86
Fwd EY4.13%
FCF(TTM)3.01
FCFY3.22%
OCF(TTM)3.81
OCFY4.07%
SpS23.49
BVpS24.17
TBVpS8.21
PEG (NY)N/A
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 8.56% | ||
| ROCE | 7.45% | ||
| ROIC | 6.13% | ||
| ROICexc | 7.42% | ||
| ROICexgc | 14.93% | ||
| OM | 12.19% | ||
| PM (TTM) | 8.81% | ||
| GM | 47.8% | ||
| FCFM | 12.83% |
ROA(3y)4.5%
ROA(5y)3.17%
ROE(3y)7.7%
ROE(5y)5.35%
ROIC(3y)5.44%
ROIC(5y)4.73%
ROICexc(3y)6.58%
ROICexc(5y)5.49%
ROICexgc(3y)12.83%
ROICexgc(5y)10.84%
ROCE(3y)6.61%
ROCE(5y)5.76%
ROICexcg growth 3Y18.8%
ROICexcg growth 5Y28.87%
ROICexc growth 3Y17.15%
ROICexc growth 5Y28.57%
OM growth 3Y20.05%
OM growth 5Y25.17%
PM growth 3Y25.28%
PM growth 5Y74.22%
GM growth 3Y1.65%
GM growth 5Y1.76%
F-Score7
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.1 | ||
| Debt/EBITDA | 2.52 | ||
| Cap/Depr | 39.09% | ||
| Cap/Sales | 3.39% | ||
| Interest Coverage | 5.1 | ||
| Cash Conversion | 77.75% | ||
| Profit Quality | 145.7% | ||
| Current Ratio | 4.87 | ||
| Quick Ratio | 3.26 | ||
| Altman-Z | 4.76 |
F-Score7
WACC8.17%
ROIC/WACC0.75
Cap/Depr(3y)41.47%
Cap/Depr(5y)42.68%
Cap/Sales(3y)3.21%
Cap/Sales(5y)3.52%
Profit Quality(3y)119.91%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.69%
EPS 3Y13.66%
EPS 5Y18.81%
EPS Q2Q%11.69%
EPS Next Y-2.01%
EPS Next 2Y5.32%
EPS Next 3Y6.31%
EPS Next 5Y8.35%
Revenue 1Y (TTM)8.18%
Revenue growth 3Y8.07%
Revenue growth 5Y6.4%
Sales Q2Q%9.84%
Revenue Next Year9.78%
Revenue Next 2Y8.01%
Revenue Next 3Y7.43%
Revenue Next 5Y7.6%
EBIT growth 1Y26.6%
EBIT growth 3Y29.73%
EBIT growth 5Y33.17%
EBIT Next Year31.14%
EBIT Next 3Y14.73%
EBIT Next 5Y14.26%
FCF growth 1Y160.05%
FCF growth 3Y16.23%
FCF growth 5YN/A
OCF growth 1Y92.77%
OCF growth 3Y14.47%
OCF growth 5Y23.2%