MERIT MEDICAL SYSTEMS INC (MMSI)
US5898891040 - Common Stock
MMSI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 187 industry peers in the Health Care Equipment & Supplies industry. While MMSI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MMSI is not valued too expensively and it also shows a decent 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.
MMSI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MMSI (5.05%) is better than 85.56% of its industry peers.
The Return On Equity of MMSI (9.07%) is better than 84.49% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.12%, MMSI belongs to the top 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 8.19%.
The 3 year average ROIC (5.15%) for MMSI is below the current ROIC(6.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 9.07% | ||
| ROIC | 6.12% |
ROA(3y)3.83%
ROA(5y)2.24%
ROE(3y)6.34%
ROE(5y)3.72%
ROIC(3y)5.15%
ROIC(5y)4.15%
1.3 Margins
With an excellent Profit Margin value of 9.05%, MMSI belongs to the best of the industry, outperforming 82.89% of the companies in the same industry.
In the last couple of years the Profit Margin of MMSI has grown nicely.
MMSI has a Operating Margin of 11.52%. This is in the better half of the industry: MMSI outperforms 79.14% of its industry peers.
MMSI's Operating Margin has improved in the last couple of years.
The Gross Margin of MMSI (46.83%) is worse than 60.43% of its industry peers.
In the last couple of years the Gross Margin of MMSI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.52% | ||
| PM (TTM) | 9.05% | ||
| GM | 46.83% |
OM growth 3Y23.17%
OM growth 5Y9.12%
PM growth 3YN/A
PM growth 5Y9.56%
GM growth 3Y3.72%
GM growth 5Y0.76%
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.
Compared to 5 years ago, MMSI has more shares outstanding
The debt/assets ratio for MMSI is higher compared to a year ago.
2.2 Solvency
MMSI has an Altman-Z score of 4.84. This indicates that MMSI is financially healthy and has little risk of bankruptcy at the moment.
MMSI has a better Altman-Z score (4.84) than 75.94% of its industry peers.
MMSI has a debt to FCF ratio of 4.39. This is a neutral value as MMSI would need 4.39 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 4.39, MMSI belongs to the best of the industry, outperforming 83.42% of the companies in the same industry.
MMSI has a Debt/Equity ratio of 0.57. This is a neutral value indicating MMSI is somewhat dependend on debt financing.
MMSI has a worse Debt to Equity ratio (0.57) than 65.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 4.39 | ||
| Altman-Z | 4.84 |
ROIC/WACC0.71
WACC8.63%
2.3 Liquidity
A Current Ratio of 5.36 indicates that MMSI has no problem at all paying its short term obligations.
MMSI has a better Current ratio (5.36) than 76.47% of its industry peers.
MMSI has a Quick Ratio of 3.82. This indicates that MMSI is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of MMSI (3.82) is better than 75.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.36 | ||
| Quick Ratio | 3.82 |
3. Growth
3.1 Past
MMSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.37%, which is quite good.
The Earnings Per Share has been growing by 12.24% on average over the past years. This is quite good.
The Revenue has grown by 8.12% in the past year. This is quite good.
The Revenue has been growing slightly by 7.33% on average over the past years.
EPS 1Y (TTM)12.37%
EPS 3Y22.19%
EPS 5Y12.24%
EPS Q2Q%14.67%
Revenue 1Y (TTM)8.12%
Revenue growth 3Y9.26%
Revenue growth 5Y7.33%
Sales Q2Q%7.81%
3.2 Future
Based on estimates for the next years, MMSI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.63% on average per year.
Based on estimates for the next years, MMSI will show a small growth in Revenue. The Revenue will grow by 7.37% on average per year.
EPS Next Y13.63%
EPS Next 2Y12.19%
EPS Next 3Y11.74%
EPS Next 5Y10.63%
Revenue Next Year7.59%
Revenue Next 2Y8.3%
Revenue Next 3Y7.33%
Revenue Next 5Y7.37%
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 stable.
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
The Price/Earnings ratio is 29.19, which means the current valuation is very expensive for MMSI.
Compared to the rest of the industry, the Price/Earnings ratio of MMSI indicates a somewhat cheap valuation: MMSI is cheaper than 75.94% of the companies listed in the same industry.
MMSI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
Based on the Price/Forward Earnings ratio of 25.89, the valuation of MMSI can be described as expensive.
Based on the Price/Forward Earnings ratio, MMSI is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.99, MMSI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.19 | ||
| Fwd PE | 25.89 |
4.2 Price Multiples
75.94% of the companies in the same industry are more expensive than MMSI, based on the Enterprise Value to EBITDA ratio.
81.82% 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 | 33.43 | ||
| EV/EBITDA | 23.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MMSI does not grow enough to justify the current Price/Earnings ratio.
MMSI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.14
PEG (5Y)2.39
EPS Next 2Y12.19%
EPS Next 3Y11.74%
5. Dividend
5.1 Amount
MMSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MERIT MEDICAL SYSTEMS INC
NASDAQ:MMSI (12/24/2024, 7:25:54 PM)
After market: 98.08 0 (0%)98.08
+0.47 (+0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners106.07%
Inst Owner Change1.12%
Ins Owners2.46%
Ins Owner Change0.29%
Market Cap5.72B
Analysts83.53
Price Target112.29 (14.49%)
Short Float %4.5%
Short Ratio6.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)4.4%
Min EPS beat(2)3.2%
Max EPS beat(2)5.6%
EPS beat(4)4
Avg EPS beat(4)4.56%
Min EPS beat(4)3.2%
Max EPS beat(4)5.61%
EPS beat(8)8
Avg EPS beat(8)8.49%
EPS beat(12)12
Avg EPS beat(12)13%
EPS beat(16)16
Avg EPS beat(16)17.14%
Revenue beat(2)0
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-0.95%
Max Revenue beat(2)-0.43%
Revenue beat(4)1
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-0.95%
Max Revenue beat(4)0.52%
Revenue beat(8)4
Avg Revenue beat(8)0.46%
Revenue beat(12)8
Avg Revenue beat(12)1.06%
Revenue beat(16)12
Avg Revenue beat(16)1.89%
PT rev (1m)1.09%
PT rev (3m)11.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.53%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.19 | ||
| Fwd PE | 25.89 | ||
| P/S | 4.31 | ||
| P/FCF | 33.43 | ||
| P/OCF | 26.67 | ||
| P/B | 4.32 | ||
| P/tB | 10.36 | ||
| EV/EBITDA | 23.62 |
EPS(TTM)3.36
EY3.43%
EPS(NY)3.79
Fwd EY3.86%
FCF(TTM)2.93
FCFY2.99%
OCF(TTM)3.68
OCFY3.75%
SpS22.75
BVpS22.71
TBVpS9.47
PEG (NY)2.14
PEG (5Y)2.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 9.07% | ||
| ROCE | 7.02% | ||
| ROIC | 6.12% | ||
| ROICexc | 8.05% | ||
| ROICexgc | 15.1% | ||
| OM | 11.52% | ||
| PM (TTM) | 9.05% | ||
| GM | 46.83% | ||
| FCFM | 12.9% |
ROA(3y)3.83%
ROA(5y)2.24%
ROE(3y)6.34%
ROE(5y)3.72%
ROIC(3y)5.15%
ROIC(5y)4.15%
ROICexc(3y)5.99%
ROICexc(5y)4.7%
ROICexgc(3y)11.38%
ROICexgc(5y)9.11%
ROCE(3y)5.9%
ROCE(5y)4.76%
ROICexcg growth 3Y26.79%
ROICexcg growth 5Y9.08%
ROICexc growth 3Y31.22%
ROICexc growth 5Y14.61%
OM growth 3Y23.17%
OM growth 5Y9.12%
PM growth 3YN/A
PM growth 5Y9.56%
GM growth 3Y3.72%
GM growth 5Y0.76%
F-Score5
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 4.39 | ||
| Debt/EBITDA | 3 | ||
| Cap/Depr | 44.34% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 6.01 | ||
| Cash Conversion | 85.58% | ||
| Profit Quality | 142.45% | ||
| Current Ratio | 5.36 | ||
| Quick Ratio | 3.82 | ||
| Altman-Z | 4.84 |
F-Score5
WACC8.63%
ROIC/WACC0.71
Cap/Depr(3y)44.14%
Cap/Depr(5y)54.66%
Cap/Sales(3y)3.23%
Cap/Sales(5y)4.6%
Profit Quality(3y)149.3%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.37%
EPS 3Y22.19%
EPS 5Y12.24%
EPS Q2Q%14.67%
EPS Next Y13.63%
EPS Next 2Y12.19%
EPS Next 3Y11.74%
EPS Next 5Y10.63%
Revenue 1Y (TTM)8.12%
Revenue growth 3Y9.26%
Revenue growth 5Y7.33%
Sales Q2Q%7.81%
Revenue Next Year7.59%
Revenue Next 2Y8.3%
Revenue Next 3Y7.33%
Revenue Next 5Y7.37%
EBIT growth 1Y25.71%
EBIT growth 3Y34.59%
EBIT growth 5Y17.12%
EBIT Next Year36.38%
EBIT Next 3Y19.78%
EBIT Next 5Y12.68%
FCF growth 1Y88.95%
FCF growth 3Y-2.22%
FCF growth 5Y39.95%
OCF growth 1Y62.23%
OCF growth 3Y-4.24%
OCF growth 5Y10.91%