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 190 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.
In the past 5 years MMSI always reported a positive cash flow from operatings.
1.2 Ratios
MMSI has a better Return On Assets (5.05%) than 84.04% of its industry peers.
MMSI has a better Return On Equity (9.07%) than 84.57% of its industry peers.
MMSI's Return On Invested Capital of 6.12% is amongst the best of the industry. MMSI outperforms 80.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
MMSI has a Profit Margin of 9.05%. This is amongst the best in the industry. MMSI outperforms 81.91% of its industry peers.
In the last couple of years the Profit Margin of MMSI has grown nicely.
MMSI's Operating Margin of 11.52% is fine compared to the rest of the industry. MMSI outperforms 79.26% of its industry peers.
In the last couple of years the Operating Margin of MMSI has grown nicely.
With a Gross Margin value of 46.83%, MMSI is not doing good in the industry: 60.64% of the companies in the same industry are doing better.
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.
Compared to 1 year ago, MMSI has more shares outstanding
The number of shares outstanding for MMSI has been increased compared to 5 years ago.
MMSI has a worse debt/assets ratio than last year.
2.2 Solvency
MMSI has an Altman-Z score of 5.03. This indicates that MMSI is financially healthy and has little risk of bankruptcy at the moment.
MMSI has a better Altman-Z score (5.03) than 77.66% of its industry peers.
The Debt to FCF ratio of MMSI is 4.39, which is a neutral value as it means it would take MMSI, 4.39 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MMSI (4.39) is better than 82.45% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that MMSI is somewhat dependend on debt financing.
The Debt to Equity ratio of MMSI (0.57) is worse than 65.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 4.39 | ||
| Altman-Z | 5.03 |
ROIC/WACC0.71
WACC8.64%
2.3 Liquidity
A Current Ratio of 5.36 indicates that MMSI has no problem at all paying its short term obligations.
The Current ratio of MMSI (5.36) is better than 78.72% of its industry peers.
A Quick Ratio of 3.82 indicates that MMSI has no problem at all paying its short term obligations.
The Quick ratio of MMSI (3.82) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.36 | ||
| Quick Ratio | 3.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.37% 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 12.24% on average per year.
Looking at the last year, MMSI shows a quite strong growth in Revenue. The Revenue has grown by 8.12% in the last year.
MMSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.33% yearly.
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.
MMSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.36% yearly.
EPS Next Y13.9%
EPS Next 2Y12.54%
EPS Next 3Y12.46%
EPS Next 5Y10.63%
Revenue Next Year7.98%
Revenue Next 2Y8.55%
Revenue Next 3Y7.8%
Revenue Next 5Y7.36%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MMSI is valuated quite expensively with a Price/Earnings ratio of 30.70.
MMSI's Price/Earnings ratio is a bit cheaper when compared to the industry. MMSI is cheaper than 74.47% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, MMSI is valued at the same level.
A Price/Forward Earnings ratio of 27.06 indicates a quite expensive valuation of MMSI.
Based on the Price/Forward Earnings ratio, MMSI is valued a bit cheaper than the industry average as 75.53% of the companies are valued more expensively.
MMSI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.7 | ||
| Fwd PE | 27.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMSI is valued a bit cheaper than the industry average as 73.40% of the companies are valued more expensively.
MMSI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MMSI is cheaper than 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.16 | ||
| EV/EBITDA | 24.92 |
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.
MMSI's earnings are expected to grow with 12.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.21
PEG (5Y)2.51
EPS Next 2Y12.54%
EPS Next 3Y12.46%
5. Dividend
5.1 Amount
No dividends for MMSI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
103.16
-2.5 (-2.37%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners106.43%
Inst Owner Change-89.15%
Ins Owners2.46%
Ins Owner Change0.29%
Market Cap6.01B
Analysts85
Price Target121.18 (17.47%)
Short Float %5.17%
Short Ratio6.13
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)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)4.95%
PT rev (3m)9.08%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)1.05%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.7 | ||
| Fwd PE | 27.06 | ||
| P/S | 4.53 | ||
| P/FCF | 35.16 | ||
| P/OCF | 28.05 | ||
| P/B | 4.54 | ||
| P/tB | 10.9 | ||
| EV/EBITDA | 24.92 |
EPS(TTM)3.36
EY3.26%
EPS(NY)3.81
Fwd EY3.7%
FCF(TTM)2.93
FCFY2.84%
OCF(TTM)3.68
OCFY3.56%
SpS22.75
BVpS22.71
TBVpS9.47
PEG (NY)2.21
PEG (5Y)2.51
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 | 5.03 |
F-Score5
WACC8.64%
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 Y13.9%
EPS Next 2Y12.54%
EPS Next 3Y12.46%
EPS Next 5Y10.63%
Revenue 1Y (TTM)8.12%
Revenue growth 3Y9.26%
Revenue growth 5Y7.33%
Sales Q2Q%7.81%
Revenue Next Year7.98%
Revenue Next 2Y8.55%
Revenue Next 3Y7.8%
Revenue Next 5Y7.36%
EBIT growth 1Y25.71%
EBIT growth 3Y34.59%
EBIT growth 5Y17.12%
EBIT Next Year36.59%
EBIT Next 3Y20.12%
EBIT Next 5Y12.78%
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%