MERIT MEDICAL SYSTEMS INC (MMSI) Stock Fundamental Analysis
USA - NASDAQ:MMSI - US5898891040 - Common Stock
83.8048 USD
+0.59 (+0.71%)
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. MMSI gets an excellent profitability rating and is at the same time showing great financial health properties. MMSI is not valued too expensively and it also shows a decent growth rate. These ratings could make MMSI a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
MMSI had positive earnings in the past year.
MMSI had a positive operating cash flow in the past year.
MMSI had positive earnings in 4 of the past 5 years.
MMSI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MMSI (4.61%) is better than 80.53% of its industry peers.
With an excellent Return On Equity value of 8.01%, MMSI belongs to the best of the industry, outperforming 82.11% of the companies in the same industry.
The Return On Invested Capital of MMSI (5.93%) is better than 80.53% of its industry peers.
MMSI had an Average Return On Invested Capital over the past 3 years of 5.44%. This is below the industry average of 8.88%.
The last Return On Invested Capital (5.93%) for MMSI is above the 3 year average (5.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 8.01% | ||
| ROIC | 5.93% |
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 8.31% is amongst the best of the industry. MMSI outperforms 81.58% of its industry peers.
MMSI's Profit Margin has improved in the last couple of years.
MMSI has a Operating Margin of 11.88%. This is in the better half of the industry: MMSI outperforms 78.95% of its industry peers.
In the last couple of years the Operating Margin of MMSI has grown nicely.
MMSI's Gross Margin of 47.95% is in line compared to the rest of the industry. MMSI outperforms 42.63% of its industry peers.
In the last couple of years the Gross Margin of MMSI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.88% | ||
| PM (TTM) | 8.31% | ||
| GM | 47.95% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MMSI is destroying value.
The number of shares outstanding for MMSI has been increased compared to 1 year ago.
The number of shares outstanding for MMSI has been increased compared to 5 years ago.
MMSI has a better debt/assets ratio than last year.
2.2 Solvency
MMSI has an Altman-Z score of 4.20. This indicates that MMSI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.20, MMSI is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
The Debt to FCF ratio of MMSI is 3.86, which is a good value as it means it would take MMSI, 3.86 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MMSI (3.86) is better than 82.63% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that MMSI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.49, MMSI is in line with its industry, outperforming 43.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 4.2 |
ROIC/WACC0.76
WACC7.82%
2.3 Liquidity
A Current Ratio of 4.09 indicates that MMSI has no problem at all paying its short term obligations.
MMSI has a Current ratio of 4.09. This is in the better half of the industry: MMSI outperforms 70.53% of its industry peers.
MMSI has a Quick Ratio of 2.66. This indicates that MMSI is financially healthy and has no problem in meeting its short term obligations.
MMSI has a Quick ratio of 2.66. This is in the better half of the industry: MMSI outperforms 63.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.09 | ||
| Quick Ratio | 2.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.62% over the past year.
MMSI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.81% yearly.
The Revenue has grown by 10.11% in the past year. This is quite good.
The Revenue has been growing slightly by 6.40% on average over the past years.
EPS 1Y (TTM)12.62%
EPS 3Y13.66%
EPS 5Y18.81%
EPS Q2Q%9.78%
Revenue 1Y (TTM)10.11%
Revenue growth 3Y8.07%
Revenue growth 5Y6.4%
Sales Q2Q%13.15%
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 9.29% 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 Y5.69%
EPS Next 2Y7.76%
EPS Next 3Y7.77%
EPS Next 5Y9.29%
Revenue Next Year10.87%
Revenue Next 2Y8.58%
Revenue Next 3Y7.51%
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 decreasing.
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
Based on the Price/Earnings ratio of 22.90, the valuation of MMSI can be described as rather expensive.
79.47% of the companies in the same industry are more expensive than MMSI, based on the Price/Earnings ratio.
MMSI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 20.74, MMSI is valued on the expensive side.
78.95% of the companies in the same industry are more expensive than MMSI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.18. MMSI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 20.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMSI is valued a bit cheaper than 77.37% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MMSI is valued cheaper than 83.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.16 | ||
| EV/EBITDA | 19.03 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.02
PEG (5Y)1.22
EPS Next 2Y7.76%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
MMSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:MMSI (10/21/2025, 2:27:59 PM)
83.8048
+0.59 (+0.71%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners107.74%
Inst Owner Change0.47%
Ins Owners2.31%
Ins Owner Change3.17%
Market Cap4.96B
Analysts84.71
Price Target106.49 (27.07%)
Short Float %5.57%
Short Ratio4.92
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)14.5%
Min EPS beat(2)12.57%
Max EPS beat(2)16.43%
EPS beat(4)4
Avg EPS beat(4)11.15%
Min EPS beat(4)5.6%
Max EPS beat(4)16.43%
EPS beat(8)8
Avg EPS beat(8)8.85%
EPS beat(12)12
Avg EPS beat(12)10.47%
EPS beat(16)16
Avg EPS beat(16)13.24%
Revenue beat(2)1
Avg Revenue beat(2)-0.39%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)0.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)0.41%
Revenue beat(8)3
Avg Revenue beat(8)-0.28%
Revenue beat(12)6
Avg Revenue beat(12)0.46%
Revenue beat(16)10
Avg Revenue beat(16)0.73%
PT rev (1m)0%
PT rev (3m)-4.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.58%
EPS NY rev (1m)0%
EPS NY rev (3m)7.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 20.74 | ||
| P/S | 3.46 | ||
| P/FCF | 26.16 | ||
| P/OCF | 20.68 | ||
| P/B | 3.34 | ||
| P/tB | 11.78 | ||
| EV/EBITDA | 19.03 |
EPS(TTM)3.66
EY4.37%
EPS(NY)4.04
Fwd EY4.82%
FCF(TTM)3.2
FCFY3.82%
OCF(TTM)4.05
OCFY4.83%
SpS24.19
BVpS25.13
TBVpS7.11
PEG (NY)4.02
PEG (5Y)1.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 8.01% | ||
| ROCE | 7.21% | ||
| ROIC | 5.93% | ||
| ROICexc | 6.94% | ||
| ROICexgc | 14.71% | ||
| OM | 11.88% | ||
| PM (TTM) | 8.31% | ||
| GM | 47.95% | ||
| FCFM | 13.24% |
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-Score6
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 46% | ||
| Cap/Sales | 3.51% | ||
| Interest Coverage | 5.26 | ||
| Cash Conversion | 85.85% | ||
| Profit Quality | 159.24% | ||
| Current Ratio | 4.09 | ||
| Quick Ratio | 2.66 | ||
| Altman-Z | 4.2 |
F-Score6
WACC7.82%
ROIC/WACC0.76
Cap/Depr(3y)44.28%
Cap/Depr(5y)44.37%
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)12.62%
EPS 3Y13.66%
EPS 5Y18.81%
EPS Q2Q%9.78%
EPS Next Y5.69%
EPS Next 2Y7.76%
EPS Next 3Y7.77%
EPS Next 5Y9.29%
Revenue 1Y (TTM)10.11%
Revenue growth 3Y8.07%
Revenue growth 5Y6.4%
Sales Q2Q%13.15%
Revenue Next Year10.87%
Revenue Next 2Y8.58%
Revenue Next 3Y7.51%
Revenue Next 5Y7.36%
EBIT growth 1Y13.05%
EBIT growth 3Y29.73%
EBIT growth 5Y33.17%
EBIT Next Year41.2%
EBIT Next 3Y16.55%
EBIT Next 5Y14.85%
FCF growth 1Y291.11%
FCF growth 3Y16.23%
FCF growth 5YN/A
OCF growth 1Y151.79%
OCF growth 3Y14.47%
OCF growth 5Y23.2%