MERIT MEDICAL SYSTEMS INC (MMSI) Stock Fundamental Analysis
USA - NASDAQ:MMSI - US5898891040 - Common Stock
82.69 USD
-0.24 (-0.29%)
82.69 USD
0 (0%)
Overall MMSI gets a fundamental rating of 6 out of 10. We evaluated MMSI against 191 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making MMSI a very profitable company, without any liquidiy or solvency issues. MMSI has a decent growth rate and is not valued too expensively. This makes MMSI very considerable for quality investing!
1. Profitability
1.1 Basic Checks
MMSI had positive earnings in the past year.
In the past year MMSI had a positive cash flow from operations.
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
MMSI has a Return On Assets of 4.61%. This is amongst the best in the industry. MMSI outperforms 81.15% of its industry peers.
With an excellent Return On Equity value of 8.01%, MMSI belongs to the best of the industry, outperforming 81.68% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.93%, MMSI belongs to the top of the industry, outperforming 80.63% of the companies in the same industry.
MMSI had an Average Return On Invested Capital over the past 3 years of 5.44%. This is below the industry average of 8.46%.
The 3 year average ROIC (5.44%) for MMSI is below the current ROIC(5.93%), indicating increased profibility in the last year.
| 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
The Profit Margin of MMSI (8.31%) is better than 81.15% of its industry peers.
In the last couple of years the Profit Margin of MMSI has grown nicely.
The Operating Margin of MMSI (11.88%) is better than 78.53% 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 42.41% 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
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.
Compared to 1 year ago, MMSI has an improved debt to assets ratio.
2.2 Solvency
MMSI has an Altman-Z score of 4.19. This indicates that MMSI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MMSI (4.19) is better than 75.39% of its industry peers.
MMSI has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as MMSI would need 3.86 years to pay back of all of its debts.
MMSI has a Debt to FCF ratio of 3.86. This is amongst the best in the industry. MMSI outperforms 83.77% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that MMSI is not too dependend on debt financing.
MMSI has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 4.19 |
ROIC/WACC0.76
WACC7.84%
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 better Current ratio (4.09) than 69.63% 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.
Looking at the Quick ratio, with a value of 2.66, MMSI is in the better half of the industry, outperforming 63.35% of the companies in the same industry.
| 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.
The Revenue is expected to grow by 7.36% on average over the next years.
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 22.59, the valuation of MMSI can be described as rather expensive.
78.53% of the companies in the same industry are more expensive than MMSI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.20. MMSI is around the same levels.
With a Price/Forward Earnings ratio of 20.46, MMSI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, MMSI is valued a bit cheaper than 78.53% of the companies in the same industry.
MMSI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.59 | ||
| Fwd PE | 20.46 |
4.2 Price Multiples
MMSI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MMSI is cheaper than 76.96% of the companies in the same industry.
MMSI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MMSI is cheaper than 83.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.82 | ||
| EV/EBITDA | 17.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MMSI may justify a higher PE ratio.
PEG (NY)3.97
PEG (5Y)1.2
EPS Next 2Y7.76%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
No dividends for MMSI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
82.69
-0.24 (-0.29%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners109.35%
Inst Owner Change-2.42%
Ins Owners2.26%
Ins Owner Change0.75%
Market Cap4.90B
Analysts84.71
Price Target106.49 (28.78%)
Short Float %5.35%
Short Ratio4.79
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)-10.97%
EPS NY rev (1m)7.73%
EPS NY rev (3m)7.74%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.59 | ||
| Fwd PE | 20.46 | ||
| P/S | 3.42 | ||
| P/FCF | 25.82 | ||
| P/OCF | 20.41 | ||
| P/B | 3.29 | ||
| P/tB | 11.62 | ||
| EV/EBITDA | 17.83 |
EPS(TTM)3.66
EY4.43%
EPS(NY)4.04
Fwd EY4.89%
FCF(TTM)3.2
FCFY3.87%
OCF(TTM)4.05
OCFY4.9%
SpS24.19
BVpS25.13
TBVpS7.11
PEG (NY)3.97
PEG (5Y)1.2
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 | 2.46 | ||
| Cap/Depr | 39.56% | ||
| Cap/Sales | 3.51% | ||
| Interest Coverage | 5.26 | ||
| Cash Conversion | 80.71% | ||
| Profit Quality | 159.24% | ||
| Current Ratio | 4.09 | ||
| Quick Ratio | 2.66 | ||
| Altman-Z | 4.19 |
F-Score6
WACC7.84%
ROIC/WACC0.76
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)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 Year36.24%
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%