MERIT MEDICAL SYSTEMS INC (MMSI) Stock Fundamental Analysis
USA - NASDAQ:MMSI - US5898891040 - Common Stock
87.2 USD
+2.32 (+2.73%)
87.2 USD
0 (0%)
Overall MMSI gets a fundamental rating of 6 out of 10. We evaluated MMSI against 188 industry peers in the Health Care Equipment & Supplies industry. MMSI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MMSI has a decent growth rate and is not valued too expensively. 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.
Each year in the past 5 years MMSI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.50%, MMSI is in the better half of the industry, outperforming 79.26% of the companies in the same industry.
MMSI's Return On Equity of 7.74% is amongst the best of the industry. MMSI outperforms 80.85% of its industry peers.
MMSI's Return On Invested Capital of 6.02% is fine compared to the rest of the industry. MMSI outperforms 79.26% 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 8.98%.
The last Return On Invested Capital (6.02%) for MMSI is above the 3 year average (5.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 7.74% | ||
| ROIC | 6.02% |
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 has a Profit Margin of 8.02%. This is in the better half of the industry: MMSI outperforms 79.79% of its industry peers.
In the last couple of years the Profit Margin of MMSI has grown nicely.
The Operating Margin of MMSI (11.89%) is better than 78.72% of its industry peers.
MMSI's Operating Margin has improved in the last couple of years.
MMSI has a Gross Margin (48.47%) which is in line with its industry peers.
In the last couple of years the Gross Margin of MMSI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.89% | ||
| PM (TTM) | 8.02% | ||
| GM | 48.47% |
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.
The number of shares outstanding for MMSI has been increased compared to 1 year ago.
Compared to 5 years ago, MMSI has more shares outstanding
Compared to 1 year ago, MMSI has an improved debt to assets ratio.
2.2 Solvency
MMSI has an Altman-Z score of 4.28. 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 4.28, MMSI is in the better half of the industry, outperforming 76.60% of the companies in the same industry.
MMSI has a debt to FCF ratio of 3.60. This is a good value and a sign of high solvency as MMSI would need 3.60 years to pay back of all of its debts.
MMSI has a Debt to FCF ratio of 3.60. This is amongst the best in the industry. MMSI outperforms 82.45% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that MMSI is not too dependend on debt financing.
MMSI has a Debt to Equity ratio of 0.48. This is comparable to the rest of the industry: MMSI outperforms 43.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.6 | ||
| Altman-Z | 4.28 |
ROIC/WACC0.76
WACC7.93%
2.3 Liquidity
MMSI has a Current Ratio of 4.28. This indicates that MMSI is financially healthy and has no problem in meeting its short term obligations.
MMSI has a Current ratio of 4.28. This is in the better half of the industry: MMSI outperforms 72.34% of its industry peers.
A Quick Ratio of 2.86 indicates that MMSI has no problem at all paying its short term obligations.
MMSI's Quick ratio of 2.86 is fine compared to the rest of the industry. MMSI outperforms 65.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.28 | ||
| Quick Ratio | 2.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.71% over the past year.
The Earnings Per Share has been growing by 18.81% on average over the past years. This is quite good.
Looking at the last year, MMSI shows a quite strong growth in Revenue. The Revenue has grown by 11.41% in the last year.
The Revenue has been growing slightly by 6.40% on average over the past years.
EPS 1Y (TTM)10.71%
EPS 3Y13.66%
EPS 5Y18.81%
EPS Q2Q%6.98%
Revenue 1Y (TTM)11.41%
Revenue growth 3Y8.07%
Revenue growth 5Y6.4%
Sales Q2Q%13.04%
3.2 Future
The Earnings Per Share is expected to grow by 9.76% on average over the next years. This is quite good.
MMSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.55% yearly.
EPS Next Y8.72%
EPS Next 2Y8.54%
EPS Next 3Y8.58%
EPS Next 5Y9.76%
Revenue Next Year11.45%
Revenue Next 2Y8.95%
Revenue Next 3Y7.91%
Revenue Next 5Y7.55%
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
Based on the Price/Earnings ratio of 23.44, the valuation of MMSI can be described as rather expensive.
79.79% 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 25.07. MMSI is around the same levels.
The Price/Forward Earnings ratio is 21.27, which indicates a rather expensive current valuation of MMSI.
77.13% of the companies in the same industry are more expensive than MMSI, based on the Price/Forward Earnings ratio.
MMSI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 21.27 |
4.2 Price Multiples
75.53% of the companies in the same industry are more expensive than MMSI, based on the Enterprise Value to EBITDA ratio.
80.32% 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 | 25.34 | ||
| EV/EBITDA | 18.71 |
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.
The decent profitability rating of MMSI may justify a higher PE ratio.
PEG (NY)2.69
PEG (5Y)1.25
EPS Next 2Y8.54%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
No dividends for MMSI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
87.2
+2.32 (+2.73%)
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 Change53.07%
Ins Owners2.31%
Ins Owner Change2%
Market Cap5.16B
Revenue(TTM)1.48B
Net Income(TTM)118.43M
Analysts84.71
Price Target106.49 (22.12%)
Short Float %5.34%
Short Ratio4.63
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)12.42%
Min EPS beat(2)8.41%
Max EPS beat(2)16.43%
EPS beat(4)4
Avg EPS beat(4)11.85%
Min EPS beat(4)8.41%
Max EPS beat(4)16.43%
EPS beat(8)8
Avg EPS beat(8)8.2%
EPS beat(12)12
Avg EPS beat(12)9.61%
EPS beat(16)16
Avg EPS beat(16)12.71%
Revenue beat(2)2
Avg Revenue beat(2)0.84%
Min Revenue beat(2)0.41%
Max Revenue beat(2)1.27%
Revenue beat(4)2
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)1.27%
Revenue beat(8)3
Avg Revenue beat(8)-0.23%
Revenue beat(12)6
Avg Revenue beat(12)0.28%
Revenue beat(16)10
Avg Revenue beat(16)0.77%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)1.18%
EPS NQ rev (3m)4.87%
EPS NY rev (1m)2.86%
EPS NY rev (3m)10.81%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 21.27 | ||
| P/S | 3.5 | ||
| P/FCF | 25.34 | ||
| P/OCF | 19.3 | ||
| P/B | 3.38 | ||
| P/tB | 10.68 | ||
| EV/EBITDA | 18.71 |
EPS(TTM)3.72
EY4.27%
EPS(NY)4.1
Fwd EY4.7%
FCF(TTM)3.44
FCFY3.95%
OCF(TTM)4.52
OCFY5.18%
SpS24.94
BVpS25.83
TBVpS8.17
PEG (NY)2.69
PEG (5Y)1.25
Graham Number46.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 7.74% | ||
| ROCE | 7.31% | ||
| ROIC | 6.02% | ||
| ROICexc | 7.19% | ||
| ROICexgc | 15.01% | ||
| OM | 11.89% | ||
| PM (TTM) | 8.02% | ||
| GM | 48.47% | ||
| FCFM | 13.8% |
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%
ROICexgc growth 3Y18.8%
ROICexgc 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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.6 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 57.39% | ||
| Cap/Sales | 4.32% | ||
| Interest Coverage | 6.24 | ||
| Cash Conversion | 93.31% | ||
| Profit Quality | 172.08% | ||
| Current Ratio | 4.28 | ||
| Quick Ratio | 2.86 | ||
| Altman-Z | 4.28 |
F-Score6
WACC7.93%
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)10.71%
EPS 3Y13.66%
EPS 5Y18.81%
EPS Q2Q%6.98%
EPS Next Y8.72%
EPS Next 2Y8.54%
EPS Next 3Y8.58%
EPS Next 5Y9.76%
Revenue 1Y (TTM)11.41%
Revenue growth 3Y8.07%
Revenue growth 5Y6.4%
Sales Q2Q%13.04%
Revenue Next Year11.45%
Revenue Next 2Y8.95%
Revenue Next 3Y7.91%
Revenue Next 5Y7.55%
EBIT growth 1Y14.96%
EBIT growth 3Y29.73%
EBIT growth 5Y33.17%
EBIT Next Year41.2%
EBIT Next 3Y16.55%
EBIT Next 5Y15.58%
FCF growth 1Y186.22%
FCF growth 3Y16.23%
FCF growth 5YN/A
OCF growth 1Y141.3%
OCF growth 3Y14.47%
OCF growth 5Y23.2%
MERIT MEDICAL SYSTEMS INC / MMSI FAQ
Can you provide the ChartMill fundamental rating for MERIT MEDICAL SYSTEMS INC?
ChartMill assigns a fundamental rating of 6 / 10 to MMSI.
What is the valuation status of MERIT MEDICAL SYSTEMS INC (MMSI) stock?
ChartMill assigns a valuation rating of 5 / 10 to MERIT MEDICAL SYSTEMS INC (MMSI). This can be considered as Fairly Valued.
How profitable is MERIT MEDICAL SYSTEMS INC (MMSI) stock?
MERIT MEDICAL SYSTEMS INC (MMSI) has a profitability rating of 7 / 10.
What are the PE and PB ratios of MERIT MEDICAL SYSTEMS INC (MMSI) stock?
The Price/Earnings (PE) ratio for MERIT MEDICAL SYSTEMS INC (MMSI) is 23.44 and the Price/Book (PB) ratio is 3.38.
Can you provide the expected EPS growth for MMSI stock?
The Earnings per Share (EPS) of MERIT MEDICAL SYSTEMS INC (MMSI) is expected to grow by 8.72% in the next year.