MMSI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 184 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. With these ratings, MMSI could be worth investigating further for quality investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Of the past 5 years MMSI 4 years were profitable.
Each year in the past 5 years MMSI had a positive operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 4.50%, MMSI belongs to the best of the industry, outperforming 80.43% of the companies in the same industry.
The Return On Equity of MMSI (7.74%) is better than 82.07% of its industry peers.
MMSI's Return On Invested Capital of 6.02% is fine compared to the rest of the industry. MMSI outperforms 78.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MMSI is below the industry average of 8.81%.
The 3 year average ROIC (5.44%) for MMSI is below the current ROIC(6.02%), indicating increased profibility in the last year.

		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

The Profit Margin of MMSI (8.02%) is better than 80.98% of its industry peers.
MMSI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.89%, MMSI is in the better half of the industry, outperforming 79.89% of the companies in the same industry.
In the last couple of years the Operating Margin of MMSI has grown nicely.
MMSI's Gross Margin of 48.47% is in line compared to the rest of the industry. MMSI outperforms 42.39% of its industry peers.
MMSI's Gross Margin has improved in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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

An Altman-Z score of 4.21 indicates that MMSI is not in any danger for bankruptcy at the moment.
MMSI's Altman-Z score of 4.21 is fine compared to the rest of the industry. MMSI outperforms 74.46% of its industry peers.
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.
The Debt to FCF ratio of MMSI (3.60) is better than 82.07% of its industry peers.
MMSI has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
MMSI's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. MMSI outperforms 42.93% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.48
Debt/FCF	3.6
Altman-Z	4.21

ROIC/WACC0.63

WACC9.62%

2.3 Liquidity

A Current Ratio of 4.28 indicates that MMSI has no problem at all paying its short term obligations.
MMSI has a better Current ratio (4.28) than 72.28% of its industry peers.
A Quick Ratio of 2.86 indicates that MMSI has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.86, MMSI is in the better half of the industry, outperforming 65.22% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	4.28
Quick Ratio	2.86

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

MMSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.71%, which is quite good.
Measured over the past years, MMSI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.81% on average per year.
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

MMSI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.25% yearly.
MMSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.21% yearly.

EPS Next Y9.63%

EPS Next 2Y8.9%

EPS Next 3Y8.71%

EPS Next 5Y9.25%

Revenue Next Year11.74%

Revenue Next 2Y8.91%

Revenue Next 3Y7.83%

Revenue Next 5Y7.21%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 22.15, which indicates a rather expensive current valuation of MMSI.
Based on the Price/Earnings ratio, MMSI is valued cheaper than 81.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.87, MMSI is valued a bit cheaper.
The Price/Forward Earnings ratio is 19.97, which indicates a rather expensive current valuation of MMSI.
Based on the Price/Forward Earnings ratio, MMSI is valued cheaper than 81.52% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.96. MMSI is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	22.15
Fwd PE	19.97

4.2 Price Multiples

MMSI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MMSI is cheaper than 78.80% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MMSI is valued cheaper than 85.87% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	23.97
EV/EBITDA	18.25

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MMSI has an outstanding profitability rating, which may justify a higher PE ratio.