MERIT MEDICAL SYSTEMS INC (MMSI) Stock Fundamental Analysis
USA - NASDAQ:MMSI - US5898891040 - Common Stock
85.09 USD
-2.31 (-2.64%)
85.09 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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MMSI has a decent growth rate and is not valued too expensively. With these ratings, MMSI could be worth investigating further 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.
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 Return On Assets of 4.50%. This is in the better half of the industry: MMSI outperforms 79.37% of its industry peers.
With an excellent Return On Equity value of 7.74%, MMSI belongs to the best of the industry, outperforming 80.42% of the companies in the same industry.
MMSI has a better Return On Invested Capital (6.02%) than 79.37% 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 79.37% of its industry peers.
In the last couple of years the Profit Margin of MMSI has grown nicely.
MMSI has a better Operating Margin (11.89%) than 78.84% of its industry peers.
MMSI's Operating Margin has improved in the last couple of years.
MMSI's Gross Margin of 48.47% is in line compared to the rest of the industry. MMSI outperforms 43.39% of 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MMSI is destroying value.
Compared to 1 year ago, MMSI has more shares outstanding
MMSI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MMSI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.29 indicates that MMSI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.29, MMSI is in the better half of the industry, outperforming 77.25% 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.
The Debt to FCF ratio of MMSI (3.60) is better than 82.54% 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 has a Debt to Equity ratio (0.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.6 | ||
| Altman-Z | 4.29 |
ROIC/WACC0.76
WACC7.94%
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.
With a decent Current ratio value of 4.28, MMSI is doing good in the industry, outperforming 73.02% of the companies in the same industry.
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 67.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.28 | ||
| Quick Ratio | 2.86 |
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.
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 11.41% in the past year. This is quite good.
MMSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.40% yearly.
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 9.76% yearly.
Based on estimates for the next years, MMSI will show a small growth in Revenue. The Revenue will grow by 7.55% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 22.87, the valuation of MMSI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MMSI indicates a somewhat cheap valuation: MMSI is cheaper than 78.84% of the companies listed in the same industry.
MMSI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
MMSI is valuated rather expensively with a Price/Forward Earnings ratio of 20.75.
Based on the Price/Forward Earnings ratio, MMSI is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
MMSI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.87 | ||
| Fwd PE | 20.75 |
4.2 Price Multiples
MMSI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MMSI is cheaper than 76.72% of the companies in the same industry.
82.01% 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 | 24.73 | ||
| EV/EBITDA | 18.76 |
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.
PEG (NY)2.62
PEG (5Y)1.22
EPS Next 2Y8.54%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
MMSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
85.09
-2.31 (-2.64%)
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 Cap5.04B
Revenue(TTM)1.48B
Net Income(TTM)118.43M
Analysts84.71
Price Target106.49 (25.15%)
Short Float %5.77%
Short Ratio5.68
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 | 22.87 | ||
| Fwd PE | 20.75 | ||
| P/S | 3.41 | ||
| P/FCF | 24.73 | ||
| P/OCF | 18.83 | ||
| P/B | 3.29 | ||
| P/tB | 10.42 | ||
| EV/EBITDA | 18.76 |
EPS(TTM)3.72
EY4.37%
EPS(NY)4.1
Fwd EY4.82%
FCF(TTM)3.44
FCFY4.04%
OCF(TTM)4.52
OCFY5.31%
SpS24.94
BVpS25.83
TBVpS8.17
PEG (NY)2.62
PEG (5Y)1.22
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 | 4.29 |
F-Score6
WACC7.94%
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 22.87 and the Price/Book (PB) ratio is 3.29.
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.