MERIT MEDICAL SYSTEMS INC (MMSI) Stock Fundamental Analysis
NASDAQ:MMSI - Nasdaq - US5898891040 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to MMSI. MMSI was compared to 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.
1. Profitability
1.1 Basic Checks
In the past year MMSI was profitable.
In the past year MMSI had a positive cash flow from operations.
MMSI had positive earnings in 4 of the past 5 years.
In the past 5 years MMSI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.98%, MMSI belongs to the top of the industry, outperforming 84.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.73%, MMSI belongs to the top of the industry, outperforming 85.34% of the companies in the same industry.
With an excellent Return On Invested Capital value of 6.13%, MMSI belongs to the best of the industry, outperforming 81.68% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MMSI is below the industry average of 7.68%.
The last Return On Invested Capital (6.13%) for MMSI is above the 3 year average (5.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 8.73% | ||
| ROIC | 6.13% |
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 8.87%. This is amongst the best in the industry. MMSI outperforms 82.72% of its industry peers.
In the last couple of years the Profit Margin of MMSI has grown nicely.
MMSI has a better Operating Margin (12.10%) than 79.58% of its industry peers.
In the last couple of years the Operating Margin of MMSI has grown nicely.
Looking at the Gross Margin, with a value of 47.43%, MMSI is doing worse than 60.21% of the companies in the same industry.
In the last couple of years the Gross Margin of MMSI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.1% | ||
| PM (TTM) | 8.87% | ||
| GM | 47.43% |
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
MMSI has an Altman-Z score of 4.74. This indicates that MMSI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MMSI (4.74) is better than 78.53% of its industry peers.
The Debt to FCF ratio of MMSI is 3.99, which is a good value as it means it would take MMSI, 3.99 years of fcf income to pay off all of its debts.
MMSI's Debt to FCF ratio of 3.99 is amongst the best of the industry. MMSI outperforms 84.29% of its industry peers.
MMSI has a Debt/Equity ratio of 0.53. This is a neutral value indicating MMSI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, MMSI is doing worse than 62.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.99 | ||
| Altman-Z | 4.74 |
ROIC/WACC0.7
WACC8.82%
2.3 Liquidity
MMSI has a Current Ratio of 4.27. This indicates that MMSI is financially healthy and has no problem in meeting its short term obligations.
MMSI's Current ratio of 4.27 is fine compared to the rest of the industry. MMSI outperforms 69.11% of its industry peers.
A Quick Ratio of 2.85 indicates that MMSI has no problem at all paying its short term obligations.
MMSI has a better Quick ratio (2.85) than 65.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.27 | ||
| Quick Ratio | 2.85 |
3. Growth
3.1 Past
MMSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.61%, 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.
MMSI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.88%.
The Revenue has been growing slightly by 6.40% on average over the past years.
EPS 1Y (TTM)15.61%
EPS 3Y13.66%
EPS 5Y18.81%
EPS Q2Q%14.81%
Revenue 1Y (TTM)7.88%
Revenue growth 3Y8.07%
Revenue growth 5Y6.4%
Sales Q2Q%9.44%
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 8.44% on average per year.
The Revenue is expected to grow by 7.53% on average over the next years.
EPS Next Y6.92%
EPS Next 2Y9.21%
EPS Next 3Y8.45%
EPS Next 5Y8.44%
Revenue Next Year9.42%
Revenue Next 2Y7.74%
Revenue Next 3Y7.16%
Revenue Next 5Y7.53%
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
The Price/Earnings ratio is 27.20, which means the current valuation is very expensive for MMSI.
Compared to the rest of the industry, the Price/Earnings ratio of MMSI indicates a somewhat cheap valuation: MMSI is cheaper than 77.49% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MMSI to the average of the S&P500 Index (28.92), we can say MMSI is valued inline with the index average.
The Price/Forward Earnings ratio is 25.44, which means the current valuation is very expensive for MMSI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMSI indicates a somewhat cheap valuation: MMSI is cheaper than 75.92% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.65. MMSI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.2 | ||
| Fwd PE | 25.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MMSI indicates a somewhat cheap valuation: MMSI is cheaper than 74.35% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MMSI is valued a bit cheaper than the industry average as 79.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.6 | ||
| EV/EBITDA | 21.12 |
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)3.93
PEG (5Y)1.45
EPS Next 2Y9.21%
EPS Next 3Y8.45%
5. Dividend
5.1 Amount
No dividends for MMSI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
94.67
+0.91 (+0.97%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners106.43%
Inst Owner Change0.21%
Ins Owners2.46%
Ins Owner Change4.62%
Market Cap5.59B
Analysts84.71
Price Target120.56 (27.35%)
Short Float %5.29%
Short Ratio5.14
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)7.8%
Min EPS beat(2)5.6%
Max EPS beat(2)10%
EPS beat(4)4
Avg EPS beat(4)6.1%
Min EPS beat(4)3.2%
Max EPS beat(4)10%
EPS beat(8)8
Avg EPS beat(8)7.81%
EPS beat(12)12
Avg EPS beat(12)11.01%
EPS beat(16)16
Avg EPS beat(16)16.4%
Revenue beat(2)0
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-0.9%
Max Revenue beat(2)-0.43%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-0.95%
Max Revenue beat(4)0.52%
Revenue beat(8)4
Avg Revenue beat(8)0.46%
Revenue beat(12)7
Avg Revenue beat(12)0.94%
Revenue beat(16)11
Avg Revenue beat(16)1.77%
PT rev (1m)0.51%
PT rev (3m)4.42%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-9.52%
EPS NY rev (1m)-2.4%
EPS NY rev (3m)-1.79%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.2 | ||
| Fwd PE | 25.44 | ||
| P/S | 4.12 | ||
| P/FCF | 30.6 | ||
| P/OCF | 25.33 | ||
| P/B | 4.05 | ||
| P/tB | 13.39 | ||
| EV/EBITDA | 21.12 |
EPS(TTM)3.48
EY3.68%
EPS(NY)3.72
Fwd EY3.93%
FCF(TTM)3.09
FCFY3.27%
OCF(TTM)3.74
OCFY3.95%
SpS22.96
BVpS23.35
TBVpS7.07
PEG (NY)3.93
PEG (5Y)1.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 8.73% | ||
| ROCE | 7.46% | ||
| ROIC | 6.13% | ||
| ROICexc | 7.4% | ||
| ROICexgc | 15.63% | ||
| OM | 12.1% | ||
| PM (TTM) | 8.87% | ||
| GM | 47.43% | ||
| FCFM | 13.47% |
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-Score7
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.99 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 33.16% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 7.06 | ||
| Cash Conversion | 79.16% | ||
| Profit Quality | 151.85% | ||
| Current Ratio | 4.27 | ||
| Quick Ratio | 2.85 | ||
| Altman-Z | 4.74 |
F-Score7
WACC8.82%
ROIC/WACC0.7
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)15.61%
EPS 3Y13.66%
EPS 5Y18.81%
EPS Q2Q%14.81%
EPS Next Y6.92%
EPS Next 2Y9.21%
EPS Next 3Y8.45%
EPS Next 5Y8.44%
Revenue 1Y (TTM)7.88%
Revenue growth 3Y8.07%
Revenue growth 5Y6.4%
Sales Q2Q%9.44%
Revenue Next Year9.42%
Revenue Next 2Y7.74%
Revenue Next 3Y7.16%
Revenue Next 5Y7.53%
EBIT growth 1Y32.19%
EBIT growth 3Y29.73%
EBIT growth 5Y33.17%
EBIT Next Year39.73%
EBIT Next 3Y16.82%
EBIT Next 5Y13.21%
FCF growth 1Y68.52%
FCF growth 3Y16.23%
FCF growth 5YN/A
OCF growth 1Y52.12%
OCF growth 3Y14.47%
OCF growth 5Y23.2%