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 correct valuation and a medium growth rate. These ratings could make MMSI a good candidate 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

MMSI has a better Return On Assets (4.50%) than 80.43% of its industry peers.
MMSI has a Return On Equity of 7.74%. This is amongst the best in the industry. MMSI outperforms 82.07% of its industry peers.
With a decent Return On Invested Capital value of 6.02%, MMSI is doing good in the industry, outperforming 78.80% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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.
In the last couple of years the Profit Margin of MMSI has grown nicely.
MMSI has a Operating Margin of 11.89%. This is in the better half of the industry: MMSI outperforms 79.89% 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 48.47%, MMSI is in line with its industry, outperforming 42.39% of the companies in the same industry.
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

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
Compared to 5 years ago, MMSI has more shares outstanding
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.
Looking at the Altman-Z score, with a value of 4.21, MMSI is in the better half of the industry, outperforming 74.46% 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 82.07% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that MMSI is not too dependend on debt financing.
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/WACC0.62

WACC9.64%

2.3 Liquidity

A Current Ratio of 4.28 indicates that MMSI has no problem at all paying its short term obligations.
The Current ratio of MMSI (4.28) is better 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.
MMSI has a better Quick ratio (2.86) than 65.22% of its industry peers.

		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

The Earnings Per Share has grown by an nice 10.71% 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 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

The Earnings Per Share is expected to grow by 9.25% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.21% on average over the next years.

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 22.19, which indicates a rather expensive current valuation of MMSI.
Based on the Price/Earnings ratio, MMSI is valued cheaply inside the industry as 81.52% of the companies are valued more expensively.
MMSI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
A Price/Forward Earnings ratio of 20.00 indicates a rather expensive valuation of MMSI.
Based on the Price/Forward Earnings ratio, MMSI is valued cheaply inside the industry as 81.52% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MMSI to the average of the S&P500 Index (25.98), we can say MMSI is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	22.19
Fwd PE	20

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 78.80% of the companies listed in the same industry.
85.87% 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	24.01
EV/EBITDA	18.25

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 excellent profitability rating of MMSI may justify a higher PE ratio.