We assign a fundamental rating of 6 out of 10 to MMSI. MMSI was compared to 186 industry peers in the Health Care Equipment & Supplies industry. MMSI gets an excellent profitability rating and is at the same time showing great financial health properties. MMSI has a decent growth rate and is not valued too expensively. This makes MMSI very considerable 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.
In the past year MMSI had a positive cash flow from operations.
MMSI had positive earnings in 4 of the past 5 years.
MMSI had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

MMSI has a better Return On Assets (4.50%) than 80.65% of its industry peers.
MMSI has a Return On Equity of 7.74%. This is amongst the best in the industry. MMSI outperforms 82.26% of its industry peers.
MMSI's Return On Invested Capital of 6.02% is fine compared to the rest of the industry. MMSI outperforms 79.03% of its industry peers.
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

With an excellent Profit Margin value of 8.02%, MMSI belongs to the best of the industry, outperforming 81.18% of the companies in the same industry.
In the last couple of years the Profit Margin of MMSI has grown nicely.
Looking at the Operating Margin, with a value of 11.89%, MMSI belongs to the top of the industry, outperforming 80.11% of the companies in the same industry.
In the last couple of years the Operating Margin of MMSI has grown nicely.
MMSI has a Gross Margin of 48.47%. This is comparable to the rest of the industry: MMSI outperforms 43.01% 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.
MMSI has more shares outstanding than it did 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 4.16. This indicates that MMSI is financially healthy and has little risk of bankruptcy at the moment.
MMSI's Altman-Z score of 4.16 is fine compared to the rest of the industry. MMSI outperforms 74.73% 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.
With an excellent Debt to FCF ratio value of 3.60, MMSI belongs to the best of the industry, outperforming 82.26% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that MMSI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.48, MMSI perfoms like the industry average, outperforming 42.47% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.48
Debt/FCF	3.6
Altman-Z	4.16

ROIC/WACC0.62

WACC9.72%

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 72.04% 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 Quick ratio of 2.86. This is in the better half of the industry: MMSI outperforms 65.05% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	4.28
Quick Ratio	2.86

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WACC

Debt/Equity

How to determine the health of a company

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.
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.
The Revenue has grown by 11.41% in the past year. This is quite good.
Measured over the past years, MMSI shows a small growth in Revenue. The Revenue has been growing by 6.40% on average per year.

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

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 21.80, which indicates a rather expensive current valuation of MMSI.
Compared to the rest of the industry, the Price/Earnings ratio of MMSI indicates a rather cheap valuation: MMSI is cheaper than 81.72% of the companies listed in the same industry.
MMSI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
The Price/Forward Earnings ratio is 19.65, which indicates a rather expensive current valuation of MMSI.
Based on the Price/Forward Earnings ratio, MMSI is valued cheaply inside the industry as 81.72% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, MMSI is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	21.8
Fwd PE	19.65

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 79.03% of the companies listed in the same industry.
85.48% 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	23.59
EV/EBITDA	17.95

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.