MERIT MEDICAL SYSTEMS INC (MMSI) Stock Fundamental Analysis
USA - NASDAQ:MMSI - US5898891040 - Common Stock
87.55 USD
+1.04 (+1.2%)
87.55 USD
0 (0%)
Taking everything into account, MMSI scores 6 out of 10 in our fundamental rating. MMSI was compared to 189 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 correct valuation and a medium growth rate. This makes MMSI very considerable for quality investing!
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.
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 a decent Return On Assets value of 4.50%, MMSI is doing good in the industry, outperforming 79.89% of the companies in the same industry.
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.
Looking at the Return On Invested Capital, with a value of 6.02%, MMSI belongs to the top of the industry, outperforming 80.42% 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 9.12%.
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
Looking at the Profit Margin, with a value of 8.02%, MMSI belongs to the top of the industry, outperforming 80.42% of the companies in the same industry.
In the last couple of years the Profit Margin of MMSI has grown nicely.
With a decent Operating Margin value of 11.89%, MMSI is doing good in the industry, outperforming 78.84% of the companies in the same industry.
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 42.86% 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
MMSI has a better debt/assets ratio than last year.
2.2 Solvency
MMSI has an Altman-Z score of 4.33. This indicates that MMSI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MMSI (4.33) is better than 76.72% 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 83.60% 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 | 4.33 |
ROIC/WACC0.76
WACC7.93%
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 71.43% of its industry peers.
A Quick Ratio of 2.86 indicates that MMSI has no problem at all paying its short term obligations.
MMSI's Quick ratio of 2.86 is fine compared to the rest of the industry. MMSI outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.28 | ||
| Quick Ratio | 2.86 |
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.
MMSI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.41%.
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
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
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.53, 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 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.35, the valuation of MMSI can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMSI indicates a somewhat cheap valuation: MMSI is cheaper than 78.84% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MMSI to the average of the S&P500 Index (32.68), we can say MMSI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 21.35 |
4.2 Price Multiples
75.66% of the companies in the same industry are more expensive than MMSI, based on the Enterprise Value to EBITDA ratio.
MMSI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MMSI is cheaper than 82.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.44 | ||
| EV/EBITDA | 19.05 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.7
PEG (5Y)1.25
EPS Next 2Y8.54%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
No dividends for MMSI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
87.55
+1.04 (+1.2%)
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 Change-1.37%
Ins Owners2.31%
Ins Owner Change3.17%
Market Cap5.18B
Revenue(TTM)1.48B
Net Income(TTM)118.43M
Analysts84.71
Price Target106.49 (21.63%)
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)-4.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.58%
EPS NY rev (1m)0.8%
EPS NY rev (3m)8.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 21.35 | ||
| P/S | 3.51 | ||
| P/FCF | 25.44 | ||
| P/OCF | 19.37 | ||
| P/B | 3.39 | ||
| P/tB | 10.72 | ||
| EV/EBITDA | 19.05 |
EPS(TTM)3.72
EY4.25%
EPS(NY)4.1
Fwd EY4.68%
FCF(TTM)3.44
FCFY3.93%
OCF(TTM)4.52
OCFY5.16%
SpS24.94
BVpS25.83
TBVpS8.17
PEG (NY)2.7
PEG (5Y)1.25
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 | 4.33 |
F-Score6
WACC7.93%
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 8 / 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 23.53 and the Price/Book (PB) ratio is 3.39.
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.