MERIT MEDICAL SYSTEMS INC (MMSI) Stock Fundamental Analysis
NASDAQ:MMSI - US5898891040 - Common Stock
88.16 USD
-1.29 (-1.44%)
88.16 USD
0 (0%)
Overall MMSI gets a fundamental rating of 6 out of 10. We evaluated MMSI against 185 industry peers in the Health Care Equipment & Supplies industry. MMSI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MMSI has a correct valuation and a medium growth rate. These ratings could make MMSI a good candidate 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.
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 Return On Assets of 4.61%. This is amongst the best in the industry. MMSI outperforms 80.54% of its industry peers.
Looking at the Return On Equity, with a value of 8.01%, MMSI belongs to the top of the industry, outperforming 81.08% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.93%, MMSI is doing good in the industry, outperforming 80.00% 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 8.44%.
The 3 year average ROIC (5.44%) for MMSI is below the current ROIC(5.93%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 8.01% | ||
| ROIC | 5.93% |
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 better Profit Margin (8.31%) than 80.54% of its industry peers.
MMSI's Profit Margin has improved in the last couple of years.
MMSI has a Operating Margin of 11.88%. This is in the better half of the industry: MMSI outperforms 77.84% of its industry peers.
In the last couple of years the Operating Margin of MMSI has grown nicely.
MMSI has a Gross Margin (47.95%) which is in line with its industry peers.
MMSI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.88% | ||
| PM (TTM) | 8.31% | ||
| GM | 47.95% |
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 4.40 indicates that MMSI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.40, MMSI is doing good in the industry, outperforming 77.84% of the companies in the same industry.
MMSI has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as MMSI would need 3.86 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.86, MMSI belongs to the best of the industry, outperforming 83.24% of the companies in the same industry.
MMSI has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
MMSI's Debt to Equity ratio of 0.49 is in line compared to the rest of the industry. MMSI outperforms 40.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 4.4 |
ROIC/WACC0.73
WACC8.08%
2.3 Liquidity
MMSI has a Current Ratio of 4.09. This indicates that MMSI is financially healthy and has no problem in meeting its short term obligations.
MMSI has a Current ratio of 4.09. This is in the better half of the industry: MMSI outperforms 70.81% of its industry peers.
MMSI has a Quick Ratio of 2.66. This indicates that MMSI is financially healthy and has no problem in meeting its short term obligations.
MMSI's Quick ratio of 2.66 is fine compared to the rest of the industry. MMSI outperforms 63.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.09 | ||
| Quick Ratio | 2.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.62% 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 10.11%.
MMSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.40% yearly.
EPS 1Y (TTM)12.62%
EPS 3Y13.66%
EPS 5Y18.81%
EPS Q2Q%9.78%
Revenue 1Y (TTM)10.11%
Revenue growth 3Y8.07%
Revenue growth 5Y6.4%
Sales Q2Q%13.15%
3.2 Future
The Earnings Per Share is expected to grow by 9.29% on average over the next years. This is quite good.
MMSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.36% yearly.
EPS Next Y5.69%
EPS Next 2Y7.76%
EPS Next 3Y7.77%
EPS Next 5Y9.29%
Revenue Next Year10.87%
Revenue Next 2Y8.58%
Revenue Next 3Y7.64%
Revenue Next 5Y7.36%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.09, which indicates a rather expensive current valuation of MMSI.
MMSI's Price/Earnings ratio is a bit cheaper when compared to the industry. MMSI is cheaper than 78.38% of the companies in the same industry.
When comparing the Price/Earnings ratio of MMSI to the average of the S&P500 Index (27.24), we can say MMSI is valued inline with the index average.
A Price/Forward Earnings ratio of 21.82 indicates a rather expensive valuation of MMSI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMSI indicates a somewhat cheap valuation: MMSI is cheaper than 77.30% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, MMSI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 21.82 |
4.2 Price Multiples
MMSI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MMSI is cheaper than 75.14% of the companies in the same industry.
MMSI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MMSI is cheaper than 82.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.52 | ||
| EV/EBITDA | 19.13 |
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)4.23
PEG (5Y)1.28
EPS Next 2Y7.76%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
No dividends for MMSI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
88.16
-1.29 (-1.44%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners109.35%
Inst Owner Change-2.42%
Ins Owners2.26%
Ins Owner Change2.95%
Market Cap5.22B
Analysts84.71
Price Target106.49 (20.79%)
Short Float %5.8%
Short Ratio5.17
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)14.5%
Min EPS beat(2)12.57%
Max EPS beat(2)16.43%
EPS beat(4)4
Avg EPS beat(4)11.15%
Min EPS beat(4)5.6%
Max EPS beat(4)16.43%
EPS beat(8)8
Avg EPS beat(8)8.85%
EPS beat(12)12
Avg EPS beat(12)10.47%
EPS beat(16)16
Avg EPS beat(16)13.24%
Revenue beat(2)1
Avg Revenue beat(2)-0.39%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)0.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)0.41%
Revenue beat(8)3
Avg Revenue beat(8)-0.28%
Revenue beat(12)6
Avg Revenue beat(12)0.46%
Revenue beat(16)10
Avg Revenue beat(16)0.73%
PT rev (1m)-4.31%
PT rev (3m)-2.52%
EPS NQ rev (1m)4.58%
EPS NQ rev (3m)-10.97%
EPS NY rev (1m)7.73%
EPS NY rev (3m)7.74%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 21.82 | ||
| P/S | 3.64 | ||
| P/FCF | 27.52 | ||
| P/OCF | 21.76 | ||
| P/B | 3.51 | ||
| P/tB | 12.39 | ||
| EV/EBITDA | 19.13 |
EPS(TTM)3.66
EY4.15%
EPS(NY)4.04
Fwd EY4.58%
FCF(TTM)3.2
FCFY3.63%
OCF(TTM)4.05
OCFY4.6%
SpS24.19
BVpS25.13
TBVpS7.11
PEG (NY)4.23
PEG (5Y)1.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 8.01% | ||
| ROCE | 7.21% | ||
| ROIC | 5.93% | ||
| ROICexc | 6.94% | ||
| ROICexgc | 14.71% | ||
| OM | 11.88% | ||
| PM (TTM) | 8.31% | ||
| GM | 47.95% | ||
| FCFM | 13.24% |
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-Score6
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 39.56% | ||
| Cap/Sales | 3.51% | ||
| Interest Coverage | 5.26 | ||
| Cash Conversion | 80.71% | ||
| Profit Quality | 159.24% | ||
| Current Ratio | 4.09 | ||
| Quick Ratio | 2.66 | ||
| Altman-Z | 4.4 |
F-Score6
WACC8.08%
ROIC/WACC0.73
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)12.62%
EPS 3Y13.66%
EPS 5Y18.81%
EPS Q2Q%9.78%
EPS Next Y5.69%
EPS Next 2Y7.76%
EPS Next 3Y7.77%
EPS Next 5Y9.29%
Revenue 1Y (TTM)10.11%
Revenue growth 3Y8.07%
Revenue growth 5Y6.4%
Sales Q2Q%13.15%
Revenue Next Year10.87%
Revenue Next 2Y8.58%
Revenue Next 3Y7.64%
Revenue Next 5Y7.36%
EBIT growth 1Y13.05%
EBIT growth 3Y29.73%
EBIT growth 5Y33.17%
EBIT Next Year36.24%
EBIT Next 3Y16.55%
EBIT Next 5Y14.85%
FCF growth 1Y291.11%
FCF growth 3Y16.23%
FCF growth 5YN/A
OCF growth 1Y151.79%
OCF growth 3Y14.47%
OCF growth 5Y23.2%