MERIT MEDICAL SYSTEMS INC (MMSI)
US5898891040 - Common Stock
Taking everything into account, MMSI scores 5 out of 10 in our fundamental rating. MMSI was compared to 193 industry peers in the Health Care Equipment & Supplies industry. MMSI has an excellent profitability rating, but there are some minor concerns on its financial health. MMSI has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years MMSI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.38%, MMSI belongs to the top of the industry, outperforming 80.21% of the companies in the same industry.
MMSI has a Return On Equity of 8.21%. This is amongst the best in the industry. MMSI outperforms 84.38% of its industry peers.
The Return On Invested Capital of MMSI (5.44%) is better than 78.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MMSI is below the industry average of 8.53%.
The 3 year average ROIC (5.13%) for MMSI is below the current ROIC(5.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 8.21% | ||
| ROIC | 5.44% |
ROA(3y)3.83%
ROA(5y)2.24%
ROE(3y)6.34%
ROE(5y)3.72%
ROIC(3y)5.13%
ROIC(5y)4.14%
1.3 Margins
MMSI has a Profit Margin of 7.94%. This is amongst the best in the industry. MMSI outperforms 81.25% of its industry peers.
In the last couple of years the Profit Margin of MMSI has grown nicely.
With a decent Operating Margin value of 10.42%, MMSI is doing good in the industry, outperforming 79.17% of the companies in the same industry.
In the last couple of years the Operating Margin of MMSI has grown nicely.
With a Gross Margin value of 46.54%, MMSI perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
MMSI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.42% | ||
| PM (TTM) | 7.94% | ||
| GM | 46.54% |
OM growth 3Y22.69%
OM growth 5Y8.86%
PM growth 3YN/A
PM growth 5Y9.56%
GM growth 3Y3.72%
GM growth 5Y0.76%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MMSI is destroying value.
MMSI has more shares outstanding than it did 1 year ago.
MMSI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MMSI has a worse debt to assets ratio.
2.2 Solvency
MMSI has an Altman-Z score of 4.11. This indicates that MMSI is financially healthy and has little risk of bankruptcy at the moment.
MMSI has a Altman-Z score of 4.11. This is in the better half of the industry: MMSI outperforms 72.40% of its industry peers.
The Debt to FCF ratio of MMSI is 6.13, which is on the high side as it means it would take MMSI, 6.13 years of fcf income to pay off all of its debts.
MMSI's Debt to FCF ratio of 6.13 is fine compared to the rest of the industry. MMSI outperforms 79.17% of its industry peers.
MMSI has a Debt/Equity ratio of 0.65. This is a neutral value indicating MMSI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, MMSI is not doing good in the industry: 70.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | 4.11 |
ROIC/WACC0.56
WACC9.68%
2.3 Liquidity
MMSI has a Current Ratio of 6.03. This indicates that MMSI is financially healthy and has no problem in meeting its short term obligations.
MMSI has a better Current ratio (6.03) than 78.13% of its industry peers.
A Quick Ratio of 4.38 indicates that MMSI has no problem at all paying its short term obligations.
MMSI's Quick ratio of 4.38 is fine compared to the rest of the industry. MMSI outperforms 72.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.03 | ||
| Quick Ratio | 4.38 |
3. Growth
3.1 Past
MMSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.14%, which is quite good.
The Earnings Per Share has been growing by 12.24% on average over the past years. This is quite good.
Looking at the last year, MMSI shows a quite strong growth in Revenue. The Revenue has grown by 9.39% in the last year.
MMSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.33% yearly.
EPS 1Y (TTM)12.14%
EPS 3Y22.19%
EPS 5Y12.24%
EPS growth Q2Q20.31%
Revenue 1Y (TTM)9.39%
Revenue growth 3Y9.26%
Revenue growth 5Y7.33%
Revenue growth Q2Q8.71%
3.2 Future
The Earnings Per Share is expected to grow by 10.94% 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 5.51% yearly.
EPS Next Y12.34%
EPS Next 2Y11.05%
EPS Next 3Y10.52%
EPS Next 5Y10.94%
Revenue Next Year5.32%
Revenue Next 2Y5.41%
Revenue Next 3Y5.48%
Revenue Next 5Y5.51%
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.15, MMSI can be considered very expensive at the moment.
MMSI's Price/Earnings ratio is rather cheap when compared to the industry. MMSI is cheaper than 80.21% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.28. MMSI is around the same levels.
A Price/Forward Earnings ratio of 21.27 indicates a rather expensive valuation of MMSI.
Based on the Price/Forward Earnings ratio, MMSI is valued cheaper than 83.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MMSI to the average of the S&P500 Index (20.88), we can say MMSI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 21.27 |
4.2 Price Multiples
MMSI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MMSI is cheaper than 79.69% 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 83.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.15 | ||
| EV/EBITDA | 21.18 |
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 decent profitability rating of MMSI may justify a higher PE ratio.
PEG (NY)2.04
PEG (5Y)2.06
EPS Next 2Y11.05%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
MMSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MERIT MEDICAL SYSTEMS INC
NASDAQ:MMSI (5/3/2024, 7:06:31 PM)
After market: 78.97 0 (0%)78.97
+1.95 (+2.53%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 21.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.04
PEG (5Y)2.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 8.21% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.42% | ||
| PM (TTM) | 7.94% | ||
| GM | 46.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.03 | ||
| Quick Ratio | 4.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12.14%
EPS 3Y22.19%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.39%
Revenue growth 3Y9.26%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y