MERIT MEDICAL SYSTEMS INC (MMSI) Stock Fundamental Analysis
USA - NASDAQ:MMSI - US5898891040 - Common Stock
82.74 USD
-0.59 (-0.71%)
82.74 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to MMSI. MMSI was compared to 189 industry peers in the Health Care Equipment & Supplies industry. MMSI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MMSI is not valued too expensively and it also shows a decent 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.
MMSI had a positive operating cash flow in the past year.
Of the past 5 years MMSI 4 years were profitable.
In the past 5 years MMSI always reported a positive cash flow from operatings.
1.2 Ratios
MMSI has a Return On Assets of 4.61%. This is amongst the best in the industry. MMSI outperforms 80.42% of its industry peers.
The Return On Equity of MMSI (8.01%) is better than 82.01% of its industry peers.
The Return On Invested Capital of MMSI (5.93%) is better than 80.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MMSI is below the industry average of 9.00%.
The last Return On Invested Capital (5.93%) for MMSI is above the 3 year average (5.44%), which is a sign of increasing profitability.
| 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 81.48% of its industry peers.
In the last couple of years the Profit Margin of MMSI has grown nicely.
MMSI has a Operating Margin of 11.88%. This is in the better half of the industry: MMSI outperforms 78.84% 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 comparable to the rest of the industry.
In the last couple of years the Gross Margin of MMSI has grown nicely.
| 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.
The number of shares outstanding for MMSI has been increased compared to 1 year ago.
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 4.18 indicates that MMSI is not in any danger for bankruptcy at the moment.
MMSI has a better Altman-Z score (4.18) than 74.60% of its industry peers.
The Debt to FCF ratio of MMSI is 3.86, which is a good value as it means it would take MMSI, 3.86 years of fcf income to pay off all of its debts.
MMSI has a Debt to FCF ratio of 3.86. This is amongst the best in the industry. MMSI outperforms 82.54% of its industry peers.
MMSI has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.49, MMSI perfoms like the industry average, outperforming 43.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 4.18 |
ROIC/WACC0.76
WACC7.81%
2.3 Liquidity
A Current Ratio of 4.09 indicates that MMSI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.09, MMSI is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
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 has a better Quick ratio (2.66) than 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.09 | ||
| Quick Ratio | 2.66 |
3. Growth
3.1 Past
MMSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.62%, which is quite good.
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 10.11% 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)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.
Based on estimates for the next years, MMSI will show a small growth in Revenue. The Revenue will grow by 7.36% on average per year.
EPS Next Y6.54%
EPS Next 2Y7.78%
EPS Next 3Y7.86%
EPS Next 5Y9.29%
Revenue Next Year10.87%
Revenue Next 2Y8.61%
Revenue Next 3Y7.53%
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 22.61, which indicates a rather expensive current valuation of MMSI.
Based on the Price/Earnings ratio, MMSI is valued a bit cheaper than 79.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.89, MMSI is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.47, the valuation of MMSI can be described as rather expensive.
79.89% of the companies in the same industry are more expensive than MMSI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, MMSI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.61 | ||
| Fwd PE | 20.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMSI is valued a bit cheaper than the industry average as 77.25% of the companies are valued more expensively.
82.54% 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 | 25.83 | ||
| EV/EBITDA | 18.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MMSI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.46
PEG (5Y)1.2
EPS Next 2Y7.78%
EPS Next 3Y7.86%
5. Dividend
5.1 Amount
MMSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
82.74
-0.59 (-0.71%)
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 Change0.42%
Ins Owners2.31%
Ins Owner Change3.17%
Market Cap4.90B
Revenue(TTM)1.43B
Net Income(TTM)119.12M
Analysts84.71
Price Target106.49 (28.7%)
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)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)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 | 22.61 | ||
| Fwd PE | 20.47 | ||
| P/S | 3.42 | ||
| P/FCF | 25.83 | ||
| P/OCF | 20.42 | ||
| P/B | 3.29 | ||
| P/tB | 11.63 | ||
| EV/EBITDA | 18.93 |
EPS(TTM)3.66
EY4.42%
EPS(NY)4.04
Fwd EY4.89%
FCF(TTM)3.2
FCFY3.87%
OCF(TTM)4.05
OCFY4.9%
SpS24.19
BVpS25.13
TBVpS7.11
PEG (NY)3.46
PEG (5Y)1.2
Graham Number45.49
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%
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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 46% | ||
| Cap/Sales | 3.51% | ||
| Interest Coverage | 5.26 | ||
| Cash Conversion | 85.85% | ||
| Profit Quality | 159.24% | ||
| Current Ratio | 4.09 | ||
| Quick Ratio | 2.66 | ||
| Altman-Z | 4.18 |
F-Score6
WACC7.81%
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)12.62%
EPS 3Y13.66%
EPS 5Y18.81%
EPS Q2Q%9.78%
EPS Next Y6.54%
EPS Next 2Y7.78%
EPS Next 3Y7.86%
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 2Y8.61%
Revenue Next 3Y7.53%
Revenue Next 5Y7.36%
EBIT growth 1Y13.05%
EBIT growth 3Y29.73%
EBIT growth 5Y33.17%
EBIT Next Year41.2%
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%
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 22.61 and the Price/Book (PB) ratio is 3.29.
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 6.54% in the next year.