MMSI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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. With these ratings, MMSI could be worth investigating further for quality investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Each year in the past 5 years MMSI had a positive operating cash flow.

1.2 Ratios

MMSI has a Return On Assets of 4.50%. This is amongst the best in the industry. MMSI outperforms 80.65% of its industry peers.
The Return On Equity of MMSI (7.74%) is better than 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.
Measured over the past 3 years, the Average Return On Invested Capital for MMSI is below the industry average of 8.81%.
The last Return On Invested Capital (6.02%) for MMSI is above the 3 year average (5.44%), which is a sign of increasing profitability.

		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

MMSI's Profit Margin of 8.02% is amongst the best of the industry. MMSI outperforms 81.18% of its industry peers.
MMSI's Profit Margin has improved in the last couple of years.
The Operating Margin of MMSI (11.89%) is better than 80.11% of its industry peers.
MMSI's Operating Margin has improved in the last couple of years.
MMSI has a Gross Margin (48.47%) which is in line with its industry peers.
In the last couple of years the Gross Margin of MMSI has grown nicely.

		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

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
The number of shares outstanding for MMSI has been increased compared to 5 years ago.
The debt/assets ratio for MMSI has been reduced compared to a year ago.

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.
With a decent Altman-Z score value of 4.16, MMSI is doing good in the industry, outperforming 74.73% of the companies in the same industry.
The Debt to FCF ratio of MMSI is 3.60, which is a good value as it means it would take MMSI, 3.60 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.60, MMSI belongs to the top of the industry, outperforming 82.26% of the companies in the same industry.
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 of 0.48. This is comparable to the rest of the industry: MMSI outperforms 42.47% of its industry peers.

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

ROIC/WACC0.62

WACC9.73%

2.3 Liquidity

A Current Ratio of 4.28 indicates that MMSI has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.28, MMSI is doing good in the industry, outperforming 72.04% of the companies in the same industry.
A Quick Ratio of 2.86 indicates that MMSI has no problem at all paying its short term obligations.
The Quick ratio of MMSI (2.86) is better than 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

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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.
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

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 21.94, 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.
When comparing the Price/Earnings ratio of MMSI to the average of the S&P500 Index (28.32), we can say MMSI is valued slightly cheaper.
With a Price/Forward Earnings ratio of 19.77, MMSI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, MMSI is valued cheaper than 81.72% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, MMSI is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	21.94
Fwd PE	19.77

4.2 Price Multiples

79.03% of the companies in the same industry are more expensive than MMSI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MMSI is valued cheaper than 85.48% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	23.74
EV/EBITDA	17.95

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.
The excellent profitability rating of MMSI may justify a higher PE ratio.