Merit Medical Systems, Inc.
Merit Medical Systems, Inc. Fundamental Analysis
Merit Medical Systems, Inc. (MMSI) shows weak financial fundamentals with a PE ratio of 41.29, profit margin of 8.02%, and ROE of 8.13%. The company generates $1.5B in annual revenue with moderate year-over-year growth of 7.89%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MMSI's fundamental strength across five key dimensions:
Efficiency Score
WeakMMSI struggles to generate sufficient returns from assets.
Valuation Score
ModerateMMSI shows balanced valuation metrics.
Growth Score
ExcellentMMSI delivers strong and consistent growth momentum.
Financial Health Score
ExcellentMMSI maintains a strong and stable balance sheet.
Profitability Score
WeakMMSI struggles to sustain strong margins.
Key Financial Metrics
Is MMSI Expensive or Cheap?
P/E Ratio
MMSI trades at 41.29 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MMSI's PEG of -41.91 indicates potential undervaluation.
Price to Book
The market values Merit Medical Systems, Inc. at 3.20 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.27 times EBITDA. This signals the market has high growth expectations.
How Well Does MMSI Make Money?
Net Profit Margin
For every $100 in sales, Merit Medical Systems, Inc. keeps $8.02 as profit after all expenses.
Operating Margin
Core operations generate 11.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.13 in profit for every $100 of shareholder equity.
ROA
Merit Medical Systems, Inc. generates $4.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Merit Medical Systems, Inc. produces operating cash flow of $267.81M, showing steady but balanced cash generation.
Free Cash Flow
Merit Medical Systems, Inc. generates strong free cash flow of $240.08M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.05 in free cash annually.
FCF Yield
MMSI converts 4.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-41.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.54
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How MMSI Stacks Against Its Sector Peers
| Metric | MMSI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.29 | 29.43 | Worse (Expensive) |
| ROE | 8.13% | 800.00% | Weak |
| Net Margin | 8.02% | -20145.00% (disorted) | Weak |
| Debt/Equity | 0.54 | 0.30 | Weak (High Leverage) |
| Current Ratio | 4.28 | 4.64 | Strong Liquidity |
| ROA | 4.50% | -17936.00% (disorted) | Weak |
MMSI outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Merit Medical Systems, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.99%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
1988.78%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
168.44%
Industry Style: Defensive, Growth, Innovation
High Growth