NasdaqGS:MMSI

Stock Analysis Report

Executive Summary

Merit Medical Systems, Inc. manufactures and markets disposable medical devices for interventional, diagnostic, and therapeutic procedures in cardiology, radiology, oncology, critical care, and endoscopy.

Snowflake

Fundamentals

Good value with reasonable growth potential.

Risks

  • Merit Medical Systems has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Merit Medical Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

8.4%

MMSI

0.7%

US Medical Equipment

-0.2%

US Market


1 Year Return

-51.2%

MMSI

9.5%

US Medical Equipment

1.1%

US Market

MMSI underperformed the Medical Equipment industry which returned 9.9% over the past year.

MMSI underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

MMSIIndustryMarket
7 Day8.4%0.7%-0.2%
30 Day-13.4%0.1%2.5%
90 Day-50.6%2.5%1.6%
1 Year-51.2%-51.2%10.4%9.5%3.4%1.1%
3 Year25.1%25.1%69.3%64.1%45.2%35.8%
5 Year149.6%149.6%138.0%110.9%62.6%44.8%

Price Volatility Vs. Market

How volatile is Merit Medical Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

14 hours ago | Simply Wall St

Is Merit Medical Systems, Inc. (NASDAQ:MMSI) Investing Your Capital Efficiently?

Valuation

Is Merit Medical Systems undervalued based on future cash flows and its price relative to the stock market?

29%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Merit Medical Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).

Merit Medical Systems's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Merit Medical Systems is good value based on earnings compared to the US Medical Equipment industry average.

Merit Medical Systems is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Merit Medical Systems is good value based on expected growth next year.


Price Based on Value of Assets

Merit Medical Systems is good value based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Merit Medical Systems expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

46.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Merit Medical Systems's revenue is expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).

Merit Medical Systems's earnings are expected to grow significantly at over 20% yearly.

Merit Medical Systems's revenue growth is expected to exceed the United States of America market average.

Merit Medical Systems's earnings growth is expected to exceed the United States of America market average.

Merit Medical Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Merit Medical Systems is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Merit Medical Systems performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Merit Medical Systems's year on year earnings growth rate has been positive over the past 5 years.

Merit Medical Systems's 1-year earnings growth exceeds its 5-year average (99.8% vs 11.8%)

Merit Medical Systems's earnings growth has exceeded the US Medical Equipment industry average in the past year (99.8% vs 28.2%).


Return on Equity

Merit Medical Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Merit Medical Systems used its assets less efficiently than the US Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

Merit Medical Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Merit Medical Systems's financial position?


Financial Position Analysis

Merit Medical Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Merit Medical Systems's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Merit Medical Systems's level of debt (42.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (59.7% vs 42.1% today).

Debt is well covered by operating cash flow (21.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

What is Merit Medical Systems's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Merit Medical Systems's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Merit Medical Systems's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Merit Medical Systems has not reported any payouts.

Unable to verify if Merit Medical Systems's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Merit Medical Systems has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Merit Medical Systems's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Merit Medical Systems's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Fred Lampropoulos (69yo)

32.2yrs

Tenure

US$3,680,580

Compensation

Mr. Fred P. Lampropoulos has been the President of BioSphere Medical, Inc. since September 2010. Mr. Lampropoulos serves as the Chairman and Chief Executive Officer of Merit Medical Systems Inc. He has bee ...


CEO Compensation Analysis

Fred's remuneration is about average for companies of similar size in United States of America.

Fred's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.9yrs

Average Tenure

53yo

Average Age

The tenure for the Merit Medical Systems management team is about average.


Board Age and Tenure

3.7yrs

Average Tenure

68yo

Average Age

The tenure for the Merit Medical Systems board of directors is about average.


Insider Trading

Merit Medical Systems individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$4,967,09009 Sep 19
Fred Lampropoulos
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares161,817
Max PriceUS$30.72
SellUS$1,474,48016 Aug 19
Fred Lampropoulos
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares40,000
Max PriceUS$36.86
BuyUS$200,00031 Jul 19
Ronald Frost
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares5,000
Max PriceUS$40.00
SellUS$746,50702 Apr 19
Kent Stanger
EntityIndividual
Role
Member of the Board of Directors
Director
Shares12,228
Max PriceUS$61.05
SellUS$301,68329 Mar 19
Kent Stanger
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$60.54

Ownership Breakdown


Management Team

  • Fred Lampropoulos (69yo)

    Chairman

    • Tenure: 32.2yrs
    • Compensation: US$3.68m
  • Anne-Marie Wright

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • Joe Pierce

    Chief Information Officer

    • Tenure: 13.7yrs
  • Ronald Frost (57yo)

    Chief Operating Officer

    • Tenure: 5.7yrs
    • Compensation: US$1.37m
  • Justin Lampropoulos (36yo)

    Executive Vice President of Commercial

    • Tenure: 1.1yrs
    • Compensation: US$629.99k
  • Joe Wright (49yo)

    President of International Division

    • Tenure: 4.2yrs
    • Compensation: US$1.25m
  • Jason Treft

    Chief Technology Officer

    • Tenure: 0yrs
  • Brian Lloyd (58yo)

    Chief Legal Officer & Corporate Secretary

    • Tenure: 3.4yrs
    • Compensation: US$1.20m
  • Raul Parra (41yo)

    CFO & Treasurer

    • Tenure: 1.3yrs
    • Compensation: US$1.02m
  • Louise Bott

    Vice President of Global Human Resources

    • Tenure: 12.7yrs

Board Members

  • Scott Anderson (72yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$524.07k
  • Fred Lampropoulos (69yo)

    Chairman

    • Tenure: 32.2yrs
    • Compensation: US$3.68m
  • Kent Stanger (64yo)

    Director

    • Tenure: 32yrs
    • Compensation: US$516.57k
  • Nolan Karras (74yo)

    Lead Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$566.57k
  • Franklin Miller (78yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$516.57k
  • F. Millner (67yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$524.07k
  • Jill Anderson (59yo)

    Director

    • Tenure: 0.7yrs
    • Compensation: US$27.73k
  • Thomas Gunderson (68yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$524.07k
  • David Liu (45yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$516.57k
  • Lynne Ward

    Independent Director

    • Tenure: 0.08yrs

Company Information

Merit Medical Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Merit Medical Systems, Inc.
  • Ticker: MMSI
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: US$1.654b
  • Shares outstanding: 55.17m
  • Website: https://www.merit.com

Number of Employees


Location

  • Merit Medical Systems, Inc.
  • 1600 West Merit Parkway
  • South Jordan
  • Utah
  • 84095
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MMSINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1990
MM3DB (Deutsche Boerse AG)YesCommon StockDEEURMay 1990

Biography

Merit Medical Systems, Inc. manufactures and markets disposable medical devices for interventional, diagnostic, and therapeutic procedures in cardiology, radiology, oncology, critical care, and endoscopy.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 00:17
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.