NasdaqGS:MMSI

Stock Analysis Report

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Market Cap

US$3.6b

Last Updated

2021/07/27 01:42 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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

Stable Share Price: MMSI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MMSI's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

7.3%

MMSI

3.2%

US Medical Equipment

3.3%

US Market


1 Year Return

43.9%

MMSI

28.9%

US Medical Equipment

37.8%

US Market

Return vs Industry: MMSI exceeded the US Medical Equipment industry which returned 31% over the past year.

Return vs Market: MMSI exceeded the US Market which returned 39.1% over the past year.


Shareholder returns

MMSIIndustryMarket
7 Day7.3%3.2%3.3%
30 Day-0.8%2.6%1.1%
90 Day0.9%2.5%2.9%
1 Year43.9%43.9%29.8%28.9%39.9%37.8%
3 Year20.7%20.7%73.5%69.4%65.8%55.4%
5 Year171.0%171.0%147.2%135.7%124.3%99.4%

Long-Term 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

Valuation

Is Merit Medical Systems undervalued compared to its fair value and its price relative to the market?

832.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MMSI ($63.96) is trading above our estimate of fair value ($42.23)

Significantly Below Fair Value: MMSI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MMSI is poor value based on its PE Ratio (832.3x) compared to the US Medical Equipment industry average (62.1x).

PE vs Market: MMSI is poor value based on its PE Ratio (832.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: MMSI is poor value based on its PEG Ratio (16.5x)


Price to Book Ratio

PB vs Industry: MMSI is good value based on its PB Ratio (3.7x) compared to the US Medical Equipment industry average (4.5x).


Future Growth

How is Merit Medical Systems forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

50.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMSI's forecast earnings growth (50.4% per year) is above the savings rate (2%).

Earnings vs Market: MMSI's earnings (50.4% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MMSI's revenue (5.3% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: MMSI's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MMSI's Return on Equity is forecast to be high in 3 years time


Past Performance

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

-32.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MMSI has a large one-off loss of $40.4M impacting its March 31 2021 financial results.

Growing Profit Margin: MMSI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MMSI's earnings have declined by 32.2% per year over the past 5 years.

Accelerating Growth: MMSI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MMSI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Medical Equipment industry (15.5%).


Return on Equity

High ROE: MMSI's Return on Equity (0.4%) is considered low.


Financial Health

How is Merit Medical Systems's financial position?


Financial Position Analysis

Short Term Liabilities: MMSI's short term assets ($438.5M) exceed its short term liabilities ($207.7M).

Long Term Liabilities: MMSI's short term assets ($438.5M) do not cover its long term liabilities ($467.3M).


Debt to Equity History and Analysis

Debt Level: MMSI's debt to equity ratio (33.1%) is considered satisfactory.

Reducing Debt: MMSI's debt to equity ratio has reduced from 48.5% to 33.1% over the past 5 years.

Debt Coverage: MMSI's debt is well covered by operating cash flow (53%).

Interest Coverage: MMSI's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MMSI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MMSI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MMSI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MMSI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MMSI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Fred Lampropoulos (71 yo)

34yrs

Tenure

US$7,703,508

Compensation

Mr. Fred P. Lampropoulos has been the President of BioSphere Medical, Inc. since September 2010. He is Founder of Merit Medical Systems, Inc. and has been its Chairman, Chief Executive Officer and Presiden...


CEO Compensation Analysis

Compensation vs Market: Fred's total compensation ($USD7.70M) is above average for companies of similar size in the US market ($USD5.32M).

Compensation vs Earnings: Fred's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MMSI's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: MMSI's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$3.582b
  • Shares outstanding: 56.00m
  • Website: https://www.merit.com

Number of Employees


Location

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

Listings


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 Analysis2021/07/27 01:42
End of Day Share Price2021/07/26 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.