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.


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

-1.6%

MMSI

-0.003%

US Medical Equipment

1.3%

US Market


1 Year Return

-54.1%

MMSI

11.9%

US Medical Equipment

5.9%

US Market

Return vs Industry: MMSI underperformed the US Medical Equipment industry which returned 11.9% over the past year.

Return vs Market: MMSI underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

MMSIIndustryMarket
7 Day-1.6%-0.003%1.3%
30 Day2.9%-3.0%-1.9%
90 Day-49.6%-0.6%-1.8%
1 Year-54.1%-54.1%12.8%11.9%8.3%5.9%
3 Year20.6%20.6%69.6%64.5%45.6%36.2%
5 Year125.7%125.7%129.6%104.0%66.1%47.9%

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?

32.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MMSI ($28.46) is trading below our estimate of fair value ($42.29)

Significantly Undervalued: MMSI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MMSI is good value based on its PE Ratio (40x) compared to the Medical Equipment industry average (40.1x).

PE vs Market: MMSI is poor value based on its PE Ratio (40x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: MMSI is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: MMSI is good value based on its PB Ratio (1.6x) compared to the US Medical Equipment industry average (3.6x).


Next Steps

Future Growth

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

47.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMSI's forecast earnings growth (47.2% per year) is above the savings rate (2.7%).

Earnings vs Market: MMSI's earnings (47.2% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: MMSI's revenue (7.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: MMSI's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MMSI's Return on Equity is forecast to be low in 3 years time (9%).


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

Earnings Trend: MMSI's earnings have grown by 11.8% per year over the past 5 years.

Accelerating Growth: MMSI's earnings growth over the past year (99.8%) exceeds its 5-year average (11.8% per year).

Earnings vs Industry: MMSI earnings growth over the past year (99.8%) exceeded the Medical Equipment industry 28.2%.


Return on Equity

High ROE: MMSI's Return on Equity (4.1%) is considered low.


Return on Assets

ROA vs Industry: MMSI's Return on Assets is below or equal to the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: MMSI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Merit Medical Systems's financial position?


Financial Position Analysis

Short Term Liabilities: MMSI's short term assets ($426.9M) exceeds its short term liabilities ($176.6M)

Long Term Liabilities: MMSI's short term assets (426.9M) do not cover its long term liabilities (609.0M)


Debt to Equity History and Analysis

Debt Level: MMSI's debt to equity ratio (42.1%) is considered high

Reducing Debt: MMSI's debt to equity ratio has reduced from 59.7% to 42.1% over the past 5 years.

Debt Coverage: MMSI's debt is well covered by operating cash flow (21.8%).

Interest Coverage: MMSI's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet

Inventory Level: MMSI has a high level of physical assets or inventory.

Debt Coverage by Assets: MMSI's debt is covered by short term assets (assets are 1.066770x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

5.0yrs

Average management tenure


CEO

Fred Lampropoulos (69yo)

32.3yrs

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

Compensation vs. Market: Fred's total compensation ($USD3.68M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

5.0yrs

Average Tenure

53yo

Average Age

Experienced Management: MMSI's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

68yo

Average Age

Experienced Board: MMSI's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: MMSI 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: 32.3yrs
    • Compensation: US$3.68m
  • Anne-Marie Wright

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • Joe Pierce

    Chief Information Officer

    • Tenure: 13.8yrs
  • Ronald Frost (57yo)

    Chief Operating Officer

    • Tenure: 5.8yrs
    • Compensation: US$1.37m
  • Justin Lampropoulos (36yo)

    Executive Vice President of Commercial

    • Tenure: 1.2yrs
    • Compensation: US$629.99k
  • Joe Wright (49yo)

    President of International Division

    • Tenure: 4.3yrs
    • Compensation: US$1.25m
  • Jason Treft

    Chief Technology Officer

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

    Chief Legal Officer & Corporate Secretary

    • Tenure: 3.5yrs
    • Compensation: US$1.20m
  • Raul Parra (41yo)

    CFO & Treasurer

    • Tenure: 1.4yrs
    • Compensation: US$1.02m
  • Louise Bott

    Vice President of Global Human Resources

    • Tenure: 12.8yrs

Board Members

  • Scott Anderson (72yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$524.07k
  • Fred Lampropoulos (69yo)

    Chairman

    • Tenure: 32.3yrs
    • Compensation: US$3.68m
  • Kent Stanger (64yo)

    Director

    • Tenure: 32.1yrs
    • Compensation: US$516.57k
  • Nolan Karras (74yo)

    Lead Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$566.57k
  • Franklin Miller (78yo)

    Independent Director

    • Tenure: 14.4yrs
    • Compensation: US$516.57k
  • F. Millner (67yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$524.07k
  • Jill Anderson (59yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$27.73k
  • Thomas Gunderson (68yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$524.07k
  • David Liu (45yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$516.57k
  • Lynne Ward

    Independent Director

    • Tenure: 0.2yrs

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$1.570b
  • 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 Analysis2019/10/14 23:39
End of Day Share Price2019/10/14 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.