Merit Medical Systems Inc (MMSI) stock analysis

P/E below its 5-year median

Merit Medical Systems's P/E of 33.1 is below its own 5-year median of 47.5.

P/E above the industry

Merit Medical Systems's P/E of 33.1 is above the Surgical, Medical, and Dental Instruments and Supplies median of 27.7.

EV/EBITDA below its 5-year median

Merit Medical Systems's EV/EBITDA of 16.1 is below its 5-year median of 22.6.

P/B below the industry

Merit Medical Systems's price-to-book of 3.02 is below the Surgical, Medical, and Dental Instruments and Supplies median of 3.22.

Trading below fair value

The share price of $88.07 is below our fair value estimate of $93.00.

Margin of safety under 20%

The price is 5.3% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 9.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 18.2% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 9.1% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.

Guidance issued

The latest outlook (Year Ending December 31, 2026 Total Revenue, Apr 30, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 49.4% over the last twelve months, against 48.5% a year earlier.

Return on equity under 15%

Return on equity was 9.8% over the last twelve months and averaged 7.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 8.5%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Merit Medical Systems's return on equity of 9.8% is above the Surgical, Medical, and Dental Instruments and Supplies median of -31.3%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 9.9% over the last twelve months, against a 5-year average of 7.2%.

Net margin above the industry

Merit Medical Systems's net margin of 9.9% is above the Surgical, Medical, and Dental Instruments and Supplies median of -14.1%.

High debt

Debt is 42.3% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 36.6% five years ago to 42.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 37.1% of total debt.

Interest well covered

Operating income covers interest expense 6.7 times.

Short-term assets cover short-term debts

Current assets are 4.52 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.31; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Merit Medical Systems has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.