Merit Medical Systems (MMSI) AI Stock Analysis

• Market Cap: $4.99B
• Dividend Yield: N/A
• Average Volume (3M): 657.07K
• Price to Earnings (P/E): 41.4
• Beta (1Y): 0.53
• Revenue Growth: 8.24%
• EPS Growth: 18.54%
• Country: US
• Employees: 7,400
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.86
• Shares Outstanding: 59,099,537
• 10 Day Avg. Volume: 906,283
• 30 Day Avg. Volume: 657,068
• PEG Ratio: 46.94
• Price to Book (P/B): 3.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.23
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 9.60
• Enterprise Value/Ebitda: 5.45
• 1Y Price Target: $108.80
• Price Target Upside: 27.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 66 Neutral
• Price Target: $91.00 ▲(6.98%Upside)

Merit Medical Systems' strong financial performance and strategic acquisitions are key strengths, but bearish technical indicators and valuation concerns weigh down the score. The company's positive guidance and corporate events support a cautiously optimistic outlook.

Positive Factors

Financial Performance

Merit Medical's Q2 revenue is expected to beat Street expectations by 3% at the midpoint.

Leadership

The appointment of Martha Aronson as the new CEO should alleviate investor concerns about leadership succession.

Revenue Growth

Preliminary Q2 sales beats consensus by approximately $10M.

Negative Factors

Leadership Experience

The announcement does come as a surprise because Ms. Aronson has been away from a formal revenue-generating, operational role for 10 years.

Regulatory Challenges

CMS did not award Merit’s Wrapsody with transitional pass-through payment (TPT), which could justify premium pricing and higher revenues.

Reimbursement

MMSI has had mixed results seeking higher reimbursement with an inpatient new technology add-on payment likely and an outpatient transitional pass-through payment unlikely.

Merit Medical Systems Business Overview & Revenue Model

Company Description

Merit Medical Systems, Inc. designs, develops, manufactures, and markets single-use medical products for interventional, diagnostic, and therapeutic procedures, primarily in cardiology, radiology, oncology, critical care, and endoscopy. The company operates in two segments, Cardiovascular and Endoscopy. It provides peripheral intervention products for the diagnosis and treatment of diseases in peripheral vessels and organs; and cardiac intervention products, such as access, angiography, electrophysiology and cardiac rhythm management, fluid management, hemodynamic monitoring, hemostasis, and intervention to treat various heart conditions. The company also offers custom procedural solutions that include critical care products, disinfection protection systems, syringes, manifold kits, and trays and packs; coated tubes and wires; and sensor components for microelectromechanical systems. In addition, it provides pulmonary products that consist of laser-cut tracheobronchial stents, over-the-wire and direct visualization delivery systems, and dilation balloons to endoscopically dilate strictures; gastroenterology products; and kits and accessories for endoscopy and bronchoscopy procedures. The company sells its products to hospitals and alternate site-based physicians, technicians, and nurses through direct sales force, distributors, original equipment manufacturer partners, or custom procedure tray manufacturers in the United States and internationally. Merit Medical Systems, Inc. was incorporated in 1987 and is headquartered in South Jordan, Utah.

How the Company Makes Money

Merit Medical Systems makes money primarily through the sale of its medical devices and products to healthcare providers, hospitals, and clinics worldwide. The company generates revenue by manufacturing and distributing a wide range of medical devices used in interventional and diagnostic procedures. Key revenue streams include the sale of disposable medical devices and capital equipment. Significant factors contributing to its earnings include its extensive portfolio of innovative products, a strong global distribution network, and strategic partnerships with healthcare providers. Additionally, Merit Medical invests in research and development to continually enhance its product offerings and maintain a competitive edge in the medical device industry.

Merit Medical Systems Financial Statement Overview

Summary

Merit Medical Systems has shown robust revenue growth and improved profitability, with a significant increase in gross and net profit margins. The balance sheet is solid, though increased leverage poses a risk. Cash flow management is strong, supporting strategic needs. Overall, the financials reflect a compelling profile, but margin sustainability and debt management should be monitored.

Income Statement

Merit Medical Systems has demonstrated robust revenue growth with a notable increase in revenue from $963.88M in 2020 to $1,387.93M in TTM, marking consistent expansion. The Gross Profit Margin has been stable, reflecting efficient cost management. The company improved its Net Profit Margin from negative levels in 2020 to 8.81% in TTM, indicating enhanced profitability. The EBIT and EBITDA margins show healthy operational efficiency. Overall, the income statement reflects strong growth and profitability, though attention should be paid to maintaining margins as competition intensifies.

Balance Sheet

The balance sheet reveals a solid financial position with a significant increase in Stockholders' Equity from $958.58M in 2020 to $1,428.42M in TTM. The Debt-to-Equity ratio has increased due to rising debt levels, which could imply higher financial leverage. However, the Return on Equity (ROE) has improved, reflecting effective use of equity to generate profits. The equity ratio suggests a balanced capital structure. The company's leverage strategy should be monitored to ensure sustainable growth.

Cash Flow

Merit Medical Systems has shown strong cash flow management with a consistent increase in Operating Cash Flow, reaching $225.16M in TTM. Free Cash Flow has also grown, indicating good cash generation capabilities. The Free Cash Flow to Net Income ratio is favorable, suggesting efficient conversion of net income into cash. However, fluctuations in investing cash flows highlight potential capital allocation challenges. Overall, the company shows strong cash flow generation but should ensure prudent investment strategies.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.26B	1.15B	1.07B	963.88M
Gross Profit	643.33M	583.87M	519.10M	485.33M	401.18M
EBITDA	297.60M	231.44M	181.15M	153.45M	102.71M
Net Income	120.36M	94.41M	74.52M	48.45M	-9.84M
Balance Sheet
Total Assets	2.42B	2.33B	1.66B	1.65B	1.66B
Cash, Cash Equivalents and Short-Term Investments	378.81M	589.14M	58.41M	67.75M	56.92M
Total Debt	794.66M	891.36M	268.75M	315.03M	435.07M
Total Liabilities	1.04B	1.12B	519.57M	608.50M	705.82M
Stockholders Equity	1.38B	1.20B	1.14B	1.04B	958.58M
Cash Flow
Free Cash Flow	182.76M	108.45M	69.26M	119.29M	115.99M
Operating Cash Flow	220.80M	145.15M	114.29M	147.23M	165.27M
Investing Cash Flow	-368.65M	-175.35M	-57.40M	-37.16M	-58.65M
Financing Cash Flow	-60.01M	559.27M	-60.26M	-98.44M	-95.71M

Merit Medical Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 85.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMSI, the sentiment is Negative. The current price of 85.06 is below the 20-day moving average (MA) of 90.84, below the 50-day MA of 93.45, and below the 200-day MA of 98.46, indicating a bearish trend. The MACD of -2.57 indicates Positive momentum. The RSI at 34.02 is Neutral, neither overbought nor oversold. The STOCH value of 12.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MMSI.

Merit Medical Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STVN	74 Outperform	$6.69B	49.67	9.08%	0.01%	2.84%	-11.34%
ICUI	67 Neutral	$3.11B	―	-4.62%	―	7.19%	-56.19%
MMSI	66 Neutral	$4.99B	41.43	9.16%	―	8.24%	18.54%
TFX	63 Neutral	$5.18B	36.95	3.48%	1.16%	0.29%	-48.98%
MASI	61 Neutral	$8.95B	116.65	-23.93%	―	-0.12%	-713.82%
Sector *	60 Neutral	HK$16.84B	5.17	-7.44%	2.89%	11.55%	-28.15%
RGEN	54 Neutral	$6.41B	―	-1.16%	―	4.88%	-196.93%

Merit Medical Systems Corporate Events

Merit Medical Acquires Biolife Delaware for $120 Million

On May 20, 2025, Merit Medical Systems acquired Biolife Delaware, L.L.C., a manufacturer of hemostatic devices, for approximately $120 million. This strategic acquisition is expected to enhance Merit’s product portfolio and contribute to its revenue growth, with projections of adding $18 million annually starting in 2026. The acquisition aligns with Merit’s goal of improving profitability and expanding its market reach, although it is anticipated to be slightly dilutive to the company’s 2025 financial performance due to transaction-related expenses.

The most recent analyst rating on (MMSI) stock is a Buy with a $93.00 price target. To see the full list of analyst forecasts on Merit Medical Systems stock, see the MMSI Stock Forecast page.

Merit Medical Systems Shareholders Approve Key Proposals

On May 14, 2025, Merit Medical Systems, Inc. held its Annual Meeting of Shareholders where shareholders voted on key proposals including the election of four directors, approval of executive compensation, and ratification of Deloitte & Touche LLP as the independent public accounting firm for 2025. All proposals were approved, indicating shareholder support for the company’s leadership and strategic direction.

The most recent analyst rating on (MMSI) stock is a Buy with a $93.00 price target. To see the full list of analyst forecasts on Merit Medical Systems stock, see the MMSI Stock Forecast page.

Merit Medical Systems Reports Q1 2025 Revenue Growth

Merit Medical Systems reported a revenue of $355.4 million for the first quarter of 2025, marking a 9.8% increase from the previous year. The company also updated its full-year guidance, reflecting confidence in strong execution and stable growth, despite the potential impacts of recent trade policies.