Merit Medical Systems (MMSI) AI Stock Analysis

• Market Cap: $5.53B
• Dividend Yield: N/A
• Average Volume (3M): 516.27K
• Price to Earnings (P/E): 45.9
• Beta (1Y): 0.58
• 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: 639,097
• 30 Day Avg. Volume: 516,274
• PEG Ratio: 1.78
• Price to Book (P/B): 4.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.81
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 7.06
• Enterprise Value/Ebitda: 4.01
• 1Y Price Target: $107.11
• Price Target Upside: 14.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: $109.00 ▲(16.57%Upside)

Merit Medical Systems' overall stock score is driven by strong financial performance and strategic corporate events that support growth. The earnings call provided a positive outlook, albeit with some challenges from tariffs and EPS guidance reduction. The valuation appears stretched, and technical indicators suggest a cautious near-term view.

Positive Factors

Acquisition Benefits

MMSI announced it acquired Biolife Delaware L.L.C., making Biolife a wholly owned subsidiary of Merit, which is expected to enhance the company's product offerings.

Financial Performance

Non-GAAP EPS of $0.86 represented a strong beat versus our estimate of $0.76.

Tariff Reduction

Reduced tariff rates may drive up to ~$21M upside to FY25.

Negative Factors

Acquisition Costs

The acquisition involves a $120M cash transaction, which is considered pricey for MMSI, potentially impacting short-term financials.

Financial Guidance

Merit updated its FY/25 financial guidance given the difficult tariff backdrop. The company’s current FY/25 guidance now includes non-GAAP EPS in a range of $3.29-3.42 (down from $3.58-3.70).

Government Cutbacks

Wrapsody TPT could be delayed due to US government cutbacks.

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 shows strong financial performance with robust revenue and profitability growth. The income statement indicates efficient operations and improved margins, although increasing debt levels on the balance sheet warrant attention. Cash flow generation is strong, despite fluctuations in investing cash flows.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.39B	1.36B	1.26B	1.15B	1.07B	963.88M
Gross Profit	662.85M	643.33M	583.87M	519.10M	485.33M	401.18M
EBITDA	304.58M	297.60M	231.44M	181.15M	153.45M	102.71M
Net Income	122.26M	120.36M	94.41M	74.52M	48.45M	-9.84M
Balance Sheet
Total Assets	1.66B	2.42B	2.33B	1.66B	1.65B	1.66B
Cash, Cash Equivalents and Short-Term Investments	56.92M	378.81M	589.14M	58.41M	67.75M	56.92M
Total Debt	435.07M	794.66M	891.36M	268.75M	315.03M	435.07M
Total Liabilities	705.82M	1.04B	1.12B	519.57M	608.50M	705.82M
Stockholders Equity	958.58M	1.38B	1.20B	1.14B	1.04B	958.58M
Cash Flow
Free Cash Flow	178.14M	182.76M	108.45M	69.26M	119.29M	115.99M
Operating Cash Flow	225.16M	220.80M	145.15M	114.29M	147.23M	165.27M
Investing Cash Flow	-376.24M	-368.65M	-175.35M	-57.40M	-37.16M	-58.65M
Financing Cash Flow	-35.05M	-60.01M	559.27M	-60.26M	-98.44M	-95.71M

Merit Medical Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 93.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 93.51 is below the 20-day moving average (MA) of 93.64, below the 50-day MA of 94.73, and below the 200-day MA of 99.07, indicating a bearish trend. The MACD of -0.50 indicates Negative momentum. The RSI at 47.39 is Neutral, neither overbought nor oversold. The STOCH value of 67.96 is Neutral, 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
MMSI	76 Outperform	$5.53B	45.86	9.16%	―	8.24%	18.54%
STVN	74 Outperform	$6.68B	49.62	9.08%	0.25%	2.84%	-11.34%
ICUI	66 Neutral	$3.35B	―	-4.62%	―	7.19%	-56.19%
MASI	63 Neutral	$9.29B	116.65	-23.93%	―	-0.12%	-713.82%
TFX	58 Neutral	$5.38B	38.40	3.48%	1.12%	0.29%	-48.98%
RGEN	56 Neutral	$7.13B	―	-1.16%	―	4.88%	-196.93%
Sector *	51 Neutral	$7.50B	0.32	-61.87%	2.27%	17.10%	1.59%

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.