Merit Medical Systems (MMSI) AI Stock Analysis

• Market Cap: $5.46B
• Dividend Yield: N/A
• Average Volume (3M): 567.25K
• Price to Earnings (P/E): 47.2
• Beta (1Y): 0.55
• Revenue Growth: 10.14%
• EPS Growth: 0.04%
• Country: US
• Employees: 7,400
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.01
• Shares Outstanding: 59,219,116
• 10 Day Avg. Volume: 506,607
• 30 Day Avg. Volume: 567,248
• PEG Ratio: 1.78
• Price to Book (P/B): 4.08
• Price to Sales (P/S): 4.15
• P/FCF Ratio: 30.81
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 4.29
• Enterprise Value/Gross Profit: 8.94
• Enterprise Value/Ebitda: 19.99
• 1Y Price Target: $104.18
• Price Target Upside: 12.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 79 Outperform
• Price Target: $105.00 ▲(12.94% Upside)

Merit Medical Systems demonstrates robust financial performance and a positive outlook from recent earnings, supported by strategic acquisitions and product growth. However, the high P/E ratio suggests potential overvaluation, and technical indicators warn of possible short-term pullbacks. Despite these concerns, the company's strong fundamentals and strategic initiatives support a favorable long-term view.

Positive Factors

Financial Performance

MMSI reported strong second-quarter results with revenue significantly exceeding expectations and a notable increase in overall revenue.

Guidance and Forecasts

The company increased its financial guidance for the fiscal year, citing better-than-expected operational performance and lighter-than-expected tariff impact.

Operational Efficiency

Free cash flow for the quarter was significantly higher than expected, indicating strong cash management and operational efficiency.

Negative Factors

Product Reimbursement

Investors faced disappointment when CMS did not list the Wrapsody product in the OPPS proposal, affecting expected reimbursement.

Reimbursement Strategy

Merit has adopted a pricing strategy that will require higher reimbursement, and until reimbursement is settled for the outpatient setting, significant revenue or uptake is not expected.

Revenue Guidance

Merit has reduced Wrapsody’s revenue guidance in 2025 from $7M-$9M to $2M-$4M.

Merit Medical Systems Business Overview & Revenue Model

Company Description

Merit Medical Systems, Inc. (MMSI) is a global leader in the medical device industry, specializing in the development, manufacturing, and distribution of innovative medical products for various clinical sectors, including interventional cardiology, radiology, and urology. The company offers a broad range of products that include catheters, guide wires, access devices, and other specialty medical devices designed to enhance patient care and improve procedural outcomes.

How the Company Makes Money

Merit Medical generates revenue primarily through the sale of its medical devices and products to hospitals, healthcare providers, and distributors. The company's revenue model is based on direct sales and distribution agreements, with significant contributions from both domestic and international markets. Key revenue streams include sales of interventional cardiology and radiology products, as well as urology and surgical products. Additionally, Merit Medical benefits from strategic partnerships with healthcare organizations and distributors that expand its market reach and enhance its product offerings, further driving revenue growth.

Merit Medical Systems Financial Statement Overview

Summary

Merit Medical Systems presents a strong financial profile with robust revenue growth and profitability improvements. However, increased leverage poses a potential risk.

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	1.43B	1.36B	1.26B	1.15B	1.07B	963.88M
Gross Profit	687.02M	643.33M	583.87M	519.10M	485.33M	401.18M
EBITDA	307.29M	297.60M	231.44M	181.15M	153.45M	102.71M
Net Income	119.12M	120.36M	94.41M	74.52M	48.45M	-9.84M
Balance Sheet
Total Assets	2.59B	2.42B	2.33B	1.66B	1.65B	1.66B
Cash, Cash Equivalents and Short-Term Investments	343.87M	378.81M	589.14M	58.41M	67.75M	56.92M
Total Debt	820.55M	794.66M	891.36M	268.75M	315.03M	435.07M
Total Liabilities	1.10B	1.04B	1.12B	519.57M	608.50M	705.82M
Stockholders Equity	1.49B	1.38B	1.20B	1.14B	1.04B	958.58M
Cash Flow
Free Cash Flow	225.80M	182.76M	108.45M	69.26M	119.29M	115.99M
Operating Cash Flow	239.96M	220.80M	145.15M	114.29M	147.23M	165.27M
Investing Cash Flow	-503.10M	-368.65M	-175.35M	-57.40M	-37.16M	-58.65M
Financing Cash Flow	-45.14M	-60.01M	559.27M	-60.26M	-98.44M	-95.71M

Merit Medical Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMSI, the sentiment is Positive. The current price of 92.97 is above the 20-day moving average (MA) of 88.13, above the 50-day MA of 88.29, and below the 200-day MA of 96.81, indicating a neutral trend. The MACD of 1.30 indicates Negative momentum. The RSI at 66.38 is Neutral, neither overbought nor oversold. The STOCH value of 87.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MMSI.

Merit Medical Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMSI	79 Outperform	$5.46B	47.23	8.60%	―	10.14%	0.04%
LMAT	76 Outperform	$2.20B	47.14	13.81%	0.78%	14.11%	23.98%
TFX	73 Outperform	$5.70B	30.39	4.36%	1.04%	1.11%	-23.73%
STVN	64 Neutral	$6.29B	43.03	9.55%	0.26%	5.95%	7.73%
BLCO	55 Neutral	$5.16B	―	-4.22%	―	8.81%	40.43%
ICUI	53 Neutral	$3.10B	―	-1.78%	―	2.95%	47.92%
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%

Merit Medical Systems Corporate Events

Merit Medical Systems Reports Strong Q2 2025 Results

On July 30, 2025, Merit Medical Systems announced its financial results for the second quarter of 2025, reporting a 13.2% increase in revenue to $382.5 million compared to the same period in 2024. The company also updated its full-year guidance, reflecting stronger-than-expected financial performance, with non-GAAP earnings per share increasing by 9.8% and free cash flow generation rising by 8.1% year-over-year. Merit acquired Biolife Delaware, L.L.C., and appointed Martha Aronson as the new President and CEO, effective October 3, 2025. The company anticipates higher non-GAAP gross and operating margins for the year, driven by trade policies and strategic actions.