Merit Medical (MMSI)
NASDAQ:MMSI
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Merit Medical Systems
(NASDAQ:MMSI)
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Rating:68Neutral
Price Target:
$74.00
▲(8.55% Upside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by strong financial performance (profitability improvement and robust cash generation) and a generally positive earnings outlook despite noted headwinds. These are tempered by mixed technical momentum (below key longer-term moving averages with negative MACD) and a demanding valuation (P/E ~42 with no dividend yield provided).
Positive Factors
Durable Cash Generation
Merit’s operating and free cash flow have grown materially over several years, culminating in substantially higher cash conversion by 2025. Persistent, high cash generation underpins durable capital allocation flexibility for R&D, M&A, capex and debt reduction, reducing execution risk over time.
Negative Factors
Material Rise in Debt
Debt has risen sharply in recent years, elevating leverage and interest‑rate sensitivity. Higher absolute debt levels constrain financial flexibility, increase refinancing and covenant risk, and make ongoing investment and shareholder return plans more contingent on sustained cash flow performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable Cash Generation
Merit’s operating and free cash flow have grown materially over several years, culminating in substantially higher cash conversion by 2025. Persistent, high cash generation underpins durable capital allocation flexibility for R&D, M&A, capex and debt reduction, reducing execution risk over time.
Read all positive factors
Merit Medical Systems (MMSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.05B
Dividend YieldN/A
Average Volume (3M)829.88K
Price to Earnings (P/E)40.6
Beta (1Y)0.64
Revenue Growth11.49%
EPS Growth-2.89%
CountryUS
Employees7,400
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)1.04
Shares Outstanding59,431,930
10 Day Avg. Volume1,032,296
30 Day Avg. Volume829,883
Financial Highlights & Ratios
PEG Ratio8.40
Price to Book (P/B)3.29
Price to Sales (P/S)3.44
P/FCF Ratio24.18
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue2.96
Enterprise Value/Gross Profit6.08
Enterprise Value/Ebitda13.51
Forecast
1Y Price Target
$102.89Price Target Upside50.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)4.06
Revenue Forecast (FY)$1.62B
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 compan...
How the Company Makes Money
Merit Medical Systems primarily makes money by selling medical devices and procedure-related consumables to healthcare providers and distributors. Its revenue model is predominantly based on recurring sales of single-use products that are consumed...
Merit Medical Systems Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call emphasized strong underlying performance: revenue and margin expansion, record quarterly free cash flow, and full-year results that exceeded the high end of prior guidance. Management set measured 2026 guidance that anticipates continued margin expansion and solid cash generation while calling out known headwinds — notably tariffs, OEM destocking, the impact of the DualCap divestiture, China/VBP effects, and some supply chain lumpiness. Strategic initiatives (platform alignment, product pipeline and disciplined M&A) and a supportive balance sheet were highlighted as offsets to near-term challenges.Positive Updates
Quarterly Revenue Growth Exceeded Expectations
Q4 2025 total revenue of $393.9 million, up 11% year-over-year on a GAAP basis and up 10% year-over-year on a constant currency basis; organic constant currency growth in Q4 was 6.6%, modestly above guidance.
Negative Updates
OEM Revenue Weakness and Inventory Destocking
Q4 OEM product sales decreased 15%, far below guidance (expected low single-digit growth); U.S. OEM sales declined high single digits due largely to customer inventory destocking, and international OEM demand was impacted by broader macro weakness.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Revenue Growth Exceeded Expectations
Q4 2025 total revenue of $393.9 million, up 11% year-over-year on a GAAP basis and up 10% year-over-year on a constant currency basis; organic constant currency growth in Q4 was 6.6%, modestly above guidance.
Read all positive updates
Company Guidance
Merit’s 2026 guidance targets GAAP net revenue growth of 6–8% (5–7% constant currency, noting an ~80‑bp FX tailwind to GAAP), with inorganic contributions from the BioLife and C2 deals of $13–15M and organic constant‑currency growth of roughly 4.5–6%; U.S. Rhapsody CIE revenue is expected at about $7M (vs. $3M in 2025) while the DualCap divestiture (sold for $28M; DualCap sales/royalties ≈$20M in 2025) is estimated to subtract ~140 bps from consolidated constant‑currency growth (≈240 bps U.S.). Profitability guidance calls for non‑GAAP diluted EPS of $4.01–$4.15 (up 5–8% YoY), driven by non‑GAAP operating margin expansion of about 36–76 bps to ~20.6–21.0%, while assuming a 12‑month tariff impact of ~$15M (≈$0.19/share) and a projected incremental tariff/trade EPS drag of ~$0.07; the company models non‑GAAP interest/other ≈$8M, a ~23% tax rate, diluted shares ≈62.2M (including ~500k incremental shares), and a minimum of $200M free cash flow in 2026 with ~ $90M of CapEx. For Q1 2026 Merit expects revenue of $375–$380M (GAAP +6–7%; cc +3–5%; cc organic ex‑inorganic ~2–3%), Q1 non‑GAAP operating margin of ~16.7–18.5% (vs. 19.3% LY) and Q1 non‑GAAP EPS of $0.77–$0.87 (vs. $0.86 LY).Merit Medical Systems Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
85
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.52B | 1.36B | 1.26B | 1.15B | 1.07B |
| Gross Profit | 738.27M | 643.33M | 583.87M | 519.10M | 485.33M |
| EBITDA | 332.05M | 273.97M | 228.89M | 181.17M | 154.96M |
| Net Income | 128.49M | 120.36M | 94.41M | 74.52M | 48.45M |
Balance Sheet | |||||
| Total Assets | 2.69B | 2.42B | 2.33B | 1.66B | 1.65B |
| Cash, Cash Equivalents and Short-Term Investments | 448.50M | 376.71M | 589.14M | 58.41M | 67.75M |
| Total Debt | 898.23M | 794.66M | 891.36M | 279.75M | 325.70M |
| Total Liabilities | 1.10B | 1.04B | 1.12B | 519.57M | 608.50M |
| Stockholders Equity | 1.58B | 1.38B | 1.20B | 1.14B | 1.04B |
Cash Flow | |||||
| Free Cash Flow | 215.65M | 182.76M | 108.45M | 69.26M | 119.29M |
| Operating Cash Flow | 297.37M | 220.80M | 145.15M | 114.29M | 147.23M |
| Investing Cash Flow | -247.39M | -368.65M | -175.35M | -57.40M | -37.16M |
| Financing Cash Flow | 16.00M | -60.01M | 559.27M | -60.26M | -98.44M |
Merit Medical Systems Technical Analysis
Negative
68.17
Price Trends
77.62
Negative
82.22
Negative
84.69
Negative
Market Momentum
-3.27
Positive
32.02
Neutral
19.05
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 68.17 is below the 20-day moving average (MA) of 71.71, below the 50-day MA of 77.62, and below the 200-day MA of 84.69, indicating a bearish trend. The MACD of -3.27 indicates Positive momentum. The RSI at 32.02 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MMSI.
Merit Medical Systems Risk Analysis
Merit Medical Systems disclosed 40 risk factors in its most recent earnings report. Merit Medical Systems reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Merit Medical Systems Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.53B | 31.80 | 15.58% | 0.95% | 13.07% | 27.98% | |
68 Neutral | $4.05B | 40.58 | 8.52% | ― | 11.49% | -2.89% | |
63 Neutral | $3.87B | 24.79 | 9.72% | 0.29% | 9.19% | 23.06% | |
60 Neutral | $5.68B | -16.79 | -5.61% | ― | 6.23% | 17.53% | |
57 Neutral | $3.24B | 4,802.44 | 0.04% | ― | -0.81% | 93.27% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $4.78B | -6.01 | -23.70% | 1.11% | 5.43% | -245.18% |
* Healthcare Sector Average
MMSI
Merit Medical Systems
68.11
-35.59
-34.32%
ICUI
ICU Medical
131.38
-17.33
-11.65%
LMAT
Lemaitre Vascular
111.08
27.33
32.63%
TFX
Teleflex
108.18
-30.45
-21.97%
STVN
Stevanato Group
14.18
-6.74
-32.22%
BLCO
Bausch + Lomb Corporation
16.02
0.35
2.23%
Merit Medical Systems Corporate Events
Business Operations and StrategyFinancial Disclosures
Merit Medical Posts Strong Q4 Results, Raises 2026 Outlook
Positive
Feb 24, 2026
On February 24, 2026, Merit Medical reported its fourth-quarter and full-year 2025 results, highlighting double‑digit revenue growth and expanding margins. For the quarter, revenue rose 11% to $393.9 million, GAAP operating margin improved t...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Merit Medical Systems announces new board chair appointment
Positive
Jan 8, 2026
On January 8, 2026, Merit Medical Systems announced that its board appointed longtime director and former Lead Independent Director F. Ann Millner as Chair of the Board, effective January 5, 2026, following the January 4, 2026 resignation of compa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.