Merit Medical Systems (MMSI) AI Stock Analysis

• Market Cap: $4.85B
• Dividend Yield: N/A
• Average Volume (3M): 659.13K
• Price to Earnings (P/E): 41.1
• Beta (1Y): 0.57
• Revenue Growth: 11.49%
• EPS Growth: -2.89%
• Country: US
• Employees: 7,400
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.92
• Shares Outstanding: 59,290,250
• 10 Day Avg. Volume: 872,786
• 30 Day Avg. Volume: 659,135
• 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: 1.12
• Enterprise Value/Revenue: 3.66
• Enterprise Value/Gross Profit: 7.56
• Enterprise Value/Ebitda: 17.29
• 1Y Price Target: $104.63
• Price Target Upside: 27.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 4.01
• Revenue Forecast (FY): $1.60B

• Rating: 77 Outperform
• Price Target: $104.00 ▲(27.22% Upside)

The score is driven primarily by strong financial performance—especially cash flow quality and a stable balance sheet—plus supportive price momentum and an upbeat earnings outlook with raised/affirmed growth and free-cash-flow expectations. The main offset is valuation, as the high P/E meaningfully reduces the overall score.

Positive Factors

Cash generation

Merit consistently converts earnings into cash (OCF/net income 1.16; FCF/net income 0.98), supporting durable self-funding of R&D, M&A and working capital. Strong cash conversion enhances financial flexibility to invest and withstand cyclical pressures over the next 2-6 months.

Revenue growth and guidance

Management’s guidance for double-digit GAAP revenue growth and a defined FCF target signals sustainable demand and disciplined capital allocation. Predictable top-line expansion plus explicit cash-generation goals underpin longer-term reinvestment capacity and margin improvement prospects.

Strategic product/portfolio expansion

Closing the C2 CryoBalloon deal broadens Merit’s endoscopy/gastroenterology offerings, creating a durable avenue for incremental revenue and cross-selling into established hospital relationships. Strategic tuck-ins like this can be accretive and strengthen market position over months to years.

Negative Factors

Leadership transition risk

Founder and long-tenured leader exits with a new CEO in place; such turnover can alter strategic priorities, commercial relationships, and execution cadence. Even with internal succession, governance and strategy shifts can affect execution and stakeholder confidence over the medium term.

Reimbursement setback for WRAPSODY

Deferral of the CMS transitional payment means slower reimbursement adoption and puts immediate pricing/coverage uncertainty on WRAPSODY. Although Merit will commercialize directly, delayed favorable reimbursement can limit near-term uptake and extend the timeline to meaningful revenue scale.

Margin and international/headline pressures

Tariff impacts (~90bps) combined with a slight EBIT margin decline and China/OEM softness indicate persistent cost and geographic risks. These structural pressures can compress operating leverage and complicate margin recovery, requiring sustained pricing or efficiency actions to restore margins.

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 generates revenue through the sale of its extensive portfolio of medical devices and related products. The company primarily earns income from direct sales to hospitals, clinics, and healthcare providers, as well as through distribution agreements with third-party distributors. Key revenue streams include sales of interventional cardiology products, imaging and drainage products, and specialty procedures. Additionally, Merit Medical has established partnerships with healthcare organizations and research institutions to develop new technologies and expand its product offerings, further contributing to its earnings. The company's commitment to innovation and its focus on expanding market reach in emerging markets also play a significant role in driving revenue growth.

Merit Medical Systems Financial Statement Overview

Summary

Merit Medical Systems demonstrates strong financial performance with consistent revenue growth, stable profitability, and effective cash flow management. The balance sheet shows prudent leverage, though rising debt levels should be monitored.

Income Statement

Merit Medical Systems shows strong revenue growth with a 3.23% increase in TTM, supported by consistent gross profit margins around 47-48%. The net profit margin is healthy at 8.31% TTM, indicating efficient cost management. EBIT and EBITDA margins are stable, reflecting operational efficiency. Overall, the company demonstrates robust growth and profitability in its income statement.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.55 TTM, indicating a balanced approach to leverage. Return on equity is solid at 8.48%, showing effective use of shareholder funds. The equity ratio is stable, suggesting a strong asset base. However, the increase in total debt over the years warrants monitoring.

Cash Flow

Merit Medical Systems exhibits strong cash flow management with a 26.76% growth in free cash flow TTM. The operating cash flow to net income ratio is above 1, indicating good cash conversion. The free cash flow to net income ratio is also high at 0.94, reflecting efficient cash utilization. Overall, the company maintains a healthy cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.48B	1.36B	1.26B	1.15B	1.07B	963.88M
Gross Profit	715.90M	643.33M	583.87M	519.10M	485.33M	401.18M
EBITDA	313.03M	273.97M	228.89M	181.17M	154.96M	103.58M
Net Income	118.43M	120.36M	94.41M	74.52M	48.45M	-9.84M
Balance Sheet
Total Assets	2.63B	2.42B	2.33B	1.66B	1.65B	1.66B
Cash, Cash Equivalents and Short-Term Investments	392.46M	376.71M	589.14M	58.41M	67.75M	56.92M
Total Debt	821.15M	794.66M	891.36M	279.75M	325.70M	447.97M
Total Liabilities	1.10B	1.04B	1.12B	519.57M	608.50M	705.82M
Stockholders Equity	1.53B	1.38B	1.20B	1.14B	1.04B	958.58M
Cash Flow
Free Cash Flow	239.90M	182.76M	108.45M	69.26M	119.29M	115.99M
Operating Cash Flow	267.61M	220.80M	145.15M	114.29M	147.23M	165.27M
Investing Cash Flow	-411.50M	-368.65M	-175.35M	-57.40M	-37.16M	-58.65M
Financing Cash Flow	13.37M	-60.01M	559.27M	-60.26M	-98.44M	-95.71M

Merit Medical Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 81.75
• 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 81.75 is below the 20-day moving average (MA) of 87.21, below the 50-day MA of 86.55, and below the 200-day MA of 88.81, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 35.29 is Neutral, neither overbought nor oversold. The STOCH value of 4.49 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
MMSI	77 Outperform	$4.85B	41.12	8.30%	―	11.49%	-2.89%
LMAT	75 Outperform	$1.94B	36.77	15.02%	0.95%	13.07%	27.98%
STVN	67 Neutral	$5.59B	35.96	9.81%	0.29%	9.19%	23.06%
TFX	61 Neutral	$4.55B	-14.22	-7.90%	1.11%	5.43%	-245.18%
ICUI	61 Neutral	$3.67B	-498.94	-0.35%	―	-0.81%	93.27%
BLCO	55 Neutral	$6.13B	-20.19	-4.69%	―	6.23%	17.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Merit Medical Systems Corporate Events

Merit Medical Systems announces new board chair appointment

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 company founder Fred P. Lampropoulos as director and Chair, which came after his earlier departure as President and CEO on October 3, 2025 and conclusion as Executive Chair on January 3, 2026. The company emphasized that Lampropoulos’ departure was not due to any disagreement over governance, operations, or financial reporting and that he will continue to advise Merit under a consulting agreement through March 31, 2026, helping to provide continuity as the board also reduced its size from eleven to ten members; at the same time, Merit reported strong preliminary unaudited fourth-quarter 2025 revenue of $389 million to $395 million, up about 10% to 11% year over year, signaling solid operational momentum during the leadership transition.

The most recent analyst rating on (MMSI) stock is a Buy with a $99.00 price target. To see the full list of analyst forecasts on Merit Medical Systems stock, see the MMSI Stock Forecast page.

Merit Medical Systems Begins WRAPSODY CIE Commercialization

Merit Medical Systems announced on November 13, 2025, that the U.S. Centers for Medicare & Medicaid Services deferred its application for Transitional Pass-Through payment for its WRAPSODY® Cell-Impermeable Endoprosthesis to the 2027 Outpatient Prospective Payment System rule. Despite this setback, Merit plans to pivot strategically by withdrawing the application and commencing full commercialization of the product in the U.S. immediately. This move aims to enhance patient access and optimize the adoption of the technology, which has shown promising clinical evidence in trials. The company forecasts U.S. revenue from WRAPSODY CIE sales to range between $2 million and $4 million for 2025.

The most recent analyst rating on (MMSI) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Merit Medical Systems stock, see the MMSI Stock Forecast page.

Merit Medical Completes Acquisition of C2 CryoBalloon

On November 3, 2025, Merit Medical Systems completed the acquisition of the C2 CryoBalloon device and related technology from Pentax of America, Inc. This strategic acquisition is expected to enhance Merit’s product portfolio and strengthen its position in the medical device market, although it involves substantial risks and uncertainties regarding integration and financial performance.

The most recent analyst rating on (MMSI) stock is a Buy with a $100.00 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 Strong Q3 2025 Results

On October 30, 2025, Merit Medical Systems announced its financial results for the third quarter of 2025, reporting a revenue of $384.2 million, a 13% increase from the same period in 2024. The company exceeded its financial expectations, prompting an update in its full-year guidance, reflecting confidence in continued growth and profitability.

The most recent analyst rating on (MMSI) stock is a Buy with a $104.00 price target. To see the full list of analyst forecasts on Merit Medical Systems stock, see the MMSI Stock Forecast page.

Merit Medical Systems Acquires C2 CryoBalloon Technology

On October 15, 2025, Merit Medical Systems announced a definitive agreement to acquire the C2 CryoBalloon device and related technology from Pentax of America, Inc. for $22 million. This acquisition aims to enhance Merit’s endoscopy portfolio, particularly in the gastroenterology market, by providing innovative solutions for gastrointestinal disorders such as Barrett’s esophagus. The transaction is expected to close in the fourth quarter of 2025, with anticipated revenue contributions of $6 million to $8 million in 2026. The acquisition is projected to initially dilute Merit’s earnings but is expected to be accretive in the long term, strengthening its market position and expanding treatment options for patients.

The most recent analyst rating on (MMSI) stock is a Buy with a $104.00 price target. To see the full list of analyst forecasts on Merit Medical Systems stock, see the MMSI Stock Forecast page.