Merit Medical Systems (MMSI) AI Stock Analysis

• Market Cap: $4.59B
• Dividend Yield: N/A
• Average Volume (3M): 621.17K
• Price to Earnings (P/E): 36.3
• Beta (1Y): 0.59
• Revenue Growth: 11.49%
• EPS Growth: -2.89%
• Country: US
• Employees: 7,400
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.04
• Shares Outstanding: 59,431,930
• 10 Day Avg. Volume: 725,010
• 30 Day Avg. Volume: 621,167
• PEG Ratio: 8.40
• Price to Book (P/B): 3.29
• Price to Sales (P/S): 3.44
• P/FCF Ratio: 24.18
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 3.32
• Enterprise Value/Gross Profit: 6.81
• Enterprise Value/Ebitda: 15.14
• 1Y Price Target: $102.89
• Price Target Upside: 33.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 4.03
• Revenue Forecast (FY): $1.61B

• Rating: 68 Neutral
• Price Target: $90.00 ▲(16.61% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 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

Free cash flow generation

Merit’s consistent improvement in cash generation — operating cash flow roughly doubled from 2020 to 2025 and free cash flow reached $297M — supports durable investment capacity, debt service, and M&A funding, underpinning long‑term financial flexibility even if growth moderates.

Sustained revenue and margin expansion

Multi‑year top‑line growth coupled with expanding gross and non‑GAAP operating margins indicates structural improvement in pricing, product mix, and cost efficiency. That combination supports durable profitability and cash conversion versus peers across a 2–6 month horizon and into the company’s CGI targets.

Strategic platform alignment and supportive balance sheet

Management’s platform strategy plus disciplined inorganic activity and clear CGI targets provide a repeatable growth framework. Coupled with ample liquidity, borrowing capacity and moderate leverage, this structural setup improves resilience to shocks and enables targeted investments over the medium term.

Negative Factors

Material rise in total debt

Debt grew materially since 2022, raising leverage risk relative to earlier years. While coverage and liquidity remain reasonable today, higher absolute debt increases sensitivity to demand shocks, interest cost variability, or weaker cash flow, constraining financial flexibility over the next several quarters.

OEM weakness and customer destocking

Significant OEM demand softness and customer inventory destocking reflect structural channel and demand volatility that can persist. Reduced OEM orders can depress revenue visibility and make growth lumpy, undermining the predictability of recurring sales and amplifying downside risk to margins if volumes stay muted.

Divestiture reduces near‑term revenue base

The strategic sale of the DualCap line trims the company’s revenue base and creates a measurable headwind to reported growth. While potentially beneficial long term, this reduces near‑term organic growth metrics and requires other product ramps or M&A to offset lost revenue and sustain CAGR targets.

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

Strong multi-year revenue expansion and profitability improvement, with particularly strong operating/free cash flow generation. Offsets include a meaningful rise in total debt since 2022 and a slight net margin dip in 2025, plus some opacity in the provided 2025 operating margin figure.

Income Statement

The income statement shows solid and improving profitability. Revenue rose steadily from $964M (2020) to $1.52B (2025), with 2025 growth accelerating (262.5% as provided). Gross margin improved over time (about 41.6% in 2020 to 48.7% in 2025), and the company moved from a net loss in 2020 to consistent profitability, reaching $128.5M net income in 2025. Offsetting this, net margin dipped slightly versus 2024 (8.5% vs. 8.9%), and operating profitability in 2025 appears less transparent given the 0.0% operating margin figure provided despite positive operating profit.

Balance Sheet

The balance sheet looks generally healthy with a growing equity base ($959M in 2020 to $1.58B in 2025) and improving returns on equity versus earlier years (negative in 2020 to ~8.1% in 2025). Leverage is moderate in the most recent period (debt-to-equity ~0.53 in 2025), and has improved from the 2023 peak (~0.74). However, total debt increased materially versus 2022 ($280M to $832M by 2025), which raises financial risk if operating conditions weaken.

Cash Flow

Cash generation is a clear strength. Operating cash flow increased from $165M (2020) to $297M (2025), and free cash flow also improved, reaching $297M in 2025 with strong growth (23.958% as provided). Cash conversion is solid: operating cash flow exceeded net income in 2025 (coverage ~1.24), and free cash flow matched net income (1.0). The main weakness is historical volatility—free cash flow declined in 2022 (negative growth), though it has since rebounded strongly.

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

• Technical Analysis Sentiment: Negative
• Last Price: 77.18
• 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 77.18 is below the 20-day moving average (MA) of 80.83, below the 50-day MA of 83.72, and below the 200-day MA of 86.86, indicating a bearish trend. The MACD of -1.06 indicates Positive momentum. The RSI at 37.36 is Neutral, neither overbought nor oversold. The STOCH value of 16.69 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
LMAT	75 Outperform	$2.46B	42.96	15.80%	0.95%	13.07%	27.98%
MMSI	68 Neutral	$4.59B	36.30	8.67%	―	11.49%	-2.89%
STVN	63 Neutral	$4.24B	27.28	9.81%	0.29%	9.19%	23.06%
BLCO	60 Neutral	$6.48B	-17.96	-4.69%	―	6.23%	17.53%
ICUI	57 Neutral	$3.72B	6,121.14	-0.35%	―	-0.81%	93.27%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TFX	50 Neutral	$5.39B	-5.94	-5.26%	1.11%	5.43%	-245.18%

Merit Medical Systems Corporate Events

Merit Medical Posts Strong Q4 Results, Raises 2026 Outlook

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 to 13.8%, non‑GAAP operating margin reached 21.0%, GAAP EPS climbed 37% to $0.63, non‑GAAP EPS increased 12% to $1.04, and free cash flow grew 13% to $74 million.

For fiscal 2025, revenue increased 12% to $1.516 billion, with constant‑currency organic growth of 7%, GAAP operating margin advancing to 12.2%, non‑GAAP operating margin to 20.3%, GAAP EPS rising 5% to $2.13, non‑GAAP EPS up 11% to $3.83 and free cash flow up 16% to $215.7 million. Management issued 2026 guidance calling for 6%–8% reported revenue growth to as much as $1.63 billion and a further 5%–8% increase in non‑GAAP EPS, underscoring confidence in continued margin expansion and the final‑year targets of its Continued Growth Initiatives Program through 2026.

The most recent analyst rating on (MMSI) stock is a Buy with a $106.00 price target. To see the full list of analyst forecasts on Merit Medical Systems stock, see the MMSI Stock Forecast page.

Merit Medical Systems 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.