Merit Medical (MMSI)
NASDAQ:MMSI
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Merit Medical Systems
(NASDAQ:MMSI)
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Rating:68Neutral
Price Target:
$69.00
▲(1.22% Upside)
Action:Reiterated
Date:05/20/26
The score is driven primarily by solid financial fundamentals (notably strong free cash flow and improved profitability) and a generally constructive earnings outlook despite near-term headwinds (tariffs, OEM weakness, and softer Q2 margin/EPS guidance). These positives are partially offset by weak technicals with the stock trading below key moving averages and negative MACD, plus a valuation that is reasonable but not clearly cheap at ~25x earnings.
Positive Factors
Free cash flow and operating cash generation
Sustained high operating cash flow (~$297M TTM) and strong free cash flow (~$274M TTM; OCF > net income ~1.37x) provide durable financial flexibility. This underpins reinvestment, targeted M&A, and debt paydown capacity, cushioning earnings during margin pressure and supporting growth funding.
Negative Factors
Sizeable debt load despite improvement
Although leverage metrics have improved (debt-to-equity ~0.52), absolute debt (~$846M) is materially higher than prior years. Elevated debt can constrain capital allocation, increase interest vulnerability, and limit the company's ability to absorb prolonged margin compression or fund large opportunistic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow and operating cash generation
Sustained high operating cash flow (~$297M TTM) and strong free cash flow (~$274M TTM; OCF > net income ~1.37x) provide durable financial flexibility. This underpins reinvestment, targeted M&A, and debt paydown capacity, cushioning earnings during margin pressure and supporting growth funding.
Read all positive factors
Merit Medical Systems (MMSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.83B
Dividend YieldN/A
Average Volume (3M)794.35K
Price to Earnings (P/E)25.0
Beta (1Y)0.57
Revenue Growth11.34%
EPS Growth12.26%
CountryUS
Employees7,400
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)2.35
Shares Outstanding59,654,854
10 Day Avg. Volume748,583
30 Day Avg. Volume794,346
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 Cap1.09
Enterprise Value/Revenue2.70
Enterprise Value/Gross Profit5.54
Enterprise Value/Ebitda12.88
Forecast
1Y Price Target
$87.50Price Target Upside28.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)4.07
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call was largely positive: Merit beat revenue and earnings expectations in Q1, delivered the highest first-quarter operating margin in company history, generated stronger free cash flow, and closed strategic acquisitions (Viewpoint, BioLife, C2) that expand high-growth therapeutic markets. Near-term headwinds include a steep OEM decline in the quarter, tariff impacts and uncertainty, divestiture-related revenue drag, a recent Class I recall (managed as immaterial), and Q2 guidance reflecting some margin and EPS pressure. Management reiterated solid full-year guidance and confidence in organic and inorganic growth and emphasized disciplined cost/control efforts and platform alignment.Positive Updates
Revenue Beat and Growth
Total revenue $381.9M, up 7% year-over-year (GAAP) and up 5% on a constant currency basis; results exceeded the high end of prior expectations.
Negative Updates
OEM Revenue Decline
OEM sales declined 14% year-over-year in Q1, below guidance assumptions; headwinds from APAC macro weakness and U.S. inventory destocking related to product transfers.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Beat and Growth
Total revenue $381.9M, up 7% year-over-year (GAAP) and up 5% on a constant currency basis; results exceeded the high end of prior expectations.
Read all positive updates
Company Guidance
Merit updated 2026 guidance calling for GAAP net revenue growth of 6.3%–7.8% y/y (constant currency 5.6%–7.0%, excluding an ~80 bps FX tailwind) with inorganic revenue of ~$17–20M (up from prior $13–15M) that includes Viewpoint Medical contributing $2–4M (acquired 4/1) and an assumed $7M of Rhapsody CIE U.S. sales; excluding inorganic, organic constant‑currency growth is guided at ~4.5%–6.0%, with foundational products expected to grow mid‑single digits and therapeutic products high‑single digits. Profitability guidance is non‑GAAP diluted EPS of $4.10–$4.15 (up 5%–8%, reflecting ~ $0.05 of Viewpoint dilution), a full‑year tariff headwind of ~$15M (≈$0.19/sh vs $9M/ $0.12 realized in late‑2025), and the company will reassess tariff/refund assumptions after Q2. For Q2 specifically Merit expects revenue of $400M–$410M (GAAP +5%–7%, ~4%–7% cc), inorganic Q2 revenue of ~$4.0–4.5M (organic cc growth ~3%–5%), non‑GAAP operating margin of ~18.7%–20.4% (vs 21.2% LY) and non‑GAAP EPS of $0.90–$1.00 (vs $1.10 LY); management reiterated CGI targets and plans to update guidance when reporting Q2 results.Merit Medical Systems Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.54B | 1.51B | 1.36B | 1.26B | 1.15B | 1.07B |
| Gross Profit | 750.59M | 736.94M | 643.33M | 583.87M | 519.10M | 485.33M |
| EBITDA | 322.89M | 319.03M | 273.97M | 228.89M | 181.17M | 154.96M |
| Net Income | 139.34M | 128.49M | 120.36M | 94.41M | 74.52M | 48.45M |
Balance Sheet | ||||||
| Total Assets | 2.72B | 2.69B | 2.42B | 2.33B | 1.66B | 1.65B |
| Cash, Cash Equivalents and Short-Term Investments | 490.25M | 448.50M | 376.71M | 589.14M | 58.41M | 67.75M |
| Total Debt | 821.56M | 898.23M | 794.66M | 891.36M | 279.75M | 325.70M |
| Total Liabilities | 1.09B | 1.10B | 1.04B | 1.12B | 519.57M | 608.50M |
| Stockholders Equity | 1.63B | 1.58B | 1.38B | 1.20B | 1.14B | 1.04B |
Cash Flow | ||||||
| Free Cash Flow | 258.00M | 215.65M | 182.76M | 108.45M | 69.26M | 119.29M |
| Operating Cash Flow | 297.48M | 297.37M | 220.80M | 145.15M | 114.29M | 147.23M |
| Investing Cash Flow | -210.02M | -247.39M | -368.65M | -175.35M | -57.40M | -37.16M |
| Financing Cash Flow | 2.75M | 16.00M | -60.01M | 559.27M | -60.26M | -98.44M |
Merit Medical Systems Technical Analysis
Neutral
68.17
Price Trends
66.63
Negative
73.81
Negative
79.69
Negative
Market Momentum
-1.12
Negative
48.36
Neutral
88.64
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMSI, the sentiment is Neutral. The current price of 68.17 is above the 20-day moving average (MA) of 63.23, above the 50-day MA of 66.63, and below the 200-day MA of 79.69, indicating a neutral trend. The MACD of -1.12 indicates Negative momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 88.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MMSI.
Merit Medical Systems Risk Analysis
Merit Medical Systems disclosed 42 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.23B | 39.69 | 16.19% | 0.95% | 13.27% | 36.99% | |
68 Neutral | $3.83B | 25.02 | 8.95% | ― | 11.34% | 12.26% | |
65 Neutral | $4.92B | 28.96 | 9.63% | 0.29% | 15.54% | 21.77% | |
57 Neutral | $3.33B | 26.54 | 2.19% | ― | -10.76% | ― | |
57 Neutral | $5.88B | -162.30 | -28.27% | 1.11% | -6.61% | -812.37% | |
56 Neutral | $5.68B | -19.89 | -3.41% | ― | 7.85% | 39.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
MMSI
Merit Medical Systems
64.17
-31.21
-32.72%
ICUI
ICU Medical
133.31
4.32
3.35%
LMAT
Lemaitre Vascular
97.75
17.09
21.19%
TFX
Teleflex
132.75
13.34
11.17%
STVN
Stevanato Group
18.01
-4.24
-19.05%
BLCO
Bausch + Lomb Corporation
15.92
4.63
41.01%
Merit Medical Systems Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Merit Medical Updates Governance and Elects New Director
Positive
May 19, 2026
At its May 13, 2026 annual meeting, Merit Medical Systems’ shareholders approved a new 2026 Equity Incentive Plan and a 2026 Employee Stock Purchase Plan, expanding the company’s toolkit for stock-based compensation for executives, dir...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Merit Medical Tops Q1 Forecasts, Raises 2026 Outlook
Positive
Apr 30, 2026
On April 30, 2026, Merit Medical reported first-quarter 2026 results that beat its own expectations, with revenue rising 7% year over year to $381.9 million, GAAP EPS climbing 39% to $0.68, and non-GAAP EPS up 9% to $0.94, supported by improved op...
Business Operations and StrategyFinancial Disclosures
Merit Medical Recasts Revenue to Highlight Growing Therapies
Positive
Apr 13, 2026
Merit Medical Systems has released historical revenue data reclassified into new foundational and therapeutic product categories for the fiscal years 2022 through 2025, showing total revenue rising from about $1.15 billion in 2022 to $1.52 billion...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Merit Medical acquires View Point to expand oncology portfolio
Positive
Apr 1, 2026
On April 1, 2026, Merit Medical Systems acquired View Point Medical, Inc. in a merger valued at about $140 million, making View Point a wholly owned subsidiary and adding its FDA-cleared OneMark Detection Imaging System, tissue markers, and relate...
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...
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.