Merit Medical Systems (MMSI) AI Stock Analysis

• Market Cap: $5.15B
• Dividend Yield: N/A
• Average Volume (3M): 651.70K
• Price to Earnings (P/E): 44.5
• 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): 0.92
• Shares Outstanding: 59,290,250
• 10 Day Avg. Volume: 630,790
• 30 Day Avg. Volume: 651,703
• 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: 1.05
• Enterprise Value/Revenue: 3.66
• Enterprise Value/Gross Profit: 7.56
• Enterprise Value/Ebitda: 17.29
• 1Y Price Target: $102.14
• Price Target Upside: 17.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $91.00 ▲(4.78% Upside)

Merit Medical Systems' overall stock score is driven by strong financial performance and positive earnings call insights, indicating robust growth prospects. However, technical analysis suggests bearish trends, and the stock's high valuation limits its appeal. Monitoring operational costs and market conditions is recommended.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Merit Medical's products, supporting long-term expansion and market share gains.

Product Innovation

Continuous product innovation enhances Merit Medical's competitive edge, driving growth and improving patient outcomes in the long term.

Strategic Acquisition

The acquisition strengthens Merit Medical's product portfolio and market position, particularly in gastroenterology, supporting future growth.

Negative Factors

Endoscopy Segment Challenges

Slower growth in the Endoscopy segment may hinder overall performance, requiring strategic adjustments to improve integration and sales.

China Market Challenges

Challenges in the China market could impact revenue growth, necessitating strategic responses to navigate macroeconomic conditions.

Leadership Change

Leadership changes can introduce strategic shifts and uncertainties, affecting company direction and stakeholder confidence in the short to medium term.

Merit Medical Systems Business Overview & Revenue Model

Company Description

Merit Medical Systems, Inc. (MMSI) is a leading global manufacturer and supplier of medical devices and equipment, primarily serving the interventional cardiology, radiology, and other medical specialties. The company specializes in producing a wide range of products, including catheters, guidewires, and other devices used in minimally invasive procedures. Merit Medical operates in various healthcare sectors, focusing on delivering innovative solutions that enhance patient care and improve clinical outcomes.

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: Positive
• Last Price: 86.85
• 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 86.85 is above the 20-day moving average (MA) of 85.49, above the 50-day MA of 84.75, and below the 200-day MA of 90.24, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 56.54 is Neutral, neither overbought nor oversold. The STOCH value of 82.44 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
LMAT	75 Outperform	$1.89B	35.89	15.02%	0.96%	13.07%	27.98%
MMSI	68 Neutral	$5.15B	44.45	8.30%	―	11.49%	-2.89%
TFX	68 Neutral	$5.52B	-16.97	-7.90%	1.09%	5.43%	-245.18%
STVN	67 Neutral	$5.70B	36.72	9.81%	0.29%	9.19%	23.06%
BLCO	61 Neutral	$6.01B	―	-4.69%	―	6.23%	17.53%
ICUI	61 Neutral	$3.63B	-473.05	-0.35%	―	-0.81%	93.27%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Merit Medical Systems Corporate Events

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.

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.

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.

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.

Merit Medical Systems Announces New CEO Appointment

On October 3, 2025, Merit Medical Systems announced the resignation of Fred P. Lampropoulos as President and CEO, with Martha G. Aronson appointed as his successor. The Board expanded to eleven members, with Aronson also joining as a director. Lampropoulos will transition to Executive Chairman until January 3, 2026, after which he will continue as a director and Chairman. Aronson’s compensation package includes a base salary of $1,000,000, a signing bonus, and participation in Merit’s bonus and equity incentive plans. This leadership change marks a significant shift in Merit’s executive team, potentially impacting its strategic direction and stakeholder relations.