Merit Medical Systems (MMSI) AI Stock Analysis

• Market Cap: $5.80B
• Dividend Yield: N/A
• Average Volume (3M): 857.54K
• Price to Earnings (P/E): 48.1
• Beta (1Y): 0.57
• Revenue Growth: 8.24%
• EPS Growth: 18.54%
• Country: US
• Employees: 7,400
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.86
• Shares Outstanding: 59,099,537
• 10 Day Avg. Volume: 701,408
• 30 Day Avg. Volume: 857,541
• PEG Ratio: 46.84
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $107.00
• Price Target Upside: 8.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Merit Medical Systems is performing well financially with strong revenue growth and operational efficiency. However, valuation concerns and macroeconomic challenges such as tariffs pose risks. The technical analysis suggests caution with resistance levels approaching, while recent corporate events and earnings calls provide a balanced yet optimistic outlook.

Positive Factors

Earnings Performance

Non-GAAP EPS of $0.86 represented a strong beat versus expectations, driven by higher sales and strong gross margins.

Revenue Performance

Revenue of $355.4 million solidly exceeded expectations, driven by strong OEM performance.

Negative Factors

Free Cash Flow

Free cash flow in the quarter came in at $19.5 million, somewhat below expectations.

Tariff Impact

Tariffs are creating a significant hurdle for Merit Medical's margin expansion, complicating the company's growth story.

Merit Medical Systems Business Overview & Revenue Model

Company Description

Merit Medical Systems, Inc. (MMSI) is a global medical device company that develops, manufactures, and distributes innovative products for the healthcare sector. Headquartered in South Jordan, Utah, Merit Medical serves various medical fields, including cardiology, radiology, oncology, and critical care. The company's core products include diagnostic and therapeutic devices, such as catheters, guide wires, embolization products, and accessories used in interventional and diagnostic procedures.

How the Company Makes Money

Merit Medical Systems generates revenue primarily through the sale of its medical devices and products to healthcare facilities, including hospitals, medical imaging centers, and surgical centers. The company's revenue model is based on manufacturing and distributing a broad range of high-quality medical products used in minimally invasive diagnostic and interventional procedures. Key revenue streams include sales from interventional cardiology and radiology products, which constitute a significant portion of its earnings. Additionally, Merit Medical benefits from strategic partnerships and collaborations with healthcare providers and institutions, as well as continuous innovation and expansion of its product line to meet the evolving needs of the medical industry.

Merit Medical Systems Financial Statement Overview

Summary

Merit Medical Systems shows strong revenue growth and improved profitability, with significant increases in revenue and net profit margin. The balance sheet is solid, though increasing debt levels indicate higher financial leverage. Cash flow management is robust, with strong free cash flow, but investing cash flow fluctuations pose challenges. The overall financial performance indicates a strong growth trajectory with some leverage-related risks.

Income Statement

Merit Medical Systems has demonstrated robust revenue growth with a notable increase in revenue from $963.88M in 2020 to $1,387.93M in TTM, marking consistent expansion. The Gross Profit Margin has been stable, reflecting efficient cost management. The company improved its Net Profit Margin from negative levels in 2020 to 8.81% in TTM, indicating enhanced profitability. The EBIT and EBITDA margins show healthy operational efficiency. Overall, the income statement reflects strong growth and profitability, though attention should be paid to maintaining margins as competition intensifies.

Balance Sheet

The balance sheet reveals a solid financial position with a significant increase in Stockholders' Equity from $958.58M in 2020 to $1,428.42M in TTM. The Debt-to-Equity ratio has increased due to rising debt levels, which could imply higher financial leverage. However, the Return on Equity (ROE) has improved, reflecting effective use of equity to generate profits. The equity ratio suggests a balanced capital structure. The company's leverage strategy should be monitored to ensure sustainable growth.

Cash Flow

Merit Medical Systems has shown strong cash flow management with a consistent increase in Operating Cash Flow, reaching $225.16M in TTM. Free Cash Flow has also grown, indicating good cash generation capabilities. The Free Cash Flow to Net Income ratio is favorable, suggesting efficient conversion of net income into cash. However, fluctuations in investing cash flows highlight potential capital allocation challenges. Overall, the company shows strong cash flow generation but should ensure prudent investment strategies.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.39B	1.36B	1.26B	1.15B	1.07B	963.88M
	Gross Profit
662.85M	643.33M	583.87M	519.10M	485.33M	401.18M
	EBIT
160.33M	155.69M	123.94M	87.56M	60.92M	-62.58M
	EBITDA
304.58M	297.60M	231.44M	181.15M	153.45M	102.71M
	Net Income Common Stockholders
122.26M	120.36M	94.41M	74.52M	48.45M	-9.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
397.60M	378.81M	589.14M	58.41M	67.75M	56.92M
	Total Assets
2.47B	2.42B	2.33B	1.66B	1.65B	1.66B
	Total Debt
829.70M	794.66M	891.36M	268.75M	315.03M	435.07M
	Net Debt
422.13M	417.95M	304.32M	210.34M	247.28M	378.15M
	Total Liabilities
1.04B	1.04B	1.12B	519.57M	608.50M	705.82M
	Stockholders Equity
1.43B	1.38B	1.20B	1.14B	1.04B	958.58M
Cash Flow		Free Cash Flow
178.14M	182.76M	108.45M	69.26M	119.29M	115.99M
	Operating Cash Flow
225.16M	220.80M	145.15M	114.29M	147.23M	165.27M
	Investing Cash Flow
-376.24M	-368.65M	-175.35M	-57.40M	-37.16M	-58.65M
	Financing Cash Flow
-35.05M	-60.01M	559.27M	-60.26M	-98.44M	-95.71M

Merit Medical Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 98.81
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 98.81 is above the 20-day moving average (MA) of 95.02, above the 50-day MA of 97.16, and above the 200-day MA of 98.78, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 57.40 is Neutral, neither overbought nor oversold. The STOCH value of 70.86 is Neutral, 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
STVN	74 Outperform	$6.76B	48.69	9.08%	0.24%	2.84%	-11.34%
MMSI	73 Outperform	$5.80B	48.11	9.16%	―	8.24%	18.54%
ICUI	68 Neutral	$3.40B	―	-4.62%	―	7.19%	-56.19%
MASI	58 Neutral	$8.41B	116.65	-23.93%	―	-0.12%	-713.82%
TFX	58 Neutral	$5.66B	40.75	3.48%	1.05%	0.29%	-48.98%
RGEN	56 Neutral	$7.09B	―	-1.16%	―	4.88%	-196.93%
Sector *	52 Neutral	$5.19B	3.04	-44.64%	2.82%	16.45%	-0.53%

Merit Medical Systems Corporate Events

Merit Medical Systems Shareholders Approve Key Proposals

On May 14, 2025, Merit Medical Systems, Inc. held its Annual Meeting of Shareholders where shareholders voted on key proposals including the election of four directors, approval of executive compensation, and ratification of Deloitte & Touche LLP as the independent public accounting firm for 2025. All proposals were approved, indicating shareholder support for the company’s leadership and strategic direction.

The most recent analyst rating on (MMSI) stock is a Buy with a $93.00 price target. To see the full list of analyst forecasts on Merit Medical Systems stock, see the MMSI Stock Forecast page.

Spark’s Take on MMSI Stock

According to Spark, TipRanks’ AI Analyst, MMSI is a Outperform.

Merit Medical Systems receives an overall score of 70, reflecting strong financial performance and positive earnings call insights. However, the high P/E ratio and technical resistance suggest cautious optimism. The company’s robust revenue growth and improved margins are key strengths, while managing leverage and tariff impacts will be crucial for future performance.

To see Spark’s full report on MMSI stock, click here.

Merit Medical Systems Reports Q1 2025 Revenue Growth

Merit Medical Systems reported a revenue of $355.4 million for the first quarter of 2025, marking a 9.8% increase from the previous year. The company also updated its full-year guidance, reflecting confidence in strong execution and stable growth, despite the potential impacts of recent trade policies.

Spark’s Take on MMSI Stock

According to Spark, TipRanks’ AI Analyst, MMSI is a Neutral.

Merit Medical Systems exhibits strong financial health with growing revenues and strategic advancements, such as FDA approval for new devices. However, the lack of net income for 2024 and poor technical indicators suggest caution. Valuation concerns also weigh on the stock, as it appears overvalued with no dividend yield. Despite these challenges, the positive earnings call and recent corporate achievements provide a balanced outlook.

To see Spark’s full report on MMSI stock, click here.

Merit Medical Systems Reports Strong 2024 Financial Results

Merit Medical Systems reported strong financial results for the fourth quarter and full year of 2024, with a 9.4% increase in quarterly revenue to $355.2 million and a 7.9% rise in annual revenue to $1.357 billion. The company also completed key acquisitions and received FDA approval for a new device, positioning itself for continued growth in 2025 with projected revenue increases of 8% to 10%.