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Merit Medical Systems
(NASDAQ:MMSI)
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Rating:71Outperform
Price Target:
$102.00
▲(12.66% Upside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by improving financial performance (rising margins and solid free cash flow) and a positive earnings update with raised guidance. Technicals support the trend but are tempered by overbought readings, while valuation is a notable headwind due to the premium P/E and lack of dividend yield data.
Positive Factors
Broad-based revenue and margin expansion
Broad-based organic growth across foundational and therapeutic products indicates sustained procedure demand and portfolio relevance. Margin expansion shows scale and mix benefits that can support durable earnings growth as revenue increases.
Negative Factors
Ongoing tariff exposure
Tariffs can raise input and manufacturing costs across the global supply chain, creating a persistent margin risk rather than a single-quarter issue. Passing costs to hospitals may be difficult where contracts and purchasing groups constrain pricing.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based revenue and margin expansion
Broad-based organic growth across foundational and therapeutic products indicates sustained procedure demand and portfolio relevance. Margin expansion shows scale and mix benefits that can support durable earnings growth as revenue increases.
Read all positive factors
Merit Medical Systems (MMSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.44B
Dividend YieldN/A
Average Volume (3M)748.57K
Price to Earnings (P/E)37.0
Beta (1Y)0.58
Revenue Growth10.51%
EPS Growth20.67%
CountryUS
Employees7,500
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)2.45
Shares Outstanding59,710,420
10 Day Avg. Volume674,096
30 Day Avg. Volume748,573
Financial Highlights & Ratios
PEG Ratio8.41
Price to Book (P/B)3.29
Price to Sales (P/S)3.44
P/FCF Ratio24.53
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$99.56Price Target Upside9.96% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)4.3
Revenue Forecast (FY)$1.64B
Merit Medical Systems Business Overview & Revenue Model
Company Description
Merit Medical Systems, Inc. (MMSI) is engaged in the design, development, manufacturing, and worldwide commercialization of disposable medical products. These devices are crucial for a broad spectrum of diagnostic, therapeutic, and interventional ...
How the Company Makes Money
Merit Medical Systems makes money primarily by selling single-use (disposable) medical devices and procedure kits to hospitals, outpatient/ambulatory centers, and other clinical settings through a mix of direct sales and distributor channels, depe...
Merit Medical Systems Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum with above-expectation revenue growth, robust organic expansion, margin improvement and upgraded full-year guidance. Key strategic acquisitions were integrated and commercialized successfully, and cash generation remained healthy. Offsetting items included one-time tariff refunds, ongoing tariff volatility, seasonality into Q3, higher operating expenses, inventory buildup, and some lingering effects from a prior product recall and portfolio divestiture. On balance the positives — broad-based organic growth, margin expansion, upgraded guidance, and successful acquisition execution — materially outweigh the negatives.Positive Updates
Strong Revenue Growth
Total revenue of $418.8M in Q2 2026, up 10% YoY on a GAAP basis and up 9% YoY on a constant-currency basis; organic growth of 9%, the strongest quarterly organic growth in 3 years.
Negative Updates
Tariff Volatility and One-Time Effects
Q2 results benefited from tariff refunds (approximately $6.9M recognized in cost of sales); company warns ongoing tariff uncertainty, expects a 12-month tariff impact of ~$16M (≈ $0.21/share) and used wider guidance ranges for Q3 because of tariff unpredictability.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenue of $418.8M in Q2 2026, up 10% YoY on a GAAP basis and up 9% YoY on a constant-currency basis; organic growth of 9%, the strongest quarterly organic growth in 3 years.
Read all positive updates
Company Guidance
Merit raised its 2026 outlook, now calling for full‑year GAAP revenue growth of 7.6%–8.4% (6.9%–7.6% constant‑currency, including an ~80 bps FX tailwind) with organic constant‑currency growth of 6.9%–7.5% (excluding roughly $18–20M of acquisition revenue and prior‑year DualCap divestiture); it reiterated U.S. WRAPSODY sales of ≈$7M and updated annualized contribution expectations of ≈$23M for Biolife and $8–9M for the C2 CryoBalloon. Profitability guidance was raised to non‑GAAP diluted EPS of $4.25–4.35 (up ~11%–14%) assuming a 12‑month tariff headwind of ≈$16M (~$0.21/share), and Q3 guidance calls for revenue of $408–413M (GAAP growth 6%–8%, ~6%–7.5% constant currency), organic Q3 growth ~7%–8% (ex. $2.8–3.8M acquisitions and $5.2M PY DualCap), non‑GAAP operating margin ~19.6%–21.5% and non‑GAAP EPS $0.98–1.08 (vs $0.92 LY). Management also reiterated CGI targets for the three years ending 12/31/26—organic constant‑currency revenue CAGR of 5%–7%, non‑GAAP operating margin of 20%–22% and cumulative free cash flow >$400M—while noting Q2 free cash flow of nearly $52M (YTD $76.6M) and a balance‑sheet position of ~$448.7M cash, ~$747.5M total debt and adjusted net leverage of ~1.6x with ~$697M available borrowing capacity.Merit Medical Systems Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.58B | 1.51B | 1.36B | 1.26B | 1.15B | 1.07B |
| Gross Profit | 781.93M | 736.94M | 643.33M | 583.87M | 519.10M | 485.33M |
| EBITDA | 362.11M | 332.05M | 273.97M | 228.89M | 181.17M | 154.96M |
| Net Income | 145.56M | 128.49M | 120.36M | 94.41M | 74.52M | 48.45M |
Balance Sheet | ||||||
| Total Assets | 2.86B | 2.69B | 2.42B | 2.33B | 1.66B | 1.65B |
| Cash, Cash Equivalents and Short-Term Investments | 448.70M | 448.50M | 376.71M | 589.14M | 58.41M | 67.75M |
| Total Debt | 820.12M | 898.23M | 794.66M | 891.36M | 279.75M | 325.70M |
| Total Liabilities | 1.18B | 1.10B | 1.04B | 1.12B | 519.57M | 608.50M |
| Stockholders Equity | 1.68B | 1.58B | 1.38B | 1.20B | 1.14B | 1.04B |
Cash Flow | ||||||
| Free Cash Flow | 203.50M | 212.53M | 182.76M | 108.45M | 69.26M | 119.29M |
| Operating Cash Flow | 283.45M | 297.37M | 220.80M | 145.15M | 114.29M | 147.23M |
| Investing Cash Flow | -176.80M | -247.39M | -368.65M | -175.35M | -57.40M | -37.16M |
| Financing Cash Flow | -644.00K | 16.00M | -60.01M | 559.27M | -60.26M | -98.44M |
Merit Medical Systems Technical Analysis
Positive
90.54
Price Trends
79.18
Positive
72.28
Positive
76.54
Positive
Market Momentum
3.31
Positive
62.66
Neutral
47.63
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 90.54 is above the 20-day moving average (MA) of 89.35, above the 50-day MA of 79.18, and above the 200-day MA of 76.54, indicating a bullish trend. The MACD of 3.31 indicates Positive momentum. The RSI at 62.66 is Neutral, neither overbought nor oversold. The STOCH value of 47.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MMSI.
Merit Medical Systems Risk Analysis
Merit Medical Systems disclosed 41 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.81B | 27.45 | 16.42% | 0.94% | 11.85% | 38.09% | |
71 Outperform | $5.44B | 36.96 | 9.07% | ― | 10.51% | 20.67% | |
68 Neutral | $6.20B | 39.98 | 8.94% | 0.32% | 14.73% | 7.43% | |
63 Neutral | $6.16B | -36.07 | -2.67% | ― | 8.85% | 37.70% | |
59 Neutral | $5.94B | -5.96 | -31.83% | 1.03% | -14.49% | -644.98% | |
57 Neutral | $4.56B | 149.66 | 1.41% | ― | -8.84% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
MMSI
Merit Medical Systems
90.54
0.49
0.54%
ICUI
ICU Medical
179.59
52.55
41.36%
LMAT
Lemaitre Vascular
79.61
-14.70
-15.59%
TFX
Teleflex
138.74
13.91
11.14%
STVN
Stevanato Group
22.38
-1.00
-4.26%
BLCO
Bausch + Lomb Corporation
17.25
2.70
18.56%
Merit Medical Systems Corporate Events
Business Operations and StrategyExecutive/Board Changes
Merit Medical Systems appoints new global operations leader
Positive
Aug 20, 2026
On August 14, 2026, Merit Medical Systems reorganized parts of its global operations function, eliminating the Chief Operating Officer role and transitioning long-time executive Neil W. Peterson to Senior Advisor, with his resignation as an employ...
Business Operations and StrategyFinancial Disclosures
Merit Medical Raises 2026 Outlook on Strong Q2 Results
Positive
Jul 30, 2026
On July 30, 2026, Merit Medical reported second-quarter 2026 results showing strong top-line and earnings momentum, with revenue rising 10% year over year to $418.8 million and constant currency organic revenue up 9%. GAAP operating margin improve...
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.