Quality Investor

Merit Medical Systems, Inc.

Rank #274Op. Leverage

MMSI · Nasdaq · Healthcare

Merit Medical Systems, Inc. (MMSI) — Rank #274 by gross profitability (GP/assets 0.26) · ROE 7.6% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0000856982 · all metrics point-in-time as of the filing date.

About

Merit Medical Systems, Inc. designs, develops, manufactures, and markets single-use medical products for interventional, diagnostic, and therapeutic procedures in the United States, China, Japan, Germany, France, the United Kingdom, and internationally.

Show more

It operates through two segments, Cardiovascular and Endoscopy. The company offers micropuncture kits, angiographic needles, sheaths, guide wires, and safety products; peripheral intervention products comprising angiography, drainage, delivery systems, and embolotherapy products; oncology products, such as soft tissue biopsy products and accessories; cardiac intervention products consisting of cardiac access, angiography, electrophysiology and cardiac rhythm management, fluid management, hemodynamic monitoring, hemostasis, and intervention products; and spine products, including vertebral augmentation, radiofrequency ablation, and bone biopsy systems. It also provides custom procedural solutions, including critical care products, syringes, manifold kits, and trays and packs; coating services for medical tubes and wires; and sensor components for microelectromechanical systems. In addition, the company offers gastroenterology products, such as esophageal stents, cryoballoon and inflation devices, gauges, and balloon dilators; pulmonary products consisting of laser-cut tracheobronchial stents, and over-the-wire and direct visualization delivery systems; and kits and accessories for endoscopy and bronchoscopy procedures. It sells its products to hospitals, alternate site-based physicians, technicians, and nurses through direct sales force, independent distributors, original equipment manufacturer partners, and custom procedure tray manufacturers. The company exports its products to Canada, Western Europe, Australia, Brazil, Malaysia, South Korea, the United Arab Emirates, India, New Zealand, and South Africa. Merit Medical Systems, Inc.

was incorporated in 1987 and is headquartered in South Jordan, Utah.

Industry
Medical Instruments & Supplies
Sector
Healthcare
State
UT
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
merit.com

Price History

MMSI+18.3% · +3.4% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$5.14B

P/E (annual)

40.4

P/S (annual)

3.4

P/B

3.1

P/OCF (annual)

17.3

Shareholder Yield

-1.8%

Employees

7,500

Industry

Medical Instruments & Supplies

Exchange

Nasdaq

Signal Flags

3 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.26
Return on equity
7.6%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.70
Current ratio
4.20×
Net cash
-$287.56M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
2.9%

Growth

2/2 pass
Revenue growth
11.8%
Piotroski F-Score
7 / 9
Share dilution
1.8%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

10.3%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 1.8% — per-share value needs a total required return of 12.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 8.6%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

5.8%

r = 10% (base)

10.3%

r = 12%

14.1%

Net debt / market cap: 5.5%

Base FCF: $215.7M3Y mean FCF: $170.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

38.7xCheap
38.7xmed 74.6x369.2x

P / S

Price / revenue per share

3.3xCheap
2.1xmed 3.5x4.5x

P / B

Price / book value per share

3.1xCheap
2.2xmed 3.6x5.2x

P / GP

Price / gross profit per share

6.8xCheap
4.8xmed 7.9x9.8x

P / FCF

Price / free cash flow per share

23.1xCheap
23.1xmed 42.2x135.1x

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.26

Primary signal (Novy-Marx).

16th of 17 SIC 3841 peers

Return on equity

7.6%

Gross margin

48.7%

16th of 17 SIC 3841 peers

Revenue growth (YoY)

11.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

9.6%

Revenue CAGR (5Y)

9.5%

Earnings CAGR (3Y)

19.9%

FCF CAGR (3Y)

46.0%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.70

9th of 16 SIC 3841 peers (best = lowest)

Current ratio

4.20×

5th of 17 SIC 3841 peers

Quick ratio

2.54×

Net cash

-$287.56M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$215.66M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.68

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

2.9%

Stock-based comp intensity.

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Startup
Op. Leverage
Value