Quality Investor

Merit Medical Systems, Inc.

Rank #263Op. LeverageWatchlistCompare with other stocks

MMSI · Nasdaq · Healthcare

Merit Medical Systems, Inc. (MMSI) — Rank #263 by gross profitability (GP/assets 0.26) · ROE 7.6% · Piotroski F-Score 7 / 9.

As-of 2026-10-30 · 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.

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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

Company Snapshot

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

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

7,500

Industry

Medical Instruments & Supplies

Exchange

Nasdaq

12/12

Flags passed

MMSI passes 12/12 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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%

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

Profitability

Does it make money well?

No warning flags · GP/assets 5th percentile of 20 SIC 3841 peers

Gross profitability (GP / assets)

0.26

Primary signal (Novy-Marx).

5th pctl of 20 SIC 3841 peers

Return on equity

7.6%

Gross margin

48.7%

11th pctl of 20 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%

Cash Flow Health

Is the cash real?

No warning flags · FCF 68% above net income

Free cash flow

$215.66M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

67.8%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

2.9%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net debt $287.56M, F-Score 7/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.70

11th of 19 SIC 3841 peers (best = lowest)

Current ratio

4.20×

79th pctl of 20 SIC 3841 peers

Quick ratio

2.54×

Net cash

-$287.56M

Cash & equivalents minus total debt.

Piotroski F-Score

7 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

3.0 / 5

Good
Share count trend
1.8%2/5 Fair
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
2.8%4/5 Strong

Lifecycle Phase History

20202025
Startup
Op. Leverage
Value

Price History

MMSI+19.2% · +3.6% CAGRSPY+82.9% · +12.8% CAGR