Merit Medical Systems, Inc. (MMSI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Masimo Corp.

Envista Holdings Corp.

Lantheus Holdings, Inc.

Natera, Inc.

Inspire Medical Systems, Inc.

Merit Medical Systems, Inc.

Sotera Health Co.

Haemonetics Corp.

Bausch + Lomb Corp.

QuidelOrtho Corp.

Dentsply Sirona, Inc.

Why is Merit Medical Systems, Inc. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.57

Low Debt Company with Strong Long Term Fundamental Strength

Flat results in Jun 26

INTEREST COVERAGE RATIO(Q) Lowest at 776.68
INVENTORY TURNOVER RATIO(HY) Lowest at 2.29 times
DEBTORS TURNOVER RATIO(HY) Lowest at 6.65 times

With ROCE of 10.33%, it has a attractive valuation with a 2.33 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 4.96%, its profits have risen by 12.4% ; the PEG ratio of the company is 2.9

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

The stock has generated a return of 4.96% in the last 1 year, much lower than market (S&P 500) returns of 21.51%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Merit Medical Systems, Inc. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Merit Medical Systems, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Merit Medical Systems, Inc.

4.96%

0.21

31.10%

S&P 500

21.51%

1.63

13.19%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.46%

EBIT Growth (5y)

32.73%

EBIT to Interest (avg)

11.57

Debt to EBITDA (avg)

1.15

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

0.65

Tax Ratio

20.40%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

7.65%

ROE (avg)

7.50%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.58

EV to EBIT

22.54

EV to EBITDA

13.32

EV to Capital Employed

2.33

EV to Sales

2.89

PEG Ratio

2.86

Dividend Yield

ROCE (Latest)

10.33%

ROE (Latest)

8.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 283.45 MM

RAW MATERIAL COST(Y)

Fallen by -6.29% (YoY

NET SALES(Q)

Highest at USD 419.49 MM

OPERATING PROFIT(Q)

Highest at USD 94.12 MM

OPERATING PROFIT MARGIN(Q)

Highest at 22.44 %

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 776.68

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.29 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.65 times

INTEREST(Q)

Highest at USD 12.12 MM

Here's what is working for Merit Medical Systems, Inc.

Operating Cash Flow

Highest at USD 283.45 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 419.49 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 94.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 22.44 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -6.29% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Merit Medical Systems, Inc.

Interest

At USD 12.12 MM has Grown at 85.69%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 776.68

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 12.12 MM

in the last five periods and Increased by 85.69% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Inventory Turnover Ratio

Lowest at 2.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 6.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio