Merit Medical Systems, Inc. (MMSI) | Investment Case

1. Company Snapshot

1.a. Company Description

Merit Medical Systems, Inc.designs, develops, manufactures, and markets single-use medical products for interventional, diagnostic, and therapeutic procedures, primarily in cardiology, radiology, oncology, critical care, and endoscopy.The company operates in two segments, Cardiovascular and Endoscopy.

It provides peripheral intervention products for the diagnosis and treatment of diseases in peripheral vessels and organs; and cardiac intervention products, such as access, angiography, electrophysiology and cardiac rhythm management, fluid management, hemodynamic monitoring, hemostasis, and intervention to treat various heart conditions.The company also offers custom procedural solutions that include critical care products, disinfection protection systems, syringes, manifold kits, and trays and packs; coated tubes and wires; and sensor components for microelectromechanical systems.In addition, it provides pulmonary products that consist of laser-cut tracheobronchial stents, over-the-wire and direct visualization delivery systems, and dilation balloons to endoscopically dilate strictures; gastroenterology products; and kits and accessories for endoscopy and bronchoscopy procedures.

The company sells its products to hospitals and alternate site-based physicians, technicians, and nurses through direct sales force, distributors, original equipment manufacturer partners, or custom procedure tray manufacturers in the United States and internationally.Merit Medical Systems, Inc.was incorporated in 1987 and is headquartered in South Jordan, Utah.

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1.b. Last Insights on MMSI

Merit Medical Systems, Inc.'s recent performance was positively driven by strong Q3 2025 earnings and revenue growth. The company's quarterly earnings of $0.92 per share beat the Zacks Consensus Estimate of $0.82 per share. Revenue and margin growth were robust, prompting a raised full-year outlook across segments. Additionally, the company secured a CE Mark for Embosphere, expanding its use in knee osteoarthritis treatment. Institutional investors, such as State of New Jersey Common Pension Fund D, have also shown confidence in the company, boosting their stake by 6.0%.

1.c. Company Highlights

Last Price	83.43
Change Percentage	-0.78%
Open	84.57
Previous Close	84.09
Market Cap ( Millions)	4947
Volume	420355
Year High	111.45
Year Low	78.12
M A 50	84.31
M A 200	90.81

FCF Yield	5.32%
Dividend Yield	0.00%
ROE	8.13%
Debt / Equity	54.55%
Net Debt / EBIDTA	302.18%
Price To Book	3.23
Price Earnings Ratio	41.74
Price To FCF	18.78
Price To sales	3.35
EV / EBITDA	20.94

2. Merit Medical Systems: Strong Q3 2025 Earnings Beat Expectations

Merit Medical Systems reported robust third-quarter 2025 earnings, with total revenue reaching $384.2 million, up 13% year-over-year on a GAAP basis and 12.5% on a constant currency basis, exceeding the high end of the company's growth expectations. The non-GAAP operating margin increased 51 basis points year-over-year to 19.7%, and non-GAAP EPS grew nearly 7% to $0.92, beating analyst estimates of $0.82. The company's financial performance was driven primarily by 13% growth in its Cardiovascular segment and 4% growth in its Endoscopy segment.

Publication Date: Nov -01

                                    📋 Highlights
                                    Revenue Growth Exceeds Expectations:
                                                Total revenue reached $384.2M, up 13% YoY (GAAP) and 12.5% YoY (constant currency), surpassing Q2 2025 guidance.
Margin Expansion:
                                                Non-GAAP operating margin rose 51 bps to 19.7%, with non-GAAP EPS growth of nearly 7%.
Strategic Acquisition:
                                                Acquired C2 CryoBalloon for $22M to strengthen GERD treatment capabilities in gastroenterology.
Free Cash Flow Surge:
                                                Generated $52.5M in Q3 (38% YoY growth), with $142M YTD, supporting CGI goals and capital allocation.
Segment Performance:
                                                Cardiovascular segment grew 13% (driven by 29% Cardiac Intervention and 8% Peripheral Intervention sales).

                                

Segment Performance

The Peripheral Intervention product sales increased 8%, representing the largest driver of organic Cardiovascular segment growth, driven by strong sales in therapy, access, and delivery systems categories. Cardiac Intervention product sales increased 29%, driven by strong sales in EP, CRM, and intervention categories. The company's Renal Therapies group has been executing the U.S. commercial strategy for WRAPSODY CIE, exceeding expectations in leveraging new access to customers.

Guidance and Outlook

The company updated its 2025 guidance, assuming non-GAAP diluted earnings per share in the range of $3.66 to $3.79, compared to the prior guidance range of $3.52 to $3.72. For the fourth quarter of 2025, Merit expects total revenue to increase in the range of approximately 7% to 10.6% on a GAAP basis and up approximately 5.5% to 9.1% on a constant currency basis. The company's guidance implies a strong finish to the year, with analysts estimating revenue growth of 6.3% next year.

Valuation and Cash Flow

Merit's current valuation metrics include a P/E Ratio of 43.79, P/B Ratio of 3.39, and P/S Ratio of 3.51. The company's free cash flow yield is 5.08%, indicating a relatively attractive valuation. The company generated $52.5 million of free cash flow in Q3 2025, up 38% year-over-year, and expects to continue generating strong cash flow, with a minimum of $400 million of free cash flow expected for CGI. As Raul Parra noted, "We're well on our way to hitting our CGI goals," highlighting the company's focus on driving growth and profitability.

Strategic Developments

The company made several notable announcements, including the U.S. commercial release of the Prelude Wave hydrophilic sheath introducer and the CE Mark of Embosphere Microspheres for use in genicular artery embolization. Merit also acquired the C2 CryoBalloon and related technology from Pentax of America for $22 million, strengthening its position in the gastroenterology market. These strategic developments are expected to drive future growth and expand the company's product offerings.

3. NewsRoom

Fisher Asset Management LLC Reduces Stock Holdings in Merit Medical Systems, Inc. $MMSI

Dec -04

Source: defenseworld.net

Merit Medical Systems, Inc. (NASDAQ:MMSI) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Dec -01

Source: defenseworld.net

Creative Planning Has $2.59 Million Stock Position in Merit Medical Systems, Inc. $MMSI

Nov -25

Source: defenseworld.net

AXQ Capital LP Acquires New Position in Merit Medical Systems, Inc. $MMSI

Nov -25

Source: defenseworld.net

CNMD vs. MMSI: Which Stock Is the Better Value Option?

Nov -24

Source: zacks.com

Merit Medical (MMSI) Upgraded to Buy: What Does It Mean for the Stock?

Nov -21

Source: zacks.com

Merit Medical Systems (NASDAQ:MMSI) Shares Gap Down on Analyst Downgrade

Nov -15

Source: defenseworld.net

Carillon Eagle Small Cap Growth Fund Q3 2025 Portfolio Update

Nov -13

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.79%)

6. Segments

Cardiovascular

Expected Growth: 7.8%

Growing demand for minimally invasive procedures, increasing prevalence of cardiovascular diseases, and advancements in medical technology are driving the growth of the cardiovascular devices market.

Endoscopy

Expected Growth: 7.4%

The endoscopy market is driven by increasing demand for minimally invasive procedures, advancements in technology, and growing prevalence of chronic diseases. Additionally, the rising adoption of endoscopy in emerging markets and the increasing need for cancer diagnosis and treatment are expected to fuel market growth.

7. Detailed Products

Peripheral Intervention

A range of products for treating peripheral artery disease, including angioplasty balloons, stents, and thrombectomy devices.

Cardiac Intervention

Products for treating coronary artery disease, including angioplasty balloons, stents, and guidewires.

Vascular Access

Products for vascular access, including introducers, guidewires, and catheters.

Oncology

Products for treating cancer, including microspheres, catheters, and guidewires.

Endoscopy

Products for gastrointestinal endoscopy, including scopes, instruments, and accessories.

Critical Care

Products for critical care, including central venous catheters, arterial lines, and pressure monitoring systems.

8. Merit Medical Systems, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Merit Medical Systems, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's focus on innovative products and services that are difficult to replicate.

Bargaining Power Of Customers

Merit Medical Systems, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often critical to customers' operations, making it difficult for them to negotiate prices.

Bargaining Power Of Suppliers

Merit Medical Systems, Inc. relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's size and scale of operations mitigate this risk.

Threat Of New Entrants

The medical device industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This makes it difficult for new entrants to compete with established players like Merit Medical Systems, Inc.

Intensity Of Rivalry

The medical device industry is highly competitive, with many established players competing for market share. Merit Medical Systems, Inc. must continually innovate and invest in R&D to stay ahead of the competition.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	40.99%
Debt Cost	3.95%
Equity Weight	59.01%
Equity Cost	8.47%
WACC	6.61%
Leverage	69.48%

11. Quality Control: Merit Medical Systems, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Merit Medical Systems

A-Score: 4.4/10

Value: 2.6

Growth: 7.3

Quality: 6.5

Yield: 0.0

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

Hologic

A-Score: 4.3/10

Value: 2.9

Growth: 5.8

Quality: 7.1

Yield: 0.0

Momentum: 1.5

Volatility: 8.3

1-Year Total Return ->

Haemonetics

A-Score: 3.8/10

Value: 5.1

Growth: 6.2

Quality: 6.0

Yield: 0.0

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

Teleflex

A-Score: 3.6/10

Value: 4.7

Growth: 3.4

Quality: 5.4

Yield: 1.0

Momentum: 0.5

Volatility: 6.7

1-Year Total Return ->

Repligen

A-Score: 3.0/10

Value: 0.2

Growth: 5.0

Quality: 3.9

Yield: 0.0

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

Cooper

A-Score: 2.9/10

Value: 2.9

Growth: 1.2

Quality: 5.9

Yield: 0.0

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

3.26%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.61%

Merit Medical Systems, Inc. - US5898891040

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on MMSI

1.c. Company Highlights

Less Volatile

Expensive

Higher Growth

Earnings Beats

Revenues Beats

Strong Momentum

Stable Momentum

Average Growth

Revenues Miss

2. Merit Medical Systems: Strong Q3 2025 Earnings Beat Expectations

Segment Performance

Guidance and Outlook

Valuation and Cash Flow

Strategic Developments

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.79%)

6. Segments

Cardiovascular

Expected Growth: 7.8%

Endoscopy

Expected Growth: 7.4%

7. Detailed Products

Peripheral Intervention

Cardiac Intervention

Vascular Access

Oncology

Endoscopy

Critical Care

8. Merit Medical Systems, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Merit Medical Systems, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

83.43$

Current Price

83.43$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA