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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

The recent performance of Merit Medical Systems, Inc. has been negatively impacted by a downgrade from Wells Fargo and Company, which downgraded the stock from an overweight rating to an equal weight rating. This downgrade, coupled with the company's recent 52-week low, suggests a decline in investor confidence. Additionally, Citigroup Inc. has reduced its stake in the company by 58.9% in the most recent quarter, further contributing to the negative sentiment.

1.c. Company Highlights

2. Merit Medical Systems' Strong Q4 2025 Earnings: A Closer Look

Merit Medical Systems reported a robust fourth quarter 2025, with total revenue reaching $393.9 million, up 11% year-over-year on a GAAP basis and 10% on a constant currency basis. The company's non-GAAP EPS came in at $1.04, beating analyst estimates of $0.96. The gross margin expanded to 54.5%, a 103 basis point increase year-over-year, driven by a combination of factors, including mix, R&D projects, acquisitions, pricing, cost discipline, and manufacturing efficiency, as highlighted by CFO Raul Parra during the earnings call.

Publication Date: Feb -26

📋 Highlights
  • Q4 Revenue Growth:: Total revenue reached $393.9M, up 11% YoY GAAP and 10% constant currency, exceeding high-end growth expectations.
  • Non-GAAP EPS Outperformed:: 12% growth in non-GAAP EPS, surpassing expectations, with a full-year margin of 20.3%.
  • Free Cash Flow Record:: Generated $74M in Q4 (13% YoY) and $216M annually in 2025 (16% YoY), driven by operational efficiency.
  • Cardiovascular Segment Strength:: 21% growth in Cardiac Intervention sales, with 12% overall organic growth in the segment.
  • 2026 Guidance:: Targets 5–7% organic constant currency growth, $4.01–$4.15 non-GAAP EPS, and over $400M cumulative free cash flow.

Segment Performance

The Cardiovascular segment was a key driver of growth, with sales exceeding the high end of expectations, driven by 21% growth in Cardiac Intervention product sales. The Endoscopy segment sales came in at the midpoint of expectations. The company's strong track record of growth is driven by a broad portfolio of products, including foundational products and therapeutic products, with the latter comprising 1/3 of total revenue and growing at a 19% CAGR over the last 3 years.

Guidance and Outlook

For 2026, Merit Medical is targeting an organic constant currency revenue CAGR of 5% to 7%, a non-GAAP operating margin in the range of 20% to 22%, and cumulative free cash flow generation of more than $400 million. The company's guidance assumes total GAAP net revenue growth in the range of 6% to 8% year-over-year and 5% to 7% year-over-year on a constant currency basis, with non-GAAP diluted earnings per share in the range of $4.01 to $4.15.

Valuation and Metrics

With a P/E Ratio of 36.59 and an EV/EBITDA of 17.26, the market appears to be pricing in a certain level of growth and profitability for Merit Medical Systems. The company's ROE of 8.52% and ROIC of 5.65% indicate a reasonable return on equity and invested capital, respectively. The Free Cash Flow Yield of 5.37% is also attractive, suggesting that the company is generating significant cash from its operations.

Key Drivers and Risks

The company's Rhapsody product, launched in the outpatient setting, is expected to contribute to growth, with market data providers reporting 100,000 stents implanted in approximately 77,000 procedures in 2023. However, the company faces risks, including the impact of tariffs on gross margin, with an expected 80 basis point effect. Additionally, the company's OEM business has been choppy, with a significant decline in Q4 due to inventory destocking, but is expected to normalize with a mid- to high single-digit growth rate.

3. NewsRoom

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Congress Asset Management Co. Buys 184,738 Shares of Merit Medical Systems, Inc. $MMSI

Mar -24

Source: defenseworld.net

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Medtronic and Merit Medical Systems enter into agreement to offer new, FDA-cleared ViaVerte™ system, a basivertebral nerve ablation treatment for chronic vertebrogenic lower-back pain

Mar -24

Source: prnewswire.com

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MMSI Launches Resilience TTS Stent for Esophageal Fistulas, Strictures

Mar -18

Source:

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Merit Medical Launches the Resilience Through-the-Scope Esophageal Stent

Mar -16

Source: globenewswire.com

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ArrowMark Colorado Holdings LLC Sells 27,942 Shares of Merit Medical Systems, Inc. $MMSI

Mar -15

Source: defenseworld.net

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Here's Why You Should Add Merit Medical Stock to Your Portfolio Now

Mar -12

Source: zacks.com

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Citigroup Inc. Sells 33,750 Shares of Merit Medical Systems, Inc. $MMSI

Mar -09

Source: defenseworld.net

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

Mar -02

Source: zacks.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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Hologic

A-Score: 4.7/10

Value: 3.0

Growth: 4.2

Quality: 7.1

Yield: 0.0

Momentum: 5.0

Volatility: 9.0

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Merit Medical Systems

A-Score: 4.2/10

Value: 2.7

Growth: 7.3

Quality: 5.3

Yield: 0.0

Momentum: 2.5

Volatility: 7.7

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Teleflex

A-Score: 3.7/10

Value: 6.2

Growth: 3.4

Quality: 5.1

Yield: 1.0

Momentum: 1.0

Volatility: 5.7

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Haemonetics

A-Score: 3.7/10

Value: 4.0

Growth: 6.2

Quality: 6.3

Yield: 0.0

Momentum: 2.5

Volatility: 3.3

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Repligen

A-Score: 3.6/10

Value: 0.4

Growth: 5.0

Quality: 5.1

Yield: 0.0

Momentum: 7.0

Volatility: 4.0

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Cooper

A-Score: 3.2/10

Value: 2.6

Growth: 2.0

Quality: 5.8

Yield: 0.0

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

68.59$

Current Price

68.59$

Potential

-0.00%

Expected Cash-Flows