# Merit Medical Systems (MMSI.US)

Canonical: https://gigainvestors.com/s/MMSI

Analysis as of: 2026-10-16T07:30:18.089Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $89.57 per share; close as of 2026-10-15.

Estimated value: low $41.01 per share, central $45.70 per share, high $51.95 per share. Buy at or below the central value $45.70 per share. Valuation as of 2026-10-16T07:30:18.089Z; scenarios are not confidence intervals.

Expected annual return: 6.2% at the stated quote. About 6.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 0.58×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.06×

- FY2017: 0.05×

- FY2018: 0.07×

- FY2019: 0.02×

- FY2020: -0.00×

- FY2021: 0.06×

- FY2022: 0.08×

- FY2023: 0.10×

- FY2024: 0.11×

- FY2025: 0.12×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 5.6%

- ROIC, second-lowest year: 1.4%

- Typical minus recent gross margin: -2.5 pp

- Typical gross margin (annual median): 45.0%

- Recent gross margin (lower of latest and 3-year median): 47.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.4%

- ROIC including acquisitions, ten-year median: 6.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 4.7%

- FY2017: 3.7%

- FY2018: 5.4%

- FY2019: 1.4%

- FY2020: -0.1%

- FY2021: 5.8%

- FY2022: 7.9%

- FY2023: 9.3%

- FY2024: 9.4%

- FY2025: 9.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.66×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $772M

- Net income, five-year total: $466M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.6 pp

- Working capital / revenue, final three-year average: 33.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 2.40×

- FY2022: 1.63×

- FY2023: 1.68×

- FY2024: 1.64×

- FY2025: 1.39×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 4.7% vs 9.3%

- Per-share earnings: 0.53 to 2.03 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.1%

- Ordinary dilution, 5-year annual growth: 1.8%

- Market cap gain: $4.1B

- Cumulative retained earnings: $530M

- Diluted shares, 10-year annual growth: 3.1%

- Diluted shares, 5-year annual growth: 1.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 18.1%

- Per-share value change: $1.49

- Per-share value, starting three-year median: $0.53

- Per-share value, ending three-year median: $2.03

- Buybacks concentrated in cheaper years (correlation): 0.31

- Average buyback yield: 0.1%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: $1.2B

- Cumulative net income, 10 years: $551M

- ROIC, first three-year median: 4.7%

- ROIC, last three-year median: 9.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.45

- FY2017: $0.55

- FY2018: $0.78

- FY2019: $0.10

- FY2020: -$0.18

- FY2021: $0.84

- FY2022: $1.29

- FY2023: $1.62

- FY2024: $2.03

- FY2025: $2.13

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -6.3%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 14.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.31×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.66×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.6%

- FY2017: -3.2%

- FY2018: -2.7%

- FY2019: -4.1%

- FY2020: -10.5%

- FY2021: -6.0%

- FY2022: -2.4%

- FY2023: -2.2%

- FY2024: -4.2%

- FY2025: -6.3%

## Holders

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 10.4% a year for ten years · sales +11.7%

Story as of 2026-10-16T09:59:10.905Z; price observation 2026-10-15.

Price needs cash profits to grow 10.4% a year for ten years

- 2025-05-12: MMSI Q1 Earnings Call: Tariff Headwinds Offset by Organic Growth and Strong Product Performance ([finance.yahoo.com](https://finance.yahoo.com/news/mmsi-q1-earnings-call-tariff-111745450.html))

- 2026-08-03: Merit Medical Systems (MMSI) Earnings And Higher Outlook Put Valuation Back In Focus ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/merit-medical-systems-mmsi-earnings-141005265.html))

### Sales · FY2024–2025

sales +11.7%; source https://www.sec.gov/Archives/edgar/data/856982/000085698226000008/mmsi-20251231x10k.htm; observed 2026-02-24.

- FY2016: $604M 

- FY2017: $728M 

- FY2018: $883M 

- FY2019: $995M 

- FY2020: $964M 

- FY2021: $1.1B 

- FY2022: $1.2B 

- FY2023: $1.3B 

- FY2024: $1.4B 

- FY2025: $1.5B 

### Gross margin · FY2025

gross margin 48.7%; source https://www.sec.gov/Archives/edgar/data/856982/000085698226000008/mmsi-20251231x10k.htm; observed 2026-02-24.

- FY2016: 43.9% 

- FY2017: 44.8% 

- FY2018: 44.7% 

- FY2019: 43.5% 

- FY2020: 41.6% 

- FY2021: 45.2% 

- FY2022: 45.1% 

- FY2023: 46.4% 

- FY2024: 47.4% 

- FY2025: 48.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical instruments & supplies; annual sales are USD 1.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/856982/000085698226000008/mmsi-20251231x10k.htm (filed 2026-02-24); FY2025: revenue 1514730000; grossProfit 736943000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MMSI.US: 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. 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.

### Why customers stay

Margins ranged from 46.4% to 48.7% during 2023–25; it earns 5.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 46.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 47.4%.

- Source: https://www.sec.gov/Archives/edgar/data/856982/000085698226000008/mmsi-20251231x10k.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 48.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2016,0.04673622584621298],[2017,0.0370673174284775],[2018,0.05376153383990269],[2019,0.014189196022170964],[2020,-0.001251380445088962],[2021,0.05848670092759563],[2022,0.07850059192650068],[2023,0.09304624135196694],[2024,0.09366544217568228],[2025,0.09074923554962065]]; median 0.05612411738374916. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 45% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/856982/000085698226000008/mmsi-20251231x10k.htm (filed 2026-02-24); Gross margin observations: [[2021,0.4515771560110202],[2022,0.45100570730533346],[2023,0.4643612122484623]]; range within 2 percentage points.

### Where the cash goes

Reinvests 81.2% of cash earnings; paid dividends in 3 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2016: growth capex 0; upkeep 35054000; cash acquisitions 125161000; owner earnings 28822000. Growth capex plus acquisitions / owner earnings = 4.342550829227673.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2017: growth capex 0; upkeep 41200000; cash acquisitions 105582000; owner earnings 39905000. Growth capex plus acquisitions / owner earnings = 2.6458338554065906.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 0; upkeep 66336000; cash acquisitions 301789000; owner earnings 45227000. Growth capex plus acquisitions / owner earnings = 6.672761845800075.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 0; upkeep 81497000; cash acquisitions 53904000; owner earnings 28310000. Growth capex plus acquisitions / owner earnings = 1.904062168844931.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2020: growth capex 0; upkeep 49276000; cash acquisitions 10953000; owner earnings 47697000. Growth capex plus acquisitions / owner earnings = 0.22963708409333922.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 0; upkeep 27939000; cash acquisitions 7171000; owner earnings 116299000. Growth capex plus acquisitions / owner earnings = 0.06166003147060594.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 0; upkeep 45029000; cash acquisitions 6875000; owner earnings 121685000. Growth capex plus acquisitions / owner earnings = 0.056498335867198095.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: growth capex 0; upkeep 36701000; cash acquisitions 134523000; owner earnings 159002000. Growth capex plus acquisitions / owner earnings = 0.8460459616860165.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 38043000; cash acquisitions 320182000; owner earnings 197046000. Growth capex plus acquisitions / owner earnings = 1.62490991951118.

- Source: https://www.sec.gov/Archives/edgar/data/856982/000085698226000008/mmsi-20251231x10k.htm (filed 2026-02-24); FY2025: growth capex 0; upkeep 84836000; cash acquisitions 144769000; owner earnings 178302000. Growth capex plus acquisitions / owner earnings = 0.8119314421599308.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,866000],[2021,576000],[2022,2474000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 2.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MMSI.US SharesStats.PercentInsiders = 2.4459999999999997 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 10.4% yearly over ten years; actual growth was 18.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate 0.13711013978114683. Price 89.57; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.5347442205297567 → FY2025 2.949090307641416. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $21.95 per share

- 2016-11: $23.55 per share

- 2016-12: $26.50 per share

- 2017-01: $25.40 per share

- 2017-02: $30.80 per share

- 2017-03: $28.90 per share

- 2017-04: $33.70 per share

- 2017-05: $35.50 per share

- 2017-06: $38.15 per share

- 2017-07: $41.00 per share

- 2017-08: $41.30 per share

- 2017-09: $42.35 per share

- 2017-10: $38.05 per share

- 2017-11: $43.45 per share

- 2017-12: $43.20 per share

- 2018-01: $46.45 per share

- 2018-02: $45.50 per share

- 2018-03: $45.35 per share

- 2018-04: $48.50 per share

- 2018-05: $51.30 per share

- 2018-06: $51.20 per share

- 2018-07: $54.30 per share

- 2018-08: $58.85 per share

- 2018-09: $61.45 per share

- 2018-10: $57.12 per share

- 2018-11: $63.05 per share

- 2018-12: $55.81 per share

- 2019-01: $56.53 per share

- 2019-02: $55.73 per share

- 2019-03: $61.83 per share

- 2019-04: $56.18 per share

- 2019-05: $51.63 per share

- 2019-06: $59.56 per share

- 2019-07: $39.46 per share

- 2019-08: $34.78 per share

- 2019-09: $30.46 per share

- 2019-10: $20.66 per share

- 2019-11: $28.00 per share

- 2019-12: $31.22 per share

- 2020-01: $36.42 per share

- 2020-02: $36.01 per share

- 2020-03: $31.25 per share

- 2020-04: $40.82 per share

- 2020-05: $44.99 per share

- 2020-06: $45.65 per share

- 2020-07: $44.72 per share

- 2020-08: $49.10 per share

- 2020-09: $43.50 per share

- 2020-10: $50.05 per share

- 2020-11: $55.07 per share

- 2020-12: $55.51 per share

- 2021-01: $54.15 per share

- 2021-02: $55.72 per share

- 2021-03: $59.88 per share

- 2021-04: $63.60 per share

- 2021-05: $60.34 per share

- 2021-06: $64.66 per share

- 2021-07: $70.09 per share

- 2021-08: $71.77 per share

- 2021-09: $71.80 per share

- 2021-10: $67.26 per share

- 2021-11: $62.86 per share

- 2021-12: $62.30 per share

- 2022-01: $55.45 per share

- 2022-02: $65.03 per share

- 2022-03: $66.52 per share

- 2022-04: $62.01 per share

- 2022-05: $61.39 per share

- 2022-06: $54.27 per share

- 2022-07: $57.48 per share

- 2022-08: $59.23 per share

- 2022-09: $56.51 per share

- 2022-10: $68.77 per share

- 2022-11: $72.00 per share

- 2022-12: $70.62 per share

- 2023-01: $71.35 per share

- 2023-02: $70.58 per share

- 2023-03: $73.95 per share

- 2023-04: $81.29 per share

- 2023-05: $82.40 per share

- 2023-06: $83.64 per share

- 2023-07: $74.67 per share

- 2023-08: $65.28 per share

- 2023-09: $69.02 per share

- 2023-10: $68.74 per share

- 2023-11: $71.56 per share

- 2023-12: $75.96 per share

- 2024-01: $78.30 per share

- 2024-02: $76.20 per share

- 2024-03: $75.75 per share

- 2024-04: $74.10 per share

- 2024-05: $81.15 per share

- 2024-06: $85.95 per share

- 2024-07: $85.29 per share

- 2024-08: $96.68 per share

- 2024-09: $98.83 per share

- 2024-10: $98.66 per share

- 2024-11: $103.90 per share

- 2024-12: $96.72 per share

- 2025-01: $108.88 per share

- 2025-02: $102.04 per share

- 2025-03: $105.71 per share

- 2025-04: $94.45 per share

- 2025-05: $95.03 per share

- 2025-06: $93.48 per share

- 2025-07: $84.86 per share

- 2025-08: $90.54 per share

- 2025-09: $83.23 per share

- 2025-10: $87.54 per share

- 2025-11: $86.59 per share

- 2025-12: $88.14 per share

- 2026-01: $81.09 per share

- 2026-02: $77.18 per share

- 2026-03: $68.93 per share

- 2026-04: $68.18 per share

- 2026-05: $63.06 per share

- 2026-06: $69.34 per share

- 2026-07: $85.01 per share

- 2026-08: $90.66 per share

- 2026-09: $86.23 per share

- 2026-10: $89.57 per share

## Annual estimated value (USD per share)

- FY2016: low $7.15 per share, central $8.80 per share, high $10.24 per share

- FY2017: low $8.11 per share, central $9.95 per share, high $11.55 per share

- FY2018: low $10.26 per share, central $12.59 per share, high $14.55 per share

- FY2019: low $9.66 per share, central $10.94 per share, high $12.63 per share

- FY2020: low $10.08 per share, central $11.38 per share, high $13.11 per share

- FY2021: low $12.09 per share, central $14.67 per share, high $16.98 per share

- FY2022: low $12.76 per share, central $15.69 per share, high $18.21 per share

- FY2023: low $37.54 per share, central $45.37 per share, high $51.38 per share

- FY2024: low $32.92 per share, central $36.64 per share, high $41.60 per share

- FY2025: low $39.15 per share, central $43.60 per share, high $49.51 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/856982/000085698226000008/mmsi-20251231x10k.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.