Merit Medical Systems Inc. Common Stock (MMSI)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses that produce repeat cash and trade at a sensible price. Merit Medical fits the first part: it sells single-use products for interventional and endoscopy procedures, a business that benefits from recurring procedural demand rather than one-time equipment sales. The filed figures show growth. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $418.8M, net income $38.8M, and diluted EPS $0.65. A year earlier, in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $382.5M, net income $32.6M, and EPS $0.54. That is decent double-digit profit growth. For FY2025, the period ended 2025-12-31, revenue was $1.5B, net income $128.5M, and EPS $2.13, versus FY2024, the period ended 2024-12-31, revenue $1.4B, net income $120.4M, and EPS $2.03. The Lynch category provided is STALWART: steady growth, with profit growing 27.6% a year over four years and revenue 9.0%. Financial health is acceptable: D/E 0.49, Altman Z 3.68, and trailing free cash flow of $199.8M. But returns are not outstanding: ROE 9.19% and ROCE 4.92%. At the close on 2026-10-13, the FairStock-derived P/E is 36.27, P/B 3.13, PEG 1.90, EV/EBITDA 15.56, and the Graham Number is $39.22, implying a -124.73% margin of safety. In other words, the price already reflects much of the good news. I would want either stronger returns on capital or a lower price before calling this a compelling value.

In plain English: Merit Medical makes single-use products used in heart and endoscopy procedures. The business is growing sales and profits, generates cash after expenses, and carries moderate debt. However, it earns only modest profit on the money invested in it, and the stock looks expensive compared with simple value measures.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer