Merit Medical Systems, Inc. (MMSI)
NASDAQHealth CareMedical - Instruments & SuppliesSnapshot 2026-09-04
$89.60+1.16%
Close 2026-09-04 · 1-day change
NASDAQHealth CareMedical - Instruments & SuppliesSnapshot 2026-09-04
Intact: The reason to own it still holds.
Merit Medical grows sales about 7% a year. Profit margins improved to 19.7% in Q1 2026. The company raised its EPS guidance to $4.01-$4.15 for 2026. Free cash flow yield is a healthy 5%, supporting stable operations.
Growth could slow below analyst expectations of 7.5%. Margin gains may stall due to cost pressures. Acquisitions might not deliver expected benefits, hurting profit growth.
The stock trades about 25% below our fair value near $96. Analysts expect roughly 8% revenue growth, which aligns with company guidance. Our view is in line with the Street but sees room for upside if margins hold.
Breaks if: EPS guidance falls below $4.01 for FY26
Breaks if: Gross profit falls below $172 million in next 4 quarters
Breaks if: Operating margin falls below 19.0% in next 4 quarters
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on increasing revenue and profitability. The current thesis state is intact, driven by solid financial results and strategic acquisitions, although recent management changes introduce some uncertainty.
The market appears to have priced in a neutral valuation compared to peers, with a slight premium. There is a low expectations gap, suggesting that the market does not anticipate significant surprises in the near term.
Management is on track to increase revenue and improve profitability, as evidenced by recent financial results. However, there is a moderate risk due to potential economic downturns that could impact performance.
The thesis hinges on the continued strength of the healthcare sector and the performance of key industry players. Additionally, any changes in guidance or economic indicators could significantly impact investor sentiment.
The most important moves since the prior daily snapshot.
Signal changed from 'favorable' to 'mild_favorable'.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no current threats to the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY revenue growth falls below 7.5% in FY26
Overall, MMSI's fundamentals are strong, but the investment outlook is sensitive to external economic factors and management effectiveness. Not investment advice.