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what it is
Merit sells single-use medical tools hospitals need for heart, vascular, and endoscopy procedures.
how it gets paid
Last year Merit Medical made $1.5B in revenue. Peripheral Intervention was the main engine at $0.79B, or 52% of sales.
why it's growing
Revenue grew 11.8% last year. Drop triple-digit vs. prior year scrapes—they do not reconcile with ~$1.5B FY revenue.
what just happened
Latest quarter in the KPI strip: ~$375M revenue—check the filing for EPS; the old $1.1B / $1.49 lines contradicted that revenue print.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
50/100 earnings predictability — expect surprises
39.3x trailing p/e — you're paying up for this one
10.0% return on capital — nothing to write home about
xvary composite: 61/100 — average
What they do
Merit sells single-use medical tools hospitals need for heart, vascular, and endoscopy procedures.
Merit wins by selling the boring tools doctors use every day. Single-use devices mean repeat orders; most mapped revenue sits in peripheral and cardiac intervention (see revenue rows), not a single gadget. Gross margin was 48.4% in the latest filing cited below, which means almost half of each sales dollar stays after production costs.
How they make money
$1.5B
annual revenue · their business grew +11.8% last year
Peripheral Intervention
$0.79B
Cardiac Intervention
$0.30B
Custom Procedural Solutions
$0.23B
OEM
$0.15B
Endoscopy
$0.05B
The products that matter
single-use procedure devices
Primary Medical Devices
$790M revenue · 52% of sales
Peripheral intervention is the largest row in the revenue map; if this line slows, consolidated results move fast.
scale
interventional procedure tools
Core Procedural Products
$300M revenue · 20% of sales
Cardiac intervention is the second-largest row; it reinforces the interventional-device thesis without duplicating the peripheral line.
largest segment
smaller adjacent device lines
Emerging & Other
~$430M combined · ~28% of sales
Custom procedural solutions, OEM, and endoscopy (~$230M + $150M + $50M in the map) are the rest of the mix—meaningful, but not the first screen.
adjacent growth
Key numbers
39.3x
trailing p/e
Price-to-earnings ratio → how many dollars you pay for one dollar of profit → you are paying up for execution.
21.5%
operating margin
Operating margin → profit after running the business → Merit turns about $0.22 of every sales dollar into operating profit.
44%
foreign sales
Foreign sales mix → revenue outside the U.S. → your results depend on global hospitals and currency swings, not just domestic procedure growth.
10.0%
return on capital
Return on capital → profit earned on the money tied up in the business → decent, but not elite, for a premium multiple.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 75 / 100
- long-term debt $733M (13% of capital)
- net profit margin 16.0% — keeps 16 cents of every dollar in revenue
- return on equity 12% — $0.12 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in MMSI 3 years ago → it's now worth $11,870.
The index would have given you $14,770.
source: institutional data · total return
What just happened
mixed · align quarter to filing
Latest quarter revenue in this strip: ~$375M. FY sales grew ~11.8% to ~$1.5B—ignore $1.1B quarter and triple-digit vs. prior year tags; they did not foot.
Gross margin was ~48.4% in the cited window. Pair any EPS “beat” with the same adjusted/GAAP line and share count your terminal uses.
$375M
revenue
—
eps (verify)
48.4%
gross margin
the number that mattered
48.4% gross margin matters most because margin is what proves Merit's growth is profitable, not just busy.
-
merit medical likely fared well in 2025.
-
we expect the manufacturer of medical devices and healthcare technologies’ top line to settle around $1.52 billion, up 12% vs. prior year, led by strength across the core cardiovascular segment.strategic acquisitions, such as biolife delaware, further expanded merit’s footprint in the $350 million hemostatic device market. for the full year, profits should clock in at roughly $2.10 per share, somewhat better than the $2.03 per share reported the previous year.
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the company’s ‘stick to stitch‘ strategy is a cornerstone of its market leadership.this comprehensive approach begins with initial access (the ‘stick‘) using proprietary tools and specialized safety needles, it then moves into the treatment, and concludes with the procedural closure (the ‘stitch‘). merit is one of the few companies that provides a complete solution for a vascular or interventional procedure. rather than selling a single device, it offers a vertically integrated portfolio that covers every phase of the workflow. by offering this end-to-end solution, merit simplifies hospital procurement and embeds itself deeply into the clinical workflow, making it difficult for competitors who only offer standalone products to displace them. longer term, merit is positioned to capitalize on the increasing shift toward minimally invasive outpatient procedures. management noted that the growth in minimally invasive procedures is fueled by the increasing prevalence of chronic diseases, such as atrial fibrillation and barret’s esophagus, as well as advanced technologies like pulsed-field ablation (pfa). the company has also leaned into its ai-integrated diagnostic tools and specialized oncology products that are designed to capture higher market share in its asia region. by 2027, merit expects that roughly one-third of global revenue will come from its high-growth therapeutic category, which historically grows twice as fast as its core diagnostic products.
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these shares carry a rank of 3 (average) for timeliness.but beyond the year ahead, mmsi stock offers compelling capital appreciation potential for the pull to 2029-2031.
source: company earnings report, 2026
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What could go wrong
here's the thing: this is not a balance-sheet risk story first. it's an execution risk story. when a 39.3x stock prints EPS down 4% from last year, the margin for a sleepy quarter gets thin fast.
high
procedure volume slowdown
merit sells single-use devices. fewer procedures usually means fewer units sold. this is the most direct link between hospital activity and your revenue line.
a weaker procedure environment would pressure both top-line growth and the 20.5% operating margin.
high
segment concentration
Core Procedural Products is 39.5% of sales and Primary Medical Devices is 39.0%. Together they account for roughly 79% of revenue.
if either segment stumbles, the weakness does not stay contained. it becomes the company story.
med
valuation compression
the stock trades at 39.3x trailing earnings while the three-year total return still trails the market. that's a real contrast. you are paying a premium before the long-run stock chart has fully earned it.
if growth slows or margins slip, the multiple can do the damage before the business does.
med
acquisition integration has to work
part of the optimistic framing around 2025 leans on the biolife delaware deal and expansion into a roughly $350M hemostatic device market. that is not free growth. it has to be integrated, sold, and scaled.
if acquired products underdeliver, the gap between the $2B revenue path and the current $1.5B base gets harder to close.
if growth cools in the two biggest segments or acquisition benefits arrive late, the stock does not have much valuation cushion to hide behind.
source: institutional data · regulatory filings · risk analysis
Pay attention to
catalyst
$2B revenue path
analysts expect roughly $2B in fy2026 revenue. that's about 33% above the current $1.5B base. if that number starts looking stretched, the stock will notice before the annual report does.
trend
EPS direction
the latest quarter printed $0.46 EPS, down 4% from last year. one soft print is manageable. two starts to look like a pattern.
risk
procedure demand
single-use device businesses follow procedure volume. if hospitals or clinics get quieter, merit feels it quickly.
next check-in
institutional follow-through
institutions have been net buyers for three straight quarters. watch whether that continues if earnings stay merely decent and the stock keeps asking for premium treatment.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a stock moving with the pack rather than breaking away.
risk profile
average
stability score 3 — typical risk for an individual stock, not a bunker and not a rollercoaster.
chart momentum
below average
technical score 4 — the tape is not doing the stock any favors right now.
earnings predictability
50 / 100
halfway score — good enough to model, not good enough to trust blindly.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 192 buyers vs. 180 sellers in 3q2025. total institutional holdings: 61.6M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$72
$146
$83
current price
$109
target midpoint · +32% from current · 3-5yr high: $205 (+150% · 25% ann'l return)
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