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NEW YORK (TheStreet) -- Merit Medical Systems (MMSI - Get Report) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MERIT MEDICAL SYSTEMS INC (MMSI) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, impressive record of earnings per share growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MMSI's revenue growth has slightly outpaced the industry average of 4.2%. Since the same quarter one year prior, revenues rose by 11.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 38.5% when compared to the same quarter one year prior, rising from $5.61 million to $7.76 million.
- MERIT MEDICAL SYSTEMS INC has improved earnings per share by 38.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MERIT MEDICAL SYSTEMS INC reported lower earnings of $0.39 versus $0.46 in the prior year. This year, the market expects an improvement in earnings ($0.73 versus $0.39).
- 44.58% is the gross profit margin for MERIT MEDICAL SYSTEMS INC which we consider to be strong. Regardless of MMSI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.02% trails the industry average.
- Despite currently having a low debt-to-equity ratio of 0.57, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.09 is sturdy.
- You can view the full analysis from the report here: MMSI Ratings Report