Merit Medical Systems, Inc. (MMSI)

So, you see the problem from their earnings. To get the sales done, their margins shrunk. Look at their selling and general administrative costs ballooned over 30%. They have too many expensive dead wood. That is, their sales people are not productive. Who knows, maybe the market is oversaturated. Now until the end of the year, people will be selling for tax write-offs. So, expect this to fall to $15 range by end of December. Those who couldn't get out to day, there will be forced margin selling and any funds in this will get out to write it off.

Merit Medical registered selling, general and administrative expenses totaled $86.9 million, up 30.9% year over year. Meanwhile, research and development expenses amounted to $16.9 million, up 16.9% year over year.

When the President and CEO who sees sales figures weekly sells all these shares at once on a dump, that is a clue you run for the hill. Wait about a week when all the margin selling is gone and buy in the $17-18 range.

President & CEO of Merit Medical Systems Inc (30-Year Financial, Insider Trades) Fred P Lampropoulos (insider trades) sold 161,817 shares of MMSI on 09/06/2019 at an average price of $30.7 a share

The price/earnings (P/E) ratio gives analysts and investors a good fundamental indication of what investors are currently paying for a stock in relation to the company's earnings. One weakness of the P/E ratio, however, is that its calculation does not take into account the future expected growth of a company. The PEG ratio represents a fuller and more accurate valuation measure than the standard P/E ratio. The PEG ratio is a stock valuation measure that investors and analysts can use to get a broad assessment of a company's performance and evaluate investment risk. In theory, a PEG ratio value of 1 represents a perfect correlation between the company's market value and its projected earnings growth. PEG ratios higher than 1 are generally considered unfavorable, suggesting a stock is overvalued. Conversely, ratios lower than 1 are considered better, indicating a stock is undervalued.
Let’s choose among stocks from company MMSI and its peers: CNMD, ITGR, NUVA and QDEL in the same industry. Let’s calculate a stock's PEG ratio to use the formula for the PEG ratio:
PEG = (P/E)/EGR where EGR = Earnings growth rate (%) over two (2019 and 2020) years.
Thereby, PEG = Current price/(100*(EPS2020 – EPS2018)). Analysts estimated for MMSI EPS2020 = $2.12; the actual EPS2018=$1.69; the current price = $40.0; therefore, PEG = 40.0/(212-169) = 0.93. Analysts estimated for CNMD EPS2020 = $2.91; the actual EPS2018=$2.18; the current price = $88.0; therefore, PEG = 88/(291-218) = 1.205. Analysts estimated for ITGR EPS2020 = $4.8; the actual EPS2018=$3.8; the current price = $87.0; therefore, PEG = 87/(480-380) = 0.87. Analysts estimated for NUVA EPS2020 = $2.55; the actual EPS2018=$2.23; the current price = $66.0; therefore, PEG = 66/(255-223) = 2.06. Analysts estimated for QDEL EPS2020 = $3.14; the actual EPS2018 = $3.04; the current price = $59.0; therefore, PEG = 59/(314-304) = 5.9. Let’s conclude that the stock MMSI is undervalued. For this stock PEG will belong to the range [1; 1.27] where 1.27 is the average PEG for MMSI and its 3 peers (excluding QDEL) if its current price is in the range [$43.0; $54.61].

Is the stock MMSI undervalued in comparison with its peers: CNMD, ITGR, NUVA and QDEL? Investors can use the measurement to consider whether a stock is undervalued or overvalued. For instance, a high (low) market cap/revenue ratio means the company is potentially overvalued (undervalued). All things being equal, the lower this ratio is, the better because its market cap does not match the strength of its revenues. Some investors may consider that a sign the stock is a candidate for growth in the share price. But the price-to-sales ratio does not account for the debt on a company's balance sheet. A firm with no debt and a low P/S metric is a more attractive investment than a firm with high debt and the same P/S. At some point, the debt will need to be paid off, and the debt has an interest expense associated with it. The price-to-sales ratio as a valuation method doesn't consider that companies with high debt levels will ultimately need higher sales to service the debt. Therefore, I will use ratio enterprise value/sales instead ratio market capitalization/sales. By adding the company's long-term debt to the company's market capitalization and subtracting any cash, one arrives at the company's enterprise value: EV = Shares Outstanding x Current Share Price + Current Long-term Debt – Current Cash$Cash Equivalent. So, for MMSI: revenue over the past 12 months were equal to $948.79M; EV = 55M*$40.0 + $385M – $35M = $2550M, hence EV/revenue = 2.68. For CNMD: revenue over the past 12 months were equal to $896.39M; EV = 28.23M*$88.0 + $814.44M – $23M = $3275.68, hence EV/revenue = 3.66. For ITGR: revenue over the past 12 months were equal to $1240.63M; EV = 32.63M*$87.0 + $907.92M – $14M = $3732.73, hence EV/revenue = 3.01. For NUVA: revenue over the past 12 months were equal to $1126.1M; EV = 51.89M*$64.0 + $679.93M – $128.37M = $3872.52, hence EV/revenue = 3.44. For QDEL: revenue over the past 12 months were equal to $505.92M; EV = 39.82M*$59.0 + $117.01M – $57M = $2409.39, hence EV/revenue = 4.76. Therefore, the stock MMSI is undervalued in comparison with its peers: CNMD, ITGR, NUVA and QDEL. Its ratio EV/revenue will belong to the range [3.01; 4.76] if its current price be in the range [$45.56; $75.7].

Merit Medical Systems, Inc. (NASDAQ:MMSI), a leading manufacturer and marketer of proprietary disposable devices used in interventional, diagnostic and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care and endoscopy, today announced that Bernard Birkett has resigned as Chief Financial Officer to pursue other business opportunities. It is Merit’s understanding that Mr. Birkett’s departure is not attributable to any disagreement with Merit’s accounting principles or practices or financial statement disclosures.

Seems like an overreaction today since there's no hint of malfeasance

The president and a director each sold 40,000 shares at $36.86 and $40

President & CEO Fred P Lampropoulos sold 40,000 shares of MMSI stock on 08/15/2019 at the average price of $36.86. The price of the stock has decreased by 1.84% since.
Directors and Officers Recent Trades:

Director Michael E Stillabower sold 40,750 shares of MMSI stock on 08/02/2019 at the average price of $40.05. The price of the stock has decreased by 9.66% since.