Is MMSI a high-quality business?

AlphaMadera's AlphaQuality grade scores Merit Medical Systems, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how MMSI compares to a Buffett-style quality bar.

What is Merit Medical Systems, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to MMSI based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes MMSI a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

MMSI - Merit Medical Systems, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $95.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B- 65.0 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C- 48.7

5yr Avg ROIC 3.8% 29/100
Operating Margin Trend +1.69 pp/yr 95/100

Capital Efficiency

Weight: 15%

D+ 40.0

5yr Avg ROE 5.9% 39/100
5yr Share-Count CAGR 1.3% 41/100

Growth Quality

Weight: 15%

A 89.8

5yr Revenue CAGR 9.0% 77/100
5yr EPS CAGR 26.2% 100/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

B+ 79.8

5yr FCF Margin 10.7% 72/100
5yr FCF/NI Conversion 1.55x 90/100

Balance Sheet

Weight: 20%

A- 80.1

Net Debt / EBITDA 1.41x 79/100
Interest Coverage (EBIT/Int) 6.97x 73/100
Altman Z-Score 3.74 91/100

Stability

Weight: 15%

C 52.1

EPS Volatility (σ/μ) 0.68 16/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 0/5 100/100

4 of 4 gurus held; 1 new buy; 2 added; 1 trimmed.

Holders: 4 +2
Avg Δ position: +18.9%
New buys: 1
Full exits: 0

Dalio new
Wood increased +70%
Cooperman decreased -32%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.