- Merit Medical Systems has begun its "foundational growth" vision, targeting higher margins and free cash conversion over the coming three-year period.
- Performance YTD has been sound, and the company has managed to grow free cash flow and shareholder value this year.
- The company has maintained efficiency in the operating cycle, which looks set to converge to the upside further with the efficiency targets outlined.
- We believe that the market may have already priced in most of the future projections and performance YTD and see ~9% upside potential on today's trading.
- Performance is tied in heavily to ROIC, and therefore upcoming capital allocation changes must be scrutinised heavily to observe the potential outcome to ROIC.
For further details see:
Merit Medical Systems: Valuation And Performance Heavily Tied To ROIC And Therefore Capital Reallocation Plan