Merit Medical SystemsFRA:MM3 +4.17%85 Gross Margin % is 48.39% as of Mar. 2026, which is 8% above its 10-year median of 44.96. GuruFocus rates FRA:MM3 with a GF Score™ of 85/100 and a GF Value™ of €84.32 (Modestly Undervalued). Among 805 Medical Devices & Instruments companies, Merit Medical Systems ranks worse than 55.53% on this metric.
FRA:MM3's Gross Margin % is ranked worse than 55.53% of 805
companies
in the Medical Devices & Instruments industry
Industry Median: 52.07
vs FRA:MM3: 48.69
Merit Medical Systems had a gross margin of 48.39% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Merit Medical Systems was 2.80% per year.
Merit Medical Systems (FRA:MM3) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Merit Medical Systems had a gross margin of 48.39% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Merit Medical Systems Gross Margin % Related Terms
Merit Medical Systems Gross Margin % Historical Data
* Premium members only.
The historical data trend for Merit Medical Systems's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:MM3 vs NVST, MMED, ICUI: Gross Margin % Comparison
For the Medical Instruments & Supplies subindustry, Merit Medical Systems's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Merit Medical Systems Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Merit Medical Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Merit Medical Systems's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Merit Medical Systems (FRA:MM3) has a Gross Margin % of 48.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Merit Medical Systems and its competitors. This is near median its historical median of 44.96. Over the past decade, Merit Medical Systems' Gross Margin % has ranged from 41.62 to 48.70. According to the industry distribution chart, Merit Medical Systems ranks #447 out of 805 companies in the Medical Devices & Instruments industry, placing it in the top 55.5%.
Is Merit Medical Systems' Gross Margin % too high?
Merit Medical Systems' current Gross Margin % of 48.39% is near median its 10-year median of 44.96. Over the past 10 years, this metric has ranged from a low of 41.62 to a high of 48.70. The Medical Devices & Instruments industry median Gross Margin % is 52.07. Merit Medical Systems' value of 48.39% is 7.1% below this industry median. Based on the distribution chart, Merit Medical Systems ranks #447 out of 805 companies in the Medical Devices & Instruments industry, which is below the industry midpoint. Overall, Merit Medical Systems has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Merit Medical Systems' Gross Margin % compare to NVST and MMED?
According to the Medical Devices & Instruments industry distribution chart, Merit Medical Systems ranks #447 out of 805 companies for Gross Margin %. This places Merit Medical Systems in the lower half of its industry. The industry median Gross Margin % is 52.07. Merit Medical Systems' value of 48.39% is 7.1% below this benchmark. Historically, Merit Medical Systems' own Gross Margin % has ranged from 41.62 to 48.70 over the past decade. While the company's 10-year median is 44.96 vs. the industry median of 52.07, Merit Medical Systems has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Medical Devices & Instruments company?
The median Gross Margin % among Medical Devices & Instruments companies is 52.07, based on 805 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merit Medical Systems's current Gross Margin % of 48.39% is 7.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Merit Medical Systems and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 52.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merit Medical Systems's current Gross Margin % is 48.39%, which is near median its own 10-year median of 44.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merit Medical Systems stock overvalued right now?
Based on GuruFocus' analysis, Merit Medical Systems (FRA:MM3) is currently considered Modestly Undervalued. The stock's GF Value™ is €84.32, compared to a current price of €62.50 — trading 25.9% below its estimated fair value. The current Gross Margin % is 48.39%, which is near median its 10-year median of 44.96 and 7.1% below the Medical Devices & Instruments industry median of 52.07. Merit Medical Systems' overall GF Score™ is 85/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Merit Medical Systems (FRA:MM3), the current Gross Margin % is 48.39% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Merit Medical Systems (FRA:MM3) Overvalued in 2026?
Based on GuruFocus' analysis, Merit Medical Systems stock appears to be undervalued.
The current stock price of €62.50 is trading 25.9% below its estimated GF Value™ of €84.32.
GuruFocus considers Merit Medical Systems to be Modestly Undervalued.
Key valuation signals for FRA:MM3:
Gross Margin %: 48.39% (near median its 10-year median of 44.96)
GF Value™: €84.32 vs. price of €62.50 (25.9% below fair value)
Industry Position: 7.1% below the Medical Devices & Instruments median (#447 of 805)
No single metric tells the full story. See the FRA:MM3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merit Medical Systems Inc is a medical equipment company that develops and manufactures products for interventional cardiology, radiology, and endoscopy procedures. The firm reports two segments which are Cardiovascular and Endoscopy. The majority of the revenue is earned from the Cardiovascular segment which consists of cardiology and radiology medical device products that assist in diagnosing and treating coronary artery disease, peripheral vascular disease, and other non-vascular diseases and includes embolotherapeutic, cardiac rhythm management, electrophysiology, critical care, and interventional oncology and spine devices.
85GF Score
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