MERCK & CO. INC. (1MRKX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MRKX - US58933Y1055 - Common Stock
88.4 EUR
+6.1 (+7.41%)
Overall 1MRKX gets a fundamental rating of 7 out of 10. We evaluated 1MRKX against 52 industry peers in the Pharmaceuticals industry. 1MRKX has an excellent profitability rating, but there are some minor concerns on its financial health. 1MRKX scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make 1MRKX suitable for value investing!
1. Profitability
1.1 Basic Checks
1MRKX had positive earnings in the past year.
1MRKX had a positive operating cash flow in the past year.
In the past 5 years 1MRKX has always been profitable.
1MRKX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1MRKX (14.69%) is better than 85.45% of its industry peers.
The Return On Equity of 1MRKX (36.71%) is better than 87.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.83%, 1MRKX is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
1MRKX had an Average Return On Invested Capital over the past 3 years of 13.67%. This is in line with the industry average of 13.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.69% | ||
| ROE | 36.71% | ||
| ROIC | 12.83% |
ROA(3y)9.42%
ROA(5y)9.66%
ROE(3y)23.17%
ROE(5y)26.32%
ROIC(3y)13.67%
ROIC(5y)12.02%
1.3 Margins
Looking at the Profit Margin, with a value of 29.63%, 1MRKX belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
1MRKX's Profit Margin has been stable in the last couple of years.
1MRKX has a better Operating Margin (38.08%) than 87.27% of its industry peers.
In the last couple of years the Operating Margin of 1MRKX has grown nicely.
1MRKX has a Gross Margin of 78.72%. This is in the better half of the industry: 1MRKX outperforms 78.18% of its industry peers.
1MRKX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.08% | ||
| PM (TTM) | 29.63% | ||
| GM | 78.72% |
OM growth 3Y5.75%
OM growth 5Y7.99%
PM growth 3Y-0.15%
PM growth 5Y1.18%
GM growth 3Y1.92%
GM growth 5Y1.45%
2. Health
2.1 Basic Checks
1MRKX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 1MRKX has about the same amount of shares outstanding.
Compared to 5 years ago, 1MRKX has less shares outstanding
1MRKX has a better debt/assets ratio than last year.
2.2 Solvency
1MRKX has an Altman-Z score of 4.05. This indicates that 1MRKX is financially healthy and has little risk of bankruptcy at the moment.
1MRKX has a better Altman-Z score (4.05) than 61.82% of its industry peers.
The Debt to FCF ratio of 1MRKX is 3.17, which is a good value as it means it would take 1MRKX, 3.17 years of fcf income to pay off all of its debts.
1MRKX's Debt to FCF ratio of 3.17 is fine compared to the rest of the industry. 1MRKX outperforms 63.64% of its industry peers.
1MRKX has a Debt/Equity ratio of 0.77. This is a neutral value indicating 1MRKX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, 1MRKX is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 4.05 |
ROIC/WACC1.51
WACC8.49%
2.3 Liquidity
1MRKX has a Current Ratio of 1.66. This is a normal value and indicates that 1MRKX is financially healthy and should not expect problems in meeting its short term obligations.
1MRKX's Current ratio of 1.66 is fine compared to the rest of the industry. 1MRKX outperforms 65.45% of its industry peers.
1MRKX has a Quick Ratio of 1.44. This is a normal value and indicates that 1MRKX is financially healthy and should not expect problems in meeting its short term obligations.
1MRKX has a Quick ratio of 1.44. This is in the better half of the industry: 1MRKX outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.07% over the past year.
The Earnings Per Share has been growing by 8.04% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.68% in the past year.
The Revenue has been growing by 10.40% on average over the past years. This is quite good.
EPS 1Y (TTM)48.07%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%70.7%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%3.72%
3.2 Future
Based on estimates for the next years, 1MRKX will show a small growth in Earnings Per Share. The EPS will grow by 5.92% on average per year.
1MRKX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.39% yearly.
EPS Next Y18.58%
EPS Next 2Y11.48%
EPS Next 3Y11.36%
EPS Next 5Y5.92%
Revenue Next Year1.22%
Revenue Next 2Y3.07%
Revenue Next 3Y3.9%
Revenue Next 5Y2.39%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.68, the valuation of 1MRKX can be described as very reasonable.
Based on the Price/Earnings ratio, 1MRKX is valued a bit cheaper than the industry average as 76.36% of the companies are valued more expensively.
1MRKX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.84.
A Price/Forward Earnings ratio of 10.84 indicates a reasonable valuation of 1MRKX.
74.55% of the companies in the same industry are more expensive than 1MRKX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.40. 1MRKX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 10.84 |
4.2 Price Multiples
72.73% of the companies in the same industry are more expensive than 1MRKX, based on the Enterprise Value to EBITDA ratio.
1MRKX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1MRKX is cheaper than 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.58 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of 1MRKX may justify a higher PE ratio.
PEG (NY)0.63
PEG (5Y)1.45
EPS Next 2Y11.48%
EPS Next 3Y11.36%
5. Dividend
5.1 Amount
1MRKX has a Yearly Dividend Yield of 3.37%.
Compared to an average industry Dividend Yield of 2.20, 1MRKX pays a bit more dividend than its industry peers.
1MRKX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
The dividend of 1MRKX is nicely growing with an annual growth rate of 6.90%!
Dividend Growth(5Y)6.9%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1MRKX pays out 42.60% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 1MRKX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.6%
EPS Next 2Y11.48%
EPS Next 3Y11.36%
BIT:1MRKX (11/24/2025, 7:00:00 PM)
88.4
+6.1 (+7.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.3%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap219.41B
Revenue(TTM)64.23B
Net Income(TTM)19.03B
Analysts76.47
Price Target91.76 (3.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend2.66
Dividend Growth(5Y)6.9%
DP42.6%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.37%
Min EPS beat(2)7.69%
Max EPS beat(2)13.06%
EPS beat(4)4
Avg EPS beat(4)7.28%
Min EPS beat(4)2.93%
Max EPS beat(4)13.06%
EPS beat(8)8
Avg EPS beat(8)21.72%
EPS beat(12)12
Avg EPS beat(12)16.45%
EPS beat(16)16
Avg EPS beat(16)15.36%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.83%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)0.83%
Revenue beat(8)5
Avg Revenue beat(8)0.41%
Revenue beat(12)9
Avg Revenue beat(12)1.14%
Revenue beat(16)13
Avg Revenue beat(16)1.98%
PT rev (1m)5.86%
PT rev (3m)5.34%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-7.03%
EPS NY rev (1m)0.32%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 10.84 | ||
| P/S | 3.98 | ||
| P/FCF | 19.58 | ||
| P/OCF | 14.97 | ||
| P/B | 4.93 | ||
| P/tB | 17.09 | ||
| EV/EBITDA | 9.6 |
EPS(TTM)7.57
EY8.56%
EPS(NY)8.15
Fwd EY9.22%
FCF(TTM)4.51
FCFY5.11%
OCF(TTM)5.9
OCFY6.68%
SpS22.22
BVpS17.94
TBVpS5.17
PEG (NY)0.63
PEG (5Y)1.45
Graham Number55.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.69% | ||
| ROE | 36.71% | ||
| ROCE | 24.24% | ||
| ROIC | 12.83% | ||
| ROICexc | 15.66% | ||
| ROICexgc | 28.27% | ||
| OM | 38.08% | ||
| PM (TTM) | 29.63% | ||
| GM | 78.72% | ||
| FCFM | 20.31% |
ROA(3y)9.42%
ROA(5y)9.66%
ROE(3y)23.17%
ROE(5y)26.32%
ROIC(3y)13.67%
ROIC(5y)12.02%
ROICexc(3y)15.77%
ROICexc(5y)13.76%
ROICexgc(3y)34.22%
ROICexgc(5y)31.54%
ROCE(3y)25.81%
ROCE(5y)22.7%
ROICexgc growth 3Y7.57%
ROICexgc growth 5Y3.37%
ROICexc growth 3Y15.27%
ROICexc growth 5Y10.69%
OM growth 3Y5.75%
OM growth 5Y7.99%
PM growth 3Y-0.15%
PM growth 5Y1.18%
GM growth 3Y1.92%
GM growth 5Y1.45%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 87.9% | ||
| Cap/Sales | 6.25% | ||
| Interest Coverage | 18.43 | ||
| Cash Conversion | 58.79% | ||
| Profit Quality | 68.56% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 4.05 |
F-Score6
WACC8.49%
ROIC/WACC1.51
Cap/Depr(3y)95.66%
Cap/Depr(5y)110.48%
Cap/Sales(3y)6.36%
Cap/Sales(5y)7.78%
Profit Quality(3y)903.98%
Profit Quality(5y)573.68%
High Growth Momentum
Growth
EPS 1Y (TTM)48.07%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%70.7%
EPS Next Y18.58%
EPS Next 2Y11.48%
EPS Next 3Y11.36%
EPS Next 5Y5.92%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%3.72%
Revenue Next Year1.22%
Revenue Next 2Y3.07%
Revenue Next 3Y3.9%
Revenue Next 5Y2.39%
EBIT growth 1Y2.78%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year28.1%
EBIT Next 3Y13.81%
EBIT Next 5Y8.95%
FCF growth 1Y-0.9%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y-0.73%
OCF growth 3Y15.02%
OCF growth 5Y9.82%
MERCK & CO. INC. / 1MRKX.MI FAQ
What is the ChartMill fundamental rating of MERCK & CO. INC. (1MRKX.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1MRKX.MI.
What is the valuation status of MERCK & CO. INC. (1MRKX.MI) stock?
ChartMill assigns a valuation rating of 7 / 10 to MERCK & CO. INC. (1MRKX.MI). This can be considered as Undervalued.
What is the profitability of 1MRKX stock?
MERCK & CO. INC. (1MRKX.MI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for 1MRKX stock?
The Price/Earnings (PE) ratio for MERCK & CO. INC. (1MRKX.MI) is 11.68 and the Price/Book (PB) ratio is 4.93.
What is the financial health of MERCK & CO. INC. (1MRKX.MI) stock?
The financial health rating of MERCK & CO. INC. (1MRKX.MI) is 6 / 10.