MERCK & CO. INC. (1MRKX.MI) Stock Fundamental Analysis
BIT:1MRKX - Euronext Milan - US58933Y1055 - Common Stock - Currency: EUR
Overall 1MRKX gets a fundamental rating of 7 out of 10. We evaluated 1MRKX against 51 industry peers in the Pharmaceuticals industry. 1MRKX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1MRKX is valued quite cheap, while showing a decent growth score. This is a good combination! 1MRKX also has an excellent dividend rating. With these ratings, 1MRKX could be worth investigating further for value and dividend and quality investing!.
1. Profitability
1.1 Basic Checks
1MRKX had positive earnings in the past year.
In the past year 1MRKX had a positive cash flow from operations.
In the past 5 years 1MRKX has always been profitable.
In the past 5 years 1MRKX always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 14.62%, 1MRKX belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
1MRKX's Return On Equity of 36.96% is amongst the best of the industry. 1MRKX outperforms 86.27% of its industry peers.
With a decent Return On Invested Capital value of 13.25%, 1MRKX is doing good in the industry, outperforming 70.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1MRKX is in line with the industry average of 14.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.62% | ||
| ROE | 36.96% | ||
| ROIC | 13.25% |
ROA(3y)9.42%
ROA(5y)9.66%
ROE(3y)23.17%
ROE(5y)26.32%
ROIC(3y)13.49%
ROIC(5y)11.91%
1.3 Margins
1MRKX's Profit Margin of 26.68% is amongst the best of the industry. 1MRKX outperforms 88.24% of its industry peers.
In the last couple of years the Profit Margin of 1MRKX has remained more or less at the same level.
1MRKX's Operating Margin of 34.59% is amongst the best of the industry. 1MRKX outperforms 86.27% of its industry peers.
1MRKX's Operating Margin has improved in the last couple of years.
1MRKX has a better Gross Margin (78.19%) than 74.51% of its industry peers.
In the last couple of years the Gross Margin of 1MRKX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.59% | ||
| PM (TTM) | 26.68% | ||
| GM | 78.19% |
OM growth 3Y4.43%
OM growth 5Y7.18%
PM growth 3Y-0.15%
PM growth 5Y1.18%
GM growth 3Y3.55%
GM growth 5Y2.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1MRKX is creating some value.
1MRKX has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1MRKX has less shares outstanding
Compared to 1 year ago, 1MRKX has an improved debt to assets ratio.
2.2 Solvency
1MRKX has an Altman-Z score of 3.84. This indicates that 1MRKX is financially healthy and has little risk of bankruptcy at the moment.
1MRKX's Altman-Z score of 3.84 is fine compared to the rest of the industry. 1MRKX outperforms 66.67% of its industry peers.
The Debt to FCF ratio of 1MRKX is 2.05, which is a good value as it means it would take 1MRKX, 2.05 years of fcf income to pay off all of its debts.
1MRKX has a better Debt to FCF ratio (2.05) than 82.35% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that 1MRKX is somewhat dependend on debt financing.
The Debt to Equity ratio of 1MRKX (0.74) is comparable to the rest of the industry.
Although 1MRKX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 3.84 |
ROIC/WACC1.5
WACC8.85%
2.3 Liquidity
A Current Ratio of 1.36 indicates that 1MRKX should not have too much problems paying its short term obligations.
1MRKX has a Current ratio (1.36) which is comparable to the rest of the industry.
A Quick Ratio of 1.15 indicates that 1MRKX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.15, 1MRKX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
1MRKX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 258.99%, which is quite impressive.
The Earnings Per Share has been growing by 8.04% on average over the past years. This is quite good.
Looking at the last year, 1MRKX shows a small growth in Revenue. The Revenue has grown by 4.10% in the last year.
The Revenue has been growing by 10.40% on average over the past years. This is quite good.
EPS 1Y (TTM)258.99%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%7.25%
Revenue 1Y (TTM)4.1%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.56%
3.2 Future
The Earnings Per Share is expected to grow by 6.16% on average over the next years.
The Revenue is expected to grow by 2.43% on average over the next years.
EPS Next Y18.6%
EPS Next 2Y14.32%
EPS Next 3Y13.3%
EPS Next 5Y6.16%
Revenue Next Year1.56%
Revenue Next 2Y3.93%
Revenue Next 3Y4.56%
Revenue Next 5Y2.43%
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
A Price/Earnings ratio of 10.85 indicates a reasonable valuation of 1MRKX.
1MRKX's Price/Earnings ratio is a bit cheaper when compared to the industry. 1MRKX is cheaper than 76.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1MRKX to the average of the S&P500 Index (28.22), we can say 1MRKX is valued rather cheaply.
The Price/Forward Earnings ratio is 8.46, which indicates a very decent valuation of 1MRKX.
Based on the Price/Forward Earnings ratio, 1MRKX is valued cheaply inside the industry as 84.31% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, 1MRKX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.85 | ||
| Fwd PE | 8.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MRKX indicates a somewhat cheap valuation: 1MRKX is cheaper than 72.55% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MRKX indicates a rather cheap valuation: 1MRKX is cheaper than 80.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.75 | ||
| EV/EBITDA | 8.83 |
4.3 Compensation for Growth
1MRKX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
1MRKX has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1MRKX's earnings are expected to grow with 13.30% in the coming years.
PEG (NY)0.58
PEG (5Y)1.35
EPS Next 2Y14.32%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.06%, 1MRKX is a good candidate for dividend investing.
1MRKX's Dividend Yield is a higher than the industry average which is at 3.13.
Compared to an average S&P500 Dividend Yield of 2.44, 1MRKX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
5.2 History
On average, the dividend of 1MRKX grows each year by 6.90%, which is quite nice.
Dividend Growth(5Y)6.9%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
45.80% of the earnings are spent on dividend by 1MRKX. 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.
DP45.8%
EPS Next 2Y14.32%
EPS Next 3Y13.3%
BIT:1MRKX (4/29/2025, 7:00:00 PM)
74.3
+6 (+8.78%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners79.95%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap186.97B
Analysts78.62
Price Target97.26 (30.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
Yearly Dividend2.73
Dividend Growth(5Y)6.9%
DP45.8%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.4%
Min EPS beat(2)3.35%
Max EPS beat(2)5.44%
EPS beat(4)4
Avg EPS beat(4)5.72%
Min EPS beat(4)3.35%
Max EPS beat(4)9.3%
EPS beat(8)8
Avg EPS beat(8)21.17%
EPS beat(12)12
Avg EPS beat(12)17.11%
EPS beat(16)14
Avg EPS beat(16)13.66%
Revenue beat(2)1
Avg Revenue beat(2)0.05%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)0.2%
Revenue beat(4)3
Avg Revenue beat(4)0.9%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)2.78%
Revenue beat(8)6
Avg Revenue beat(8)1.72%
Revenue beat(12)10
Avg Revenue beat(12)2.52%
Revenue beat(16)13
Avg Revenue beat(16)1.4%
PT rev (1m)-13.1%
PT rev (3m)-25.52%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-10.32%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-4.58%
Revenue NQ rev (1m)-1.71%
Revenue NQ rev (3m)-10.55%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.85 | ||
| Fwd PE | 8.46 | ||
| P/S | 3.31 | ||
| P/FCF | 11.75 | ||
| P/OCF | 9.9 | ||
| P/B | 4.59 | ||
| P/tB | 25.7 | ||
| EV/EBITDA | 8.83 |
EPS(TTM)6.85
EY9.22%
EPS(NY)8.78
Fwd EY11.82%
FCF(TTM)6.32
FCFY8.51%
OCF(TTM)7.5
OCFY10.1%
SpS22.42
BVpS16.18
TBVpS2.89
PEG (NY)0.58
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.62% | ||
| ROE | 36.96% | ||
| ROCE | 25.03% | ||
| ROIC | 13.25% | ||
| ROICexc | 15.67% | ||
| ROICexgc | 31.8% | ||
| OM | 34.59% | ||
| PM (TTM) | 26.68% | ||
| GM | 78.19% | ||
| FCFM | 28.2% |
ROA(3y)9.42%
ROA(5y)9.66%
ROE(3y)23.17%
ROE(5y)26.32%
ROIC(3y)13.49%
ROIC(5y)11.91%
ROICexc(3y)15.56%
ROICexc(5y)13.63%
ROICexgc(3y)33.79%
ROICexgc(5y)31.28%
ROCE(3y)25.47%
ROCE(5y)22.5%
ROICexcg growth 3Y6.23%
ROICexcg growth 5Y2.59%
ROICexc growth 3Y13.83%
ROICexc growth 5Y9.86%
OM growth 3Y4.43%
OM growth 5Y7.18%
PM growth 3Y-0.15%
PM growth 5Y1.18%
GM growth 3Y3.55%
GM growth 5Y2.42%
F-Score8
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.05 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 74.95% | ||
| Cap/Sales | 5.25% | ||
| Interest Coverage | 17.07 | ||
| Cash Conversion | 80.42% | ||
| Profit Quality | 105.72% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 3.84 |
F-Score8
WACC8.85%
ROIC/WACC1.5
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)258.99%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%7.25%
EPS Next Y18.6%
EPS Next 2Y14.32%
EPS Next 3Y13.3%
EPS Next 5Y6.16%
Revenue 1Y (TTM)4.1%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.56%
Revenue Next Year1.56%
Revenue Next 2Y3.93%
Revenue Next 3Y4.56%
Revenue Next 5Y2.43%
EBIT growth 1Y4.93%
EBIT growth 3Y14.48%
EBIT growth 5Y18.33%
EBIT Next Year31.15%
EBIT Next 3Y15.65%
EBIT Next 5Y9.19%
FCF growth 1Y97.92%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y65.06%
OCF growth 3Y15.02%
OCF growth 5Y9.82%