MERCK & CO. INC. (1MRKX.MI) Stock Fundamental Analysis
Europe - BIT:1MRKX - US58933Y1055 - Common Stock
76.2 EUR
+9.3 (+13.9%)
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 may be a bit undervalued, certainly considering the very reasonable score on growth Finally 1MRKX also has an excellent dividend rating. These ratings would make 1MRKX suitable for value and dividend 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.
Each year in the past 5 years 1MRKX had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 13.96%, 1MRKX belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
1MRKX has a better Return On Equity (33.49%) than 90.20% of its industry peers.
1MRKX has a Return On Invested Capital of 13.81%. This is in the better half of the industry: 1MRKX outperforms 68.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1MRKX is in line with the industry average of 15.09%.
The 3 year average ROIC (13.67%) for 1MRKX is below the current ROIC(13.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 33.49% | ||
| ROIC | 13.81% |
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
1MRKX has a Profit Margin of 25.79%. This is amongst the best in the industry. 1MRKX outperforms 90.20% of its industry peers.
1MRKX's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 37.52%, 1MRKX belongs to the top of the industry, outperforming 90.20% of the companies in the same industry.
In the last couple of years the Operating Margin of 1MRKX has grown nicely.
1MRKX has a better Gross Margin (78.32%) than 80.39% of its industry peers.
1MRKX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.52% | ||
| PM (TTM) | 25.79% | ||
| GM | 78.32% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1MRKX is still creating some value.
Compared to 1 year ago, 1MRKX has about the same amount of shares outstanding.
The number of shares outstanding for 1MRKX has been reduced compared to 5 years ago.
The debt/assets ratio for 1MRKX has been reduced compared to a year ago.
2.2 Solvency
1MRKX has an Altman-Z score of 4.10. This indicates that 1MRKX is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 4.10, 1MRKX perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
The Debt to FCF ratio of 1MRKX is 2.40, which is a good value as it means it would take 1MRKX, 2.40 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.40, 1MRKX is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
1MRKX has a Debt/Equity ratio of 0.69. This is a neutral value indicating 1MRKX is somewhat dependend on debt financing.
The Debt to Equity ratio of 1MRKX (0.69) is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for 1MRKX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 4.1 |
ROIC/WACC1.75
WACC7.9%
2.3 Liquidity
1MRKX has a Current Ratio of 1.42. 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 better Current ratio (1.42) than 62.75% of its industry peers.
A Quick Ratio of 1.17 indicates that 1MRKX should not have too much problems paying its short term obligations.
1MRKX's Quick ratio of 1.17 is fine compared to the rest of the industry. 1MRKX outperforms 74.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.28% 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 1.82% in the past year.
1MRKX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.40% yearly.
EPS 1Y (TTM)18.28%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%-3.95%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.9%
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 5.37% on average per year.
Based on estimates for the next years, 1MRKX will show a small growth in Revenue. The Revenue will grow by 1.86% on average per year.
EPS Next Y17.93%
EPS Next 2Y12.87%
EPS Next 3Y12.24%
EPS Next 5Y5.37%
Revenue Next Year1.18%
Revenue Next 2Y3.05%
Revenue Next 3Y3.96%
Revenue Next 5Y1.86%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 11.62, 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 76.47% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1MRKX to the average of the S&P500 Index (27.90), we can say 1MRKX is valued rather cheaply.
1MRKX is valuated reasonably with a Price/Forward Earnings ratio of 9.19.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MRKX indicates a rather cheap valuation: 1MRKX is cheaper than 84.31% of the companies listed in the same industry.
1MRKX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 9.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MRKX is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MRKX indicates a somewhat cheap valuation: 1MRKX is cheaper than 78.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.17 | ||
| EV/EBITDA | 8.76 |
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.
The excellent profitability rating of 1MRKX may justify a higher PE ratio.
A more expensive valuation may be justified as 1MRKX's earnings are expected to grow with 12.24% in the coming years.
PEG (NY)0.65
PEG (5Y)1.44
EPS Next 2Y12.87%
EPS Next 3Y12.24%
5. Dividend
5.1 Amount
1MRKX has a Yearly Dividend Yield of 4.07%, which is a nice return.
Compared to an average industry Dividend Yield of 3.01, 1MRKX pays a better dividend. On top of this 1MRKX pays more dividend than 80.39% of the companies listed in the same industry.
1MRKX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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 Years0
Div Non Decr Years0
5.3 Sustainability
1MRKX pays out 48.95% 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.
DP48.95%
EPS Next 2Y12.87%
EPS Next 3Y12.24%
BIT:1MRKX (10/3/2025, 7:00:00 PM)
76.2
+9.3 (+13.9%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.53%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap190.33B
Analysts75.76
Price Target87.15 (14.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Yearly Dividend2.66
Dividend Growth(5Y)6.9%
DP48.95%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.31%
Min EPS beat(2)2.93%
Max EPS beat(2)7.69%
EPS beat(4)4
Avg EPS beat(4)4.85%
Min EPS beat(4)2.93%
Max EPS beat(4)7.69%
EPS beat(8)8
Avg EPS beat(8)21.1%
EPS beat(12)12
Avg EPS beat(12)15.97%
EPS beat(16)16
Avg EPS beat(16)15.3%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.25%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)0.45%
Revenue beat(8)5
Avg Revenue beat(8)0.7%
Revenue beat(12)9
Avg Revenue beat(12)1.51%
Revenue beat(16)13
Avg Revenue beat(16)2.28%
PT rev (1m)0.04%
PT rev (3m)-5.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.52%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 9.19 | ||
| P/S | 3.51 | ||
| P/FCF | 15.17 | ||
| P/OCF | 12.05 | ||
| P/B | 4.56 | ||
| P/tB | 18.29 | ||
| EV/EBITDA | 8.76 |
EPS(TTM)6.56
EY8.61%
EPS(NY)8.29
Fwd EY10.89%
FCF(TTM)5.02
FCFY6.59%
OCF(TTM)6.32
OCFY8.3%
SpS21.71
BVpS16.72
TBVpS4.17
PEG (NY)0.65
PEG (5Y)1.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 33.49% | ||
| ROCE | 26.09% | ||
| ROIC | 13.81% | ||
| ROICexc | 15.25% | ||
| ROICexgc | 27.43% | ||
| OM | 37.52% | ||
| PM (TTM) | 25.79% | ||
| GM | 78.32% | ||
| FCFM | 23.14% |
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%
ROICexcg growth 3Y7.57%
ROICexcg 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-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 82.85% | ||
| Cap/Sales | 5.99% | ||
| Interest Coverage | 17.88 | ||
| Cash Conversion | 65.1% | ||
| Profit Quality | 89.74% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 4.1 |
F-Score7
WACC7.9%
ROIC/WACC1.75
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)18.28%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%-3.95%
EPS Next Y17.93%
EPS Next 2Y12.87%
EPS Next 3Y12.24%
EPS Next 5Y5.37%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.9%
Revenue Next Year1.18%
Revenue Next 2Y3.05%
Revenue Next 3Y3.96%
Revenue Next 5Y1.86%
EBIT growth 1Y1.85%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year29.99%
EBIT Next 3Y15.06%
EBIT Next 5Y9.07%
FCF growth 1Y35.96%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y22.95%
OCF growth 3Y15.02%
OCF growth 5Y9.82%