MERCK & CO. INC. (1MRKX.MI) Stock Fundamental Analysis
BIT:1MRKX - Euronext Milan - US58933Y1055 - Common Stock - Currency: EUR
Taking everything into account, 1MRKX scores 7 out of 10 in our fundamental rating. 1MRKX was compared to 53 industry peers in the Pharmaceuticals industry. 1MRKX gets an excellent profitability rating and is at the same time showing great financial health properties. 1MRKX is valued quite cheap, while showing a decent growth score. This is a good combination! 1MRKX also has an excellent dividend rating. These ratings would make 1MRKX suitable for value and dividend and quality investing!
1. Profitability
1.1 Basic Checks
In the past year 1MRKX was profitable.
1MRKX had a positive operating cash flow in the past year.
Each year in the past 5 years 1MRKX has been profitable.
In the past 5 years 1MRKX always reported a positive cash flow from operatings.
1.2 Ratios
1MRKX has a better Return On Assets (15.14%) than 86.79% of its industry peers.
With an excellent Return On Equity value of 36.07%, 1MRKX belongs to the best of the industry, outperforming 83.02% of the companies in the same industry.
1MRKX's Return On Invested Capital of 12.73% is fine compared to the rest of the industry. 1MRKX outperforms 60.38% of its industry peers.
1MRKX had an Average Return On Invested Capital over the past 3 years of 13.49%. This is in line with the industry average of 15.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.14% | ||
| ROE | 36.07% | ||
| ROIC | 12.73% |
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 27.27% is amongst the best of the industry. 1MRKX outperforms 92.45% of its industry peers.
1MRKX's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 33.84%, 1MRKX belongs to the best of the industry, outperforming 86.79% of the companies in the same industry.
1MRKX's Operating Margin has improved in the last couple of years.
1MRKX has a better Gross Margin (78.17%) than 75.47% of its industry peers.
In the last couple of years the Gross Margin of 1MRKX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.84% | ||
| PM (TTM) | 27.27% | ||
| GM | 78.17% |
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.
Compared to 1 year ago, 1MRKX has about the same amount of shares outstanding.
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 3.83. This indicates that 1MRKX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.83, 1MRKX is in the better half of the industry, outperforming 66.04% of the companies in the same industry.
1MRKX has a debt to FCF ratio of 2.04. This is a good value and a sign of high solvency as 1MRKX would need 2.04 years to pay back of all of its debts.
1MRKX has a Debt to FCF ratio of 2.04. This is amongst the best in the industry. 1MRKX outperforms 88.68% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that 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 | 2.04 | ||
| Altman-Z | 3.83 |
ROIC/WACC1.4
WACC9.12%
2.3 Liquidity
1MRKX has a Current Ratio of 1.41. This is a normal value and indicates that 1MRKX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1MRKX (1.41) is comparable to the rest of the industry.
1MRKX has a Quick Ratio of 1.16. This is a normal value and indicates that 1MRKX is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.16, 1MRKX is doing good in the industry, outperforming 69.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.16 |
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.
1MRKX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.04% yearly.
The Revenue has been growing slightly by 4.10% 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)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
Based on estimates for the next years, 1MRKX will show a small growth in Earnings Per Share. The EPS will grow by 6.16% on average per year.
The Revenue is expected to grow by 2.43% on average over the next years.
EPS Next Y17.73%
EPS Next 2Y13.58%
EPS Next 3Y12.74%
EPS Next 5Y6.16%
Revenue Next Year1.68%
Revenue Next 2Y3.64%
Revenue Next 3Y4.27%
Revenue Next 5Y2.43%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.94, which indicates a very decent valuation of 1MRKX.
Compared to the rest of the industry, the Price/Earnings ratio of 1MRKX indicates a somewhat cheap valuation: 1MRKX is cheaper than 79.25% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.20. 1MRKX is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.85, which indicates a rather cheap valuation of 1MRKX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MRKX indicates a rather cheap valuation: 1MRKX is cheaper than 83.02% of the companies listed in the same industry.
1MRKX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.94 | ||
| Fwd PE | 7.85 |
4.2 Price Multiples
73.58% of the companies in the same industry are more expensive than 1MRKX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1MRKX is valued cheaper than 84.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.41 | ||
| EV/EBITDA | 8.36 |
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.
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 12.74% in the coming years.
PEG (NY)0.56
PEG (5Y)1.24
EPS Next 2Y13.58%
EPS Next 3Y12.74%
5. Dividend
5.1 Amount
1MRKX has a Yearly Dividend Yield of 4.21%, which is a nice return.
1MRKX's Dividend Yield is rather good when compared to the industry average which is at 3.05. 1MRKX pays more dividend than 83.02% of the companies in the same industry.
1MRKX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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
1MRKX pays out 45.54% 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.
DP45.54%
EPS Next 2Y13.58%
EPS Next 3Y12.74%
BIT:1MRKX (5/27/2025, 7:00:00 PM)
68.4
+0.3 (+0.44%)
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 Cap171.75B
Analysts77.5
Price Target94.92 (38.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend2.74
Dividend Growth(5Y)6.9%
DP45.54%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.19%
Min EPS beat(2)2.93%
Max EPS beat(2)5.44%
EPS beat(4)4
Avg EPS beat(4)4.13%
Min EPS beat(4)2.93%
Max EPS beat(4)5.44%
EPS beat(8)8
Avg EPS beat(8)20.93%
EPS beat(12)12
Avg EPS beat(12)16.06%
EPS beat(16)15
Avg EPS beat(16)14.76%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)0.45%
Revenue beat(4)3
Avg Revenue beat(4)0.32%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)0.71%
Revenue beat(8)6
Avg Revenue beat(8)1.27%
Revenue beat(12)10
Avg Revenue beat(12)1.96%
Revenue beat(16)14
Avg Revenue beat(16)2.49%
PT rev (1m)-12.29%
PT rev (3m)-21.56%
EPS NQ rev (1m)-5.53%
EPS NQ rev (3m)-8.39%
EPS NY rev (1m)-0.73%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.94 | ||
| Fwd PE | 7.85 | ||
| P/S | 3.04 | ||
| P/FCF | 11.41 | ||
| P/OCF | 9.31 | ||
| P/B | 4.02 | ||
| P/tB | 17.84 | ||
| EV/EBITDA | 8.36 |
EPS(TTM)6.88
EY10.06%
EPS(NY)8.71
Fwd EY12.73%
FCF(TTM)6
FCFY8.77%
OCF(TTM)7.35
OCFY10.74%
SpS22.49
BVpS17.01
TBVpS3.83
PEG (NY)0.56
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.14% | ||
| ROE | 36.07% | ||
| ROCE | 24.05% | ||
| ROIC | 12.73% | ||
| ROICexc | 14.19% | ||
| ROICexgc | 26.46% | ||
| OM | 33.84% | ||
| PM (TTM) | 27.27% | ||
| GM | 78.17% | ||
| FCFM | 26.66% |
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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.04 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 83.2% | ||
| Cap/Sales | 6.01% | ||
| Interest Coverage | 16.44 | ||
| Cash Conversion | 79.55% | ||
| Profit Quality | 97.73% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 3.83 |
F-Score8
WACC9.12%
ROIC/WACC1.4
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 Y17.73%
EPS Next 2Y13.58%
EPS Next 3Y12.74%
EPS Next 5Y6.16%
Revenue 1Y (TTM)4.1%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.56%
Revenue Next Year1.68%
Revenue Next 2Y3.64%
Revenue Next 3Y4.27%
Revenue Next 5Y2.43%
EBIT growth 1Y-3.79%
EBIT growth 3Y14.48%
EBIT growth 5Y18.33%
EBIT Next Year30.08%
EBIT Next 3Y15.02%
EBIT Next 5Y9.19%
FCF growth 1Y51.3%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y33.21%
OCF growth 3Y15.02%
OCF growth 5Y9.82%