MERCK & CO. INC. (1MRKX.MI) Stock Fundamental Analysis
BIT:1MRKX - Euronext Milan - US58933Y1055 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to 1MRKX. 1MRKX was compared to 51 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! These ratings would make 1MRKX suitable for value and quality 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.
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 88.24% of its industry peers.
The Return On Equity of 1MRKX (36.07%) is better than 84.31% of its industry peers.
1MRKX has a better Return On Invested Capital (12.73%) than 62.75% 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 14.80%.
| 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 has a Profit Margin of 27.27%. This is amongst the best in the industry. 1MRKX outperforms 92.16% of its industry peers.
In the last couple of years the Profit Margin of 1MRKX has remained more or less at the same level.
The Operating Margin of 1MRKX (33.84%) is better than 88.24% of its industry peers.
In the last couple of years the Operating Margin of 1MRKX has grown nicely.
1MRKX's Gross Margin of 78.17% is fine compared to the rest of the industry. 1MRKX outperforms 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 | 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
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.
Compared to 5 years ago, 1MRKX has less shares outstanding
The debt/assets ratio for 1MRKX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.90 indicates that 1MRKX is not in any danger for bankruptcy at the moment.
1MRKX has a better Altman-Z score (3.90) than 62.75% of its industry peers.
The Debt to FCF ratio of 1MRKX is 2.04, which is a good value as it means it would take 1MRKX, 2.04 years of fcf income to pay off all of its debts.
1MRKX has a Debt to FCF ratio of 2.04. This is amongst the best in the industry. 1MRKX outperforms 86.27% of its industry peers.
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.
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 | 0.69 | ||
| Debt/FCF | 2.04 | ||
| Altman-Z | 3.9 |
ROIC/WACC1.42
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.41 indicates that 1MRKX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.41, 1MRKX is in line with its industry, outperforming 54.90% of the companies in the same 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.
Looking at the Quick ratio, with a value of 1.16, 1MRKX is in the better half of the industry, outperforming 68.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 258.99% over the past year.
Measured over the past years, 1MRKX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.04% on average per year.
Looking at the last year, 1MRKX shows a small growth in Revenue. The Revenue has grown by 4.10% in the last 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
The Earnings Per Share is expected to grow by 5.96% on average over the next years.
The Revenue is expected to grow by 2.20% on average over the next years.
EPS Next Y17.73%
EPS Next 2Y13.58%
EPS Next 3Y12.74%
EPS Next 5Y5.96%
Revenue Next Year1.67%
Revenue Next 2Y3.7%
Revenue Next 3Y4.26%
Revenue Next 5Y2.2%
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 10.31, the valuation of 1MRKX can be described as very reasonable.
78.43% of the companies in the same industry are more expensive than 1MRKX, based on the Price/Earnings ratio.
1MRKX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
A Price/Forward Earnings ratio of 8.15 indicates a reasonable valuation of 1MRKX.
1MRKX's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1MRKX is cheaper than 84.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1MRKX to the average of the S&P500 Index (22.19), we can say 1MRKX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 8.15 |
4.2 Price Multiples
1MRKX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1MRKX is cheaper than 72.55% of the companies 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 84.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.84 | ||
| EV/EBITDA | 8.64 |
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.
1MRKX's earnings are expected to grow with 12.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)1.28
EPS Next 2Y13.58%
EPS Next 3Y12.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.96%, 1MRKX has a reasonable but not impressive dividend return.
The stock price of 1MRKX dropped by -34.77% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
1MRKX's Dividend Yield is rather good when compared to the industry average which is at 2.92. 1MRKX pays more dividend than 82.35% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, 1MRKX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
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 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 (6/16/2025, 7:00:00 PM)
69.8
+0.7 (+1.01%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.57%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap175.27B
Analysts76.88
Price Target92.23 (32.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Yearly Dividend2.69
Dividend Growth(5Y)6.9%
DP45.54%
Div Incr Years0
Div Non Decr Years0
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)-2.83%
PT rev (3m)-17.6%
EPS NQ rev (1m)0.9%
EPS NQ rev (3m)-7.26%
EPS NY rev (1m)-0.73%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 8.15 | ||
| P/S | 3.16 | ||
| P/FCF | 11.84 | ||
| P/OCF | 9.66 | ||
| P/B | 4.17 | ||
| P/tB | 18.52 | ||
| EV/EBITDA | 8.64 |
EPS(TTM)6.77
EY9.7%
EPS(NY)8.56
Fwd EY12.27%
FCF(TTM)5.9
FCFY8.45%
OCF(TTM)7.22
OCFY10.35%
SpS22.12
BVpS16.73
TBVpS3.77
PEG (NY)0.58
PEG (5Y)1.28
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 | 3.9 |
F-Score8
WACC8.98%
ROIC/WACC1.42
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 5Y5.96%
Revenue 1Y (TTM)4.1%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.56%
Revenue Next Year1.67%
Revenue Next 2Y3.7%
Revenue Next 3Y4.26%
Revenue Next 5Y2.2%
EBIT growth 1Y-3.79%
EBIT growth 3Y14.48%
EBIT growth 5Y18.33%
EBIT Next Year30.08%
EBIT Next 3Y15.02%
EBIT Next 5Y9.31%
FCF growth 1Y51.3%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y33.21%
OCF growth 3Y15.02%
OCF growth 5Y9.82%