MERCK & CO. INC. (1MRKX.MI) Stock Fundamental Analysis
BIT:1MRKX - US58933Y1055 - Common Stock
73.1 EUR
-0.3 (-0.41%)
Overall 1MRKX gets a fundamental rating of 6 out of 10. We evaluated 1MRKX against 50 industry peers in the Pharmaceuticals industry. 1MRKX scores excellent on profitability, 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. With these ratings, 1MRKX could be worth investigating further for value 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.
Each year in the past 5 years 1MRKX had a positive operating cash flow.
1.2 Ratios
1MRKX has a Return On Assets of 13.96%. This is amongst the best in the industry. 1MRKX outperforms 88.00% of its industry peers.
1MRKX's Return On Equity of 33.49% is amongst the best of the industry. 1MRKX outperforms 86.00% of its industry peers.
1MRKX has a better Return On Invested Capital (13.81%) than 66.00% of its industry peers.
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 14.78%.
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's Profit Margin of 25.79% is amongst the best of the industry. 1MRKX outperforms 84.00% of its industry peers.
In the last couple of years the Profit Margin of 1MRKX has remained more or less at the same level.
With an excellent Operating Margin value of 37.52%, 1MRKX belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
1MRKX's Operating Margin has improved in the last couple of years.
1MRKX's Gross Margin of 78.32% is fine compared to the rest of the industry. 1MRKX outperforms 78.00% of its industry peers.
In the last couple of years the Gross Margin of 1MRKX has remained more or less at the same level.
| 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.
The number of shares outstanding for 1MRKX remains at a similar level compared to 1 year ago.
1MRKX has less shares outstanding than it did 5 years ago.
1MRKX has a better debt/assets ratio than last year.
2.2 Solvency
1MRKX has an Altman-Z score of 4.01. This indicates that 1MRKX is financially healthy and has little risk of bankruptcy at the moment.
1MRKX's Altman-Z score of 4.01 is in line compared to the rest of the industry. 1MRKX outperforms 60.00% of its industry peers.
1MRKX has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as 1MRKX would need 2.40 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.40, 1MRKX is doing good in the industry, outperforming 74.00% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that 1MRKX is somewhat dependend on debt financing.
1MRKX has a Debt to Equity ratio (0.69) which 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 | 4.01 |
ROIC/WACC1.51
WACC9.12%
2.3 Liquidity
A Current Ratio of 1.42 indicates that 1MRKX should not have too much problems paying its short term obligations.
1MRKX's Current ratio of 1.42 is in line compared to the rest of the industry. 1MRKX outperforms 56.00% of its industry peers.
1MRKX has a Quick Ratio of 1.17. This is a normal value and indicates that 1MRKX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1MRKX (1.17) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
1MRKX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.28%, which is quite good.
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 1.82% 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)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.
1MRKX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.86% yearly.
EPS Next Y17.86%
EPS Next 2Y12.72%
EPS Next 3Y12.19%
EPS Next 5Y5.37%
Revenue Next Year1.17%
Revenue Next 2Y3.05%
Revenue Next 3Y3.98%
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.
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
1MRKX is valuated reasonably with a Price/Earnings ratio of 11.11.
Compared to the rest of the industry, the Price/Earnings ratio of 1MRKX indicates a somewhat cheap valuation: 1MRKX is cheaper than 76.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1MRKX to the average of the S&P500 Index (27.06), we can say 1MRKX is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.81, the valuation of 1MRKX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, 1MRKX is valued cheaper than 82.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, 1MRKX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 8.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MRKX is valued a bit cheaper than 78.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MRKX indicates a somewhat cheap valuation: 1MRKX is cheaper than 74.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.51 | ||
| EV/EBITDA | 8.42 |
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 12.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)1.38
EPS Next 2Y12.72%
EPS Next 3Y12.19%
5. Dividend
5.1 Amount
1MRKX has a Yearly Dividend Yield of 3.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.06, 1MRKX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, 1MRKX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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
48.95% of the earnings are spent on dividend by 1MRKX. This is a bit on the high side, but may be sustainable.
1MRKX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.95%
EPS Next 2Y12.72%
EPS Next 3Y12.19%
BIT:1MRKX (8/26/2025, 7:00:00 PM)
73.1
-0.3 (-0.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.5%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap182.59B
Analysts75.76
Price Target87.11 (19.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend2.65
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)-3.04%
PT rev (3m)-5.55%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-4.19%
EPS NY rev (1m)0.42%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 8.81 | ||
| P/S | 3.36 | ||
| P/FCF | 14.51 | ||
| P/OCF | 11.52 | ||
| P/B | 4.36 | ||
| P/tB | 17.49 | ||
| EV/EBITDA | 8.42 |
EPS(TTM)6.58
EY9%
EPS(NY)8.3
Fwd EY11.35%
FCF(TTM)5.04
FCFY6.89%
OCF(TTM)6.34
OCFY8.68%
SpS21.77
BVpS16.77
TBVpS4.18
PEG (NY)0.62
PEG (5Y)1.38
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 | 4.01 |
F-Score7
WACC9.12%
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)18.28%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%-3.95%
EPS Next Y17.86%
EPS Next 2Y12.72%
EPS Next 3Y12.19%
EPS Next 5Y5.37%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.9%
Revenue Next Year1.17%
Revenue Next 2Y3.05%
Revenue Next 3Y3.98%
Revenue Next 5Y1.86%
EBIT growth 1Y1.85%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year29.85%
EBIT Next 3Y14.96%
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%