MERCK & CO. INC. (MRK) 102.94 -0.52 (-0.5%)
102.94 -0.52 (-0.5%)
US58933Y1055 - Common Stock - After market: 102.93 -0.01 (-0.01%)
Fundamental Rating
Overall MRK gets a fundamental rating of 6 out of 10. We evaluated MRK against 260 industry peers in the Pharmaceuticals industry. MRK has a medium financial health rating, its profitability is only medium as well. MRK is growing strongly while it is still valued neutral. This is a good combination!
Profitability
Profitability Rating
MRK has a Return On Assets of 14.25%. This is better than the industry average of 9.65%.
MRK's Return On Equity of 34.32% is amongst the best of the industry. MRK does better than the industry average Return On Equity of 19.03%.
MRK has a Profit Margin of 25.88%. This is better than the industry average of 18.55%.
MRK has a good Piotroski-F score of 7.00. This indicates a good health and good profitability for MRK.
VS Industry
ROA (14.25%) VS Industry: 63% outperformed.
0.97
111.39
ROE (34.32%) VS Industry: 67% outperformed.
1.97
178.77
Profit Margin (25.88%) VS Industry: 74% outperformed.
2.50
1,952.78
Valuation
Valuation Rating
The low PEG Ratio, which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
With a Price/Earnings Ratio of 13.44, MRK is valued correctly.
MRK's Price/Earning Ratio is in line with the industry average which is at 13.44.
With a Forward Price/Earnings Ratio of 13.50, MRK is valued correctly.
When comparing the current price to the book value of MRK, we can conclude it is valued correctly. It is trading at 5.87 times its book value.
When comparing the price book ratio of MRK to the average industry price book ratio of 1.54, MRK is valued more expensive than its industry peers. 86% of the companies listed in the same industry are valued cheaper.
Compared to an average industry Enterprise Value to EBITDA ratio of 11.56, MRK is valued more expensive than its industry peers.
VS Industry
Price/Earnings (13.44) VS Industry: 50% outperformed.
109.96
0.02
Price/Book (5.87) VS Industry: 14% outperformed.
540.58
0.15
Enterprise Value/ EBITDA (12.32) VS Industry: 40% outperformed.
260.06
0.25
Growth
Growth Rating
MRK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.53%, which is quite impressive.
The Earnings Per Share has been growing by 10.62% on average over the past 5 years. This is quite good.
Based on estimates for the next 5 years, MRK will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.42% on average per year.
MRK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.99%.
The Revenue growth is accelerating: in the next 5 years the growth will be better than in the last years.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming 5 years, we see that the growth is stable.
The Revenue has been growing slightly by 4.12% on average over the past 5 years.
The Revenue is expected to grow by 6.88% on average over the next 5 years.
| Past | Future | ||||||
|---|---|---|---|---|---|---|---|
| 5Y | 3Y | 1Y | 1Y | 2Y | 3Y | 5Y | |
| EPS | 10.62% | 12.99% | 32.53% | 19.16% | 10.38% | 12.07% | 10.42% |
| Revenue | 4.12% | 4.82% | 19.99% | 21.86% | 9.46% | 8.07% | 6.88% |
Health
Health Rating
An Altman-Z score of 4.54 indicates that MRK is not in any danger for bankruptcy at the moment.
The Altman-Z score of MRK is much better than the industry average of -0.31.
MRK has a good Piotroski-F score of 7.00. This indicates a good health and good profitability for MRK.
A Current Ratio of 1.46 indicates that MRK should not have too much problems paying its short term obligations.
MRK has a Quick Ratio of 1.22. This is a normal value and indicates that MRK is financially healthy and should not expect problems in meeting its short term obligations.
Compared to an average industry Current Ratio of 3.49, MRK is worse placed to pay its short term obligations than its industry peers.
When comparing the Quick Ratio of MRK to the average industry Current Ratio of 2.84, MRK is less able to pay its short term obligations than its industry peers.
Compared to an average industry Debt to Equity Ratio of 0.00, MRK is more dependent on financing than its industry peers.
VS Industry
Debt/Equity (0.64) VS Industry: 23% outperformed.
59.36
0.00
Quick Ratio (1.22) VS Industry: 24% outperformed.
-2.73
76.82
Current Ratio (1.46) VS Industry: 22% outperformed.
0.10
76.82
Altman-Z (4.54) VS Industry: 79% outperformed.
-234.67
88.44
Dividend
Dividend Rating
On average, the dividend of MRK grows each year by 9.88%, which is quite nice.
MRK has been paying a dividend for at least 10 years, so it has a reliable track record.
MRK has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
MRK's Dividend Yield is comparable with the industry average which is at 2.85.
Compared to an average S&P500 Dividend Yield of 2.41, MRK has a dividend comparable with the average S&P500 company.
MRK's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
MRK pays out 45.25% of its income as dividend. This is a bit on the high side, but may be sustainable.
VS Industry
Dividend Yield (2.66%) VS Industry: 41% outperformed.
0.71
7.11
MERCK & CO. INC.102.94
NYSE:MRK (2/3/2023, 7:04:00 PM)-0.52 (-0.5%)
| GICS Sector | Health Care | ||
| GICS IndustryGroup | Pharmaceuticals, Biotechnology & Life Sciences | ||
| GICS Industry | Pharmaceuticals | ||
| Earnings (Last) | 02-02 2023-02-02/amc | Earnings (Next) | 04-27 2023-04-27/amc |
| Inst Owners | 73.1% | Inst Owner Change | -1.52% |
| Ins Owners | 0.06% | Ins Owner Change | 4.77% |
| Market Cap | 260.99B | Analysts | 78.75 |
| Price Target | 118.59 (15.2%) | ||
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
| Dividend Growth(5Y) | 9.88% | DP | 45.25% |
| Div Incr Years | 12 | Div Non Decr Years | 18 |
| Ex-Date | N/A | ||
| EPS beat(2) | 2 | Avg EPS beat(2) | 8.02% |
| Min EPS beat(2) | 7.37% | Max EPS beat(2) | 8.68% |
| EPS beat(4) | 4 | Avg EPS beat(4) | 12.11% |
| Min EPS beat(4) | 7.37% | Max EPS beat(4) | 16.78% |
| Revenue beat(2) | 2 | Avg Revenue beat(2) | 4.55% |
| Min Revenue beat(2) | 3.92% | Max Revenue beat(2) | 5.17% |
| Revenue beat(4) | 4 | Avg Revenue beat(4) | 4.51% |
| Min Revenue beat(4) | 1.72% | Max Revenue beat(4) | 7.21% |
| PT rev (1m) | 2.3% | PT rev (3m) | 9.92% |
| EPS NQ rev (1m) | 0.33% | EPS NQ rev (3m) | 0.18% |
| EPS NY rev (1m) | 0% | EPS NY rev (3m) | 0.57% |
| Revenue NQ rev (1m) | -0.01% | Revenue NQ rev (3m) | 0.25% |
| Revenue NY rev (1m) | 0% | Revenue NY rev (3m) | 0.23% |
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 13.5 | ||
| P/S | 4.43 | ||
| P/FCF | 17.12 | ||
| P/OCF | 13.25 | ||
| P/B | 5.87 | ||
| P/tB | 135.23 | ||
| EV/EBITDA | 12.32 |
| EPS(TTM) | 7.66 | EY | 7.44% |
| EPS(NY) | 7.63 | Fwd EY | 7.41% |
| FCF(TTM) | 6.01 | FCFY | 5.84% |
| OCF(TTM) | 7.77 | OCFY | 7.55% |
| SpS | 23.26 | BVpS | 17.53 |
| TBVpS | 0.76 | PEG (NY) | 0.7 |
| PEG (5Y) | 1.27 | ||
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.25% | ||
| ROE | 34.32% | ||
| ROIC | 19.04% | ||
| ROICexc | 21.98% | ||
| ROICexgc | 52.82% | ||
| OM | 32.01% | ||
| PM | 25.88% | ||
| GM | 70.85% |
| ROICexgc(3y) | 49.7% | ROICexcg growth 3Y | 0.67% |
| ROICexcg growth 5Y | 8.51% | ROICexc(3y) | 18.57% |
| ROICexc growth 3Y | -1.25% | ROICexc growth 5Y | 6.27% |
| OM growth 3Y | 6.13% | OM growth 5Y | 5.06% |
| PM growth 3Y | 22.13% | PM growth 5Y | 22.16% |
| GM growth 3Y | 1.76% | GM growth 5Y | 1.96% |
| F-Score | 7 | Asset Turnover | 0.55 |
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 1.99 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 115.45% | ||
| Profit Quality | 99.93% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 4.54 |
| F-Score | 7 | WACC | 8.15% |
| ROIC/WACC | 6.48 | Cap/Depr(3y) | 120.9% |
| Cap/Depr(5y) | 92.26% | Profit Quality(3y) | 84.7% |
| Profit Quality(5y) | 115.62% | ||
| EPS 1Y | 32.53% | EPS 3Y | 12.99% |
| EPS 5Y | 10.62% | EPS growth Q2Q | 5.71% |
| EPS Next Y | 19.16% | EPS Next 2Y | 10.38% |
| EPS Next 3Y | 12.07% | EPS Next 5Y | 10.42% |
| Revenue growth 1Y | 19.99% | Revenue growth 3Y | 4.82% |
| Revenue growth 5Y | 4.12% | Revenue growth Q2Q | 13.72% |
| Revenue Next Year | 21.86% | Revenue Next 2Y | 9.46% |
| Revenue Next 3Y | 8.07% | Revenue Next 5Y | 6.88% |
| EBIT growth 1Y | 86.29% | EBIT growth 3Y | 11.24% |
| EBIT growth 5Y | 9.38% | EBIT Next Year | 47.63% |
| EBIT Next 3Y | 18.76% | EBIT Next 5Y | 12.61% |
| FCF growth 1Y | 126.45% | FCF growth 3Y | 5.16% |
| FCF growth 5Y | 1.97% | OCF growth 1Y | 78.39% |
| OCF growth 3Y | 8.91% | OCF growth 5Y | 6.34% |
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