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

6

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

6

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

4

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

7

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.

PastFuture
5Y3Y1Y1Y2Y3Y5Y
EPS10.62% 12.99% 32.53% 19.16% 10.38% 12.07% 10.42%
Revenue4.12% 4.82% 19.99% 21.86% 9.46% 8.07% 6.88%

Health

Health Rating

5

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

6

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%)

After market: 102.93 -0.01 (-0.01%)

Chartmill FA Rating
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%)

Dividend
Industry RankSector 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

Surprises & Revisions
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%

Valuation
Industry RankSector 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

Profitability
Industry RankSector 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

Health
Industry RankSector 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%

Growth
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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