MERCK & CO. INC. (MRK) 92.32 +1.91 (+2.11%)
92.32 +1.91 (+2.11%)
US58933Y1055 - Common Stock - Premarket: 92.52 +0.2 (+0.22%)
Fundamental Rating
We assign a fundamental rating of 5 out of 10 to MRK. MRK was compared to 261 industry peers in the Pharmaceuticals industry. MRK has a medium financial health rating, its profitability is only medium as well. MRK is not valued too expensively and it also shows a decent growth rate.
Profitability
Profitability Rating
MRK's Return On Assets of 12.35% is amongst the best returns of the industry. MRK outperforms 94% of its industry peers. The industry average Return On Assets is -31.85%.
MRK's Return On Equity of 34.17% is amongst the best of the industry. MRK does better than the industry average Return On Equity of 14.71%.
MRK has a Profit Margin of 26.26%. This is amongst the best returns in the industry. The industry average is -110.24%. MRK outperforms 94% of its industry peers.
The Piotroski-F score of MRK is 3.00. This is a low score and indicates issues in the health and profitability of MRK.
VS Industry
ROA (12.35%) VS Industry: 94% outperformed.
-516.77
32.35
ROE (34.17%) VS Industry: 79% outperformed.
0.06
453.53
Profit Margin (26.26%) VS Industry: 94% outperformed.
-86,506.72
135.00
Valuation
Valuation Rating
MRK's Price/Earning Ratio is a bit cheaper than the industry average which is at 15.80.
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 13.19, MRK is valued correctly.
With a Forward Price/Earnings Ratio of 12.55, 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 6.11 times its book value.
Compared to an average industry price book ratio of 1.54, MRK is valued more expensive than its industry peers. 91% of the companies listed in the same industry are valued cheaper.
Compared to an average industry Enterprise Value to EBITDA ratio of 5.74, MRK is valued more expensive than its industry peers.
VS Industry
Price/Earnings (13.19) VS Industry: 62% outperformed.
358.50
0.38
Price/Book (6.11) VS Industry: 9% outperformed.
2,420.18
0.15
Enterprise Value/ EBITDA (10.42) VS Industry: 30% outperformed.
67.35
0.00
Growth
Growth Rating
MRK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.07%, which is quite impressive.
MRK shows quite a strong growth in Earnings Per Share. Measured over the last 5 years, the EPS has been growing by 10.62% yearly.
The Revenue has grown by 12.41% in the past year. This is quite good.
The Earnings Per Share is expected to grow by 8.43% on average over the next 5 years.
The EPS growth is stable: in the next 5 years the growth will be about the same than in the last 5 years.
The Revenue has been growing slightly by 4.12% on average over the past 5 years.
The Revenue is expected to grow by 3.64% on average over the next 5 years.
The Revenue growth is stable: in the next 5 years the growth will be about the same than in the last 5 years.
| Past | Future | ||||||
|---|---|---|---|---|---|---|---|
| 5Y | 3Y | 1Y | 1Y | 2Y | 3Y | 5Y | |
| EPS | 10.62% | 12.99% | 20.07% | 17.47% | 8.42% | 10% | 8.43% |
| Revenue | 4.12% | 4.82% | 12.41% | 18.92% | 7.43% | 6.2% | 3.64% |
Health
Health Rating
MRK has an Altman-Z score of 3.67. This indicates that MRK is financially healthy and little risk of bankruptcy at the moment.
MRK is in better financial health than average in its industry. Its Altman-Z score is much better than the industry average of 0.19.
A Current Ratio of 1.27 indicates that MRK should not have too much problems paying its short term obligations.
MRK has a Quick Ratio of 1.02. This is a normal value and indicates that MRK is financially healthy and should not expect problems in meeting its short term obligations.
When comparing the Current Ratio of MRK to the average industry Current Ratio of 4.37, MRK is less able to pay its short term obligations than its industry peers. 84% of its industry peers have a better Current Ratio.
When comparing the Quick Ratio of MRK to the average industry Current Ratio of 3.70, MRK is less able to pay its short term obligations than its industry peers. 84% of its industry peers have a better Quick Ratio.
MRK has one of the worst Debt to Equity ratios in its industry. 87% of its industry peers require less debt for financing their operations.
The Piotroski-F score of MRK is 3.00. This is a low score and indicates issues in the health and profitability of MRK.
VS Industry
Debt/Equity (0.8) VS Industry: 13% outperformed.
584.92
-213.72
Quick Ratio (1.02) VS Industry: 16% outperformed.
0.02
101.80
Current Ratio (1.27) VS Industry: 16% outperformed.
0.02
101.80
Altman-Z (3.67) VS Industry: 74% outperformed.
-185.18
111.89
Dividend
Dividend Rating
Compared to an average S&P500 Dividend Yield of 2.14, MRK pays a bit more dividend than the S&P500 average.
The dividend of MRK is nicely growing with an annual growth rate of 9.88%!
35.03% of the earnings are spent on dividend by MRK. This is a low number and sustainable payout ratio.
MRK has been paying a dividend for at least 10 years, so it has a reliable track record.
With a Yearly Dividend Yield of 3.14%, MRK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.11, MRK has a dividend in line with its industry peers.
The dividend of MRK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
VS Industry
Dividend Yield (3.14%) VS Industry: 55% outperformed.
0.61
4.87
MERCK & CO. INC.92.32
NYSE:MRK (5/16/2022, 7:19:10 PM)+1.91 (+2.11%)
| GICS Sector | Health Care | ||
| GICS IndustryGroup | Pharmaceuticals, Biotechnology & Life Sciences | ||
| GICS Industry | Pharmaceuticals | ||
| Earnings (Last) | 04-28 2022-04-28/bmo | Earnings (Next) | 07-28 2022-07-28 |
| Ins Owners | 0.06% | Inst Owners | 72.97% |
| Market Cap | 233.46B | Analysts | 77.06 |
| PE | 13.19 | Fwd PE | 12.55 |
| PEG (NY) | 0.75 | PEG (5Y) | 1.24 |
| P/S | 4.33 | P/B | 6.11 |
| EV/EBITDA | 10.42 | ||
| ROA | 12.35% | ROE | 34.17% |
| PM | 26.26 | Asset Turnover | 0.47 |
| EPS 1Y | 20.07% | EPS 3Y | 12.99% |
| EPS 5Y | 10.62% | EPS growth Q2Q | 52.86% |
| EPS Next Y | 17.47% | EPS Next 2Y | 8.42% |
| EPS Next 3Y | 10% | EPS Next 5Y | 8.43% |
| Revenue growth 1Y | 12.41% | Revenue growth 3Y | 4.82% |
| Revenue growth 5Y | 4.12% | Revenue growth Q2Q | 31.63% |
| Revenue Next Year | 18.92% | Revenue Next 2Y | 7.43% |
| Revenue Next 3Y | 6.2% | Revenue Next 5Y | 3.64% |
| Current Ratio | 1.27 | Quick Ratio | 1.02 |
| Altman-Z | 3.67 | F-Score | 3 |
| Debt/Equity | 0.8 | ||
| Dividend Yield | 3.14% | Dividend Growth | 9.88% |
| DP | 35.03% | Ex-Date | 03-14 2022-03-14 (0.69) |
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