MERCK & CO. INC. (1MRKX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MRKX - US58933Y1055 - Common Stock
88.4 EUR
+6.1 (+7.41%)
We assign a fundamental rating of 7 out of 10 to 1MRKX. 1MRKX was compared to 54 industry peers in the Pharmaceuticals industry. While 1MRKX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on 1MRKX. 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.
In the past year 1MRKX had a positive cash flow from operations.
In the past 5 years 1MRKX has always been profitable.
1MRKX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1MRKX (14.69%) is better than 85.45% of its industry peers.
The Return On Equity of 1MRKX (36.71%) is better than 87.27% of its industry peers.
The Return On Invested Capital of 1MRKX (12.83%) is better than 61.82% 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 13.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.69% | ||
| ROE | 36.71% | ||
| ROIC | 12.83% |
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 has a better Profit Margin (29.63%) than 90.91% of its industry peers.
In the last couple of years the Profit Margin of 1MRKX has remained more or less at the same level.
1MRKX has a Operating Margin of 38.08%. This is amongst the best in the industry. 1MRKX outperforms 87.27% of its industry peers.
1MRKX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 78.72%, 1MRKX is doing good in the industry, outperforming 78.18% of the companies in the same industry.
1MRKX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.08% | ||
| PM (TTM) | 29.63% | ||
| GM | 78.72% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1MRKX is creating some value.
The number of shares outstanding for 1MRKX remains at a similar level compared to 1 year ago.
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
1MRKX has an Altman-Z score of 4.05. This indicates that 1MRKX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.05, 1MRKX is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
The Debt to FCF ratio of 1MRKX is 3.17, which is a good value as it means it would take 1MRKX, 3.17 years of fcf income to pay off all of its debts.
1MRKX's Debt to FCF ratio of 3.17 is fine compared to the rest of the industry. 1MRKX outperforms 63.64% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that 1MRKX is somewhat dependend on debt financing.
1MRKX's Debt to Equity ratio of 0.77 is in line compared to the rest of the industry. 1MRKX outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 4.05 |
ROIC/WACC1.51
WACC8.49%
2.3 Liquidity
A Current Ratio of 1.66 indicates that 1MRKX should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.66, 1MRKX is doing good in the industry, outperforming 65.45% of the companies in the same industry.
1MRKX has a Quick Ratio of 1.44. 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 1.44, 1MRKX is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.07% over the past year.
1MRKX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.04% yearly.
Looking at the last year, 1MRKX shows a small growth in Revenue. The Revenue has grown by 1.68% 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)48.07%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%70.7%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%3.72%
3.2 Future
1MRKX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.92% yearly.
1MRKX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.39% yearly.
EPS Next Y18.58%
EPS Next 2Y11.48%
EPS Next 3Y11.36%
EPS Next 5Y5.92%
Revenue Next Year1.22%
Revenue Next 2Y3.07%
Revenue Next 3Y3.9%
Revenue Next 5Y2.39%
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
The Price/Earnings ratio is 11.68, which indicates a very decent valuation of 1MRKX.
76.36% 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 26.39.
The Price/Forward Earnings ratio is 10.84, which indicates a very decent valuation of 1MRKX.
74.55% of the companies in the same industry are more expensive than 1MRKX, based on the Price/Forward Earnings ratio.
1MRKX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 10.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MRKX indicates a somewhat cheap valuation: 1MRKX is cheaper than 72.73% of the companies listed 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 69.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.58 | ||
| EV/EBITDA | 9.6 |
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.
The excellent profitability rating of 1MRKX may justify a higher PE ratio.
PEG (NY)0.63
PEG (5Y)1.45
EPS Next 2Y11.48%
EPS Next 3Y11.36%
5. Dividend
5.1 Amount
1MRKX has a Yearly Dividend Yield of 3.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.85, 1MRKX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, 1MRKX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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
42.60% of the earnings are spent on dividend by 1MRKX. 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.
DP42.6%
EPS Next 2Y11.48%
EPS Next 3Y11.36%
BIT:1MRKX (11/24/2025, 7:00:00 PM)
88.4
+6.1 (+7.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.3%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap219.41B
Revenue(TTM)64.23B
Net Income(TTM)19.03B
Analysts76.47
Price Target91.76 (3.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend2.66
Dividend Growth(5Y)6.9%
DP42.6%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.37%
Min EPS beat(2)7.69%
Max EPS beat(2)13.06%
EPS beat(4)4
Avg EPS beat(4)7.28%
Min EPS beat(4)2.93%
Max EPS beat(4)13.06%
EPS beat(8)8
Avg EPS beat(8)21.72%
EPS beat(12)12
Avg EPS beat(12)16.45%
EPS beat(16)16
Avg EPS beat(16)15.36%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.83%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)0.83%
Revenue beat(8)5
Avg Revenue beat(8)0.41%
Revenue beat(12)9
Avg Revenue beat(12)1.14%
Revenue beat(16)13
Avg Revenue beat(16)1.98%
PT rev (1m)5.86%
PT rev (3m)5.34%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-7.03%
EPS NY rev (1m)0.32%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 10.84 | ||
| P/S | 3.98 | ||
| P/FCF | 19.58 | ||
| P/OCF | 14.97 | ||
| P/B | 4.93 | ||
| P/tB | 17.09 | ||
| EV/EBITDA | 9.6 |
EPS(TTM)7.57
EY8.56%
EPS(NY)8.15
Fwd EY9.22%
FCF(TTM)4.51
FCFY5.11%
OCF(TTM)5.9
OCFY6.68%
SpS22.22
BVpS17.94
TBVpS5.17
PEG (NY)0.63
PEG (5Y)1.45
Graham Number55.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.69% | ||
| ROE | 36.71% | ||
| ROCE | 24.24% | ||
| ROIC | 12.83% | ||
| ROICexc | 15.66% | ||
| ROICexgc | 28.27% | ||
| OM | 38.08% | ||
| PM (TTM) | 29.63% | ||
| GM | 78.72% | ||
| FCFM | 20.31% |
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%
ROICexgc growth 3Y7.57%
ROICexgc 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-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 87.9% | ||
| Cap/Sales | 6.25% | ||
| Interest Coverage | 18.43 | ||
| Cash Conversion | 58.79% | ||
| Profit Quality | 68.56% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 4.05 |
F-Score6
WACC8.49%
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)48.07%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%70.7%
EPS Next Y18.58%
EPS Next 2Y11.48%
EPS Next 3Y11.36%
EPS Next 5Y5.92%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%3.72%
Revenue Next Year1.22%
Revenue Next 2Y3.07%
Revenue Next 3Y3.9%
Revenue Next 5Y2.39%
EBIT growth 1Y2.78%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year28.1%
EBIT Next 3Y13.81%
EBIT Next 5Y8.95%
FCF growth 1Y-0.9%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y-0.73%
OCF growth 3Y15.02%
OCF growth 5Y9.82%
MERCK & CO. INC. / 1MRKX.MI FAQ
What is the ChartMill fundamental rating of MERCK & CO. INC. (1MRKX.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1MRKX.MI.
What is the valuation status of MERCK & CO. INC. (1MRKX.MI) stock?
ChartMill assigns a valuation rating of 7 / 10 to MERCK & CO. INC. (1MRKX.MI). This can be considered as Undervalued.
What is the profitability of 1MRKX stock?
MERCK & CO. INC. (1MRKX.MI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for 1MRKX stock?
The Price/Earnings (PE) ratio for MERCK & CO. INC. (1MRKX.MI) is 11.68 and the Price/Book (PB) ratio is 4.93.
What is the financial health of MERCK & CO. INC. (1MRKX.MI) stock?
The financial health rating of MERCK & CO. INC. (1MRKX.MI) is 6 / 10.