MERCK & CO. INC. (1MRKX.MI) Stock Fundamental Analysis
Europe - BIT:1MRKX - US58933Y1055 - Common Stock
81.2 EUR
+0.1 (+0.12%)
We assign a fundamental rating of 7 out of 10 to 1MRKX. 1MRKX was compared to 54 industry peers in the Pharmaceuticals industry. 1MRKX scores excellent on profitability, but there are some minor concerns on its financial health. 1MRKX may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make 1MRKX a good candidate 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.
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
With an excellent Return On Assets value of 14.69%, 1MRKX belongs to the best of the industry, outperforming 87.04% of the companies in the same industry.
1MRKX has a Return On Equity of 36.71%. This is amongst the best in the industry. 1MRKX outperforms 88.89% of its industry peers.
With a decent Return On Invested Capital value of 12.83%, 1MRKX is doing good in the industry, outperforming 62.96% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1MRKX is in line with the industry average of 14.51%.
| 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 Profit Margin of 29.63%. This is amongst the best in the industry. 1MRKX outperforms 90.74% of its industry peers.
1MRKX's Profit Margin has been stable in the last couple of years.
1MRKX has a Operating Margin of 38.08%. This is amongst the best in the industry. 1MRKX outperforms 88.89% of its industry peers.
1MRKX's Operating Margin has improved in the last couple of years.
1MRKX's Gross Margin of 78.72% is fine compared to the rest of the industry. 1MRKX outperforms 79.63% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1MRKX is still creating some value.
Compared to 1 year ago, 1MRKX has about the same amount of shares outstanding.
1MRKX has less shares outstanding than it did 5 years ago.
1MRKX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.89 indicates that 1MRKX is not in any danger for bankruptcy at the moment.
1MRKX's Altman-Z score of 3.89 is in line compared to the rest of the industry. 1MRKX outperforms 55.56% of its industry peers.
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.
The Debt to FCF ratio of 1MRKX (3.17) is better than 62.96% of its industry peers.
1MRKX has a Debt/Equity ratio of 0.77. This is a neutral value indicating 1MRKX is somewhat dependend on debt financing.
1MRKX has a Debt to Equity ratio (0.77) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 3.89 |
ROIC/WACC1.57
WACC8.17%
2.3 Liquidity
1MRKX has a Current Ratio of 1.66. This is a normal value and indicates that 1MRKX is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.66, 1MRKX is doing good in the industry, outperforming 64.81% of the companies in the same industry.
A Quick Ratio of 1.44 indicates that 1MRKX should not have too much problems paying its short term obligations.
1MRKX has a Quick ratio of 1.44. This is in the better half of the industry: 1MRKX outperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
1MRKX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.07%, which is quite impressive.
Measured over the past years, 1MRKX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.04% on average per year.
1MRKX shows a small growth in Revenue. In the last year, the Revenue has grown by 1.68%.
The Revenue has been growing by 10.40% on average over the past years. This is quite good.
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 5.86% yearly.
1MRKX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
EPS Next Y18.21%
EPS Next 2Y11.65%
EPS Next 3Y11.32%
EPS Next 5Y5.86%
Revenue Next Year1.08%
Revenue Next 2Y3.07%
Revenue Next 3Y3.96%
Revenue Next 5Y2.98%
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
A Price/Earnings ratio of 10.68 indicates a reasonable valuation of 1MRKX.
1MRKX's Price/Earnings ratio is rather cheap when compared to the industry. 1MRKX is cheaper than 85.19% of the companies in the same industry.
1MRKX is valuated cheaply when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.89, which indicates a very decent valuation of 1MRKX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MRKX indicates a rather cheap valuation: 1MRKX is cheaper than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.62, 1MRKX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 9.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MRKX is valued a bit cheaper than the industry average as 79.63% of the companies are valued more expensively.
66.67% of the companies in the same industry are more expensive than 1MRKX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.02 | ||
| EV/EBITDA | 8.9 |
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.
PEG (NY)0.59
PEG (5Y)1.33
EPS Next 2Y11.65%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
1MRKX has a Yearly Dividend Yield of 3.49%.
Compared to an average industry Dividend Yield of 3.01, 1MRKX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 1MRKX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
5.2 History
The dividend of 1MRKX is nicely growing with an annual growth rate of 6.90%!
Dividend Growth(5Y)6.9%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1MRKX pays out 42.60% of its income as dividend. 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.
DP42.6%
EPS Next 2Y11.65%
EPS Next 3Y11.32%
BIT:1MRKX (11/17/2025, 7:00:00 PM)
81.2
+0.1 (+0.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.53%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap202.82B
Revenue(TTM)64.23B
Net Income(TTM)19.03B
Analysts75.76
Price Target87.23 (7.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
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)0.63%
PT rev (3m)0.11%
EPS NQ rev (1m)-6.85%
EPS NQ rev (3m)-7.2%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 9.89 | ||
| P/S | 3.66 | ||
| P/FCF | 18.02 | ||
| P/OCF | 13.78 | ||
| P/B | 4.53 | ||
| P/tB | 15.73 | ||
| EV/EBITDA | 8.9 |
EPS(TTM)7.6
EY9.36%
EPS(NY)8.21
Fwd EY10.12%
FCF(TTM)4.51
FCFY5.55%
OCF(TTM)5.89
OCFY7.26%
SpS22.18
BVpS17.91
TBVpS5.16
PEG (NY)0.59
PEG (5Y)1.33
Graham Number55.33
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 | 3.89 |
F-Score6
WACC8.17%
ROIC/WACC1.57
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 Y18.21%
EPS Next 2Y11.65%
EPS Next 3Y11.32%
EPS Next 5Y5.86%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%3.72%
Revenue Next Year1.08%
Revenue Next 2Y3.07%
Revenue Next 3Y3.96%
Revenue Next 5Y2.98%
EBIT growth 1Y2.78%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year29.99%
EBIT Next 3Y15.06%
EBIT Next 5Y10.12%
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 7 / 10 to 1MRKX.MI.
What is the valuation status of MERCK & CO. INC. (1MRKX.MI) stock?
ChartMill assigns a valuation rating of 8 / 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 10.68 and the Price/Book (PB) ratio is 4.53.
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.