MERCK & CO. INC. (1MRKX.MI) Stock Fundamental Analysis
Europe - BIT:1MRKX - US58933Y1055 - Common Stock
69.1 EUR
-4.3 (-5.86%)
Taking everything into account, 1MRKX scores 6 out of 10 in our fundamental rating. 1MRKX was compared to 49 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.
In the past year 1MRKX had a positive cash flow from operations.
Each year in the past 5 years 1MRKX has been profitable.
In the past 5 years 1MRKX always reported a positive cash flow from operatings.
1.2 Ratios
1MRKX has a better Return On Assets (13.96%) than 88.00% of its industry peers.
1MRKX's Return On Equity of 33.49% is amongst the best of the industry. 1MRKX outperforms 86.00% of its industry peers.
1MRKX's Return On Invested Capital of 13.81% is fine compared to the rest of the industry. 1MRKX outperforms 66.00% 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 15.25%.
The 3 year average ROIC (13.67%) for 1MRKX is below the current ROIC(13.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 33.49% | ||
| ROIC | 13.81% |
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 (25.79%) than 84.00% of its industry peers.
1MRKX's Profit Margin has been stable in the last couple of years.
1MRKX's Operating Margin of 37.52% is amongst the best of the industry. 1MRKX outperforms 86.00% of its industry peers.
In the last couple of years the Operating Margin of 1MRKX has grown nicely.
1MRKX's Gross Margin of 78.32% is fine compared to the rest of the industry. 1MRKX outperforms 78.00% of its industry peers.
In the last couple of years the Gross Margin of 1MRKX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.52% | ||
| PM (TTM) | 25.79% | ||
| GM | 78.32% |
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
1MRKX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 1MRKX has about the same amount of shares outstanding.
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 4.01. This indicates that 1MRKX is financially healthy and has little risk of bankruptcy at the moment.
1MRKX has a Altman-Z score (4.01) which is in line with its industry peers.
1MRKX has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as 1MRKX would need 2.40 years to pay back of all of its debts.
1MRKX has a Debt to FCF ratio of 2.40. This is in the better half of the industry: 1MRKX outperforms 74.00% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that 1MRKX is somewhat dependend on debt financing.
1MRKX has a Debt to Equity ratio of 0.69. This is comparable to the rest of the industry: 1MRKX outperforms 44.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for 1MRKX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 4.01 |
ROIC/WACC1.51
WACC9.12%
2.3 Liquidity
A Current Ratio of 1.42 indicates that 1MRKX should not have too much problems paying its short term obligations.
1MRKX has a Current ratio of 1.42. This is comparable to the rest of the industry: 1MRKX outperforms 56.00% of its industry peers.
A Quick Ratio of 1.17 indicates that 1MRKX should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.17, 1MRKX is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.28% over the past year.
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.
The Revenue has been growing slightly by 1.82% in the past year.
Measured over the past years, 1MRKX shows a quite strong growth in Revenue. The Revenue has been growing by 10.40% on average per year.
EPS 1Y (TTM)18.28%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%-3.95%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.9%
3.2 Future
1MRKX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.37% yearly.
The Revenue is expected to grow by 1.86% on average over the next years.
EPS Next Y17.86%
EPS Next 2Y12.72%
EPS Next 3Y12.19%
EPS Next 5Y5.37%
Revenue Next Year1.17%
Revenue Next 2Y3.05%
Revenue Next 3Y3.98%
Revenue Next 5Y1.86%
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
With a Price/Earnings ratio of 10.50, the valuation of 1MRKX can be described as very reasonable.
Based on the Price/Earnings ratio, 1MRKX is valued a bit cheaper than 76.00% of the companies in the same industry.
1MRKX is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.33, the valuation of 1MRKX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, 1MRKX is valued cheaper than 82.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. 1MRKX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 8.33 |
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 78.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1MRKX is valued a bit cheaper than the industry average as 74.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.71 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as 1MRKX's earnings are expected to grow with 12.19% in the coming years.
PEG (NY)0.59
PEG (5Y)1.31
EPS Next 2Y12.72%
EPS Next 3Y12.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.85%, 1MRKX has a reasonable but not impressive dividend return.
1MRKX's Dividend Yield is a higher than the industry average which is at 3.04.
1MRKX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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 48.95% 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.
DP48.95%
EPS Next 2Y12.72%
EPS Next 3Y12.19%
BIT:1MRKX (9/15/2025, 7:00:00 PM)
69.1
-4.3 (-5.86%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.5%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap172.60B
Analysts75.76
Price Target87.11 (26.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend2.65
Dividend Growth(5Y)6.9%
DP48.95%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.31%
Min EPS beat(2)2.93%
Max EPS beat(2)7.69%
EPS beat(4)4
Avg EPS beat(4)4.85%
Min EPS beat(4)2.93%
Max EPS beat(4)7.69%
EPS beat(8)8
Avg EPS beat(8)21.1%
EPS beat(12)12
Avg EPS beat(12)15.97%
EPS beat(16)16
Avg EPS beat(16)15.3%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.25%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)0.45%
Revenue beat(8)5
Avg Revenue beat(8)0.7%
Revenue beat(12)9
Avg Revenue beat(12)1.51%
Revenue beat(16)13
Avg Revenue beat(16)2.28%
PT rev (1m)-3.04%
PT rev (3m)-5.55%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-4.19%
EPS NY rev (1m)0.42%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 8.33 | ||
| P/S | 3.17 | ||
| P/FCF | 13.71 | ||
| P/OCF | 10.89 | ||
| P/B | 4.12 | ||
| P/tB | 16.54 | ||
| EV/EBITDA | 8.42 |
EPS(TTM)6.58
EY9.52%
EPS(NY)8.3
Fwd EY12.01%
FCF(TTM)5.04
FCFY7.29%
OCF(TTM)6.34
OCFY9.18%
SpS21.77
BVpS16.77
TBVpS4.18
PEG (NY)0.59
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 33.49% | ||
| ROCE | 26.09% | ||
| ROIC | 13.81% | ||
| ROICexc | 15.25% | ||
| ROICexgc | 27.43% | ||
| OM | 37.52% | ||
| PM (TTM) | 25.79% | ||
| GM | 78.32% | ||
| FCFM | 23.14% |
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%
ROICexcg growth 3Y7.57%
ROICexcg 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-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 82.85% | ||
| Cap/Sales | 5.99% | ||
| Interest Coverage | 17.88 | ||
| Cash Conversion | 65.1% | ||
| Profit Quality | 89.74% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 4.01 |
F-Score7
WACC9.12%
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)18.28%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%-3.95%
EPS Next Y17.86%
EPS Next 2Y12.72%
EPS Next 3Y12.19%
EPS Next 5Y5.37%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.9%
Revenue Next Year1.17%
Revenue Next 2Y3.05%
Revenue Next 3Y3.98%
Revenue Next 5Y1.86%
EBIT growth 1Y1.85%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year29.85%
EBIT Next 3Y14.96%
EBIT Next 5Y9.07%
FCF growth 1Y35.96%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y22.95%
OCF growth 3Y15.02%
OCF growth 5Y9.82%