MERCK & CO. INC. (1MRKX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MRKX - US58933Y1055 - Common Stock
90.3 EUR
-0.1 (-0.11%)
We assign a fundamental rating of 7 out of 10 to 1MRKX. 1MRKX was compared to 53 industry peers in the Pharmaceuticals industry. 1MRKX has an excellent profitability rating, but there are some minor concerns on its financial health. 1MRKX scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make 1MRKX a good candidate for value investing.
1. Profitability
1.1 Basic Checks
1MRKX had positive earnings in the past year.
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's Return On Assets of 14.69% is amongst the best of the industry. 1MRKX outperforms 89.09% of its industry peers.
1MRKX's Return On Equity of 36.71% is amongst the best of the industry. 1MRKX outperforms 90.91% of its industry peers.
The Return On Invested Capital of 1MRKX (12.83%) is better than 65.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1MRKX is in line with the industry average of 14.02%.
| 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's Profit Margin of 29.63% is amongst the best of the industry. 1MRKX outperforms 92.73% of its industry peers.
1MRKX's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 38.08%, 1MRKX belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
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 80.00% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1MRKX is still creating some value.
The number of shares outstanding for 1MRKX remains at a similar level compared to 1 year ago.
The number of shares outstanding for 1MRKX has been reduced compared to 5 years ago.
Compared to 1 year ago, 1MRKX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.09 indicates that 1MRKX is not in any danger for bankruptcy at the moment.
1MRKX has a Altman-Z score (4.09) which is in line with its industry peers.
1MRKX has a debt to FCF ratio of 3.17. This is a good value and a sign of high solvency as 1MRKX would need 3.17 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.17, 1MRKX is doing good in the industry, outperforming 70.91% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that 1MRKX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.77, 1MRKX perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 4.09 |
ROIC/WACC1.46
WACC8.79%
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.
The Current ratio of 1MRKX (1.66) is better than 67.27% of its industry peers.
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.
1MRKX has a Quick ratio of 1.44. This is in the better half of the industry: 1MRKX outperforms 74.55% of its industry peers.
| 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.
The Earnings Per Share has been growing by 8.04% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 6.65% on average over the next years.
1MRKX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.64% yearly.
EPS Next Y18.62%
EPS Next 2Y9.96%
EPS Next 3Y10.87%
EPS Next 5Y6.65%
Revenue Next Year1.24%
Revenue Next 2Y3.07%
Revenue Next 3Y3.84%
Revenue Next 5Y2.64%
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1MRKX is valuated reasonably with a Price/Earnings ratio of 11.93.
Based on the Price/Earnings ratio, 1MRKX is valued cheaper than 81.82% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, 1MRKX is valued rather cheaply.
The Price/Forward Earnings ratio is 11.38, which indicates a very decent valuation of 1MRKX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MRKX indicates a somewhat cheap valuation: 1MRKX is cheaper than 78.18% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.98. 1MRKX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 11.38 |
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 78.18% 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 70.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20 | ||
| EV/EBITDA | 9.79 |
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)0.64
PEG (5Y)1.48
EPS Next 2Y9.96%
EPS Next 3Y10.87%
5. Dividend
5.1 Amount
1MRKX has a Yearly Dividend Yield of 3.06%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.72, 1MRKX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, 1MRKX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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
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 2Y9.96%
EPS Next 3Y10.87%
BIT:1MRKX (1/2/2026, 7:00:00 PM)
90.3
-0.1 (-0.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.32%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap224.13B
Revenue(TTM)64.23B
Net Income(TTM)19.03B
Analysts77.06
Price Target92.26 (2.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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)0.54%
PT rev (3m)6.42%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-6.86%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 11.38 | ||
| P/S | 4.06 | ||
| P/FCF | 20 | ||
| P/OCF | 15.29 | ||
| P/B | 5.03 | ||
| P/tB | 17.45 | ||
| EV/EBITDA | 9.79 |
EPS(TTM)7.57
EY8.38%
EPS(NY)7.93
Fwd EY8.79%
FCF(TTM)4.52
FCFY5%
OCF(TTM)5.91
OCFY6.54%
SpS22.23
BVpS17.94
TBVpS5.17
PEG (NY)0.64
PEG (5Y)1.48
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 | 4.09 |
F-Score6
WACC8.79%
ROIC/WACC1.46
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 Y18.62%
EPS Next 2Y9.96%
EPS Next 3Y10.87%
EPS Next 5Y6.65%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%3.72%
Revenue Next Year1.24%
Revenue Next 2Y3.07%
Revenue Next 3Y3.84%
Revenue Next 5Y2.64%
EBIT growth 1Y2.78%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year28.15%
EBIT Next 3Y13.73%
EBIT Next 5Y11.96%
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.
Can you provide the valuation status for MERCK & CO. INC.?
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.
What are the PE and PB ratios of MERCK & CO. INC. (1MRKX.MI) stock?
The Price/Earnings (PE) ratio for MERCK & CO. INC. (1MRKX.MI) is 11.93 and the Price/Book (PB) ratio is 5.03.
Is the dividend of MERCK & CO. INC. sustainable?
The dividend rating of MERCK & CO. INC. (1MRKX.MI) is 6 / 10 and the dividend payout ratio is 42.6%.