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 6 out of 10 to 1MRKX. 1MRKX was compared to 55 industry peers in the Pharmaceuticals industry. While 1MRKX has a great profitability rating, 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. 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.
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
1MRKX has a Return On Assets of 14.69%. This is amongst the best in the industry. 1MRKX outperforms 87.27% of its industry peers.
1MRKX's Return On Equity of 36.71% is amongst the best of the industry. 1MRKX outperforms 89.09% of its industry peers.
1MRKX has a Return On Invested Capital of 12.83%. This is in the better half of the industry: 1MRKX outperforms 63.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1MRKX is in line with the industry average of 14.90%.
| 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
With an excellent Profit Margin value of 29.63%, 1MRKX belongs to the best of the industry, outperforming 92.73% of the companies in the same industry.
1MRKX's Profit Margin has been stable in the last couple of years.
1MRKX has a better Operating Margin (38.08%) than 89.09% of its industry peers.
1MRKX's Operating Margin has improved in the last couple of years.
1MRKX has a Gross Margin of 78.72%. This is in the better half of the industry: 1MRKX outperforms 80.00% 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 | 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.
1MRKX has about the same amout of shares outstanding than it did 1 year ago.
1MRKX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1MRKX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.05 indicates that 1MRKX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.05, 1MRKX is in line with its industry, outperforming 58.18% of the companies in the same industry.
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 65.45% of the companies in the same industry.
1MRKX has a Debt/Equity ratio of 0.77. This is a neutral value indicating 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 49.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 4.05 |
ROIC/WACC1.56
WACC8.24%
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.
1MRKX has a Current ratio of 1.66. This is in the better half of the industry: 1MRKX outperforms 69.09% of its industry peers.
A Quick Ratio of 1.44 indicates that 1MRKX should not have too much problems paying its short term obligations.
1MRKX has a better Quick ratio (1.44) than 74.55% 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.
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.
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.
Based on estimates for the next years, 1MRKX will show a small growth in Revenue. The Revenue will grow by 2.98% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 11.62, the valuation of 1MRKX can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of 1MRKX indicates a somewhat cheap valuation: 1MRKX is cheaper than 80.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1MRKX to the average of the S&P500 Index (26.15), we can say 1MRKX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.75, the valuation of 1MRKX can be described as reasonable.
Based on the Price/Forward Earnings ratio, 1MRKX is valued a bit cheaper than the industry average as 76.36% of the companies are valued more expensively.
1MRKX is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 10.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MRKX is valued a bit cheaper than the industry average as 70.91% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 1MRKX is valued a bit cheaper than the industry average as 69.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.59 | ||
| EV/EBITDA | 9.6 |
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.
1MRKX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.64
PEG (5Y)1.44
EPS Next 2Y11.65%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.58%, 1MRKX has a reasonable but not impressive dividend return.
1MRKX's Dividend Yield is a higher than the industry average which is at 3.00.
Compared to an average S&P500 Dividend Yield of 2.41, 1MRKX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
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
42.60% of the earnings are spent on dividend by 1MRKX. 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 (11/24/2025, 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 Owners80.53%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap220.80B
Revenue(TTM)64.23B
Net Income(TTM)19.03B
Analysts75.76
Price Target89.41 (1.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Yearly Dividend2.69
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)3.14%
PT rev (3m)2.64%
EPS NQ rev (1m)-6.11%
EPS NQ rev (3m)-6.74%
EPS NY rev (1m)0.38%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 10.75 | ||
| P/S | 3.98 | ||
| P/FCF | 19.59 | ||
| P/OCF | 14.98 | ||
| P/B | 4.93 | ||
| P/tB | 17.1 | ||
| EV/EBITDA | 9.6 |
EPS(TTM)7.61
EY8.61%
EPS(NY)8.23
Fwd EY9.31%
FCF(TTM)4.51
FCFY5.1%
OCF(TTM)5.9
OCFY6.68%
SpS22.21
BVpS17.93
TBVpS5.17
PEG (NY)0.64
PEG (5Y)1.44
Graham Number55.41
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
WACC8.24%
ROIC/WACC1.56
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 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 11.62 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.