MERCK & CO. INC. (1MRKX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MRKX - US58933Y1055 - Common Stock
90.3 EUR
-0.1 (-0.11%)
Overall 1MRKX gets a fundamental rating of 7 out of 10. We evaluated 1MRKX against 53 industry peers in the Pharmaceuticals industry. 1MRKX has an excellent profitability rating, but there are some minor concerns on its financial health. 1MRKX may be a bit undervalued, certainly considering the very reasonable score on growth This makes 1MRKX very considerable 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.
Each year in the past 5 years 1MRKX had a positive operating cash flow.
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.
The Return On Equity of 1MRKX (36.71%) is better than 90.91% of its industry peers.
With a decent Return On Invested Capital value of 12.83%, 1MRKX is doing good in the industry, outperforming 65.45% of the companies in the same industry.
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 has a Profit Margin of 29.63%. This is amongst the best in the industry. 1MRKX outperforms 92.73% 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 better Operating Margin (38.08%) than 90.91% of its industry peers.
In the last couple of years the Operating Margin of 1MRKX has grown nicely.
1MRKX has a better Gross Margin (78.72%) than 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
1MRKX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
1MRKX has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for 1MRKX has been reduced compared to 5 years ago.
1MRKX has a better debt/assets ratio than last year.
2.2 Solvency
1MRKX has an Altman-Z score of 4.09. This indicates that 1MRKX is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 4.09, 1MRKX perfoms like the industry average, outperforming 54.55% 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.
1MRKX's Debt to FCF ratio of 3.17 is fine compared to the rest of the industry. 1MRKX outperforms 70.91% 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 | 4.09 |
ROIC/WACC1.46
WACC8.79%
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 67.27% 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.
The Quick ratio of 1MRKX (1.44) is better than 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.
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%.
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)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 6.65% yearly.
The Revenue is expected to grow by 2.64% on average over the next years.
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
A Price/Earnings ratio of 11.93 indicates a reasonable valuation of 1MRKX.
Compared to the rest of the industry, the Price/Earnings ratio of 1MRKX indicates a rather cheap valuation: 1MRKX is cheaper than 81.82% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. 1MRKX is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.38, which indicates a very decent valuation of 1MRKX.
Based on the Price/Forward Earnings ratio, 1MRKX is valued a bit cheaper than the industry average as 78.18% of the companies are valued more expensively.
1MRKX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
78.18% of the companies in the same industry are more expensive than 1MRKX, based on the Enterprise Value to EBITDA ratio.
1MRKX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1MRKX is cheaper than 70.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20 | ||
| EV/EBITDA | 9.79 |
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.
PEG (NY)0.64
PEG (5Y)1.48
EPS Next 2Y9.96%
EPS Next 3Y10.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.06%, 1MRKX has a reasonable but not impressive dividend return.
1MRKX's Dividend Yield is a higher than the industry average which is at 1.72.
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
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 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%.