MERCK KGAA (MRK.DE)
DE0006599905 - Common Stock
Taking everything into account, MRK scores 4 out of 10 in our fundamental rating. MRK was compared to 49 industry peers in the Pharmaceuticals industry. MRK has only an average score on both its financial health and profitability. MRK has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
MRK had positive earnings in the past year.
MRK had a positive operating cash flow in the past year.
MRK had positive earnings in each of the past 5 years.
Each year in the past 5 years MRK had a positive operating cash flow.
1.2 Ratios
MRK's Return On Assets of 5.27% is in line compared to the rest of the industry. MRK outperforms 58.70% of its industry peers.
The Return On Equity of MRK (9.20%) is comparable to the rest of the industry.
MRK has a Return On Invested Capital of 6.71%. This is comparable to the rest of the industry: MRK outperforms 56.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MRK is below the industry average of 11.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 9.2% | ||
| ROIC | 6.71% |
ROA(3y)6.47%
ROA(5y)5.44%
ROE(3y)12.58%
ROE(5y)11.37%
ROIC(3y)9.71%
ROIC(5y)8.56%
1.3 Margins
MRK has a better Profit Margin (12.58%) than 69.57% of its industry peers.
In the last couple of years the Profit Margin of MRK has declined.
MRK has a Operating Margin of 16.12%. This is comparable to the rest of the industry: MRK outperforms 56.52% of its industry peers.
In the last couple of years the Operating Margin of MRK has grown nicely.
MRK has a worse Gross Margin (58.22%) than 67.39% of its industry peers.
In the last couple of years the Gross Margin of MRK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.12% | ||
| PM (TTM) | 12.58% | ||
| GM | 58.22% |
OM growth 3Y4.73%
OM growth 5Y6.99%
PM growth 3Y5.88%
PM growth 5Y-9.97%
GM growth 3Y-0.65%
GM growth 5Y-1.24%
2. Health
2.1 Basic Checks
MRK 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, MRK has about the same amount of shares outstanding.
Compared to 5 years ago, MRK has about the same amount of shares outstanding.
Compared to 1 year ago, MRK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.10 indicates that MRK is not a great score, but indicates only limited risk for bankruptcy at the moment.
MRK has a Altman-Z score (2.10) which is in line with its industry peers.
The Debt to FCF ratio of MRK is 5.27, which is a neutral value as it means it would take MRK, 5.27 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MRK (5.27) is better than 65.22% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that MRK is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.27, MRK is doing good in the industry, outperforming 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 5.27 | ||
| Altman-Z | 2.1 |
ROIC/WACC1.13
WACC5.93%
2.3 Liquidity
MRK has a Current Ratio of 1.31. This is a normal value and indicates that MRK is financially healthy and should not expect problems in meeting its short term obligations.
MRK's Current ratio of 1.31 is in line compared to the rest of the industry. MRK outperforms 45.65% of its industry peers.
A Quick Ratio of 0.84 indicates that MRK may have some problems paying its short term obligations.
MRK has a worse Quick ratio (0.84) than 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
MRK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.44%.
The Earnings Per Share has been growing by 10.75% on average over the past years. This is quite good.
MRK shows a decrease in Revenue. In the last year, the revenue decreased by -5.40%.
The Revenue has been growing slightly by 7.19% on average over the past years.
EPS 1Y (TTM)-14.44%
EPS 3Y8.12%
EPS 5Y10.75%
EPS Q2Q%0%
Revenue 1Y (TTM)-5.4%
Revenue growth 3Y6.19%
Revenue growth 5Y7.19%
Sales Q2Q%0.94%
3.2 Future
MRK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.84% yearly.
Based on estimates for the next years, MRK will show a small growth in Revenue. The Revenue will grow by 4.37% on average per year.
EPS Next Y5.19%
EPS Next 2Y9.36%
EPS Next 3Y9.12%
EPS Next 5Y7.84%
Revenue Next Year1.72%
Revenue Next 2Y3.59%
Revenue Next 3Y4.09%
Revenue Next 5Y4.37%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
MRK is valuated rather expensively with a Price/Earnings ratio of 20.21.
69.57% of the companies in the same industry are more expensive than MRK, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 31.77. MRK is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.30 indicates a correct valuation of MRK.
MRK's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MRK to the average of the S&P500 Index (22.70), we can say MRK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.21 | ||
| Fwd PE | 16.3 |
4.2 Price Multiples
MRK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MRK is cheaper than 93.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MRK is valued cheaper than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.49 | ||
| EV/EBITDA | 5.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MRK does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.9
PEG (5Y)1.88
EPS Next 2Y9.36%
EPS Next 3Y9.12%
5. Dividend
5.1 Amount
MRK has a Yearly Dividend Yield of 1.42%. Purely for dividend investing, there may be better candidates out there.
MRK's Dividend Yield is a higher than the industry average which is at 2.53.
MRK's Dividend Yield is slightly below the S&P500 average, which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
The dividend of MRK is nicely growing with an annual growth rate of 11.88%!
Dividend Growth(5Y)11.88%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
MRK pays out 10.81% of its income as dividend. This is a sustainable payout ratio.
The dividend of MRK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP10.81%
EPS Next 2Y9.36%
EPS Next 3Y9.12%
MERCK KGAA
FRA:MRK (10/18/2024, 10:32:50 AM)
165.35
-0.5 (-0.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.21 | ||
| Fwd PE | 16.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.9
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 9.2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.12% | ||
| PM (TTM) | 12.58% | ||
| GM | 58.22% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-14.44%
EPS 3Y8.12%
EPS 5Y
EPS Q2Q%
EPS Next Y5.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.4%
Revenue growth 3Y6.19%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y