Merck & Co., Inc. (MRK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Horizon Therapeutics Plc

Why is Merck & Co., Inc. ?

High Management Efficiency with a high ROCE of 22.52%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.58 times

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 18,534 MM
DIVIDEND PER SHARE(HY) Highest at USD 5.05
RAW MATERIAL COST(Y) Fallen by -3.07% (YoY)

With ROCE of 29.98%, it has a attractive valuation with a 4.16 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -0.74%, its profits have risen by 483.6% ; the PEG ratio of the company is 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Merck & Co., Inc. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Merck & Co., Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Merck & Co., Inc.

22.95%

-0.81

30.34%

S&P 500

20.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.33%

EBIT Growth (5y)

19.58%

EBIT to Interest (avg)

14.83

Debt to EBITDA (avg)

1.58

Net Debt to Equity (avg)

0.53

Sales to Capital Employed (avg)

6,500.89

Tax Ratio

13.47%

Dividend Payout Ratio

45.05%

Pledged Shares

Institutional Holding

80.78%

ROCE (avg)

22.52%

ROE (avg)

31.91%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.25

EV to EBIT

14.99

EV to EBITDA

12.45

EV to Capital Employed

4.40

EV to Sales

5.25

PEG Ratio

0.53

Dividend Yield

5.37%

ROCE (Latest)

29.35%

ROE (Latest)

38.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 0

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DIVIDEND PAYOUT RATIO(Y)

Highest at 71.37%

RAW MATERIAL COST(Y)

Fallen by -3.69% (YoY

-7What is not working for the Company

ROCE(HY)

Lowest at 0%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

OPERATING PROFIT MARGIN(Q)

Lowest at 38.02 %

EPS(Q)

Lowest at USD 1.19

Here's what is working for Merck & Co., Inc.

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 71.37%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.69% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Merck & Co., Inc.

Inventory Turnover Ratio

Lowest at 0 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit Margin

Lowest at 38.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at USD 1.19

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio