ScoreWhy is Merck & Co., Inc. ?
1
High Management Efficiency with a high ROCE of 22.52%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.58 times
3
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)
4
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 -0.47%, its profits have risen by 483.6% ; the PEG ratio of the company is 0
Real-Time Research ReportHow much should you buy?
- 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.
-0.47%
-0.77
30.39%
S&P 500
13.22%
0.65
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.20%
EBIT Growth (5y)
9.91%
EBIT to Interest (avg)
14.83
Debt to EBITDA (avg)
1.58
Net Debt to Equity (avg)
0.53
Sales to Capital Employed (avg)
0.77
Tax Ratio
13.47%
Dividend Payout Ratio
46.32%
Pledged Shares
0
Institutional Holding
81.18%
ROCE (avg)
22.52%
ROE (avg)
31.91%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
5.82
EV to EBIT
13.86
EV to EBITDA
11.50
EV to Capital Employed
4.16
EV to Sales
4.81
PEG Ratio
0.03
Dividend Yield
5.70%
ROCE (Latest)
29.98%
ROE (Latest)
40.02%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
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
NET PROFIT(9M)
Higher at USD 15,751.54 MM
-1What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.4 times
Here's what is working for Merck & Co., Inc.
Operating Cash Flow
Highest at USD 18,534 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend per share
Highest at USD 5.05 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Profit
At USD 15,751.54 MM has Grown at 61.6%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
Higher at USD 15,751.54 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (USD MM)
Raw Material Cost
Fallen by -3.07% (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 2.4 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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