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Merck & Co., Inc.

  • Market Cap: Large Cap
  • Industry: Pharmaceuticals & Biotechnology
  • ISIN: US58933Y1055
  • NYSE: MRK
USD
150.91
1.41 (0.94%)

Sep 22

NYS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Eli Lilly & Co.
Johnson & Johnson
Bristol Myers Squibb Co.
Vertex Pharmaceuticals, Inc.
Zoetis, Inc.
Pfizer Inc.
Regeneron Pharmaceuticals, Inc.
Merck & Co., Inc.
AbbVie, Inc.
Seagen Inc.
Horizon Therapeutics Plc

Why 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 -0.74%, its profits have risen by 483.6% ; the PEG ratio of the company is 0
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Merck & Co., Inc. for you?

Medium Risk, Low Return

Absolute
Risk Adjusted
Volatility
Merck & Co., Inc.
87.7%
-0.81
30.34%
S&P 500
16.0%
0.70
20.15%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
6.31%
EBIT Growth (5y)
19.52%
EBIT to Interest (avg)
14.83
Debt to EBITDA (avg)
1.58
Net Debt to Equity (avg)
0.53
Sales to Capital Employed (avg)
0.75
Tax Ratio
13.47%
Dividend Payout Ratio
45.05%
Pledged Shares
0
Institutional Holding
82.26%
ROCE (avg)
22.52%
ROE (avg)
31.91%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
8.01
EV to EBIT
17.10
EV to EBITDA
14.10
EV to Capital Employed
5.21
EV to Sales
7.03
PEG Ratio
0.83
Dividend Yield
4.00%
ROCE (Latest)
30.49%
ROE (Latest)
42.82%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

6What is working for the Company
OPERATING CASH FLOW(Y)

Highest at USD 19,967 MM

DIVIDEND PER SHARE(HY)

Highest at USD 5.07

INVENTORY TURNOVER RATIO(HY)

Highest at 2.85 times

-25What is not working for the Company
PRE-TAX PROFIT(Q)

At USD 893 MM has Fallen at -79.4%

NET PROFIT(Q)

At USD 241 MM has Fallen at -93.16%

ROCE(HY)

Lowest at 6.98%

RAW MATERIAL COST(Y)

Grown by 5.55% (YoY

CASH AND EQV(HY)

Lowest at USD 12,955 MM

DEBT-EQUITY RATIO (HY)

Highest at 111.43 %

INTEREST(Q)

Highest at USD 525 MM

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

Operating Cash Flow
Highest at USD 19,967 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share
Highest at USD 5.07 and Grown
In each year in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (USD)

Inventory Turnover Ratio
Highest at 2.85 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Pre-Tax Profit
At USD 893 MM has Fallen at -79.4%
over average net sales of the previous four periods of USD 4,335 MM
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit
At USD 241 MM has Fallen at -93.16%
over average net sales of the previous four periods of USD 3,521.51 MM
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest
Highest at USD 525 MM
in the last five periods and Increased by 9.6% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Cash and Eqv
Lowest at USD 12,955 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio
Highest at 111.43 %
in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost
Grown by 5.55% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

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