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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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 sell?

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.

50.76%

-0.81

30.34%

S&P 500

22.99%

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)

6.31%

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

Institutional Holding

82.26%

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

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%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

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

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 5.32

DEBTORS TURNOVER RATIO(HY)

Highest at 5.32 times

-25What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBT-EQUITY RATIO (HY)

Highest at 94.48 %

INTEREST(Q)

Highest at USD 479 MM

OPERATING PROFIT(Q)

Lowest at USD -458 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.83 %

PRE-TAX PROFIT(Q)

Lowest at USD -2,102 MM

NET PROFIT(Q)

Lowest at USD -2,808 MM

EPS(Q)

Lowest at USD -1.72

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

Dividend per share

Highest at USD 5.32 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Debtors Turnover Ratio

Highest at 5.32 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Pre-Tax Profit

At USD -2,102 MM has Fallen at -132.37%

over average net sales of the previous four periods of USD 6,494 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -2,808 MM has Fallen at -149.88%

over average net sales of the previous four periods of USD 5,629.15 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 479 MM has Grown at 16.55%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 479 MM

in the last five periods and Increased by 16.55% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD -458 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at -2.83 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -2,102 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -2,808 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -1.72

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 94.48 %

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

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)