ScoreWhy is Merck KGaA ?
1
High Management Efficiency with a high ROCE of 13.62%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 14.04
3
High Debt company with Weak Long Term Fundamental Strength
4
With ROE of 10.90%, it has a Very Attractive valuation with a 1.73 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -28.81%, its profits have fallen by -0.5%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -28.81% returns in the last 1 year, the stock has also underperformed Germany DAX (TR) in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Merck KGaA 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 KGaA for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Merck KGaA
-16.15%
-0.15
26.31%
Germany DAX (TR)
18.37%
1.26
19.31%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.20%
EBIT Growth (5y)
8.73%
EBIT to Interest (avg)
14.04
Debt to EBITDA (avg)
1.36
Net Debt to Equity (avg)
0.26
Sales to Capital Employed (avg)
0.59
Tax Ratio
21.40%
Dividend Payout Ratio
34.44%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
13.62%
ROE (avg)
13.24%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.73
EV to EBIT
12.37
EV to EBITDA
8.68
EV to Capital Employed
1.57
EV to Sales
2.65
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
12.74%
ROE (Latest)
10.89%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend
Not enough Data to analyse Financial Trend
Not enough Data to analyse Financial Trend
Here's what is working for Merck KGaA
Operating Profit to Interest - Quarterly
Highest at 34.28 times
in each of the last 5 periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest (EUR MM)
Debt-Equity Ratio - Half Yearly
Lowest at 0.28 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Merck KGaA
Operating Cash Flow - Annually
Lowest at EUR 3,784.00 MM and Fallen
each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (EUR MM)
Interest - Nine Monthly
At EUR 272.00 MM has Grown at 35.32 %
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (EUR MM)
Operating Profit (PBDIT) - Quarterly
Lowest at EUR 1,337 MM.
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (EUR MM)
Operating Profit Margin - Quarterly
Lowest at 25.59%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales (EUR MM)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at EUR 790 MM.
in the last five periodsMOJO Watch
Near term PBT trend is negative
PBT less Other Income (EUR MM)
Profit After Tax (PAT) - Quarterly
Lowest at EUR 719 MM.
in the last five periodsMOJO Watch
Near term PAT trend is negative
PAT (EUR MM)
Earnings per Share (EPS) - Quarterly
Lowest at EUR 1.35
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (EUR)
Dividend Payout Ratio (DPR) - Annually
Lowest at 0.00 %
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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