About Merck & Company, Inc.
Merck & Company, Inc. (MRK) is a Healthcare company in the Pharmaceutical Preparations industry with a market capitalisation of $366.3B. The stock trades at 152.51x trailing earnings and yields 2.3%.
- Sector
- Healthcare
- Industry
- Pharmaceutical Preparations
- Market cap
- $366.3B
- P/E ratio
- 152.51
- EPS (TTM)
- $7.28
- Revenue (TTM)
- $65B
- Free cash flow
- $12.4B
- Profit margin
- 28.1%
- Dividend yield
- 2.3%
- Shares outstanding
- 2.5B
Financial health: Strong8.5/10
7 strengths, 0 concerns. No red flags against these benchmarks.
- Debt to equity: 0.94 (Watch, benchmark < 0.5) — Debt of 0.94x equity is moderate against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 2.8y (Strong, benchmark < 4 years) — Net debt of $34.7B is 2.8x annual free cash flow — about 3 years of cash flow to repay.
- Current ratio: 1.54 (Strong, benchmark > 1.5) — Short-term assets cover 1.54x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 34.7% (Strong, benchmark > 15%) — Earns 34.7% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 71.8% (Strong, benchmark > 40%) — Keeps 71.8% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 28.1% (Strong, benchmark > 10%) — Turns 28.1% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $12.4B (Strong, benchmark positive) — Generated $12.4B of free cash flow after capital spending. It has deteriorated over the last 4 years.
- Revenue growth: 1.3% (Watch, benchmark > 10%) — Revenue changed 1.3% year on year, short of the > 10% mark.
- Earnings growth: 6.6% (Watch, benchmark > 10%) — Earnings changed 6.6% year on year, short of the > 10% mark.
- Payout ratio: 44.8% (Strong, benchmark < 60%) — Pays out 44.8% of earnings as dividends, leaving room to keep paying.