About Merck & Company, Inc.
Merck & Co., Inc. operates as a healthcare company worldwide. It offers human health pharmaceutical for various areas under the Keytruda, Keytruda Qlex, Welireg, Gardasil, ProQuad, M-M-R II, Varivax, Vaxneuvance, Capvaxive, RotaTeq, Pneumovax 23, Bridion, Prevymis, Dificid, Zerbaxa, Winrevair, Adempas/ Verquvo, Ohtuvayre, Lagevrio, Isentress/Isentress HD, Delstrigo, Pifeltro, Belsomra, Januvia, and Janumet brands. The company also provides veterinary pharmaceuticals, vaccines and health management solutions and services, such as livestock products under the Nuflor, Bovilis/Vista, Bovilis Cryptium, Banamine, Estrumate, Matrix, Resflor, Zuprevo, Revalor, Safe-Guard, M+Pac, Porcilis, Circumvent, Nobilis/Innovax, Paracox and Coccivac, Exzolt, Slice, Imvixa, Clynav, Aquavac/Norvax, Aquaflor, Flexolt brands; Allflex Livestock Intelligence solutions; and companion animal products under the Bravecto One-Month, Bravecto Injectable/Quantum, Bravecto TriUNO, Bravecto Plus, Sentinel Spectrum, Sentinel Flavor Tabs, Numelvi, Optimmune, Nobivac NXT, GilvetMab, Otomax, Mometamax, Mometamax Ultra, Posatex, Caninsulin/Vetsulin, Panacur, Safeguard, Regumate, Prestige, Scalibor/Exspot, Sure Petcare, and Home Again brands. It has development and commercialization agreement for three of Daiichi Sankyo's deruxtecan ADC candidates; AstraZeneca PLC to co-development and co-commercialize AstraZeneca's Lynparza products for multiple cancer types; licensed to develop, manufacture and commercialize LM-299, a novel investigational PD-1/VEGF bispecific antibody from LaNova; and collaboration agreement with Eisai Co., Ltd., Bayer AG, and Ridgeback Biotherapeutics LP, as well Moderna, Inc. Merck & Co., Inc. has strategic collaboration with Infinimmune, Inc. to discover and develop antibodies against multiple therapeutic targets. The company was founded in 1891 and is headquartered in Rahway, New Jersey.
Merck & Company, Inc. (MRK) is a Healthcare company in the Drug Manufacturers - General industry with a market capitalisation of $355.1B. The stock trades at 115.14x trailing earnings and yields 2.36%.
- Sector
- Healthcare
- Industry
- Drug Manufacturers - General
- Market cap
- $355.1B
- P/E ratio
- 115.14
- Forward P/E
- 15.07
- EPS (TTM)
- $1.25
- Revenue (TTM)
- $66.6B
- Free cash flow
- $15.2B
- Profit margin
- 4.8%
- Dividend yield
- 2.36%
- Beta
- 0.23
- Shares outstanding
- 2.5B
Financial health: Fair5/10
4 strengths, 4 concerns. Weakest points: return on equity, net margin, peg ratio and 1 more.
- 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: 7.0% (Concern, benchmark > 15%) — Earns 7.0% on shareholder equity, well short of the > 15% mark.
- Gross margin: 75.9% (Strong, benchmark > 40%) — Keeps 75.9% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 4.8% (Concern, benchmark > 10%) — Turns 4.8% of revenue into profit, well short of 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: 5.1% (Watch, benchmark > 10%) — Revenue changed 5.1% 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.
- PEG ratio: 2.63 (Concern, benchmark < 1) — At 2.63, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 268.8% (Concern, benchmark < 60%) — Pays out 268.8% of earnings as dividends — above the level usually considered sustainable.