Merck Stock Analysis, Valuation (NYSE:MRK)

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$62.51 $0.43 (0.68%) MRK stock closing price Jul 19, 2018 (Closing)

Take a look at Amigobulls Merck stock analysis video. This is our analyst opinion covering the buy and sell arguments for MRK stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Merck & Co., Inc. Stock Rating 3.7/5

Amigobulls MRK stock analysis uses latest quarter 2018 Q1 financial data like Merck revenue growth, profit margins and cash flows. Merck valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Merck stock rating which is indicative of the company's financial performance.

Should you buy MRK stock?

  • The TTM operating margin was good at 15.34 for Merck.
  • Net margins stood at a healthy 4.3% (average) for Merck in the Trailing Twelve Months.
  • The company has an operating cash flow which is 1.5693 times the net income.
  • The Merck stock currently trades at a price to earnings ratio of 15.2, compared to the sector average of 25.2. We rate this as a positive.
  • When compared with the Medical sector average PS ratio of 6.4, the price-to-sales ratio of 4.2 for MRK stock is attractive.
  • Merck's return on invested capital of 2.8 is good.
  • The LTM ROE of 4.7 for Merck is attractive.
  • The company has a healthy free cash flow margin of 7.

Should you sell MRK stock?

  • Revenue declined at a CAGR of -2.5 over the last 5 years.
  • With a debt/equity ratio of 0.72, Merck is highly leveraged in comparison to Medical peers.

Comments on this video and Merck stock

Amigobulls Merck stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. The fundamentals of a company are vital to identify long-term investment opportunities.

Merck revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.