Merck Stock Analysis, Valuation (NYSE:MRK)

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$71.22 $1.76 (2.53%) MRK stock closing price Oct 16, 2018 (Closing)

View the Merck stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for MRK stock is shown in the video.

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 1.9/5

Amigobulls MRK stock analysis uses latest quarter 2018 Q2 financial data like Merck revenue growth, profit margins and cash flows. We compare Merck valuation with its sector peers to gauge relative attractiveness of MRK stock. Our Merck stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy MRK stock?

  • Merck had a healthy average operating margin of 15.34 over the last 4 quarters.
  • Net margins came in at average 4.3% for Merck over the last twelve months.
  • The company has an operating cash flow which is 1.5693 times the net income. We see this as a positive signal.
  • MRK stock is trading at an earnings multiple of 17 which is better than the sector average of 24.9.
  • MRK stock is trading at a favorable price to sales multiple of 4.7 as against the Medical sector average multiple of 6.5.
  • Merck has an attractive ROIC (Return on Invested Capital) of 2.8
  • Merck has a good Return On Equity (ROE) of 4.7.
  • Merck has a healthy FCF (Free Cash Flow) margin of 7.

Should you sell MRK stock?

  • Sales declined by -2.5 annually over the last 5 years.
  • Merck is debt laden and has a high debt/equity ratio of 0.65.

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. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Merck stock.