Merck Stock Analysis, Valuation (NYSE:MRK)

Add to My Stocks
$58.92 $0.35 (0.59%) MRK stock closing price Apr 18, 2018 (Closing)
Watch Robo Advisor Video of MRK Stock Analysis
Merck
Updated on : Apr 18, 2018
previous close
MRK 58.9 (0%)
S&P 500 2708.6 (0%)
Closing Price On: Apr 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Large Cap Pharma
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-3.2%
Operating Profit
Operating Margin:
18.2%
Sector Average:
-7.3%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
24.41B
Debt/Equity Ratio:
 0.71
Compared to the industry
Cash Flow
Operating cash flow:
$4.02B
Net Income:
-$872M
Dividend Yield
MRK dividend yield:
3.21%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PE Valuation
Long Term Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MRK PS :
4
Industry PS :
5.9
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4.4%
Return on Equity:
6.6%
Free Cash Flow Margin:
31.6%
Double Tap To Exit Full Screen
0:00
/

Merck Stock Analysis

639 5 2

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 3.8/5

Amigobulls MRK stock analysis uses latest quarter 2017 Q4 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 18.2% for Merck.
  • LTM Net margins were good at 6.4% for Merck.
  • MRK stock is trading at an earnings multiple of 14.8 which is better than the industry average of 24.9.
  • When compared with the Large Cap Pharma industry average PS ratio of 5.9, the price-to-sales ratio of 4 for MRK stock is attractive.
  • Merck generates a high return on invested capital of 4.4%.
  • The LTM ROE of 6.6% for Merck is attractive.
  • Merck has a healthy FCF (Free Cash Flow) margin of 31.6%.

Should you sell MRK stock?

  • Sales declined by -3.2% annually over the last 5 years.
  • Merck is debt laden and has a high debt/equity ratio of  0.71.

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.