Merck & logged a 1.1% change during today's afternoon session, and is now trading at a price of $87.33 per share.
Merck & returned losses of -21.0% last year, with its stock price reaching a high of $111.58 and a low of $73.31. Over the same period, the stock underperformed the S&P 500 index by -37.9%. AThe company's 50-day average price was $83.1. Merck & Co., Inc. operates as a healthcare company worldwide. Based in Rahway, NJ, the Large-Cap Health Care company has 73,000 full time employees. Merck & has offered a 3.7% dividend yield over the last 12 months.
Generally Positive Cash Flows but an Average Current Ratio:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $39,121 | $41,518 | $48,704 | $59,283 | $60,115 | $64,168 |
| Operating Margins | 18% | 14% | 28% | 28% | 3% | 31% |
| Net Margins | 25% | 17% | 27% | 24% | 1% | 27% |
| Net Income (M) | $9,843 | $7,067 | $13,049 | $14,519 | $365 | $17,117 |
| Net Interest Expense (M) | $893 | $831 | $806 | $962 | $1,146 | $1,300 |
| Depreciation & Amort. (M) | $3,652 | $1,669 | $1,578 | $1,824 | $1,828 | $2,104 |
| Diluted Shares (M) | 2,580 | 2,541 | 2,538 | 2,542 | 2,547 | 2,541 |
| Earnings Per Share | $3.81 | $2.78 | $5.14 | $5.71 | $0.14 | $6.74 |
| EPS Growth | n/a | -27.03% | 84.89% | 11.09% | -97.55% | 4714.29% |
| Free Cash Flow (M) | $10,071 | $5,824 | $8,674 | $14,707 | $27,089 | $18,096 |
| CAPEX (M) | $3,369 | $4,429 | $4,448 | $4,388 | $14,083 | $3,372 |
| Total Debt (M) | $26,346 | $31,791 | $33,102 | $30,691 | $35,055 | $37,111 |
| Net Debt / EBITDA | 1.54 | 3.15 | 1.62 | 0.99 | 7.59 | 1.08 |
| Current Ratio | 1.24 | 1.02 | 1.27 | 1.47 | 1.25 | 1.36 |
Merck & benefits from strong operating margins with a positive growth rate, generally positive cash flows, and growing revenues and a flat capital expenditure trend. The company's financial statements show positive EPS growth and healthy leverage levels. Furthermore, Merck & has just enough current assets to cover current liabilities, as shown by its current ratio of 1.36.
an Increase in Expected Earnings Improves Its Value Outlook but Trades Above Its Graham Number:
Merck & has a trailing twelve month P/E ratio of 12.8, compared to an average of 22.94 for the Health Care sector. Based on its EPS guidance of $9.4, the company has a forward P/E ratio of 8.8. The 13.8% compound average growth rate of Merck &'s historical and projected earnings per share yields a PEG ratio of 0.93. This suggests that its shares are undervalued. In contrast, Merck & is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.46 is higher than the sector average of 3.19. The company's shares are currently trading 66.1% below their Graham number.
Analysts Give Merck & an Average Rating of Buy:
The 25 analysts following Merck & have set target prices ranging from $82.0 to $137.0 per share, for an average of $101.44 with a buy rating. The company is trading -13.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Merck & has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 80.8% of the company's shares, and the insider ownership rate stands at 0.07%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $22,088,281,163.
