Merck & Co., Inc.

  • Health Care
  • Biotechnology: Pharmaceutical Preparations
  • www.merck.com
  • Earnings Score
  • Moat Score
  • Safety Score
  • Market Cap $199.39B
  • PE 11
  • Debt $34.84B
  • Cash $8.73B
  • EV $225.50B
  • FCF $17.04B

Earnings

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Sales & Net Margins

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Earnings$17.43B
EBIT$20.17B
ROE36%
ROA18%
FCF$17.04B
Equity$48.40B
Growth Stability3%
PE11.44
PEG-2.06
PB4.12
P/FCF11.7
P/S3.12
Price/Cash0.04
Debt/Equity0.72
Debt/FCF2.04
Net Margins33%
Gross Margins76%
Op. Margins32%
Earnings CAGR11%
Sales Growth YoY-2%
Sales Growth QoQ-1%
Sales CAGR6%
FCF CAGR10%
Equity CAGR1%
Earnings Stability0.1
Earnings Growth YoY7%
Earnings Growth QoQ36%
Earnings CAGR 5Y-6%
Sales CAGR 5Y8%
FCF CAGR 5Y22%
Equity CAGR 5Y11%
Earnings CAGR 3Y4%
Sales CAGR 3Y4%
FCF CAGR 3Y6%
Equity CAGR 3Y1%
Market Cap$199.39B
Revenue$63.92B
Dividend Yield4%
Payout Ratio46%
Assets$115.12B
Total Debt$34.84B
Cash$8.73B
Shares Outstanding2.52B
EV225.5B
Earnings Score8%
Moat Score97%
Safety Score62%
Final Score56%
Working Capital10.33B
Current Ratio1.41
Gross Profit$48.85B
Shares Growth 3y-0%
Equity Growth QoQ4%
Equity Growth YoY20%

Assets & ROA

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Stockholders Equity & ROE

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Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. Within cancer, the firm's immuno-oncology platform is growing as a major contributor to overall sales. The company also has a substantial vaccine business, with treatments to prevent hepatitis B and pediatric diseases as well as HPV and shingles. Additionally, Merck sells animal health-related drugs. From a geographical perspective, just under half of the firm's sales are generated in the United States.

SEC Filings

Direct access to Merck & Co., Inc. (MRK) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

  • 2025
    • 10-Q Mar 31
  • 2024
    • 10-K Dec 31
    • 10-Q Sep 30
    • 10-Q Jun 30
    • 10-Q Mar 31
  • 2023
    • 10-K Dec 31
    • 10-Q Sep 30
    • 10-Q Jun 30
    • 10-Q Mar 31

Sector Comparison

How does Merck & Co., Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Merck & Co., Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 11%
Stability 10%
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Merck & Co., Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Merck & Co., Inc..

= $330B
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fcf$17B$19B$20B$22B$25B$27B$29B$32B$35B$39B$42B$424B
DCF$17B$17B$17B$17B$17B$17B$17B$16B$16B$16B$164B
Value$330B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years12/201512/201612/201712/201812/201912/202012/202112/202212/202312/2024TTM
Net Margins11%10%6%15%21%15%27%24%1%27%33%
ROA-5%7%11%14%10%13%15%2%17%18%
ROE-10%7%23%38%28%34%32%1%37%36%

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years12/201512/201612/201712/201812/201912/202012/202112/202212/202312/2024TTM
Debt over FCF-2.845.353.022.645.713.822.093.842.052.04
Debt over Equity0.590.620.710.931.011.250.870.670.930.80.72
Growth Stability---100%100%100%100%100%3%100%3%

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years12/201512/201612/201712/201812/201912/202012/202112/202212/202312/2024CAGR 5Y
Revenue YoY growth-1%1%5%11%2%1%22%1%7%8%
Earnings YoY growth--12%-39%159%58%-28%85%11%-97%5K%-6%
Equity YoY growth--10%-14%-22%-3%-2%51%20%-18%23%11%
FCF YoY growth--21%-48%82%20%-44%56%70%-38%98%22%