Merck & Company Inc.
Find Ratings ReportsMERCK & CO's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. MERCK & CO has weak liquidity. Currently, the Quick Ratio is 0.73 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 18.28% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 14630.0 | 13830.0 |
EBITDA ($mil) | 115.0 | 5194.0 |
EBIT ($mil) | -788.0 | 4325.0 |
Net Income ($mil) | -1226.0 | 3017.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 7161.0 | 13271.0 |
Total Assets ($mil) | 106675.0 | 109160.0 |
Total Debt ($mil) | 36268.0 | 31985.0 |
Equity ($mil) | 37581.0 | 45991.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 80.29 | 78.84 |
EBITDA Margin | 0.78 | 37.55 |
Operating Margin | -5.39 | 31.27 |
Sales Turnover | 0.56 | 0.54 |
Return on Assets | 0.34 | 13.3 |
Return on Equity | 0.97 | 31.57 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.25 | 1.47 |
Debt/Capital | 0.49 | 0.41 |
Interest Expense | 310.0 | 235.0 |
Interest Coverage | -2.54 | 18.4 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 2531.63 | 2537.83 |
Div / share | 0.77 | 0.73 |
EPS | -0.48 | 1.18 |
Book value / share | 14.84 | 18.12 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 8009107.0 | 7761053.0 |
HOLD. MERCK & CO's P/E ratio indicates a significant premium compared to an average of 85.83 for the Chemical Manufacturing subsector and a significant premium compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 8.12 indicates a significant premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 19.07. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average.
Price/Earnings |
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Price/Cash Flow |
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MRK 860.79 | Peers 85.83 | MRK 23.46 | Peers 38.76 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. MRK is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. MRK is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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MRK 12.29 | Peers 18.08 | MRK 0.14 | Peers 1.16 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. MRK is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. MRK trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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MRK 8.12 | Peers 19.07 | MRK -97.55 | Peers 12.58 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MRK is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, MRK is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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MRK 5.08 | Peers 84.44 | MRK 1.40 | Peers 42.35 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. MRK is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. MRK significantly trails its peers on the basis of sales growth. |
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