This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Merck & Co Inc
MRK : NYSE : Health Care
$49.38 | %
Today's Range: 48.27 - 49.72
Avg. Daily Volume: 11,267,100
02/05/16 - 4:01 PM ET

Financial Analysis


MERCK & CO's gross profit margin for the fourth quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)10215.010482.0
EBITDA ($mil)0.03974.0
EBIT ($mil)2143.02587.0
Net Income ($mil)977.07316.0


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)0.015719.0
Total Assets ($mil)0.098335.0
Total Debt ($mil)0.021403.0
Equity ($mil)0.048647.0


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin63.7178.22
EBITDA Margin0.037.91
Operating Margin20.9824.68
Sales Turnover0.00.43
Return on Assets0.012.12
Return on Equity0.024.5
Debt Q4 FY15 Q4 FY14
Current Ratio0.01.77
Debt/Capital0.00.31
Interest Expense169.0165.0
Interest Coverage12.6815.68


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)2802.242838.14
Div / share0.460.45
EPS0.352.54
Book value / share0.017.14
Institutional Own % n/a n/a
Avg Daily Volume1.1233313E71.3418641E7

Valuation


HOLD. This stock's P/E ratio indicates a premium compared to an average of 27.42 for the Pharmaceuticals industry and a significant premium compared to the S&P 500 average of 21.13. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MRK 31.15 Peers 27.42   MRK NA Peers 26.07

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

MRK is trading at a premium to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MRK 12.75 Peers 14.46   MRK NM Peers 0.64

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

MRK is trading at a valuation on par with its peers.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MRK NA Peers 7.00   MRK -61.96 Peers 20.80

Neutral. 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.

Ratio not available.

 

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MRK 3.45 Peers 13.10   MRK -6.49 Peers 11.56

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 industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

MRK significantly trails its peers on the basis of sales growth

 

 

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Latest Stock Upgrades/Downgrades


Top Rated Stocks Top Rated Funds Top Rated ETFs