Merck & Co. Inc.

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MRK : NYSE : Health Technology
$54.645 up 0.075 | 0.14%
Today's Range: 54.57 - 55.0
Avg. Daily Volume: 1.25604E7
02/23/18 - 10:29 AM ET

Financial Analysis


MERCK & CO's gross profit margin for the fourth quarter of its fiscal year 2017 has decreased 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.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)10433.010115.0
EBITDA ($mil)0.03713.0
EBIT ($mil)2424.02575.0
Net Income ($mil)-872.0-595.0


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)0.014341.0
Total Assets ($mil)0.095377.0
Total Debt ($mil)0.024842.0
Equity ($mil)0.040088.0


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin67.6278.63
EBITDA Margin0.036.7
Operating Margin23.2325.46
Sales Turnover0.00.42
Return on Assets0.04.11
Return on Equity0.09.77
Debt Q4 FY17 Q4 FY16
Current Ratio0.01.78
Debt/Capital0.00.38
Interest Expense190.0180.0
Interest Coverage12.7614.31


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)2726.412748.73
Div / share0.480.47
EPS-0.32-0.22
Book value / share0.014.58
Institutional Own % n/a n/a
Avg Daily Volume1.3188674E79878273.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 103.47 for the Pharmaceuticals industry and a significant premium compared to the S&P 500 average of 25.51. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, MERCK & CO proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MRK 60.20 Peers 103.47   MRK NA Peers 45.14

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

MRK is trading at a significant discount 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 12.86 Peers 14.27   MRK 0.31 Peers 2.43

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.

 

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MRK NA Peers 8.06   MRK -33.10 Peers -316.45

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

MRK is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MRK 3.80 Peers 18.73   MRK 0.79 Peers 37.34

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

 

 

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