Merck & Co Inc

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MRK : NYSE : Health Care
$62.33 | %
Today's Range: 62.14 - 62.65
Avg. Daily Volume: 9025600.0
04/28/17 - 4:00 PM ET

Financial Analysis

MERCK & CO's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. MERCK & CO has average liquidity. Currently, the Quick Ratio is 1.24 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 10.26% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)10115.010215.0
EBITDA ($mil)3713.03657.0
EBIT ($mil)2575.02146.0
Net Income ($mil)-595.0977.0

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)14341.013427.0
Total Assets ($mil)95377.0101779.0
Total Debt ($mil)24842.026514.0
Equity ($mil)40088.044676.0

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin78.6378.52
EBITDA Margin36.735.8
Operating Margin25.4621.01
Sales Turnover0.420.39
Return on Assets4.114.36
Return on Equity9.779.94
Debt Q4 FY16 Q4 FY15
Current Ratio1.781.55
Interest Expense180.0169.0
Interest Coverage14.3112.7

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)2748.732781.13
Div / share0.470.46
Book value / share14.5816.06
Institutional Own % n/a n/a
Avg Daily Volume9375230.01.1556526E7


BUY. This stock's P/E ratio indicates a premium compared to an average of 43.90 for the Pharmaceuticals industry and a significant premium compared to the S&P 500 average of 24.92. Conducting a second comparison, its price-to-book ratio of 4.29 indicates a premium versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 13.69. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MRK 45.00 Peers 43.90   MRK 16.57 Peers 18.53

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

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

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
MRK 14.89 Peers 14.49   MRK 0.27 Peers 1.33

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

MRK is trading at a premium 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MRK 4.29 Peers 13.69   MRK -10.90 Peers -1.54

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MRK 4.32 Peers 15.95   MRK 0.78 Peers 4.95

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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