Merck & Co IncFind Ratings Reports
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 ($mil)||10115.0||10215.0|
|Net Income ($mil)||-595.0||977.0|
|Balance Sheet||Q4 FY16||Q4 FY15|
|Cash & Equiv. ($mil)||14341.0||13427.0|
|Total Assets ($mil)||95377.0||101779.0|
|Total Debt ($mil)||24842.0||26514.0|
|Profitability||Q4 FY16||Q4 FY15|
|Gross Profit Margin||78.63||78.52|
|Return on Assets||4.11||4.36|
|Return on Equity||9.77||9.94|
|Debt||Q4 FY16||Q4 FY15|
|Share Data||Q4 FY16||Q4 FY15|
|Shares outstanding (mil)||2748.73||2781.13|
|Div / share||0.47||0.46|
|Book value / share||14.58||16.06|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||9375230.0||1.1556526E7|
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.
|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.
|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.
|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.
|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