XTRA:MRK

Stock Analysis Report

MERCK Kommanditgesellschaft auf Aktien

Executive Summary

MERCK Kommanditgesellschaft auf Aktien operates in the healthcare, life science, and performance materials sectors worldwide.

Rewards

Trading at 17.4% below its fair value

Earnings are forecast to grow 16.68% per year

Risk Analysis

Has a high level of debt

Profit margins (7.3%) are lower than last year (13.2%)



Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has MERCK Kommanditgesellschaft auf Aktien's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MRK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

MRK

-0.3%

DE Pharmaceuticals

0.2%

DE Market


1 Year Return

29.4%

MRK

17.6%

DE Pharmaceuticals

14.4%

DE Market

Return vs Industry: MRK exceeded the German Pharmaceuticals industry which returned 17.1% over the past year.

Return vs Market: MRK exceeded the German Market which returned 14.1% over the past year.


Shareholder returns

MRKIndustryMarket
7 Day3.1%-0.3%0.2%
30 Day8.0%3.2%0.9%
90 Day17.2%12.5%4.6%
1 Year31.1%29.4%21.7%17.6%17.9%14.4%
3 Year26.9%21.9%41.4%25.2%15.7%5.6%
5 Year47.5%38.6%40.6%16.6%23.4%6.5%

Price Volatility Vs. Market

How volatile is MERCK Kommanditgesellschaft auf Aktien's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MERCK Kommanditgesellschaft auf Aktien undervalued compared to its fair value and its price relative to the market?

17.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MRK (€125.6) is trading below our estimate of fair value (€152.11)

Significantly Below Fair Value: MRK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MRK is poor value based on its PE Ratio (47.8x) compared to the Pharmaceuticals industry average (25.6x).

PE vs Market: MRK is poor value based on its PE Ratio (47.8x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: MRK is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: MRK is overvalued based on its PB Ratio (3x) compared to the DE Pharmaceuticals industry average (2.3x).


Next Steps

Future Growth

How is MERCK Kommanditgesellschaft auf Aktien forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRK's forecast earnings growth (16.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: MRK's earnings (16.7% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: MRK's earnings are forecast to grow, but not significantly.

Revenue vs Market: MRK's revenue (5.2% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: MRK's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRK's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has MERCK Kommanditgesellschaft auf Aktien performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRK has high quality earnings.

Growing Profit Margin: MRK's current net profit margins (7.3%) are lower than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: MRK's earnings have grown by 5.2% per year over the past 5 years.

Accelerating Growth: MRK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MRK had negative earnings growth (-40.7%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (-5%).


Return on Equity

High ROE: MRK's Return on Equity (6.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MERCK Kommanditgesellschaft auf Aktien's financial position?


Financial Position Analysis

Short Term Liabilities: MRK's short term assets (€13.5B) exceed its short term liabilities (€9.7B).

Long Term Liabilities: MRK's short term assets (€13.5B) do not cover its long term liabilities (€14.2B).


Debt to Equity History and Analysis

Debt Level: MRK's debt to equity ratio (66.6%) is considered high.

Reducing Debt: MRK's debt to equity ratio has increased from 35.5% to 66.6% over the past 5 years.

Debt Coverage: MRK's debt is well covered by operating cash flow (24%).

Interest Coverage: MRK's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet

Inventory Level: MRK has a high level of physical assets or inventory.

Debt Coverage by Assets: MRK's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

What is MERCK Kommanditgesellschaft auf Aktien's current dividend yield, its reliability and sustainability?

1.00%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.3%markettop25%3.6%industryaverage2.8%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: MRK's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: MRK's dividend (1%) is low compared to the top 25% of dividend payers in the German market (3.57%).


Stability and Growth of Payments

Stable Dividend: MRK's dividend payments have been volatile in the past 10 years.

Growing Dividend: MRK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.6%), MRK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MRK's dividends in 3 years are forecast to be well covered by earnings (20.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Stefan Oschmann (62yo)

3.8yrs

Tenure

€7,981,000

Compensation

Dr. Stefan Oschmann has been the Chairman of Executive Board and Chief Executive Officer of Merck KGaA since April 30, 2016. Dr. Oschmann has been a Member of Executive Board for Merck KGaA since January 1 ...


CEO Compensation Analysis

Compensation vs Market: Stefan's total compensation ($USD8.62M) is above average for companies of similar size in the German market ($USD4.36M).

Compensation vs Earnings: Stefan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stefan Oschmann
Chairman of Executive Board & CEO3.8yrs€7.98mno data
Marcus Kuhnert
CFO & Member of Executive Board5.8yrs€4.38mno data
Kai Beckmann
CEO of Performance Materials & Member of the Executive Board8.8yrs€4.78mno data
Udit Batra
CEO of Life Science & Member of Executive Board3.8yrs€5.32mno data
Belén Garijo López
CEO of Healthcare & Member of the Executive Board5.1yrs€6.64mno data
Gerhard Schmitz
Head of Global Accounting6.3yrsno datano data
Dirk Toepfer
Chief Information Officer1.9yrsno datano data
Constantin Fest
Head of Investor Relations7.1yrsno datano data
Friederike Rotsch
Group General Counsel and Head of Group Legal & Compliance5.8yrsno datano data
Barbara Weiland
Chief Compliance Officer0.6yrsno datano data

5.4yrs

Average Tenure

51yo

Average Age

Experienced Management: MRK's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregor Schulz
Member of Supervisory Board5.8yrs€50.00kno data
Michael Fletterich
Vice Chairman of Supervisory Board5.8yrs€72.75kno data
Theo Siegert
Member of Supervisory Board13.7yrs€49.25kno data
Albrecht Merck
Member of Supervisory Board15.1yrs€50.00kno data
Edeltraud Glänzer
Member of Supervisory Board11.9yrs€50.00kno data
Michaela von Glenck
Member of Supervisory Board11.9yrs€50.00kno data
Mechthild Auge
Member of Supervisory Board10.9yrs€50.00kno data
Wolfgang Büchele
Chairman of Supervisory Board5.8yrs€97.00kno data
Crocifissa Attardo
Member of Supervisory Board10.3yrs€50.00kno data
Tobias Thelen
Member of Supervisory Board5.8yrs€50.00kno data

10.6yrs

Average Tenure

63yo

Average Age

Experienced Board: MRK's board of directors are seasoned and experienced ( 10.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MERCK Kommanditgesellschaft auf Aktien's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MERCK Kommanditgesellschaft auf Aktien
  • Ticker: MRK
  • Exchange: XTRA
  • Founded: 1668
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €54.608b
  • Shares outstanding: 434.78m
  • Website: https://www.merckgroup.com

Number of Employees


Location

  • MERCK Kommanditgesellschaft auf Aktien
  • Frankfurter Strasse 250
  • Darmstadt
  • Hessen
  • 64293
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MKGA.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDOct 1995
MRKDB (Deutsche Boerse AG)YesBearer SharesDEEUROct 1995
MRKXTRA (XETRA Trading Platform)YesBearer SharesDEEUROct 1995
0O14LSE (London Stock Exchange)YesBearer SharesGBEUROct 1995
MRKDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEUROct 1995
MRCKWBAG (Wiener Boerse AG)YesBearer SharesATEUROct 1995
MERSWX (SIX Swiss Exchange)YesBearer SharesCHCHFOct 1995
MRKBIT (Borsa Italiana)YesBearer SharesITEUROct 1995
MKKG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDSep 2007
MRKCBST (Boerse-Stuttgart)SPONSORED ADRDEEURSep 2007

Biography

MERCK Kommanditgesellschaft auf Aktien operates in the healthcare, life science, and performance materials sectors worldwide. It offers prescription medicines to treat cancer, multiple sclerosis, infertility, growth deficiencies, type 2 diabetes, cardiovascular and thyroid diseases, as well as squamous cell carcinoma of the head and neck; diagnostics and prescription drugs for allergen immunotherapy; and fertility treatments. The company also provides life science products and services for use in the discovery, development, and manufacture of drug therapies, as well as in laboratories; and specialty chemicals for use in displays, computer chips, surfaces, Integrated circuits, microelectronic systems, anti-reflection coatings, and cosmetics. It has alliances with Pfizer Inc., Bristol-Myers Squibb Company, Intrexon Corporation, Avillion LLP., F-star Delta Ltd, SFJ Pharmaceuticals Group, Alibaba Health, Checkmate Pharmaceuticals, Solvias, and Leap Therapeutics, Inc.; a collaboration with Daiichi Sankyo Company, Limited and BioMed X Innovation Center; a co-development agreement with Oncolytics Biotech Inc.; a partnership with GlucoMe LTD; and collaboration agreements with Phosplatin Therapeutics LLC and Vyriad Inc. The company was founded in 1668 and is headquartered in Darmstadt, Germany. MERCK Kommanditgesellschaft auf Aktien is a subsidiary of E. Merck Kommanditgesellschaft. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 21:22
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.