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MRK

MERCK Kommanditgesellschaft auf AktienXTRA:MRK Stock Report

Last Price

€193.85

Market Cap

€84.3b

7D

-2.2%

1Y

30.3%

Updated

17 Jan, 2022

Data

Company Financials +
MRK fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends4/6

MRK Stock Overview

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

MERCK Kommanditgesellschaft auf Aktien Competitors

Roche Holding

SWX:ROG

CHF297.4b

Thermo Fisher Scientific

NYSE:TMO

US$234.4b

Danaher

NYSE:DHR

US$209.6b

AstraZeneca

LSE:AZN

UK£135.9b

Price History & Performance

Summary of all time highs, changes and price drops for MERCK Kommanditgesellschaft auf Aktien
Historical stock prices
Current Share Price€193.85
52 Week High€231.50
52 Week Low€126.60
Beta0.45
1 Month Change-11.81%
3 Month Change-0.62%
1 Year Change30.28%
3 Year Change115.25%
5 Year Change91.46%
Change since IPO1,149.91%

Recent News & Updates

Jan 13
Is MERCK Kommanditgesellschaft auf Aktien (ETR:MRK) A Risky Investment?

Is MERCK Kommanditgesellschaft auf Aktien (ETR:MRK) A Risky Investment?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Oct 15
We Think MERCK Kommanditgesellschaft auf Aktien (ETR:MRK) Can Manage Its Debt With Ease

We Think MERCK Kommanditgesellschaft auf Aktien (ETR:MRK) Can Manage Its Debt With Ease

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Sep 19
A Look At The Intrinsic Value Of MERCK Kommanditgesellschaft auf Aktien (ETR:MRK)

A Look At The Intrinsic Value Of MERCK Kommanditgesellschaft auf Aktien (ETR:MRK)

In this article we are going to estimate the intrinsic value of MERCK Kommanditgesellschaft auf Aktien ( ETR:MRK ) by...

Shareholder Returns

MRKDE PharmaceuticalsDE Market
7D-2.2%0.5%0.7%
1Y30.3%17.2%11.6%

Return vs Industry: MRK exceeded the German Pharmaceuticals industry which returned 16.3% over the past year.

Return vs Market: MRK exceeded the German Market which returned 12.1% over the past year.

Price Volatility

Is MRK's price volatile compared to industry and market?
MRK volatility
MRK Average Weekly Movement4.2%
Pharmaceuticals Industry Average Movement5.4%
Market Average Movement5.0%
10% most volatile stocks in DE Market9.8%
10% least volatile stocks in DE Market2.6%

Stable Share Price: MRK is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MRK's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
166859,308Belen Garijo Lopezhttps://www.merckgroup.com

MERCK Kommanditgesellschaft auf Aktien operates in the healthcare, life science, and performance materials sectors worldwide. It discovers, develops, manufactures, and markets pharmaceutical and biological prescription drugs to treat oncology, immuno-oncology, neurology, immunology, fertility, and endocrinology, as well as general medicines for diabetes, cardiovascular, thyroid, and other diseases. The company also provides life science products and services, including research, process, and applied solution.

MERCK Kommanditgesellschaft auf Aktien Fundamentals Summary

How do MERCK Kommanditgesellschaft auf Aktien's earnings and revenue compare to its market cap?
MRK fundamental statistics
Market Cap€84.28b
Earnings (TTM)€2.69b
Revenue (TTM)€19.07b

31.3x

P/E Ratio

4.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MRK income statement (TTM)
Revenue€19.07b
Cost of Revenue€7.13b
Gross Profit€11.94b
Expenses€9.25b
Earnings€2.69b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Mar 03, 2022

Earnings per share (EPS)6.18
Gross Margin62.59%
Net Profit Margin14.10%
Debt/Equity Ratio51.0%

How did MRK perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

23%

Payout Ratio

Valuation

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

40.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MRK (€193.85) is trading below our estimate of fair value (€323.03)

Significantly Below Fair Value: MRK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MRK is poor value based on its PE Ratio (31.3x) compared to the European Pharmaceuticals industry average (26.6x).

PE vs Market: MRK is poor value based on its PE Ratio (31.3x) compared to the German market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: MRK is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: MRK is overvalued based on its PB Ratio (4.1x) compared to the DE Pharmaceuticals industry average (3.8x).


Future Growth

How is MERCK Kommanditgesellschaft auf Aktien forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRK's forecast earnings growth (8.5% per year) is above the savings rate (-0.01%).

Earnings vs Market: MRK's earnings (8.5% per year) are forecast to grow slower than the German market (10.4% per year).

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

Revenue vs Market: MRK's revenue (6.1% per year) is forecast to grow faster than the German market (5.6% per year).

High Growth Revenue: MRK's revenue (6.1% 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 (17.2%).


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 (14.1%) are higher than last year (10.9%).


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 earnings growth over the past year (42.7%) exceeds its 5-year average (5.2% per year).

Earnings vs Industry: MRK earnings growth over the past year (42.7%) exceeded the Pharmaceuticals industry 11.9%.


Return on Equity

High ROE: MRK's Return on Equity (13.1%) is considered low.


Financial Health

How is MERCK Kommanditgesellschaft auf Aktien's financial position?


Financial Position Analysis

Short Term Liabilities: MRK's short term assets (€10.3B) exceed its short term liabilities (€9.8B).

Long Term Liabilities: MRK's short term assets (€10.3B) do not cover its long term liabilities (€13.4B).


Debt to Equity History and Analysis

Debt Level: MRK's net debt to equity ratio (43%) is considered high.

Reducing Debt: MRK's debt to equity ratio has reduced from 97% to 51% over the past 5 years.

Debt Coverage: MRK's debt is well covered by operating cash flow (46%).

Interest Coverage: MRK's interest payments on its debt are well covered by EBIT (19.7x coverage).


Balance Sheet


Dividend

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

0.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MRK's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.02%).

High Dividend: MRK's dividend (0.72%) is low compared to the top 25% of dividend payers in the German market (3.34%).


Stability and Growth of Payments

Stable Dividend: MRK's dividends per share have been stable 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 low payout ratio (22.7%), 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 (17.9% payout ratio).


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Belen Garijo Lopez (61 yo)

7yrs

Tenure

€6,725,000

Compensation

Ms. Belen Garijo Lopez, M.D., serves as Chair of Executive Board and Chief Executive Officer at MERCK Kommanditgesellschaft auf Aktien since May 1, 2021 and served as Vice Chairman of the Executive Board a...


CEO Compensation Analysis

Compensation vs Market: Belen's total compensation ($USD7.67M) is above average for companies of similar size in the German market ($USD5.11M).

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


Leadership Team

Experienced Management: MRK's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: MRK's board of directors are considered experienced (3.9 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 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
  • Implied Market Cap: €84.282b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 22:58
End of Day Share Price2022/01/17 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.