DB: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.

Snowflake

Fundamentals

Adequate balance sheet second-rate dividend payer.


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


Market Performance


7 Day Return

5.4%

MRK

0.1%

DE Pharmaceuticals

-0.8%

DE Market


1 Year Return

20.8%

MRK

-1.5%

DE Pharmaceuticals

-5.3%

DE Market

MRK outperformed the Pharmaceuticals industry which returned -0.4% over the past year.

MRK outperformed the Market in Germany which returned -5% over the past year.


Share holder returns

MRKIndustryMarket
7 Day5.4%0.1%-0.8%
30 Day10.7%3.1%5.1%
90 Day12.2%14.0%1.1%
1 Year22.4%20.8%1.8%-1.5%-2.3%-5.3%
3 Year14.7%10.3%-3.4%-11.5%18.0%7.9%
5 Year53.9%44.7%-5.6%-17.3%33.2%15.0%

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

4 weeks ago | Simply Wall St

How Much Did MERCK Kommanditgesellschaft auf Aktien's (FRA:MRK) CEO Pocket Last Year?

Valuation

Is MERCK Kommanditgesellschaft auf Aktien undervalued based on future cash flows and its price relative to the stock market?

0.879%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

MERCK Kommanditgesellschaft auf Aktien's share price is below the future cash flow value, but not at a moderate discount (< 20%).

MERCK Kommanditgesellschaft auf Aktien's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

MERCK Kommanditgesellschaft auf Aktien is overvalued based on earnings compared to the DE Pharmaceuticals industry average.

MERCK Kommanditgesellschaft auf Aktien is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

MERCK Kommanditgesellschaft auf Aktien is poor value based on expected growth next year.


Price Based on Value of Assets

MERCK Kommanditgesellschaft auf Aktien is good value based on assets compared to the DE Pharmaceuticals industry average.


Next Steps

Future Growth

How is MERCK Kommanditgesellschaft auf Aktien expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

MERCK Kommanditgesellschaft auf Aktien's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

MERCK Kommanditgesellschaft auf Aktien's earnings are expected to grow by 13.6% yearly, however this is not considered high growth (20% yearly).

MERCK Kommanditgesellschaft auf Aktien's revenue growth is positive but not above the Germany market average.

MERCK Kommanditgesellschaft auf Aktien's earnings growth is expected to exceed the Germany market average.

MERCK Kommanditgesellschaft auf Aktien's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

MERCK Kommanditgesellschaft auf Aktien is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

7.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

MERCK Kommanditgesellschaft auf Aktien's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

MERCK Kommanditgesellschaft auf Aktien's 1-year earnings growth is negative, it can't be compared to the 5-year average.

MERCK Kommanditgesellschaft auf Aktien's 1-year earnings growth is negative, it can't be compared to the DE Pharmaceuticals industry average.


Return on Equity

MERCK Kommanditgesellschaft auf Aktien has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

MERCK Kommanditgesellschaft auf Aktien used its assets less efficiently than the DE Pharmaceuticals industry average last year based on Return on Assets.


Return on Capital Employed

MERCK Kommanditgesellschaft auf Aktien's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is MERCK Kommanditgesellschaft auf Aktien's financial position?


Financial Position Analysis

MERCK Kommanditgesellschaft auf Aktien is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

MERCK Kommanditgesellschaft auf Aktien's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

MERCK Kommanditgesellschaft auf Aktien's level of debt (62.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (35.8% vs 62.6% today).

Debt is well covered by operating cash flow (24.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.6x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.36%

Expected Dividend Yield


Dividend Yield and Payments Analysis

MERCK Kommanditgesellschaft auf Aktien's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.39%).

MERCK Kommanditgesellschaft auf Aktien's dividend is below the markets top 25% of dividend payers in Germany (3.89%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).


Next Steps

Management

What is the CEO of MERCK Kommanditgesellschaft auf Aktien's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Stefan Oschmann (62yo)

3.4yrs

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

Stefan's remuneration is higher than average for companies of similar size in Germany.

Stefan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.0yrs

Average Tenure

51yo

Average Age

The average tenure for the MERCK Kommanditgesellschaft auf Aktien management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.2yrs

Average Tenure

63yo

Average Age

The average tenure for the MERCK Kommanditgesellschaft auf Aktien board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Belén Garijo López (59yo)

    CEO of Healthcare & Member of the Executive Board

    • Tenure: 4.7yrs
    • Compensation: €6.64m
  • Stefan Oschmann (62yo)

    Chairman of Executive Board & CEO

    • Tenure: 3.4yrs
    • Compensation: €7.98m
  • Marcus Kuhnert (51yo)

    CFO & Member of Executive Board

    • Tenure: 5.3yrs
    • Compensation: €4.38m
  • Kai Beckmann (54yo)

    CEO of Performance Materials & Member of the Executive Board

    • Tenure: 8.4yrs
    • Compensation: €4.78m
  • Udit Batra (48yo)

    CEO of Life Science & Member of Executive Board

    • Tenure: 3.4yrs
    • Compensation: €5.32m
  • Friederike Rotsch (47yo)

    Group General Counsel and Head of Group Legal & Compliance

    • Tenure: 5.4yrs
  • Constantin Fest (42yo)

    Head of Investor Relations

    • Tenure: 6.7yrs
  • Gerhard Schmitz (56yo)

    Head of Global Accounting

    • Tenure: 5.8yrs
  • Barbara Weiland (45yo)

    Chief Compliance Officer

    • Tenure: 0.2yrs
  • Dirk Toepfer

    Chief Information Officer

    • Tenure: 1.5yrs

Board Members

  • Michael Fletterich (61yo)

    Vice Chairman of Supervisory Board

    • Tenure: 5.3yrs
    • Compensation: €72.75k
  • Theo Siegert (72yo)

    Member of Supervisory Board

    • Tenure: 13.3yrs
    • Compensation: €49.25k
  • Albrecht Merck (69yo)

    Member of Supervisory Board

    • Tenure: 14.7yrs
    • Compensation: €50.00k
  • Edeltraud Glänzer (64yo)

    Member of Supervisory Board

    • Tenure: 11.5yrs
    • Compensation: €50.00k
  • Michaela von Glenck (73yo)

    Member of Supervisory Board

    • Tenure: 11.5yrs
    • Compensation: €50.00k
  • Mechthild Auge (62yo)

    Member of Supervisory Board

    • Tenure: 10.5yrs
    • Compensation: €50.00k
  • Wolfgang Büchele (60yo)

    Chairman of Supervisory Board

    • Tenure: 5.3yrs
    • Compensation: €97.00k
  • Crocifissa Attardo (57yo)

    Member of Supervisory Board

    • Tenure: 9.9yrs
    • Compensation: €50.00k
  • Helga Rübsamen-Schaeff (70yo)

    Member of Supervisory Board

    • Tenure: 5.3yrs
    • Compensation: €50.00k
  • Tobias Thelen (43yo)

    Member of Supervisory Board

    • Tenure: 5.3yrs
    • Compensation: €50.00k

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: DB
  • Founded: 1668
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €45.369b
  • 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)SPON ADR EACH REPR 0.2 ORD SHSUSUSDSep 2007
MRKCBST (Boerse-Stuttgart)SPON ADR EACH REPR 0.2 ORD SHSDEEURSep 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, infertili ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 20:46
End of Day Share Price2019/09/23 00:00
Earnings2019/06/30
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.