Merck & Co., Inc. provides healthcare solutions worldwide.
Established dividend payer and fair value.
Share Price & News
How has Merck's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MRK's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: MRK underperformed the US Pharmaceuticals industry which returned -12.2% over the past year.
Return vs Market: MRK underperformed the US Market which returned -11.5% over the past year.
Price Volatility Vs. Market
How volatile is Merck's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StInvestors Who Bought Merck (NYSE:MRK) Shares Five Years Ago Are Now Up 22%
2 weeks ago | Simply Wall StIt Might Be Better To Avoid Merck & Co., Inc.'s (NYSE:MRK) Upcoming Dividend
3 weeks ago | Simply Wall StHow Much Of Merck & Co., Inc. (NYSE:MRK) Do Institutions Own?
Is Merck undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MRK ($71.73) is trading below our estimate of fair value ($128.89)
Significantly Below Fair Value: MRK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MRK is good value based on its PE Ratio (18.7x) compared to the Pharmaceuticals industry average (20.1x).
PE vs Market: MRK is poor value based on its PE Ratio (18.7x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: MRK is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: MRK is overvalued based on its PB Ratio (7x) compared to the US Pharmaceuticals industry average (2.5x).
How is Merck forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MRK's forecast earnings growth (12.3% per year) is above the savings rate (1.7%).
Earnings vs Market: MRK's earnings (12.3% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: MRK's earnings are forecast to grow, but not significantly.
Revenue vs Market: MRK's revenue (4.3% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: MRK's revenue (4.3% 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 very high in 3 years time (51.1%).
How has Merck performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MRK has a large one-off loss of $2.9B impacting its December 31 2019 financial results.
Growing Profit Margin: MRK's current net profit margins (21%) are higher than last year (14.7%).
Past Earnings Growth Analysis
Earnings Trend: MRK's earnings have declined by -7.1% per year over the past 5 years.
Accelerating Growth: MRK's earnings growth over the past year (58.2%) exceeds its 5-year average (-7.1% per year).
Earnings vs Industry: MRK earnings growth over the past year (58.2%) exceeded the Pharmaceuticals industry -0.2%.
Return on Equity
High ROE: Whilst MRK's Return on Equity (37.6%) is high, this metric is skewed due to their high level of debt.
How is Merck's financial position?
Financial Position Analysis
Short Term Liabilities: MRK's short term assets ($27.5B) exceed its short term liabilities ($22.2B).
Long Term Liabilities: MRK's short term assets ($27.5B) do not cover its long term liabilities ($36.2B).
Debt to Equity History and Analysis
Debt Level: MRK's debt to equity ratio (101.3%) is considered high.
Reducing Debt: MRK's debt to equity ratio has increased from 44.1% to 101.3% over the past 5 years.
Debt Coverage: MRK's debt is well covered by operating cash flow (51%).
Interest Coverage: MRK's interest payments on its debt are well covered by EBIT (24.4x coverage).
Inventory Level: MRK has a high level of physical assets or inventory.
Debt Coverage by Assets: MRK's debt is covered by short term assets (assets are 1x debt).
What is Merck's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MRK's dividend (3.4%) is higher than the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: MRK's dividend (3.4%) is low compared to the top 25% of dividend payers in the US market (5.45%).
Stability and Growth of Payments
Stable Dividend: MRK's dividends per share have been stable in the past 10 years.
Growing Dividend: MRK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (57.3%), MRK's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MRK's dividends in 3 years are forecast to be well covered by earnings (40.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ken Frazier (64yo)
Mr. Kenneth C. Frazier, also known as Ken, has been the President of Merck & Co., Inc. since May 01, 2010 and has also been its Chief Executive Officer since January 1, 2011. He also serves as the Chief Ex ...
CEO Compensation Analysis
Compensation vs Market: Ken's total compensation ($USD20.93M) is above average for companies of similar size in the US market ($USD11.74M).
Compensation vs Earnings: Ken's compensation has been consistent with company performance over the past year.
|Executive VP of Global Services & CFO||5.92yrs||US$6.62m||0.0067% $12.3m|
|Executive VP||1.92yrs||US$5.19m||0.00014% $254.7k|
|Executive VP & President of Merck Research Laboratories||6.92yrs||US$7.10m||0.0084% $15.4m|
|Vice President of Investor Relations||0.58yr||no data||no data|
|Senior VP and Chief Ethics & Compliance Officer||1yr||no data||0.00018% $327.5k|
|Chief Marketing Officer & Executive VP||1.17yrs||no data||0.00041% $745.9k|
|Executive VP & Chief Human Resources Officer||3.25yrs||no data||0.00012% $218.3k|
|EVP and Chief Patient Officer of Strategic Communications||5.17yrs||no data||0.0018% $3.2m|
|Executive VP & President of Merck Animal Health||8.5yrs||no data||0.0035% $6.3m|
Experienced Management: MRK's management team is considered experienced (4.2 years average tenure).
|Independent Director||16.5yrs||US$360.00k||0.000040% $72.8k|
|Independent Director||4.5yrs||US$355.00k||0.000070% $127.3k|
|Independent Director||16.08yrs||US$360.00k||no data|
|Independent Director||24.5yrs||US$330.00k||0.00052% $946.0k|
|Independent Director||12.33yrs||US$320.00k||0.00020% $363.9k|
|Independent Director||15.42yrs||US$360.00k||0.00025% $454.8k|
|Lead Independent Director||no data||US$360.00k||0.000080% $145.5k|
|Independent Director||10.83yrs||US$347.78k||no data|
|Independent Director||4.5yrs||US$355.00k||no data|
Experienced Board: MRK's board of directors are seasoned and experienced ( 12.3 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Merck & Co., Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Merck & Co., Inc.
- Ticker: MRK
- Exchange: NYSE
- Founded: 1891
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$181.927b
- Shares outstanding: 2.54b
- Website: https://www.merck.com
Number of Employees
- Merck & Co., Inc.
- 2000 Galloping Hill Road
- New Jersey
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|MRK||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1968|
|MRK *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jan 1968|
|MRK||ENXTPA (Euronext Paris)||Yes||Common Stock||FR||EUR||Jan 1968|
|6MK||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
|MRK||SWX (SIX Swiss Exchange)||Yes||Common Stock||CH||CHF||Jan 1968|
|0QAH||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1968|
|6MK||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Jan 1968|
|MRK||SNSE (Santiago Stock Exchange)||Yes||Common Stock||CL||USD||Jan 1968|
|MRK-U||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Jan 1968|
|MRK||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Jan 1968|
|MRK||BASE (Buenos Aires Stock Exchange)||CEDEAR (5 REP 1 USD0.50)||AR||ARS||Mar 2000|
|MRCK34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH REPR 1 COM SH||BR||BRL||Dec 2011|
Merck & Co., Inc. provides healthcare solutions worldwide. It operates through Pharmaceutical and Animal Health segments. The company offers therapeutic and preventive agents for cardiovascular, type 2 diabetes, chronic hepatitis C virus, HIV-1 infection, intra-abdominal, fungal infection, insomnia, and inflammatory diseases; neuromuscular blocking agents; cholesterol modifying medicines; and anti-bacterial and vaginal contraceptive products. It also provides products to prevent chemotherapy-induced and post-operative nausea and vomiting; treat non-small-cell lung, ovarian and breast, esophageal, thyroid, cervical, and brain cancers; and prevent diseases caused by human papillomavirus, as well as vaccines for measles, mumps, rubella, varicella, shingles, rotavirus gastroenteritis, and pneumococcal diseases. In addition, the company offers drugs for hepatocellular and merkel cell carcinoma; antibiotic and anti-inflammatory drugs to treat infectious and respiratory diseases, fertility disorders, and pneumonia in cattle, bovine, and swine; vaccines for poultry; parasiticides for sea lice in salmon; and antibiotics and vaccines for fish. Further, it provides companion animal products; diabetes mellitus treatment and anthelmintic products for dogs and cats; products to treat fleas, ticks, mosquitoes, and sandflies; horse fertility management products for swine; and dog, cat, and horse vaccines. Additionally, the company offers services and solutions that focus on engagement, clinical, and health analytics. It primarily has collaborations with AstraZeneca PLC; Bayer AG; and Eisai Co., Ltd. The company serves drug wholesalers and retailers, hospitals, and government agencies, as well as managed health care providers, such as health maintenance organizations, pharmacy benefit managers, and other institutions; and physicians and physician distributors, veterinarians, and animal producers. Merck & Co., Inc. was founded in 1891 and is headquartered in Kenilworth, New Jersey.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/29 00:12|
|End of Day Share Price||2020/03/27 00:00|
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.