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Merck KGaA ADR MKKGY

Morningstar Rating
$34.45 −0.10 (0.29%)
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Company Report

Merck KGaA Suffers Manageable Setback With Pipeline Candidate

Merck KGaA has made a series of acquisitions and divestitures in the past decade or so to position the group for solid long-term growth in three key segments: life sciences, electronics, and healthcare. So although Merck is in the middle of a reset period following the pandemic boom years and although the biopharmaceutical pipeline has experienced a setback with evobrutinib (multiple sclerosis), we continue to have a positive view of the company's long-term prospects.

Price vs Fair Value

MKKGY is trading at a 9% discount.
Price
$34.55
Fair Value
$12.00
Uncertainty
Medium
1-Star Price
$22.70
5-Star Price
$12.20
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

In the long run, Merck's life sciences segment should continue to benefit from expanding pharmaceutical pipelines as a key supplier to those firms' R&D and manufacturing operations.

Bears

Merck's legacy healthcare products, such as Rebif and Erbitux, may remain under pressure from indirect competition, which creates a significant hurdle for its biopharmaceutical pipeline to offset.

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News

Trading Information

Previous Close Price
$34.55
Day Range
$34.3534.56
52-Week Range
$28.5938.63
Bid/Ask
$34.41 / $34.45
Market Cap
$74.89 Bil
Volume/Avg
4,930 / 105,785

Key Statistics

Price/Earnings (Normalized)
18.90
Price/Sales
3.28
Dividend Yield (Trailing)
1.40%
Dividend Yield (Forward)
1.40%
Total Yield
1.40%

Company Profile

Merck KGaA operates in three main segments: life sciences, performance materials, and healthcare. The life sciences segment (47% of 2022 sales) primarily provides laboratory consumables and services to researchers in academia and applied fields, including the biopharmaceutical industry. In the healthcare segment (35%), Merck develops, manufactures, and sells branded pharmaceuticals with significant therapeutic concentrations in oncology, multiple sclerosis, and fertility. In its electronics segment (18%), the company offers specialty materials to manufacture a variety of products, such as semiconductors, flat-screen televisions, automobiles, and cosmetics. In 1995, the E. Merck KG family publicly sold part of the company, resulting in the current 30% public ownership of the firm.
Sector
Healthcare
Industry
Drug Manufacturers - Specialty & Generic
Stock Style Box
Large Core
Total Number of Employees
63,297

Competitors

Valuation

Metric
MKKGY
BIIB
DHR
Price/Earnings (Normalized)
18.9015.0530.01
Price/Book Value
2.512.173.53
Price/Sales
3.283.287.95
Price/Cash Flow
14.9814.7027.61
Price/Earnings
MKKGY
BIIB
DHR

Financial Strength

Metric
MKKGY
BIIB
DHR
Quick Ratio
0.860.921.18
Current Ratio
1.562.001.68
Interest Coverage
12.895.1317.58
Quick Ratio
MKKGY
BIIB
DHR

Profitability

Metric
MKKGY
BIIB
DHR
Return on Assets (Normalized)
6.04%8.29%5.68%
Return on Equity (Normalized)
11.03%15.11%9.47%
Return on Invested Capital (Normalized)
8.21%10.01%6.69%
Return on Assets
MKKGY
BIIB
DHR
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