Skip to Content

Merck & Co Inc MRK

Morningstar Rating
$124.05 −2.91 (2.29%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Merck Earnings: Solid Results Led by Keytruda and Gardasil as the Pipeline Makes Strong Progress

Based on Merck’s better-than-expected fourth-quarter results driven by wide portfolio support and robust pipeline advancement, we plan to increase our fair value estimate. In the quarter, total sales increased operationally 13% (excluding COVID-19 sales), a rate we expect to decelerate as cancer drug Keytruda (up 22%) and human papillomavirus vaccine Gardasil (up 27%) mature in their lifecycles. However, the expiration of royalty payments on these drugs should allow for significant margin expansion. Further, new indications in earlier cancer settings for Keytruda (especially the recently approved perioperative lung cancer setting) will be important for close to an incremental $10 billion in annual sales over the next five years.

Price vs Fair Value

MRK is trading at a 9% premium.
Price
$124.05
Fair Value
$428.00
Uncertainty
Medium
1-Star Price
$665.30
5-Star Price
$39.30
Economic Moat
Nbj
Capital Allocation
Ggcbfmk

Bulls Say, Bears Say

Bulls

Keytruda looks best positioned in the immuno-oncology landscape, buoyed by a first-mover advantage in the important indication of first-line non-small cell lung cancer.

Bears

Outside of immuno oncology, Merck needs to increase the number of late-stage pipeline drugs.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if MRK is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$126.96
Day Range
$123.29126.54
52-Week Range
$99.14130.24
Bid/Ask
$123.00 / $124.05
Market Cap
$314.17 Bil
Volume/Avg
12.7 Mil / 8.1 Mil

Key Statistics

Price/Earnings (Normalized)
82.69
Price/Sales
5.26
Dividend Yield (Trailing)
2.39%
Dividend Yield (Forward)
2.48%
Total Yield
2.81%

Company Profile

Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. Within cancer, the firm's immuno-oncology platform is growing as a major contributor to overall sales. The company also has a substantial vaccine business, with treatments to prevent pediatric diseases as well as human papillomavirus, or HPV. Additionally, Merck sells animal health-related drugs. From a geographical perspective, just under half of the company's sales are generated in the United States.
Sector
Healthcare
Industry
Drug Manufacturers - General
Stock Style Box
Large Core
Total Number of Employees
72,000

Competitors

Valuation

Metric
MRK
LLY
PFE
Price/Earnings (Normalized)
82.6994.4314.07
Price/Book Value
8.3669.831.64
Price/Sales
5.2620.972.50
Price/Cash Flow
20.7798.1013.44
Price/Earnings
MRK
LLY
PFE

Financial Strength

Metric
MRK
LLY
PFE
Quick Ratio
0.680.520.58
Current Ratio
1.250.940.91
Interest Coverage
2.3314.130.74
Quick Ratio
MRK
LLY
PFE

Profitability

Metric
MRK
LLY
PFE
Return on Assets (Normalized)
3.59%10.22%4.98%
Return on Equity (Normalized)
9.12%52.03%10.90%
Return on Invested Capital (Normalized)
5.88%19.27%7.28%
Return on Assets
MRK
LLY
PFE
See how this stock stacks up to its competitors with Morningstar Investor

Drug Manufacturers - General Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
LLY
Eli Lilly and CoLbkb$752.8 Bil
JNJ
Johnson & JohnsonKxjrq$385.0 Bil
ABBV
AbbVie IncRtchw$312.8 Bil
RHHBY
Roche Holding AG ADRGmpkt$212.3 Bil
NVS
Novartis AG ADRBhpt$208.6 Bil
AZN
AstraZeneca PLC ADRNdh$197.3 Bil
AMGN
Amgen IncKqqy$149.7 Bil
PFE
Pfizer IncKxngm$146.2 Bil
SNY
Sanofi SA ADRLrmj$117.8 Bil

Sponsor Center