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Merck & Co Inc MRK

Morningstar Rating
$125.74 −0.41 (0.33%)
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Company Report

Merck Looks Well Positioned With Keytruda, Gardasil, and a Strengthening Pipeline

Merck's combination of a wide lineup of high-margin drugs and a pipeline of new drugs should ensure strong returns on invested capital over the long term. Further, following the divestment of the Organon business in June 2021, the remaining portfolio at Merck holds a higher percentage of drugs with strong patent protection. On the pipeline front, after several years of only moderate research and development productivity, Merck's drug development strategy is yielding important new drugs.

Price vs Fair Value

MRK is trading at a 10% premium.
Price
$125.74
Fair Value
$611.00
Uncertainty
Medium
1-Star Price
$954.90
5-Star Price
$99.80
Economic Moat
Ksch
Capital Allocation
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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.

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News

Trading Information

Previous Close Price
$126.15
Day Range
$125.10127.11
52-Week Range
$99.14133.10
Bid/Ask
$125.67 / $125.95
Market Cap
$318.45 Bil
Volume/Avg
7.4 Mil / 8.4 Mil

Key Statistics

Price/Earnings (Normalized)
84.47
Price/Sales
5.37
Dividend Yield (Trailing)
2.37%
Dividend Yield (Forward)
2.43%
Total Yield
2.79%

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)
84.4790.2514.31
Price/Book Value
8.5466.741.67
Price/Sales
5.3720.042.54
Price/Cash Flow
21.2293.7613.66
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
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Drug Manufacturers - General Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
LLY
Eli Lilly and CoGnnnnmdjGztlc$722.2 Bil
JNJ
Johnson & JohnsonMlxkyvjtsNkbk$361.9 Bil
ABBV
AbbVie IncFqqnnlszMsc$301.3 Bil
AZN
AstraZeneca PLC ADRFwwnpncnshHqh$210.1 Bil
RHHBY
Roche Holding AG ADRGftwrfkxttLgb$199.4 Bil
NVS
Novartis AG ADRClqlfdfxtRrzv$194.9 Bil
PFE
Pfizer IncQxfhfgfyJvvj$151.6 Bil
AMGN
Amgen IncGzlrlhxxjMgj$144.7 Bil
SNY
Sanofi SA ADRDyppdlykCtnr$119.4 Bil

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