Merck Stock Financials

MRK
 Stock
  

USD 92.64  0.22  0.24%   

Merck Invested Capital is increasing as compared to previous years. The last year's value of Invested Capital was reported at 62.63 Billion. The current Market Capitalization is estimated to increase to about 198.8 B, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease to under 15.4 B.
  
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With this module, you can analyze Merck financials for your investing period. You should be able to track the changes in Merck individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.

Merck Most Recent Estimates

Quarterly Earnings Growth YOY
0.36
EPS Estimate Next Quarter
1.76
Diluted Eps
5.48
EPS Estimate Current Year
7.35
EPS Estimate Next Year
7.39
EPS Estimate Current Quarter
1.83
Earnings Share
5.48

Revenues

43.73 Billion

Share
Understanding current and past Merck Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Merck's financial statements are interrelated, with each one affecting the others. For example, an increase in Merck's assets may result in an increase in income on the income statement.
The fundamental analysis of Merck is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for Merck includes many different criteria found on its balance sheet. For example, investors should never minimize Merck's ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor Merck's cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in Merck.

Merck Company Cash

Chance Of Financial Distress
Less than 14
Merck Company has less than 14 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for Merck stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity. More Info
The data published in Merck's official financial statements usually reflect Merck's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Merck Company. For example, before you start analyzing numbers published by Merck accountants, it's critical to develop an understanding of what Merck's liquidity, profitability, and earnings quality are in the context of the Healthcare space in which it operates.
Please note, the presentation of Merck's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Merck's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Merck's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Merck Company. Please utilize our Beneish M Score to check the likelihood of Merck's management to manipulate its earnings.

Merck Company Summary

Merck competes with McDonalds Corp, JP Morgan, Dupont Denemours, Pfizer, and 3M. Merck Co., Inc. operates as a healthcare company worldwide. Merck Co., Inc. was founded in 1891 and is headquartered in Kenilworth, New Jersey. Merck operates under Drug ManufacturersGeneral classification in the United States and is traded on New York Stock Exchange. It employs 67000 people.
Foreign Associates
Specialization
Healthcare, Drug Manufacturers - General
InstrumentUSA Stock View All
ExchangeNew York Stock Exchange
CIK Number0000310158
ISINUS58933Y1055
CUSIP589331107
Older SymbolMRK
RegionNorth America
LocationNew Jersey; U.S.A
Business Address126 East Lincoln
SectorHealthcare
IndustryDrug Manufacturers—General
BenchmarkDOW
Websitewww.merck.com
Phone908 735 1500
CurrencyUSD - US Dollar
You should never invest in Merck without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of Merck Stock, because this is throwing your money away. Analyzing the key information contained in Merck's financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

Merck Key Financial Ratios

Generally speaking, Merck's financial ratios allow both analysts and investors to convert raw data from Merck's financial statements into concise, actionable information that can be used to evaluate the performance of Merck over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that Merck Company reports annually and quarterly.

Merck Key Balance Sheet Accounts

201720182019202020212022 (projected)
Inventories5.1 B5.44 B5.98 B6.31 B5.95 B6.45 B
Receivables6.87 B7.07 B6.78 B7.85 B9.23 B7.96 B
Accounts Payable3.1 B3.32 B3.74 B4.59 B4.61 B3.69 B
Total Assets87.87 B82.64 B84.4 B91.59 B105.69 B96.37 B
Current Assets24.77 B25.88 B27.48 B27.76 B30.27 B28.67 B
Assets Non Current63.11 B56.76 B56.91 B63.82 B75.43 B67.7 B
Cash and Equivalents6.09 B7.96 B9.68 B8.05 B8.1 B8.28 B
Total Debt24.41 B25.11 B26.35 B31.79 B33.1 B31.98 B
Debt Current3.06 B5.31 B3.61 B6.43 B2.41 B3.24 B
Debt Non Current21.35 B19.81 B22.74 B25.36 B30.69 B28.73 B
Shareholders Equity34.34 B26.7 B25.91 B25.32 B38.18 B36.98 B
Inventory5.1 B5.44 B5.98 B5.55 B5.95 B5.51 B
Investments14.53 B7.13 B2.24 B785 M370 M379.74 M
Investments Current7.83 B2.41 B899 M774 M696.6 M714.93 M
Total Liabilities53.3 B55.76 B58.4 B66.18 B67.44 B67.84 B
Current Liabilities18.61 B22.21 B22.22 B27.33 B23.87 B24.22 B
Tax Liabilities2.93 B3.67 B2.21 B2.6 B4.67 B5.07 B

Merck Key Income Statement Accounts

An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what Merck's earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
201720182019202020212022 (projected)
Direct Expenses12.78 B13.51 B14.11 B15.48 B13.63 B16.04 B
Consolidated Income2.42 B6.19 B9.84 B7.07 B13.05 B10.87 B
Cost of Revenue12.91 B13.51 B12.02 B13.62 B13.63 B13.36 B
Gross Profit27.21 B28.79 B27.11 B27.9 B35.08 B34.83 B
Net Income2.39 B6.22 B9.84 B7.07 B13.05 B10.85 B
Operating Expenses21.19 B20.49 B19.8 B22.93 B22.54 B24.05 B
Operating Income6.02 B8.3 B7.3 B4.97 B12.54 B10.78 B
Revenues40.12 B42.29 B39.12 B41.52 B48.7 B43.73 B
Income Tax Expense4.1 B2.51 B1.56 B1.34 B1.52 B1.66 B

Merck Key Cash Accounts

Cash flow analysis captures how much money flows into and out of Merck Company. It measures of how well Merck is doing because it can show the actual money that comes into and out of the company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money Merck brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money Merck had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what Merck has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
201720182019202020212022 (projected)
Capital Expenditure(1.89 B)(2.62 B)(3.37 B)(4.43 B)(4.45 B)(4.57 B)
Depreciation Amortization and Accretion4.68 B4.52 B3.31 B3.49 B3.21 B3.96 B
Net Cash Flow or Change in Cash and Cash Equivalents(419 M)1.87 B1.97 B(1.77 B)14 M15.11 M
Net Cash Flow Business Acquisitions and Disposals(396 M)(431 M)(4.95 B)(7.61 B)(12.91 B)(13.25 B)
Issuance Purchase of Equity Shares(3.52 B)(8.5 B)(4.42 B)(1.19 B)(638 M)(688.37 M)
Issuance Repayment of Debt Securities(1.13 B)837 M1.25 B5.01 B1.63 B1.55 B
Payment of Dividends and Other Cash Distributions(5.17 B)(5.17 B)(5.7 B)(6.21 B)(6.61 B)(7.13 B)
Net Cash Flow from Financing(10.01 B)(13.16 B)(8.86 B)(2.83 B)2.59 B2.8 B
Net Cash Flow from Investing2.68 B4.31 B(2.63 B)(9.44 B)(16.55 B)(16.99 B)
Net Cash Flow Investment Acquisitions and Disposals4.92 B7.26 B5.42 B2.72 B1.02 B891.84 M
Net Cash Flow from Operations6.45 B10.92 B13.44 B10.25 B14.11 B13.75 B
Effect of Exchange Rate Changes on Cash457 M(205 M)17 M253 M(133 M)(143.5 M)
Share Based Compensation312 M348 M388 M441 M479 M453.42 M

Merck Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Merck's current stock value. Our valuation model uses many indicators to compare Merck value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Merck competition to find correlations between indicators driving Merck's intrinsic value. More Info.
Merck Company is considered to be number one stock in return on equity category among related companies. It is considered to be number one stock in number of shares shorted category among related companies making about  652,074  of Number of Shares Shorted per Return On Equity. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Merck by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Merck's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Merck's earnings, one of the primary drivers of an investment's value.

Merck Company Systematic Risk

Merck's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Merck volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was nineteen with a total number of output elements of fourty-two. The Beta measures systematic risk based on how returns on Merck Company correlated with the market. If Beta is less than 0 Merck generally moves in the opposite direction as compared to the market. If Merck Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Merck Company is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Merck is generally in the same direction as the market. If Beta > 1 Merck moves generally in the same direction as, but more than the movement of the benchmark.
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About Merck Financials

What exactly are Merck Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include Merck's income statement, its balance sheet, and the statement of cash flows. Potential Merck investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Merck investors may use each financial statement separately, they are all related. The changes in Merck's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Merck's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines that you should keep in mind when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase year after year due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt to equity ratio because this number will tell you how much risk it has. If a company such as Merck is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to try and figure out if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that net revenue of Merck grown by more than 25% over the last five years, then there is a good chance that it will continue growing at least by 20% or more each year. On the other hand, if you see that net revenue has only grown by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.

Merck Thematic Clasifications

Merck Company is part of several thematic ideas from Robots And Drones to Compulsion. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. Get More Thematic Ideas
Robots And Drones Idea
Robots And DronesView
Compulsion Idea
CompulsionView
Drugs Idea
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Giant Impact Idea
Giant ImpactView

Merck July 5, 2022 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of Merck help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Merck Company. We use our internally-developed statistical techniques to arrive at the intrinsic value of Merck Company based on widely used predictive technical indicators. In general, we focus on analyzing Merck Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Merck's daily price indicators and compare them against related drivers.
Downside Deviation1.16
Information Ratio0.2789
Maximum Drawdown7.61
Value At Risk(1.65)
Potential Upside2.16
Additionally, see Stocks Correlation. Note that the Merck Company information on this page should be used as a complementary analysis to other Merck's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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Is Merck's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Merck. If investors know Merck will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Merck listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.36
Market Capitalization
233.7 B
Quarterly Revenue Growth YOY
0.5
Return On Assets
0.12
Return On Equity
0.41
The market value of Merck Company is measured differently than its book value, which is the value of Merck that is recorded on the company's balance sheet. Investors also form their own opinion of Merck's value that differs from its market value or its book value, called intrinsic value, which is Merck's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Merck's market value can be influenced by many factors that don't directly affect Merck's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Merck's value and its price as these two are different measures arrived at by different means. Investors typically determine Merck value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Merck's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.