Merck Z Score

MRK
 Stock
  

USD 92.64  0.22  0.24%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Additionally, see Merck Piotroski F Score and Merck Valuation analysis.
  
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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 Invested Capital Average is projected to decrease to under 52.9 B. Merck Income Tax Expense is increasing as compared to previous years. The last year's value of Income Tax Expense was reported at 1.52 Billion

Merck Z Score Analysis

Merck's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current Merck Z Score

    
  3.6  
Most of Merck's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Merck Company is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

Merck Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for Merck is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Merck's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Merck's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Merck's interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

Based on the company's disclosures, Merck Company has a Z Score of 3.6. This is 46.67% lower than that of the Healthcare sector and significantly higher than that of the Drug Manufacturers—General industry. The z score for all United States stocks is 58.72% higher than that of the company.

Merck Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Merck's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Merck could also be used in its relative valuation, which is a method of valuing Merck by comparing valuation metrics of similar companies.
Merck is currently under evaluation in z score category among related companies.

Merck Current Valuation Drivers

We derive many important indicators used in calculating different scores of Merck from analyzing Merck's financial statements. These drivers represent accounts that assess Merck's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Merck's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee34.7 K90.14 K138.63 K95.24 K191.9 K207.05 K
Revenue Per Employee581.48 K612.96 K659.72 K646.8 K716.24 K628.91 K
Average Assets92.23 B84.71 B83.51 B89.23 B95.18 B90.87 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA11.17 B13.25 B14.72 B11.89 B17.78 B15.38 B
Earnings Before Interest Taxes and Depreciation Amortization USD11.17 B13.25 B14.72 B11.89 B17.78 B15.38 B
Earnings before Tax6.5 B8.73 B11.41 B8.41 B14.57 B12.83 B
Average Equity37.97 B31.33 B26.98 B27.09 B33.55 B34.99 B
Enterprise Value172.4 B214.46 B249.78 B228.34 B210.01 B216 B
Free Cash Flow4.56 B8.31 B10.07 B5.82 B9.66 B8.68 B
Invested Capital55.11 B46.22 B45.23 B55.02 B62.63 B64.9 B
Invested Capital Average56.97 B52.05 B49.43 B51.65 B56.24 B52.86 B
Market Capitalization153.3 B198.69 B231.56 B206.96 B193.59 B198.81 B
Tangible Asset Value55.41 B51.28 B50.78 B58.6 B61.5 B57.51 B
Working Capital6.15 B3.67 B5.26 B437 M6.39 B7.63 B

Merck ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Merck's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Merck's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Merck Institutional Holders

Institutional Holdings refers to the ownership stake in Merck that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Merck's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Merck's value.
Security TypeSharesValue
Cacti Asset Management LlcCommon Shares659 K60.1 M
Park National CorpCommon Shares102.2 K9.3 M
Chemung Canal Trust CoCommon Shares53.8 K4.9 M
First Financial BanCommon Shares43.9 KM
Stonebridge Capital Management IncCommon Shares34.5 K3.1 M
Insight Wealth Strategies LlcCommon Shares22.3 KM
Vanguard Group IncCommon Shares216.1 M17.7 B

Merck Fundamentals

About Merck Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Merck Company's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Merck using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Merck Company based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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.

Merck Investors Sentiment

The influence of Merck's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Merck. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Merck's public news can be used to forecast risks associated with investment in Merck. The trend in average sentiment can be used to explain how an investor holding Merck can time the market purely based on public headlines and social activities around Merck Company. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Merck's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Merck's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Merck's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Merck.

Merck Implied Volatility

    
  26.0  
Merck's implied volatility exposes the market's sentiment of Merck Company stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Merck's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Merck stock will not fluctuate a lot when Merck's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Merck in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Merck's short interest history, or implied volatility extrapolated from Merck options trading.

Current Sentiment - MRK

Merck Company Investor Sentiment

Predominant part of Macroaxis users are now bullish on Merck Company. What is your trading attitude regarding investing in Merck Company? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

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Additionally, see Merck Piotroski F Score and Merck Valuation analysis. 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 Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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When running Merck Company price analysis, check to measure Merck's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Merck is operating at the current time. Most of Merck's value examination focuses on studying past and present price action to predict the probability of Merck's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Merck's price. Additionally, you may evaluate how the addition of Merck to your portfolios can decrease your overall portfolio volatility.
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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.