Merck & Co Inc
Exchange: NYSESector: HealthcareIndustry: Drug Manufacturers - General
At Merck, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people and communities.
Did you know?
A mega-cap stock valued at $284B.
Current Price
$114.62
+1.53%GoodMoat Value
$189.57
65.4% undervaluedProfile
Valuation (TTM)
Market Cap$284.49B
P/E15.59
EV$321.89B
P/B5.41
Shares Out2.48B
P/Sales4.38
Revenue$65.01B
EV/EBITDA11.30
Merck & Co Inc (MRK) Stock Analysis
GoodMoat Analysis
Merck & Co is a leading pharmaceutical giant with a durable moat built on patents and a blockbuster drug, Keytruda. It trades at a significant discount to its estimated intrinsic value, but faces a major patent cliff that requires careful assessment of its pipeline.
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Merck & Co is a global pharmaceutical company that discovers, develops, and markets medicines and vaccines. Its primary competitive moat, as per Section 1 of the framework, is anchored in high regulatory barriers and technology leadership via its extensive patent portfolio, particularly for its oncology blockbuster Keytruda. This grants it a temporary but powerful monopoly on critical therapies. The company also demonstrates strong quality indicators, including a high ROE of 34.7% and a robust operating margin of 32.6%. Applying the Decision Framework (Section 6), Merck's strong financials and clear moat allow it to pass the initial Moat & Quality Gate. The valuation assessment is favourable: the current price of $119.37 is significantly below the GoodMoat Target of $189.57, implying a margin of safety well over 40%, which the framework classifies as 'Deeply Undervalued.' However, a major red flag is the looming patent expiration for Keytruda, which introduces significant execution and growth risk as the company must successfully commercialize its pipeline to offset the eventual revenue loss. For a value investor, this creates a classic scenario of a high-quality business at an attractive price, but one where the long-term durability of its moat is under direct scrutiny. Further investigation should focus on the strength and commercial potential of Merck's late-stage clinical pipeline.
Market Cap$284.49B
Current Price$114.62
P/E Ratio15.59
Forward P/E—
PEG Ratio-0.85
EPS$7.28
Book Value$21.19
P/B Ratio5.41
MRK Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 3.5% FCF growth (CAGR)
Cash vs Debt
Net Debt: 34.8B
Revenue
39.1B
FY19
41.5B
FY20
48.7B
FY21
59.3B
FY22
60.1B
FY23
64.2B
FY24
65.0B
FY25
Net Income
9.8B
FY19
7.1B
FY20
13.0B
FY21
14.5B
FY22
365M
FY23
17.1B
FY24
18.3B
FY25
MRK 52-Week Range
$70.89
$123.18
50-Day MA: $118.36200-Day MA: $97.87
Did you know?
Pays a 2.87% dividend yield.
Merck & Co Inc (MRK) Financial Summary
Merck & Co Inc (MRK) is a Healthcare company in the Drug Manufacturers - General industry, listed on NYSE. The stock currently trades at $114.62 with a market capitalization of $284.49B.
Key valuation metrics include a P/E ratio of 15.59, price-to-book ratio of 5.41, and EPS of $7.28. The company reports a profit margin of 28.1% and return on equity of 34.7%.
MRK Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $284.49B |
| P/E Ratio | 15.59 |
| EPS | $7.28 |
| P/B Ratio | 5.41 |
| P/S Ratio | 4.38 |
| EV/EBITDA | 11.30 |
| Dividend Yield | 2.87% |
| Profit Margin | 28.1% |
| Return on Equity | 34.7% |
| Debt/Equity | 0.94 |
MRK Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $39.12B | $9.84B |
| FY20 | $41.52B | $7.07B |
| FY21 | $48.70B | $13.05B |
| FY22 | $59.28B | $14.52B |
| FY23 | $60.12B | $365.00M |
| FY24 | $64.17B | $17.12B |
| FY25 | $65.01B | $18.25B |
Merck & Co Inc (MRK) Valuation
Based on GoodMoat's DCF model, Merck & Co Inc has a fair value estimate of $189.57. At the current price of $114.62, the stock appears 39.5% undervalued relative to our intrinsic value estimate.
MRK Quality Indicators
Merck & Co Inc maintains a profit margin of 28.1% and an operating margin of 32.6%. Return on equity stands at 34.7%. The current ratio is 1.54. Debt-to-equity ratio is 0.94.
About Merck & Co Inc
At Merck, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people and communities.
MRK Free Cash Flow
Merck & Co Inc generated $12.36B in trailing twelve-month free cash flow, representing an FCF yield of 4.34%. This moderate FCF yield indicates reasonable cash generation.
MRK Shares Outstanding
Merck & Co Inc has 2.48 billion shares outstanding at a share price of $114.62, giving it a market capitalization of $284.49B.
MRK Recent Insider Trades
Recent insider transactions at Merck & Co Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Guindo Chirfi (Chief Marketing Officer) | SELL | 10,000 | $1.21M |
| Li Dean Y (Executive VP & President, MRL) | SELL | 10,235 | $1.20M |
| Guindo Chirfi (Chief Marketing Officer) | SELL | 10,000 | $1.18M |