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Merck & Co., Inc. (Merck or the Company) is a global health care company that delivers innovative health solutions through its prescription medicines, including biologic therapies, vaccines and animal health products. The Company s operations are principally managed on a product basis and include two operating segments, Pharmaceutical and Animal Health, both of which are reportable segments.
$115.65
+$0.48 (+0.42%)
Last close via Marketstack
Margins and capital returns are both well above average: 34.01% operating margin, ROIC at 20.61%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue growth slowed to 1.3%, essentially flat. This is a business that needs a catalyst.
At 33x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Free cash flow declined 32% versus the prior year, cash generation momentum has weakened.
32.6x earnings, 20.3x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$65.77B
▲ +1.3% YoY
Net Income (TTM)
$8.94B
▲ +6.6% YoY
Op. Margin
19.72%
▲ +2.5pp YoY
ROIC
10.95%
▼ -1.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$14.12B
▼ -31.7% YoY
Op. Cash Flow (TTM)
$17.89B
▼ -23.3% YoY
Net Debt
$43.41B
Cash & Equiv.
$5.70B
5Y CAGR: +9.4%
5Y CAGR: +16.2%
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