Merck & Co. Inc. (MRK) Net income fell to 9.72 billion: Growth Analysis

Merck & Co. Inc. (MRK) is owned by a number of high-value investors. Its largest direct holder is Kenneth C. Frazier Chairman of the Board, President and Chief Executive Officer with 783,092 shares. The second-largest direct holder is Roger M. Perlmutter Executive Vice President and President, Merck Research Laboratories, with 175,336 shares of the company’s stock. In third place with 137,660 shares of MRK is Robert M. Davis Executive Vice President, Global Services and Chief Financial Officer.

Now turning to institutional ownership of Merck & Co. Inc. (MRK), The Vanguard Group, Inc. is the top holder with 205.0 million shares. The next largest fund holder of this company’s stock is BlackRock Fund Advisors with 128.0 million shares. In the third-place spot with 116.0 million shares is SSgA Funds Management, Inc..

This company’s stock price was $86.66 at the previous market close, with its latest volume reaching 11586301. Compare that to its average daily volume of 8.43M. Given the fact that this stock has 2.56B shares outstanding, its current market value is sitting at $221.88B. This publicly-traded stock’s 60-month Beta is 0.54. Its Price to Sales ratio is 5.00, its Price to Cash Flow ratio is 31.23, and its Price to Book ratio is 8.07.

MRK stock has achieved a 5-day range of $80.34 to $86.99, with a total performance of +4.94% during that period. Meanwhile, in the past month of trading, this stock has traded in the range of $80.25 to $86.99, generating a +2.95% change during the period. In the past three months, this stock’s price has changed by +4.07%, trading in the range of $78.85 to $87.35.

In the past 5 days, shares of MRK have made a new high 5 times. In the last month, it has made a new high 6 times, and in the past 3 months, it has made a new high 7 times.

Now let’s turn to this public company’s earnings. For the quarter ending 9/29/2019, the earnings per share (EPS) was reported at 1.51. This is a 0.27 difference compared to the consensus estimate of 1.24, amounting to an earnings surprise of 21.80%. In the previous quarter, which ended in 9/29/2019, the consensus estimate was 1.16, making for an earnings surprise of 12.10%. For the quarter ending 3/30/2019, EPS was reported at 1.22, generating a 15.10% earnings surprise.

The Net Income for the most recent full fiscal year, which ended in 12-2018, was $6.0 billion. This is compared to the prior year, where Net Income was $2.0 billion. Meanwhile, this company’s Operating Cash Flow was $10.0 billion for the year, compared to $6.0 billion in 2017. Capital Expenditures for the year were reportedly -$2.0 billion, compared to -$1.0 billion, and Free Cash flow was $8.0 billion compared to the prior year’s $4.0 billion.

Merck & Co. Inc. (MRK) stock currently has a Financial Strength score of 5/10. This is due to a combination of factors, including an Equity to Asset ratio of 0.33, a Debt to Equity ratio of 0.96 and a Debt to EBITDA of 1.76. The Interest Coverage of this stock is 14.08, its Piotroski F-Score is 7, its Altman Z-Score is 4.19 and its Beneish M-Score is -2.5.

This publicly-traded company’s Profitability and Growth score is 8/10, thanks to a combination of things: an Operating Margin of 26.83, a Net Margin of 20.26, a ROE of 31.71, and a ROC of 84.86.

Shifting focus now to Valuation and Return for MRK, this company’s Price to Median PS Value is 1.39. Price to Peter Lynch Fair Value for MRK is now 0.00. Meanwhile, its Forward Rate of Return (Yactman) is -3.15.

Certain ratios provide helpful insights into how a stock is performing. The Quick Ratio for MRK is sitting at 0.92, while its Current Ratio is 1.21. This stock’s PB Ratio is 8.13, its PS Ratio is 5.13, its Forward PE Ratio is 15.77, and its PE Ratio without NRI is 24.21. Similarly, its Shiller PE Ratio is 34.04, its Price to Owner Earnings is 30.1, its Price to Free Cash Flow is 29.04 and its Price to Operating Cash Flow is 21.08.