MRK$91.45
$91.87
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AI MRK Summary
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Powered by LiveAIOverall Analysis
BuyMerck & Co. (MRK) presents a compelling investment case with strong fundamentals driven by its pharmaceutical segment, consistent dividend growth, and a stable market position. While facing some longer-term technical headwinds and competitive pressures, its robust financial health and product pipeline support a positive outlook.
Thematic
Merck operates within the healthcare sector, benefiting from steady demand and innovation in pharmaceuticals and animal health. Thematic tailwinds include an aging global population, increasing healthcare spending, and advancements in medical treatments, though regulatory hurdles and patent cliffs remain considerations.
Fundamental
Merck exhibits robust financial health, characterized by strong revenue and profit generation, consistent dividend growth, and a healthy balance sheet. Its P/E ratio suggests a reasonable valuation relative to its earnings and industry peers.
Technical
Merck's stock is trading within a range, showing mixed signals across different timeframes. While long-term trends indicate some positive momentum, short-term indicators suggest potential consolidation or a slight pullback.
| Factor | Score |
|---|---|
| Healthcare Sector Growth | 75 |
| Pharmaceutical Innovation | 80 |
| Animal Health Market | 60 |
| Regulatory Landscape | 40 |
| ESG Focus | 65 |
| Factor | Score |
|---|---|
| Valuation | 75 |
| Profitability | 95 |
| Growth | 70 |
| Balance Sheet Health | 85 |
| Cash Flow | 90 |
| Dividend Yield | 80 |
| Factor | Score |
|---|---|
| Trend Analysis | 65 |
| Momentum | 60 |
| Support & Resistance | 70 |
| Volume | 70 |
| Short-term Trend (15m) | 45 |
AI Investing Checklist
Powered by LiveAIBullish Points (6)
Consistent Earnings Growth and Positive Surprises
The company has demonstrated a history of beating EPS estimates, with 8 out of the last 10 quarters showing positive earnings surprises. The latest reported EPS of $2.22 in Q2 2025 exceeded the estimate of $2.14 by 3.96%.
Attractive Price-to-Earnings Ratio
The P/E TTM ratio of 12.23 is relatively low compared to the industry average, suggesting potential undervaluation given its earnings. The P/S ratio of 3.5 (2023) and 3.8 (2024) indicates reasonable valuation relative to its sales.
Bearish Points (6)
Slowing Revenue Growth and Net Margin Fluctuation
While revenue for 2024 ($64.17 billion) is up from 2023 ($60.12 billion), the net margin has shown significant volatility, dropping to 0.6% in 2023 before recovering to 26.7% in 2024. This suggests potential earnings instability.
High Price-to-Sales Ratio
The P/S ratio is 4.4 TTM and 3.8 for 2024, which could be considered high depending on industry norms and growth prospects, potentially indicating the stock is priced for perfection.
Calendar
July 2025
8
Next Dividend Date
July 2025
29
Next Earnings Date
H: $2.17
A: $2.03
L: $1.88
H: 16.81B
A: 15.87B
L: 15.55B
September 2025
15
Ex-Dividend Date
Profile
Merck & Co., Inc. operates as a healthcare company worldwide. It operates through two segments, Pharmaceutical and Animal Health. The company offers human health pharmaceutical for various areas, including oncology, vaccines, hospital acute care, cardiovascular, virology, neuroscience, and diabetes under the Keytruda, Welireg, Gardasil, ProQuad, M-M-R II, Varivax, Vaxneuvance, RotaTeq, Pneumovax 23, Bridion, Dificid, Zerbaxa, Noxafil, Winrevair, Adempas, Verquvo, Lagevrio, Isentress/Isentress HD, Delstrigo, Pifeltro, Belsomra, Januvia, and Janumet brands. It also provides veterinary pharmaceuticals, vaccines and health management solutions and services, such as livestock products under the Nuflor, Bovilis/Vista, Bovilis Cryptium, Banamine, Estrumate, Matrix, Resflor, Zuprevo, Revalor, Safe-Guard, M+Pac, Porcilis, Circumvent, Nobilis/Innovax, Paracox and Coccivac, Exzolt, Slice, Imvixa, Clynav, Aquavac/Norvax, Aquaflor, Flexolt brands; Allflex Livestock Intelligence solutions for animal identification, monitoring and traceability; and companion animal products under the Bravecto One-Month, Bravecto Injectable/Quantum, Bravecto Plus, Sentinel Spectrum, Sentinel Flavor Tabs, Optimmune, Nobivac NXT, GilvetMab, Otomax, Mometamax, Mometamax Ultra, Posatex, Caninsulin/Vetsulin, Panacur, Regumate, Prestige, Scalibor/Exspot, Sure Petcare, and Home Again brands. The company has development and commercialization agreement for three of Daiichi Sankyo's deruxtecan ADC candidates; AstraZeneca PLC to co-development and co-commercialize AstraZeneca's Lynparza products for multiple cancer types, and Koselugo for multiple indications; licensed to develop, manufacture and commercialize LM-299, a novel investigational PD-1/VEGF bispecific antibody from LaNova; and collaboration agreement with Eisai Co., Ltd., Bayer AG, and Ridgeback Biotherapeutics LP, as well Moderna, Inc. It has a collaboration agreement with Antengene Corporation Limited to evaluate the combination of ATG-022, a CLDN18.2-targeting antibody-drug conjugate, and anti-PD-1 therapy, as well as KEYTRUDA (pembrolizumab) in patients with advanced solid tumors. Merck & Co., Inc. was founded in 1891 and is headquartered in Rahway, New Jersey.
Seasonals
Price Target
102.00 USD
The 39 analysts offering 1 year price forecasts for MRK have a max estimate of 141.00 and a min estimate of 82.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
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