The share price of Merck & Co., Inc. [NYSE: MRK] inclined by $88.75, presently trading at $89.18. The company’s shares saw 25.81% gains compared to the lowest price in the period of the last 52 weeks, set at $70.89 recorded on Dec 6, 2019. The last few days have been benevolent to the share price as MRK jumped by +2.13% during the last week, even though the stock is still down by -0.23% compared to 1.86 of all time high it touched on 12/06/19. However, the stock had a strong performance during the past 3 months, roughly gaining 7.03%, while additionally gaining 13.48% during the last 12 months. Merck & Co., Inc. is said to have a 12-month price target set at $97.56. That means that the stock has a strong potential to acquire 8.38% increase from the current trading price.
Merck & Co., Inc. [NYSE:MRK]: Analyst Rating and Earnings
Its stock price has been found in the range of 70.89 to 88.79. This is compared to its latest closing price of $88.75.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Fri 7 Feb (In 63 Days).
Fundamental Analysis of Merck & Co., Inc. [MRK]
Now let’s turn to look at profitability: with a current Operating Margin for Merck & Co., Inc. [MRK] sitting at +23.02 and its Gross Margin at +69.22, this company’s Net Margin is now 20.30%. These measurements indicate that Merck & Co., Inc. [MRK] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 17.61, and its Return on Invested Capital has reached 11.70%. Its Return on Equity is 20.38, and its Return on Assets is 7.30. These metrics all suggest that Merck & Co., Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Merck & Co., Inc. [MRK] has generated a Total Debt to Total Equity ratio of 94.06. Similarly, its
What about valuation? This company’s Enterprise Value to EBITDA is 16.67 and its Total Debt to EBITDA Value is 1.76. The Enterprise Value to Sales for this firm is now 5.21, and its Total Debt to Enterprise Value stands at 0.11. Merck & Co., Inc. [MRK] has a Price to Book Ratio of 7.42, a Price to Cash Flow Ratio of 18.74 and P/E Ratio of 24.91. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Merck & Co., Inc. [MRK] earns $615,159 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 6.09 and its Total Asset Turnover is 0.50. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.92 and its Current Ratio is 1.17. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Merck & Co., Inc. [MRK] has 2.56B shares outstanding, amounting to a total market cap of $227.07B. Its stock price has been found in the range of 70.89 to 88.79. At its current price, it has moved up by 0.44% from its 52-week high, and it has moved up 25.81% from its 52-week low.
This stock’s Beta value is currently 0.54, which indicates that it is 1.27% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 70.42. This RSI suggests that Merck & Co., Inc. is currently Overbought.
Conclusion: Is Merck & Co., Inc. [MRK] a Reliable Buy?
Shares of Merck & Co., Inc. [MRK], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.