Merck Company Stock Return On Equity
| MRK Stock | USD 83.18 0.08 0.1% |
Merck's fundamental analysis aims to assess its intrinsic value by examining key economic and financial indicators - such as cash flow records, changes in balance sheet accounts, income statement trends, financial ratios, and relevant microeconomic factors affecting Merck Stock price.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools. Merck Company Company Return On Equity Analysis
Merck's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Merck Return On Equity | 0.41 |
Most of Merck's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Merck Company is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
| Competition |
Based on the latest financial disclosure, Merck Company has a Return On Equity of 0.4079. This is 101.7% lower than that of the Pharmaceuticals sector and significantly higher than that of the Health Care industry. The return on equity for all United States stocks is notably lower than that of the firm.
Merck Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Merck's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Merck could also be used in its relative valuation, which is a method of valuing Merck by comparing valuation metrics of similar companies.Merck is currently under evaluation in return on equity category among its peers.
Merck Fundamentals
| Return On Equity | 0.41 | ||||
| Return On Asset | 0.14 | ||||
| Profit Margin | 0.27 % | ||||
| Operating Margin | 0.39 % | ||||
| Current Valuation | 237.82 B | ||||
| Shares Outstanding | 2.52 B | ||||
| Shares Owned By Insiders | 0.07 % | ||||
| Shares Owned By Institutions | 80.43 % | ||||
| Number Of Shares Shorted | 41.93 M | ||||
| Price To Earning | 18.05 X | ||||
| Price To Book | 4.60 X | ||||
| Price To Sales | 3.35 X | ||||
| Revenue | 64.17 B | ||||
| Gross Profit | 49.27 B | ||||
| EBITDA | 26.94 B | ||||
| Net Income | 17.13 B | ||||
| Cash And Equivalents | 12.69 B | ||||
| Cash Per Share | 4.44 X | ||||
| Total Debt | 37.11 B | ||||
| Debt To Equity | 0.68 % | ||||
| Current Ratio | 1.46 X | ||||
| Book Value Per Share | 18.32 X | ||||
| Cash Flow From Operations | 21.47 B | ||||
| Short Ratio | 2.29 X | ||||
| Earnings Per Share | 6.88 X | ||||
| Price To Earnings To Growth | 0.77 X | ||||
| Target Price | 107.24 | ||||
| Number Of Employees | 73 K | ||||
| Beta | 0.42 | ||||
| Market Capitalization | 213.16 B | ||||
| Total Asset | 117.11 B | ||||
| Retained Earnings | 63.07 B | ||||
| Working Capital | 10.36 B | ||||
| Current Asset | 29.76 B | ||||
| Current Liabilities | 19.2 B | ||||
| Annual Yield | 0.04 % | ||||
| Five Year Return | 2.99 % | ||||
| Net Asset | 117.11 B | ||||
| Last Dividend Paid | 3.12 |
About Merck Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Merck Company's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Merck using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Merck Company based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectCheck out Merck Piotroski F Score and Merck Altman Z Score analysis. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Is Pharmaceutical Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Merck. If investors know Merck will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Merck listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Merck Company is measured differently than its book value, which is the value of Merck that is recorded on the company's balance sheet. Investors also form their own opinion of Merck's value that differs from its market value or its book value, called intrinsic value, which is Merck's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Merck's market value can be influenced by many factors that don't directly affect Merck's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Merck's value and its price as these two are different measures arrived at by different means. Investors typically determine if Merck is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Merck's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.