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Merck & Co., Inc. (MRK) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Merck & Co., Inc.

MRKMarket cap $350BPrice $141.9

Country🇺🇸United States

SectorHealthcare

IndustryPharmaceuticals

Develops and manufactures prescription drugs, vaccines, and animal health products used by millions worldwide. Their cancer immunotherapy Keytruda generates over $25 billion annually, making it one of the best-selling drugs ever.

In Bastion Portfolios?

52W Return+70%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+3%4

Revenue Forecast

Rev CAGR (1y)+3%4

Rev CAGR (3y)+5%4

Rev CAGR (5y)+3%3

Earnings Forecast

EPS Growth Y+1-62%1

EPS Growth Y+2+247%10

EPS Growth Y+3+11%7

Quality

Margins

EBIT Margin35%9

Net Income Margin5%4

Free Cash Flow Margin24%9

Debt

Net Debt/EBITDA1.65

Efficiency

ROE7%3

ROA3%4

Earnings Stability77

GEAR+AVERAGE59

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)165

P/E Ratio (Forward 3y)136

P/BV8.42

EV Multiples

EV/EBITDA Fwd252

EV/EBIT Fwd322

Yield

Free Cash Flow Yield4.6%6

Dividend Yield2.4%6

Momentum

Short term

1 month return-5%5

3 month return+11%9

YTD return+38%9

Mid term

Price vs 52wHigh91%8

1 year return+67%9

Long term

3 year return+50%5

5 year return+102%7

Risk Shield

Price Risk

Beta0.39

Volatility29%7

Free Cash Flow

Free Cash Flow Margin24%9

Free Cash Flow Yield4.6%6

Quality

ROCE24%9

Earnings Stability77

Net Debt/EBITDA1.65

02Growth

Is it actually growing, and how fast?

MRKMerck & Co.

Revenue FY25$65.0B

GROWTH RATING↗

WEAK31 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+3%4

Revenue, next 1Y+3%4

Revenue, next 3Y, CAGR+5%4

Revenue, next 5Y, CAGR+3%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-62%1

EPS growth, FY27E+247%10

EPS growth, FY28E+11%7

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue is set to grow 5%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 3%/yr over the last 3 years and is set to keep growing around 5%/yr.

Earnings are set to grow faster than sales (EPS about 11%/yr vs revenue 5%/yr), so margins should widen. One year dips: EPS falls 62% next year.

WEAKNESSES

Growth is the weak spot here, trailing 69% of companies worldwide.

Over five years revenue is set to grow 3%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Margin Expander

Growth is a weak point here. The one thing to watch: the five-year outlook is thin.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG77 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-5%5

3-month return+11%9

YTD return+38%9

MID & LONG-TERM▾SCORE

% of 52-week high91%8

1-year return+67%9

3-year return+50%5

5-year return+102%7

MOMENTUM ASSESSMENT

STRENGTHS

It's up 67% over the past year, but 9% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over three months (+11%) and so far this year (+38%).

WATCH

Average long-term results. Multi-year returns are middling (+50% over three years and +102% over five), roughly average for the market.

Returns sit at the market level over the past month (-5%).

WEAKNESSES

None flagged.

BOTTOM LINE

Fresh Momentum

Short-term returns are strong but the long track record is thin. Momentum is building — confirmation from longer horizons would strengthen the case.

04Value

Are you paying a fair price for it?

Stop guessing on Merck. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

MRKMerck & Co.

Revenue FY25$65.0B

GROWTH RATING↗

WEAK31 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+3%4

Revenue, next 1Y+3%4

Revenue, next 3Y, CAGR+5%4

Revenue, next 5Y, CAGR+3%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-62%1

EPS growth, FY27E+247%10

EPS growth, FY28E+11%7

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue is set to grow 5%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 3%/yr over the last 3 years and is set to keep growing around 5%/yr.

Earnings are set to grow faster than sales (EPS about 11%/yr vs revenue 5%/yr), so margins should widen. One year dips: EPS falls 62% next year.

WEAKNESSES

Growth is the weak spot here, trailing 69% of companies worldwide.

Over five years revenue is set to grow 3%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Margin Expander

Growth is a weak point here. The one thing to watch: the five-year outlook is thin.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG77 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-5%5

3-month return+11%9

YTD return+38%9

MID & LONG-TERM▾SCORE

% of 52-week high91%8

1-year return+67%9

3-year return+50%5

5-year return+102%7

MOMENTUM ASSESSMENT

STRENGTHS

It's up 67% over the past year, but 9% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over three months (+11%) and so far this year (+38%).

WATCH

Average long-term results. Multi-year returns are middling (+50% over three years and +102% over five), roughly average for the market.

Returns sit at the market level over the past month (-5%).

WEAKNESSES

None flagged.

BOTTOM LINE

Fresh Momentum

Short-term returns are strong but the long track record is thin. Momentum is building — confirmation from longer horizons would strengthen the case.

04Value

Are you paying a fair price for it?

Stop guessing on Merck. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community