Merck Intrinsic Value Calculator – MERCK Reports Fourth Quarter FY2022 Earnings of USD 3.0 Billion, 19.7% Decrease Year-over-Year.

Earnings Overview

On February 2 2023, MERCK ($NYSE:MRK) reported their earnings results for the fourth quarter of FY2022, with total revenue of USD 3.0 billion, a decrease of 19.7% compared to the same period in the prior year. Net income for the quarter was USD 13.8 billion, a 2.3% increase from the same quarter in the previous year.

Transcripts Simplified

Merck reported total company revenues of $13.8 billion for the fourth quarter, an increase of 2%, excluding the impact from foreign exchange. Human Health and Animal Health businesses grew 9% and 6%, respectively. KEYTRUDA grew 26% to $5.5 billion driven by strong global demand for in-line indications and new approvals, while GARDASIL increased 6% to $1.5 billion due to strong demand in ex-U.S. markets.

BRIDION sales grew 7% due to an increase in market share and an increase in surgical procedures. Lastly, Animal Health grew 6% reflecting strategic price actions and volume growth.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Merck. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Merck. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Merck. More…

Key Ratios Snapshot

Some of the financial key ratios for Merck are shown below. More…

Market Price

On Thursday, MERCK reported its fourth quarter FY2022 earnings, with a total of USD 3.0 billion reported. In response to the news, MERCK’s stock opened at $104.0 and closed at $103.5; this was a 3.3% decrease from the prior closing price of 107.0. The decreased earnings were attributed to several factors, including increased competition in the pharmaceutical industry, increased operating costs and expenses, and unfavorable exchange rates. Live Quote…

Analysis – Merck Intrinsic Value Calculator

GoodWhale has conducted an analysis of MERCK‘s financials and found that the fair value of a MERCK share is around $93.3, as calculated by our proprietary Valuation Line. This is just shy of MERCK’s current trading price of $103.5, making the stock currently overvalued by 11%. GoodWhale believes that investors should therefore be cautious when considering investing in MERCK at this time. More…

Peers

In the pharmaceutical industry, Merck & Co Inc is up against some stiff competition. Sanofi SA, Roche Holding AG, and TherapeuticsMD Inc are all major players in the industry. While each company has its own strengths and weaknesses, they all compete against each other to bring new and innovative drugs to market.

– Sanofi SA ($LTS:0O59)

As of 2022, Sanofi SA has a market capitalization of 102.29 billion euros and a return on equity of 7.56%. The company is a French multinational pharmaceutical company headquartered in Paris, France, and is one of the world’s largest pharmaceutical companies. Sanofi is a diversified company, with operations in several therapeutic areas, including diabetes, vaccines, rare diseases, multiple sclerosis, oncology, immunology, and cardiovascular.

– Roche Holding AG ($LTS:0TDF)

Roche Holding AG, a Swiss multinational healthcare company, has a market cap of 270.34B as of 2022. The company’s Return on Equity is 47.83%. Roche is a leader in research-focused healthcare with combined strengths in pharmaceuticals and diagnostics. The company provides medicines and diagnostic tests that enable personalized health care for patients.

– TherapeuticsMD Inc ($NASDAQ:TXMD)

TherapeuticsMD Inc. is a biopharmaceutical company, which focuses on developing and commercializing products for the health and well-being of women. It offers products in various therapeutic areas, such as Menopause, Osteoporosis, Chronic Vulvar and Vaginal Atrophy, and other health conditions related to hormone deficiency and imbalances. The company was founded by Robert G. Finizio, George S. Paletta, and Douglas S. Leighton in 2010 and is headquartered in Boca Raton, FL.

Summary

MERCK recently reported their fourth quarter FY2022 earnings results, with total revenue of USD 3.0 billion and net income of USD 13.8 billion. This marked a decrease in total revenue of 19.7% compared to the same period in the previous year, however net income was up 2.3% year on year. Unfortunately, the stock price declined following the announcement. For investors considering MERCK, it is important to note that the company is facing a challenging macroeconomic environment, and its fourth quarter results demonstrate a deterioration in sales and profit growth.

However, MERCK remains well-positioned for future growth, and investors should continue to monitor the company for further developments.