Merck Stock Fair Value – Merck Reports Record-Breaking Q1 Revenue, Surpassing Estimates by $660M
April 28, 2023
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Merck ($NYSE:MRK) & Co., Inc., or simply Merck, is a global pharmaceutical and chemical company that develops, manufactures, and markets a range of healthcare products and services. The company’s non-GAAP earnings per share (EPS) of $1.40 exceeded estimates by $0.03, while the total revenue of $14.48 billion exceeded estimates by $660 million. This marked the second consecutive quarter that Merck has outperformed analysts’ expectations, as the company experiences strong demand for its drugs, including Keytruda, Gardasil and Januvia. This positive momentum is expected to continue into the company’s second quarter as Merck continues to benefit from strong demand for its products.
Price History
This is the highest revenue that Merck has ever reported in a single quarter and is a reflection of the company’s success in the pharmaceutical and health industries. In response to the news, Merck’s stock opened at $114.6 and closed at $115.2, up by 1.5% from its previous closing price of 113.4. The company credits its successful quarter to its ongoing focus on research and development, as well as its commitment to creating innovative treatments for life-threatening diseases. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Merck. More…
| Total Revenues | Net Income | Net Margin |
| 59.28k | 14.52k | 27.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Merck. More…
| Operations | Investing | Financing |
| 19.09k | -4.96k | -9.12k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Merck. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 109.16k | 63.1k | 17.55 |
Key Ratios Snapshot
Some of the financial key ratios for Merck are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.2% | 14.3% | 29.4% |
| FCF Margin | ROE | ROA |
| 24.8% | 24.1% | 10.0% |
Analysis – Merck Stock Fair Value
GoodWhale has conducted an analysis of MERCK’s financials, and as a result, we have arrived at an intrinsic value of approximately $94.0 for MERCK’s stock. This value was calculated using our proprietary Valuation Line. As of now, MERCK’s stock is traded at $115.2, which implies an overvaluation of 22.5%. Merck_Reports_Record-Breaking_Q1_Revenue_Surpassing_Estimates_by_660M”>More…
Peers
In the pharmaceutical industry, Merck & Co Inc is up against some stiff competition. Sanofi SA, Roche Holding AG, and TherapeuticsMD Inc are all major players in the industry. While each company has its own strengths and weaknesses, they all compete against each other to bring new and innovative drugs to market.
– Sanofi SA ($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
Earnings per share (EPS) came in at $1.40, beating estimates by $0.03. Merck has seen an increase in demand for its products, particular those related to the treatment of infectious diseases, as well as the production and sale of biopharma products. The company is well-positioned to continue to drive growth in the coming quarters.
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