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Is this Large Market Cap Stock target price reasonable for Merck & Co., Inc. (NYSE:MRK) ?

The company in question is, Merck & Co., Inc. (NYSE:MRK) currently with a stock price of 62.64 (0.59% today). The market cap for Merck & Co., Inc. is 171729.44, and is in the sector Healthcare, and Drug Manufacturers РMajor industry. The target price for Merck & Co., Inc. is 69. Currently Merck & Co., Inc. is trading with a P/E of 44.65, and a forward P/E of 14.96. Average volume for Merck & Co., Inc. is 9417.85 and so far today it is 10311400.

Performance in the last year for Merck & Co., Inc. has been 13.55%. For EPS growth, Merck & Co., Inc. has seen a growth of -10.00%, and is looking to grow in the next year to 10.07%. More long term stats show that EPS growth has been -7.00% over the last five years and could be 6.69% for the next five years. Merck & Co., Inc. has seen sales growth quarter over quarter at -1.00%, with EPS growth quarter over quarter at -162.20%. The 20-day simple moving average is -0.88%, with the 200-day simple moving average coming to 2.11%.

Since the IPO date for Merck & Co., Inc. on the 01/02/1970, Merck & Co., Inc. has seen performance year to date to be 7.17%. With Merck & Co., Inc. trading at 62.64, the dividend yield is 3.00%, and the EPS is 1.4.

So could Merck & Co., Inc., be undervalued? Well as said before P/E is 44.65. The PEG is 6.68, P/S is 4.31 and the P/B is at 4.31. The P/cash is 11.79, with P/free cash flow at 47.2.

Merck & Co., Inc. ability to deal with debt shows that the current ratio is 1.8, and the quick ratio is 1.5. This is with long term debt/equity at 0.61, and total debt/equity at 0.62.

In terms of margins, Merck & Co., Inc. has a gross margin of 65.60%, an operating margin of 13.50% and a profit margin of 9.80%.Payout ratio for Merck & Co., Inc. is 130.00%. Return on assets come to 4.00% with return on investment coming to 6.20%.

Insider ownership for Merck & Co., Inc., is at 0.04% and institutional ownership comes to 75.50%. Outstanding shares are at 2741.53. While shares float is 2740.25. The float short is currently 0.63%, and short ratio is 1.83.

Graphs: Merck & Co., Inc. NYSE: MRK | Thursday April 20, 2017

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Merck & Co., Inc. NYSE: MRK

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Merck & Co., Inc. NYSE: MRK

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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