MRK
MRK — Healthcare
Graham: 38
Buffett: 100
Lynch: 81
Merck & Co., Inc. operates as a healthcare company worldwide. The company offers human health pharmaceutical for various areas under the Keytruda, Welireg, Gardasil, ProQuad, M-M-R II, Varivax, Vaxneuvance, RotaTeq, Pneumovax 23, Bridion, Dificid, Zerbaxa, Noxafil, Winrevair, Adempas, Verquvo, Lagevrio...
Price ?
87.61
Market Cap ?
218.8B
P/E ?
13.50
P/B ?
4.48
Div Yield ?
3.70%
52W Range ?
73.31 - 106.62
200W MA ?
95.25
38
Graham-style buying rate (0-100)
Criteria breakdown
- ✓ Company size sufficient (large-cap) ? $218,830,798,848 — Uses market cap >= $2B as proxy
- ✗ Solid financial condition (CR>=2; LT debt <= NCAV) ? CR=1.42 | D/E=0.72 — Partial: checks current ratio; LT debt vs NCAV unavailable
- ✓ Uninterrupted dividends for 20 years ?
- ✓ No losses in last 10 years ? 10y window — Positive earnings for last 16y
- ✓ EPS growth >= 33% over 10 years ? ~332%
- ✗ Price-to-Book (P/B) <= 1.5 ? 4.48
- ✓ Price-to-Earnings (P/E) <= 15 ? 13.5 — Uses trailing P/E as proxy for 3y avg EPS
- ✗ Combined formula (P/E * P/B) <= 22.5 ? 60.4
- ✗ Margin of safety >= 20% ? 10% — Intrinsic = EPS * 15
- ✓ High ROE maintained without excessive debt ? ROE=35.4% | D/E=0.72 — Approximate threshold ROE = 15%, D/E = 1.0
What is evaluated (Graham):
- Valuation discipline and buying below intrinsic value.
- Financial resilience: liquidity and prudent leverage.
- Consistent dividends and earnings over long horizons.
"The intelligent investor is a realist who sells to optimists and buys from pessimists." — Benjamin Graham
100
Buffett-style buying rate (0-100)
Criteria breakdown
- ✓ Positive and growing FCF (multi-year) ? 16,869,000,000 -> 24,840,000,000
- ✓ ROIC >= 12% sustained ? 43.0%
- ✓ High ROE (proxy for durable advantages) ? 35.4% — Consistency over years not checked
- ✓ Net profit margin >= 10% ? 25.8% — Derived from available financial filings
- ✓ Conservative leverage (D/E <= 1.0) ? 0.72
- ✓ Sustainable shareholder returns (dividend > 0%) ? 3.70% — Does not assess buybacks or payout safety
What is evaluated (Buffett):
- Durable advantages: high ROE, healthy margins.
- Balance discipline and shareholder friendly capital use.
- Positive free cash flow and efficient reinvestment.
"It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett
81
Lynch-style buying rate (0-100)
Criteria breakdown
- ✓ PEG ratio (P/E / growth) <= 1.0 ? 0.54
- ✓ Positive multi-year EPS growth (per-year >= 10%) ? ~24.8%/yr
- ✗ Conservative leverage (D/E <= 0.5) ? 0.72
- ✓ Sustainable profitability (net margin >= 5%) ? 25.8%
- ✓ Earnings stability (no losses in 10y) ? 10y window
What is evaluated (Lynch):
- Growth at a reasonable price (PEG and EPS CAGR).
- Durable earnings with limited drawdowns.
- Conservative balance sheet and baseline profitability.
"Know what you own, and know why you own it." — Peter Lynch