MRK
MRK — Healthcare
Graham: 25
Buffett: 84
Lynch: 29
Merck & Co., Inc. operates as a healthcare company worldwide. It offers human health pharmaceutical for various areas under the Keytruda, Keytruda Qlex, Welireg, Gardasil, ProQuad, M-M-R II, Varivax, Vaxneuvance, Capvaxive, RotaTeq, Pneumovax 23, Bridion, Prevymis, Dificid, Zerbaxa, Winrevair, Adempas/ Verquvo...
Price ?
119.37
Market Cap ?
295.1B
P/E ?
16.40
P/B ?
5.62
Div Yield ?
2.78%
52W Range ?
73.31 - 125.14
200W MA ?
97.48
25
Graham-style buying rate (0-100)
Criteria breakdown
- ✓ Company size sufficient (large-cap) ? $295,129,448,448 — Uses market cap >= $2B as proxy
- ✗ Solid financial condition (CR>=2; LT debt <= NCAV) ? CR=1.54 | D/E=0.96 — 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 17y
- ✓ EPS growth >= 33% over 10 years ? ~416%
- ✗ Price-to-Book (P/B) <= 1.5 ? 5.62
- ✗ Price-to-Earnings (P/E) <= 15 ? 16.4 — Uses trailing P/E as proxy for 3y avg EPS
- ✗ Combined formula (P/E * P/B) <= 22.5 ? 92.1
- ✗ Margin of safety >= 20% ? -9% — Intrinsic = EPS * 15
- ✓ High ROE maintained without excessive debt ? ROE=36.9% | D/E=0.96 — 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
84
Buffett-style buying rate (0-100)
Criteria breakdown
- ✗ Positive and growing FCF (multi-year) ? 24,840,000,000 -> 20,584,000,000
- ✓ ROIC >= 12% sustained ? 35.4%
- ✓ High ROE (proxy for durable advantages) ? 36.9% — Consistency over years not checked
- ✓ Net profit margin >= 10% ? 28.1% — Derived from available financial filings
- ✓ Conservative leverage (D/E <= 1.0) ? 0.96
- ✓ Sustainable shareholder returns (dividend > 0%) ? 2.78% — 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
29
Lynch-style buying rate (0-100)
Criteria breakdown
- ✗ PEG ratio (P/E / growth) <= 1.0 ? 1.80
- ✗ Positive multi-year EPS growth (per-year >= 10%) ? ~9.1%/yr
- ✗ Conservative leverage (D/E <= 0.5) ? 0.96
- ✓ Sustainable profitability (net margin >= 5%) ? 28.1%
- ✓ 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