Merck & Co., Inc. cash flow to debt ratio of 32.60% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Merck & Co., Inc.'s free cash flow has decreased 31.70% from $18.10B last year to $12.36B, signaling decreasing performance

Merck & Co., Inc.'s debt to equity ratio is 1.29, which means that the company's assets are unhealthy financed, signaling financial risk.

Merck & Co., Inc.'s debt has increased relative to shareholder equity from 0.83 last year to 1.29 today, signaling weakened financials

Merck & Co., Inc. has a net debt to EBITDA ratio of 1.27x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Merck & Co., Inc.'s interest coverage ratio of 8.75 indicates that earnings with good margin can cover interest payments on company debt

Merck & Co., Inc.'s profit margin has decreased (82.09%) in the last year from 26.68% to 4.78%, signaling decreasing performance

Merck & Co., Inc.'s short-term assets of $43.52B exceed its short-term liabilities of $28.33B

Merck & Co., Inc.'s return on assets of 2.44% is lower than the 5.00% threshold, indicating inefficient asset utilization

Merck & Co., Inc.'s return on equity of 6.60%, is lower than 15.00%, indicating bad performance

Merck & Co., Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Merck & Co., Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Merck & Co., Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Merck & Co., Inc. has a free cash flow yield of 3.82%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Merck & Co., Inc.'s yearly earnings has increased 6.64% since last year from $17.12B to $18.25B, signaling increasing performance

Merck & Co., Inc.'s yearly revenue has increased 1.31% since last year from $64.17B to $65.01B, signaling increasing performance

ROIC 5.62% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Merck & Co., Inc.'s 3-year revenue CAGR of 3.08% is positive, indicating growing revenue over the past 3 years

Merck & Co., Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Merck & Co., Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Merck & Co., Inc. is overvalued relative to its fair value price of 74.19 based on Discounted Cash Flow model

Merck & Co., Inc. has an earnings yield of 0.98%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Merck & Co., Inc. is overvalued relative to its fair value price of 57.26 based on EBITDA multiple model

Merck & Co., Inc. has an EV/EBITDA ratio of 12.71x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Merck & Co., Inc. is undervalued relative to its fair value price of 172.31 based on Earnings Fair Value model

Merck & Co., Inc. has a PEG-ratio over 1 which is considered overvalued

Merck & Co., Inc. has a price-to-book ratio of 7.71x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Merck & Co., Inc. has a price-to-sales ratio of 4.87x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue