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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.73
MRK's Cash to Debt is ranked higher than
57% of the 773 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 2.62 vs. MRK: 0.73 )
MRK' s 10-Year Cash to Debt Range
Min: 0.32   Max: 2.45
Current: 0.73

0.32
2.45
Equity to Asset 0.46
MRK's Equity to Asset is ranked higher than
55% of the 714 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 0.61 vs. MRK: 0.46 )
MRK' s 10-Year Equity to Asset Range
Min: 0.34   Max: 0.53
Current: 0.46

0.34
0.53
Interest Coverage 7.94
MRK's Interest Coverage is ranked higher than
52% of the 433 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 124.75 vs. MRK: 7.94 )
MRK' s 10-Year Interest Coverage Range
Min: 3.31   Max: 44.62
Current: 7.94

3.31
44.62
F-Score: 4
Z-Score: 3.02
M-Score: -2.92
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 14.44
MRK's Operating margin (%) is ranked higher than
83% of the 715 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 9.93 vs. MRK: 14.44 )
MRK' s 10-Year Operating margin (%) Range
Min: 5.15   Max: 43.77
Current: 14.44

5.15
43.77
Net-margin (%) 10.00
MRK's Net-margin (%) is ranked higher than
79% of the 715 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 7.07 vs. MRK: 10.00 )
MRK' s 10-Year Net-margin (%) Range
Min: 1.87   Max: 47.03
Current: 10

1.87
47.03
ROE (%) 8.85
MRK's ROE (%) is ranked higher than
77% of the 727 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 7.00 vs. MRK: 8.85 )
MRK' s 10-Year ROE (%) Range
Min: 1.58   Max: 45.99
Current: 8.85

1.58
45.99
ROA (%) 4.17
MRK's ROA (%) is ranked higher than
73% of the 748 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 3.87 vs. MRK: 4.17 )
MRK' s 10-Year ROA (%) Range
Min: 0.81   Max: 17.93
Current: 4.17

0.81
17.93
ROC (Joel Greenblatt) (%) 32.08
MRK's ROC (Joel Greenblatt) (%) is ranked higher than
87% of the 743 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 15.91 vs. MRK: 32.08 )
MRK' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 10.45   Max: 65.02
Current: 32.08

10.45
65.02
Revenue Growth (%) -0.10
MRK's Revenue Growth (%) is ranked higher than
59% of the 629 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 5.10 vs. MRK: -0.10 )
MRK' s 10-Year Revenue Growth (%) Range
Min: -16.5   Max: 21.4
Current: -0.1

-16.5
21.4
EBITDA Growth (%) 12.60
MRK's EBITDA Growth (%) is ranked higher than
78% of the 594 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 3.60 vs. MRK: 12.60 )
MRK' s 10-Year EBITDA Growth (%) Range
Min: -17.6   Max: 44.7
Current: 12.6

-17.6
44.7
EPS Growth (%) 73.80
MRK's EPS Growth (%) is ranked higher than
97% of the 595 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 4.00 vs. MRK: 73.80 )
MRK' s 10-Year EPS Growth (%) Range
Min: -42.7   Max: 73.8
Current: 73.8

-42.7
73.8
» MRK's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

MRK Guru Trades in Q3 2013

Jim Simons 252,300 sh (New)
Signature Select Canadian Fund 291,200 sh (New)
Mario Gabelli 195,676 sh (+2.95%)
HOTCHKIS & WILEY 1,059,010 sh (+2.93%)
Jeremy Grantham 13,291,108 sh (+2.65%)
John Buckingham 33,169 sh (+1.75%)
James Barrow 29,641,593 sh (+1.1%)
Irving Kahn 1,228,533 sh (+1.06%)
Manning & Napier Advisors, Inc 422,047 sh (+0.56%)
RS Investment Management 1,601,873 sh (+0.38%)
Vanguard Health Care Fund 35,919,648 sh (unchged)
Prem Watsa 12,000 sh (unchged)
Tom Russo 5,736 sh (unchged)
Robert Bruce 261,500 sh (unchged)
Brian Rogers 6,625,700 sh (unchged)
Bill Nygren 1,587,000 sh (unchged)
Leon Cooperman 203,200 sh (unchged)
Mark Hillman 17,807 sh (unchged)
Richard Snow 5,385 sh (unchged)
John Hussman 2,625 sh (unchged)
Louis Moore Bacon 1,228,000 sh (unchged)
Caxton Associates Sold Out
Joel Greenblatt Sold Out
Paul Tudor Jones Sold Out
George Soros Sold Out
Charles Brandes 2,702,972 sh (-0.02%)
Jeff Auxier 171,049 sh (-0.06%)
Murray Stahl 48,121 sh (-0.52%)
Dodge & Cox 50,137,596 sh (-1.1%)
Pioneer Investments 2,407,299 sh (-1.34%)
NWQ Managers 125,255 sh (-4.07%)
Ken Fisher 1,099,750 sh (-4.43%)
Bill Frels 113,404 sh (-16.79%)
Steven Cohen 41,275 sh (-28.3%)
Jean-Marie Eveillard 1,134,041 sh (-49.6%)
» More
Q4 2013

MRK Guru Trades in Q4 2013

Louis Moore Bacon 10,000 sh (New)
Ruane Cunniff 4,075 sh (New)
George Soros 150,000 sh (New)
Jim Simons 2,018,534 sh (+700.05%)
Irving Kahn 2,525,376 sh (+105.56%)
Bill Frels 130,654 sh (+15.21%)
Ken Fisher 1,197,965 sh (+8.93%)
John Buckingham 34,302 sh (+3.42%)
RS Investment Management 1,633,719 sh (+1.99%)
Vanguard Health Care Fund 36,561,348 sh (+1.79%)
Richard Snow 5,410 sh (+0.46%)
Bill Nygren 1,587,000 sh (unchged)
John Hussman 2,625 sh (unchged)
Louis Moore Bacon 500,000 sh (unchged)
Prem Watsa 12,000 sh (unchged)
Brian Rogers 6,625,700 sh (unchged)
Mario Gabelli 195,671 sh (unchged)
George Soros 129,300 sh (unchged)
Robert Bruce 261,500 sh (unchged)
Mark Hillman 17,807 sh (unchged)
Steven Cohen Sold Out
Leon Cooperman Sold Out
Murray Stahl 48,071 sh (-0.1%)
Jeff Auxier 170,849 sh (-0.12%)
James Barrow 29,423,811 sh (-0.73%)
NWQ Managers 123,726 sh (-1.22%)
Dodge & Cox 48,798,496 sh (-2.67%)
Manning & Napier Advisors, Inc 409,182 sh (-3.05%)
HOTCHKIS & WILEY 1,018,710 sh (-3.81%)
Pioneer Investments 2,211,185 sh (-8.15%)
Charles Brandes 2,476,201 sh (-8.39%)
Tom Russo 4,536 sh (-20.92%)
Jeremy Grantham 9,665,336 sh (-27.28%)
Jean-Marie Eveillard 14,050 sh (-98.76%)
» More
Q1 2014

MRK Guru Trades in Q1 2014

Steven Cohen 705,823 sh (New)
Joel Greenblatt 3,567 sh (New)
Paul Tudor Jones 5,035 sh (New)
David Dreman 4,431 sh (New)
Jean-Marie Eveillard 2,236,839 sh (+15820.6%)
Ruane Cunniff 4,409 sh (+8.2%)
Pioneer Investments 2,345,288 sh (+6.06%)
Signature Select Canadian Fund 299,500 sh (+2.85%)
RS Investment Management 1,668,798 sh (+2.15%)
Robert Bruce 261,500 sh (unchged)
Brian Rogers 6,625,700 sh (unchged)
Richard Snow 5,410 sh (unchged)
Prem Watsa 12,000 sh (unchged)
Tom Russo 4,536 sh (unchged)
Bill Nygren Sold Out
Louis Moore Bacon Sold Out
John Hussman Sold Out
George Soros Sold Out
John Buckingham Sold Out
HOTCHKIS & WILEY Sold Out
Murray Stahl 48,051 sh (-0.04%)
Charles Brandes 2,451,125 sh (-1.01%)
Vanguard Health Care Fund 35,616,848 sh (-2.58%)
Jeff Auxier 164,199 sh (-3.89%)
Bill Frels 114,212 sh (-12.58%)
Manning & Napier Advisors, Inc 353,494 sh (-13.61%)
Mario Gabelli 160,316 sh (-18.07%)
Dodge & Cox 39,959,196 sh (-18.11%)
James Barrow 22,739,030 sh (-22.72%)
NWQ Managers 93,255 sh (-24.63%)
Ken Fisher 725,058 sh (-39.48%)
Irving Kahn 1,128,415 sh (-55.32%)
Jeremy Grantham 2,519,078 sh (-73.94%)
Jim Simons 196,200 sh (-90.28%)
» More
Q2 2014

MRK Guru Trades in Q2 2014

Ken Fisher 6,464,243 sh (+791.55%)
Manning & Napier Advisors, Inc 380,192 sh (+7.55%)
Brian Rogers 6,625,700 sh (unchged)
Vanguard Health Care Fund 33,889,948 sh (-4.85%)
» More
» Details

Insider Trades

Latest Guru Trades with MRK

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Merck & Co Inc

Bill Nygren Comments on Merck - Apr 10, 2014

We eliminated our position in Merck (MRK) as the shares appreciated to our estimate of fair value.

From Bill Nygren (Trades, Portfolio)'s Oakmark Fund first quarter 2014 commentary.

Check out Bill Nygren latest stock trades

Top Ranked Articles about Merck & Co Inc

Vanguard Health Care Fund's Top Quarterly Holdings
Over the duration of the first quarter the Vanguard Health Care Fund purchased added three new stocks to its holdings. The fund now holds on to 86 stocks valued at $35.6 billion. The following companies are Vanguard's top portfolio holdings. Read more...
Bill Nygren Comments on Merck
We eliminated our position in Merck (MRK) as the shares appreciated to our estimate of fair value. Read more...
Vanguard Health Care Fund’s Top Five
Over the duration of the fourth quarter the Vanguard Health Care Fund purchased added four new stocks to its holdings. The fund now holds on to 93 stocks valued at $32.35 billion. The following companies are Vanguard's top five portfolio holdings. Read more...
Merck and Seadrill Top GuruFocus Dividend Growers of the Week
During the past week, GuruFocus recognized two companies as dividend growers. In order to be qualified for this list, the company had to: Read more...
Diamond Hill Capital Growing - Six Sells
The updated portfolio of Diamond Hill Capital Management lists 15 stocks, 19 of them new, a total value at $9.28 billion, and a quarter-over-quarter turnover of 6%. The portfolio is currently weighted with top three sectors: financial services at 26.9%, technology at 14% and consumer defensive at 13.5%. Read more...
Prem Watsa's 4 Second Quarter Increases
The founder of Fairfax Financial Prem Watsa, oftentimes called the “Warren Buffett of Canada,” maintained a rather quiet second quarter, posting three small new buys. Over the past quarter, Prem Watsa increased his positions in four companies. Read more...
Irving Kahn Increases Four
Not many investors can claim 84 years of experience on their vitae. Born in 1905, America’s oldest value investor Irving Kahn, age 107, grew up in an era when 'news boys' delivered the newspaper and long before anyone could envision that news would someday be delivered digitally. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 37.80
MRK's P/E(ttm) is ranked higher than
74% of the 806 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 41.40 vs. MRK: 37.80 )
MRK' s 10-Year P/E(ttm) Range
Min: 6.67   Max: 139.89
Current: 37.8

6.67
139.89
P/B 3.40
MRK's P/B is ranked higher than
68% of the 806 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 3.22 vs. MRK: 3.40 )
MRK' s 10-Year P/B Range
Min: 1.72   Max: 7.78
Current: 3.4

1.72
7.78
P/S 3.90
MRK's P/S is ranked higher than
66% of the 806 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 3.55 vs. MRK: 3.90 )
MRK' s 10-Year P/S Range
Min: 2.01   Max: 5.48
Current: 3.9

2.01
5.48
PFCF 16.80
MRK's PFCF is ranked higher than
93% of the 806 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 9999.00 vs. MRK: 16.80 )
MRK' s 10-Year PFCF Range
Min: 7.8   Max: 86.81
Current: 16.8

7.8
86.81
EV-to-EBIT 27.80
MRK's EV-to-EBIT is ranked higher than
76% of the 806 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 32.81 vs. MRK: 27.80 )
MRK' s 10-Year EV-to-EBIT Range
Min: 8.5   Max: 104.2
Current: 27.8

8.5
104.2
PEG 1.90
MRK's PEG is ranked higher than
89% of the 806 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 367.50 vs. MRK: 1.90 )
MRK' s 10-Year PEG Range
Min: 0.54   Max: 72.61
Current: 1.9

0.54
72.61
Shiller P/E 23.10
MRK's Shiller P/E is ranked higher than
88% of the 806 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 9999.00 vs. MRK: 23.10 )
MRK' s 10-Year Shiller P/E Range
Min: 8.26   Max: 24.07
Current: 23.1

8.26
24.07
Current Ratio 1.84
MRK's Current Ratio is ranked higher than
63% of the 761 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 2.31 vs. MRK: 1.84 )
MRK' s 10-Year Current Ratio Range
Min: 1.07   Max: 3.7
Current: 1.84

1.07
3.7
Quick Ratio 1.55
MRK's Quick Ratio is ranked higher than
68% of the 761 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.68 vs. MRK: 1.55 )
MRK' s 10-Year Quick Ratio Range
Min: 0.8   Max: 3.44
Current: 1.55

0.8
3.44

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.10
MRK's Dividend Yield is ranked higher than
85% of the 453 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.37 vs. MRK: 3.10 )
MRK' s 10-Year Dividend Yield Range
Min: 2.51   Max: 6.68
Current: 3.1

2.51
6.68
Dividend Payout 1.15
MRK's Dividend Payout is ranked higher than
85% of the 806 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 9999.00 vs. MRK: 1.15 )
MRK' s 10-Year Dividend Payout Range
Min: 0.16   Max: 4.22
Current: 1.15

0.16
4.22
Dividend growth (3y) 4.40
MRK's Dividend growth (3y) is ranked higher than
79% of the 317 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 0.50 vs. MRK: 4.40 )
MRK' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 14.8
Current: 4.4

0
14.8
Yield on cost (5-Year) 3.72
MRK's Yield on cost (5-Year) is ranked higher than
86% of the 461 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.39 vs. MRK: 3.72 )
MRK' s 10-Year Yield on cost (5-Year) Range
Min: 3.01   Max: 8.01
Current: 3.72

3.01
8.01
Share Buyback Rate 1.30
MRK's Share Buyback Rate is ranked higher than
88% of the 556 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: -1.70 vs. MRK: 1.30 )
MRK' s 10-Year Share Buyback Rate Range
Min: 1.8   Max: -13
Current: 1.3

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 9.60
MRK's Price/Tangible Book is ranked higher than
56% of the 806 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 5.40 vs. MRK: 9.60 )
MRK' s 10-Year Price/Tangible Book Range
Min: 3.19   Max: 3735
Current: 9.6

3.19
3735
Price/DCF (Projected) 1.50
MRK's Price/DCF (Projected) is ranked higher than
92% of the 806 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 9999.00 vs. MRK: 1.50 )
MRK' s 10-Year Price/DCF (Projected) Range
Min: 0.75   Max: 3.04
Current: 1.5

0.75
3.04
Price/Median PS Value 1.20
MRK's Price/Median PS Value is ranked higher than
66% of the 806 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.20 vs. MRK: 1.20 )
MRK' s 10-Year Price/Median PS Value Range
Min: 0.68   Max: 2.08
Current: 1.2

0.68
2.08
Price/Graham Number 3.90
MRK's Price/Graham Number is ranked higher than
70% of the 806 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 4.60 vs. MRK: 3.90 )
MRK' s 10-Year Price/Graham Number Range
Min: 1.08   Max: 36.98
Current: 3.9

1.08
36.98
Earnings Yield (Greenblatt) 3.60
MRK's Earnings Yield (Greenblatt) is ranked higher than
65% of the 624 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 4.90 vs. MRK: 3.60 )
MRK' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1   Max: 11.8
Current: 3.6

1
11.8
Forward Rate of Return (Yacktman) -1.44
MRK's Forward Rate of Return (Yacktman) is ranked higher than
65% of the 622 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 2.97 vs. MRK: -1.44 )
MRK' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -6.5   Max: 22.1
Current: -1.44

-6.5
22.1

Business Description

Industry: Drug Manufacturers » Drug Manufacturers - Major
Compare:GSK, JNJ, PFE, RHHBY, NVS » details
Traded in other countries:0QAH.country, MRK.France, 6MK.Germany
Merck & Co Inc is a New Jersey corporation. The Company is a global health care company that delivers innovative health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products, which it markets directly and through its joint ventures. The Company's operations are mainly managed on a products basis and are comprised of four operating segments, which are the Pharmaceutical, Animal Health, Consumer Care and Alliances segments, and one reportable segment, which is the Pharmaceutical segment. The Pharmaceutical segment includes human health pharmaceutical and vaccine products marketed either directly by the Company or through joint ventures. Human health pharmaceutical products consist of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders. The Company sells these human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers such as health maintenance organizations, pharmacy benefit managers and other institutions. Vaccine products consist of preventive pediatric, adolescent and adult vaccines, primarily administered at physician offices. The Company sells these human health vaccines primarily to physicians, wholesalers, physician distributors and government entities. The Company also has animal health operations that discover, develop, manufacture and market animal health products, including vaccines, which the Company sells to veterinarians, distributors and animal producers. Additionally, the Company has consumer care operations that develop, manufacture and market over-the-counter, foot care and sun care products, which are sold through wholesale and retail drug, food chain and mass merchandiser outlets, as well as club stores and specialty channels. The Company's competitors include other worldwide research-based pharmaceutical companies, smaller research companies with more limited therapeutic focus, and generic drug and consumer health care manufacturers. The Company's activities, including research, preclinical testing, clinical trials and manufacturing and marketing its products, are subject to regulation by numerous federal, state and local governmental authorities in the United States, including the FDA, and by foreign regulatory authorities, including the European Commission.

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