Merck & Co., Inc. : No turn-around in sight
Entry price | Target | Stop-loss | Potential |
---|
US$111.6 |
US$130 |
US$100 |
+16.49% |
---|
The timing appears opportune to go long in shares of Merck & Co., Inc. as we anticipate another pick-up in the underlying trend.
Summary● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● The company is in a robust financial situation considering its net cash and margin position.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
Weaknesses● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● With an enterprise value anticipated at 4.9 times the sales for the current fiscal year, the company turns out to be overvalued.
● The company appears highly valued given the size of its balance sheet.
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