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ValueInvest_Pro
Apr 8, 2021 8:19 AM

MRK investing idea Long

Merck & Company, Inc.NYSE

Description

Hi everyone, here will be Merck and Company. This company produce pharmaceutical products from many diseases (including cancer, cardiometabolic and so on). Most of sales (40%) are in USA.

So, why i think, that this company is fine to long-term investing?
Reasons:
+ Dividend payments 3,3%
+ Payback ratio 2,1%
+ Good results of work (net margine - 14,7%)
+ Return on Invested Capital is better then WACC, that shows business eficiency
+ sharp growning of Research and Development cost comparing to the 2019.
+ Administrative costs become lesser with a growth of revenues
+ Accounts receivable become lesser too
+ Growth of producing equipment (buying other companies), company expect rising of saling products on markets


And now value of MRK is undervalued, so i think, at period of statements publication that will be strong growth in price, that will be good chance too. It will be usefull for long and short-term investment too.
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