The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 43 | 36.2x | 20.8x | Around median | |
Growth | 38 | 2.9% | 6.1% | Bottom tier | |
Quality | 91 | 15.0% | 6.6% | Top tier | |
Safety | 71 | 1.7x | 0.7x | Top tier | |
Capital Return | 37 | 2.53% | 2.02% | Bottom tier | |
Momentum | 90 | 40.4% | 4.1% | Top tier | |
Sentiment | 83 | 12 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Merck is a global leader in the pharmaceutical industry, focusing on discovering, developing, and providing innovative medicines and vaccines to address complex health challenges. The company's business model relies heavily on its oncology portfolio, led by the flagship drug Keytruda, alongside strong contributions from vaccines, cardiometabolic treatments, and the animal health division. The company is actively diversifying its revenue streams through strategic acquisitions and the development of over 20 new products to offset the future patent expiration of its core drugs.
During the first quarter of fiscal year 2026, Merck reported total revenues of $16.3 billion, representing a 5 percent year-over-year increase, driven by an 8 percent growth in Keytruda sales to $8 billion. Despite achieving a gross profit of $12.1 billion with a gross margin of 81.9 percent, the company recorded a net loss of $4.2 billion and a loss per share of $1.72. This loss is primarily attributed to a massive $9 billion non-recurring charge related to the acquisition of Cedara Therapeutics, which overshadowed strong operational performance, including a 6 percent growth in the animal health division and $525 million in sales from Winrevair.
The segment mix showed mixed results; while oncology and cardiovascular treatments thrived, the vaccines segment faced notable challenges, most notably a 22 percent decline in Gardasil sales to $1.1 billion due to lower demand in China and Japan and the timing of CDC purchases in the United States. In contrast, sales of newer products like Capvaxive grew by 31 percent to $142 million, prompting the company to raise its 2026 revenue guidance to a range of $65.8 billion to $67.0 billion, reflecting its confidence in diverse growth drivers.
Merck's stock is currently trading within a 52-week range of $76.66 to $130.29, reflecting the market's reaction to its aggressive acquisition strategy and pipeline developments. The analyst consensus recommends buying the stock with an average price target of $136.33, indicating that the stock is currently trading below the consensus target. Analysts remain optimistic about the company's long-term growth trajectory, with the highest price target reaching $155, supported by the dominance of the oncology portfolio and the successful launch of new products.
Figures in the text are as of 2026-07-14; the live price is shown at the top of the page.
The net loss was driven entirely by a massive non-recurring, non-tax-deductible charge of $9 billion related to the acquisition of Cedara Therapeutics. Excluding this charge, the company's core operations performed well, with revenues growing by 5 percent to $16.3 billion. This acquisition is part of Merck's strategic investment to acquire innovative therapies, temporarily impacting short-term profitability to secure long-term pipeline strength.
While Keytruda remains the cornerstone with $8 billion in first-quarter sales, the broader oncology portfolio is expanding rapidly, highlighted by Welireg. Welireg sales surged by 43 percent to $199 million in the first quarter, driven by international launches and increased uptake in advanced renal cell carcinoma. Furthermore, the FDA granted priority review to I-DXd, an antibody-drug conjugate developed with Daiichi Sankyo for lung cancer, with a target action date of October 10.
Winrevair has seen exceptionally strong demand since its launch, generating global sales of $525 million during the first quarter of 2026. In the United States alone, over 1,600 new patients received a prescription, reflecting its critical role in treating pulmonary arterial hypertension. The company is also advancing Phase 3 trials to expand its potential use to patients with combined pulmonary hypertension based on positive results from the Phase 2 CADENCE trial.
Automated analysis for informational purposes only — not investment advice.
Gardasil sales declined by 22 percent year-over-year to $1.1 billion in the first quarter of 2026. This drop was primarily driven by lower demand in key Asian markets, specifically China and Japan, which aligned with the company's expectations. Additionally, US sales fell by 10 percent due to the timing of Centers for Disease Control and Prevention (CDC) purchases, although this decline was partially offset by price increases.
The proposed acquisition of Terns Pharmaceuticals is expected to result in a one-time research and development charge of approximately $5.8 billion, which will negatively impact 2026 earnings per share by about $2.35. Strategically, this deal adds Tern-701, a promising oral treatment for chronic myeloid leukemia, to Merck's hematology portfolio. Management believes Tern-701 possesses multi-billion dollar commercial potential and will be a significant growth driver in the coming decade.