MRK - Embedded Expectations Analysis - 2020 02 20
ï€ Merck & Co, Inc. (MRK:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 17.0x Uniform P/E. Even at these levels, the market has somewhat bullish expectations for the firm, but management appears concerned about KEYTRUDA, pricing pressures, and their innovative treatment portfolioï€ Specifically, management may be concerned about the launch of KEYTRUDA in combination with chemotherapy, their investments into pipeline opportunities, and increased pricing pressure among mature products, particularly in China. Moreover, they may lack confidence in their ability to ramp-up GARDASIL supply, improve their portfolio of innovative treatments, and maintain the strength of their cash flow. Finally, they may be exaggerating the ability of their new development facility to develop breakthrough therapies that improve and extend lives, and they may be overstating the potential of new cell therapies to target solid tumors without damaging healthy tissue
Merck & Co. is a global health care company that delivers health solutions through its prescription medicines, vaccines, biologic therapies and animal health products. The company's segments are: Pharmaceutical, which includes human health pharmaceutical products that consist of therapeutic and preventive agents for the treatment of human disorders, and human health vaccine products that consist of preventive pediatric, adolescent and adult vaccines; and Animal Health, which discovers, develops, manufactures and markets veterinary pharmaceuticals, vaccines and health management solutions and services, as well as a suite of digitally connected identification, traceability and monitoring products.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.