Merck KGaA shares are locked into a trading range. This phase will eventually have to end with a return of a clear trend. Investors have an opportunity to buy the stock and target the € 180.
Summary
According to Refinitiv, the company's ESG score for its industry is good.
Merck KGaA accounts for 4.85 % of our European Portfolio. A trade is currently open since 12/13/2022 with a purchase price of € 182.16. Discover the other 19 stocks of the European portfolio managed by the MarketScreener portfolio management team.
Strengths
The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
The company returns high margins, thereby supporting business profitability.
Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
The opinion of analysts covering the stock has improved over the past four months.
Consensus analysts have strongly revised their opinion of the company over the past 12 months.
There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
Weaknesses
With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
With an enterprise value anticipated at 3.57 times the sales for the current fiscal year, the company turns out to be overvalued.
The company is not the most generous with respect to shareholders' compensation.
For the last few months, analysts have been revising downwards their earnings forecast.
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