Merck KGaA Operating Margin vs. Revenue
| MRK Stock | 139.95 2.10 1.52% |
For Merck KGaA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Merck KGaA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Merck KGaA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Merck KGaA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Merck KGaA over time as well as its relative position and ranking within its peers.
Merck |
Merck KGaA Revenue vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Merck KGaA's current stock value. Our valuation model uses many indicators to compare Merck KGaA value to that of its competitors to determine the firm's financial worth. Merck KGaA is regarded third in operating margin category among its peers. It is regarded second in revenue category among its peers totaling about 86,308,636,563 of Revenue per Operating Margin. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Merck KGaA's earnings, one of the primary drivers of an investment's value.Merck Revenue vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Merck KGaA |
| = | 0.23 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Merck KGaA |
| = | 19.69 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Merck Revenue vs Competition
Merck KGaA is regarded second in revenue category among its peers. Market size based on revenue of Drug Manufacturers-Specialty & Generic industry is now estimated at about 73.77 Billion. Merck KGaA totals roughly 19.69 Billion in revenue claiming about 27% of equities under Drug Manufacturers-Specialty & Generic industry.
Merck Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Merck KGaA. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Merck KGaA position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Merck KGaA's important profitability drivers and their relationship over time.
Use Merck KGaA in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Merck KGaA position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Merck KGaA will appreciate offsetting losses from the drop in the long position's value.Merck KGaA Pair Trading
Merck KGaA Pair Trading Analysis
The ability to find closely correlated positions to Merck KGaA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Merck KGaA when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Merck KGaA - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Merck KGaA to buy it.
The correlation of Merck KGaA is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Merck KGaA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Merck KGaA moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Merck KGaA can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Merck KGaA position
In addition to having Merck KGaA in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Consumer Funds Thematic Idea Now
Consumer Funds
Funds or Etfs that invest in consumer products such as packaged goods, clothing, food, beverages and retail services. The Consumer Funds theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Consumer Funds Theme or any other thematic opportunities.
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Additional Tools for Merck Stock Analysis
When running Merck KGaA's price analysis, check to measure Merck KGaA's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Merck KGaA is operating at the current time. Most of Merck KGaA's value examination focuses on studying past and present price action to predict the probability of Merck KGaA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Merck KGaA's price. Additionally, you may evaluate how the addition of Merck KGaA to your portfolios can decrease your overall portfolio volatility.