MKKGY - Merck KGaA: Moving To A Hold As 2025 Targets Are Now Doubtful
2024-03-14 10:30:00 ET
Summary
- Merck KGaA's 2023 results were disappointing, with decreased revenue and EBITDA due to challenges in the Process Solutions and Semiconductor Solutions divisions.
- The company's net income and EPS also decreased in 2023, but adjusted earnings were higher.
- Merck's cash flows remained strong, with a net free cash flow that covers dividends and earnings per share. However, the company's 2024 guidance suggests continued FX headwinds.
Introduction
Merck KGaA ( OTCPK:MKGAF ) is the "original" of the two Merck companies. Established as a pharmacy in 1668 in Darmstadt , the company has since grown to be one of Europe’s dominant companies in the healthcare and life sciences industry with exposure to the semiconductor space. The company had a plan to generate 25B EUR in revenue by 2025, which was the main reason why I rated the company a ‘buy’ in my previous article, but given the mildly disappointing guidance for 2024, I don’t really expect the company to reach its previous targets for 2025....
Merck KGaA: Moving To A Hold As 2025 Targets Are Now Doubtful