MERCK & CO. INC. (1MRKX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MRKX - US58933Y1055 - Common Stock
90.3 EUR
-0.1 (-0.11%)
Taking everything into account, 1MRKX scores 7 out of 10 in our fundamental rating. 1MRKX was compared to 54 industry peers in the Pharmaceuticals industry. While 1MRKX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1MRKX may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, 1MRKX could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- 1MRKX had positive earnings in the past year.
- 1MRKX had a positive operating cash flow in the past year.
- Each year in the past 5 years 1MRKX has been profitable.
- In the past 5 years 1MRKX always reported a positive cash flow from operatings.
1.2 Ratios
- 1MRKX's Return On Assets of 14.69% is amongst the best of the industry. 1MRKX outperforms 89.09% of its industry peers.
- Looking at the Return On Equity, with a value of 36.71%, 1MRKX belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- 1MRKX has a better Return On Invested Capital (12.83%) than 65.45% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1MRKX is in line with the industry average of 13.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.69% | ||
| ROE | 36.71% | ||
| ROIC | 12.83% |
ROA(3y)9.42%
ROA(5y)9.66%
ROE(3y)23.17%
ROE(5y)26.32%
ROIC(3y)13.67%
ROIC(5y)12.02%
1.3 Margins
- With an excellent Profit Margin value of 29.63%, 1MRKX belongs to the best of the industry, outperforming 92.73% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1MRKX has remained more or less at the same level.
- With an excellent Operating Margin value of 38.08%, 1MRKX belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- 1MRKX's Operating Margin has improved in the last couple of years.
- The Gross Margin of 1MRKX (78.72%) is better than 80.00% of its industry peers.
- 1MRKX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.08% | ||
| PM (TTM) | 29.63% | ||
| GM | 78.72% |
OM growth 3Y5.75%
OM growth 5Y7.99%
PM growth 3Y-0.15%
PM growth 5Y1.18%
GM growth 3Y1.92%
GM growth 5Y1.45%
2. Health
2.1 Basic Checks
- 1MRKX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, 1MRKX has about the same amount of shares outstanding.
- 1MRKX has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for 1MRKX has been reduced compared to a year ago.
2.2 Solvency
- 1MRKX has an Altman-Z score of 4.09. This indicates that 1MRKX is financially healthy and has little risk of bankruptcy at the moment.
- 1MRKX has a Altman-Z score (4.09) which is comparable to the rest of the industry.
- The Debt to FCF ratio of 1MRKX is 3.17, which is a good value as it means it would take 1MRKX, 3.17 years of fcf income to pay off all of its debts.
- 1MRKX has a Debt to FCF ratio of 3.17. This is in the better half of the industry: 1MRKX outperforms 70.91% of its industry peers.
- A Debt/Equity ratio of 0.77 indicates that 1MRKX is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.77, 1MRKX is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 4.09 |
ROIC/WACC1.46
WACC8.79%
2.3 Liquidity
- A Current Ratio of 1.66 indicates that 1MRKX should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.66, 1MRKX is in the better half of the industry, outperforming 67.27% of the companies in the same industry.
- A Quick Ratio of 1.44 indicates that 1MRKX should not have too much problems paying its short term obligations.
- 1MRKX has a better Quick ratio (1.44) than 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 48.07% over the past year.
- The Earnings Per Share has been growing by 8.04% on average over the past years. This is quite good.
- Looking at the last year, 1MRKX shows a small growth in Revenue. The Revenue has grown by 1.68% in the last year.
- Measured over the past years, 1MRKX shows a quite strong growth in Revenue. The Revenue has been growing by 10.40% on average per year.
EPS 1Y (TTM)48.07%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%70.7%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%3.72%
3.2 Future
- Based on estimates for the next years, 1MRKX will show a small growth in Earnings Per Share. The EPS will grow by 6.65% on average per year.
- 1MRKX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.64% yearly.
EPS Next Y18.62%
EPS Next 2Y9.96%
EPS Next 3Y10.87%
EPS Next 5Y6.65%
Revenue Next Year1.24%
Revenue Next 2Y3.07%
Revenue Next 3Y3.84%
Revenue Next 5Y2.64%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- 1MRKX is valuated reasonably with a Price/Earnings ratio of 11.93.
- Compared to the rest of the industry, the Price/Earnings ratio of 1MRKX indicates a rather cheap valuation: 1MRKX is cheaper than 81.82% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.38. 1MRKX is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 11.38, the valuation of 1MRKX can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, 1MRKX is valued a bit cheaper than the industry average as 78.18% of the companies are valued more expensively.
- 1MRKX is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1MRKX is valued a bit cheaper than 78.18% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MRKX indicates a somewhat cheap valuation: 1MRKX is cheaper than 70.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20 | ||
| EV/EBITDA | 9.79 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 1MRKX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.64
PEG (5Y)1.48
EPS Next 2Y9.96%
EPS Next 3Y10.87%
5. Dividend
5.1 Amount
- 1MRKX has a Yearly Dividend Yield of 3.06%.
- 1MRKX's Dividend Yield is a higher than the industry average which is at 1.59.
- 1MRKX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
- On average, the dividend of 1MRKX grows each year by 6.90%, which is quite nice.
Dividend Growth(5Y)6.9%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1MRKX pays out 42.60% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of 1MRKX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.6%
EPS Next 2Y9.96%
EPS Next 3Y10.87%
BIT:1MRKX (1/2/2026, 7:00:00 PM)
90.3
-0.1 (-0.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-03 2026-02-03/amc
Inst Owners80.32%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap224.13B
Revenue(TTM)64.23B
Net Income(TTM)19.03B
Analysts77.06
Price Target92.26 (2.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend2.66
Dividend Growth(5Y)6.9%
DP42.6%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.37%
Min EPS beat(2)7.69%
Max EPS beat(2)13.06%
EPS beat(4)4
Avg EPS beat(4)7.28%
Min EPS beat(4)2.93%
Max EPS beat(4)13.06%
EPS beat(8)8
Avg EPS beat(8)21.72%
EPS beat(12)12
Avg EPS beat(12)16.45%
EPS beat(16)16
Avg EPS beat(16)15.36%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.83%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)0.83%
Revenue beat(8)5
Avg Revenue beat(8)0.41%
Revenue beat(12)9
Avg Revenue beat(12)1.14%
Revenue beat(16)13
Avg Revenue beat(16)1.98%
PT rev (1m)0.54%
PT rev (3m)6.42%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-6.86%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 11.38 | ||
| P/S | 4.06 | ||
| P/FCF | 20 | ||
| P/OCF | 15.29 | ||
| P/B | 5.03 | ||
| P/tB | 17.45 | ||
| EV/EBITDA | 9.79 |
EPS(TTM)7.57
EY8.38%
EPS(NY)7.93
Fwd EY8.79%
FCF(TTM)4.52
FCFY5%
OCF(TTM)5.91
OCFY6.54%
SpS22.23
BVpS17.94
TBVpS5.17
PEG (NY)0.64
PEG (5Y)1.48
Graham Number55.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.69% | ||
| ROE | 36.71% | ||
| ROCE | 24.24% | ||
| ROIC | 12.83% | ||
| ROICexc | 15.66% | ||
| ROICexgc | 28.27% | ||
| OM | 38.08% | ||
| PM (TTM) | 29.63% | ||
| GM | 78.72% | ||
| FCFM | 20.31% |
ROA(3y)9.42%
ROA(5y)9.66%
ROE(3y)23.17%
ROE(5y)26.32%
ROIC(3y)13.67%
ROIC(5y)12.02%
ROICexc(3y)15.77%
ROICexc(5y)13.76%
ROICexgc(3y)34.22%
ROICexgc(5y)31.54%
ROCE(3y)25.81%
ROCE(5y)22.7%
ROICexgc growth 3Y7.57%
ROICexgc growth 5Y3.37%
ROICexc growth 3Y15.27%
ROICexc growth 5Y10.69%
OM growth 3Y5.75%
OM growth 5Y7.99%
PM growth 3Y-0.15%
PM growth 5Y1.18%
GM growth 3Y1.92%
GM growth 5Y1.45%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 87.9% | ||
| Cap/Sales | 6.25% | ||
| Interest Coverage | 18.43 | ||
| Cash Conversion | 58.79% | ||
| Profit Quality | 68.56% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 4.09 |
F-Score6
WACC8.79%
ROIC/WACC1.46
Cap/Depr(3y)95.66%
Cap/Depr(5y)110.48%
Cap/Sales(3y)6.36%
Cap/Sales(5y)7.78%
Profit Quality(3y)903.98%
Profit Quality(5y)573.68%
High Growth Momentum
Growth
EPS 1Y (TTM)48.07%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%70.7%
EPS Next Y18.62%
EPS Next 2Y9.96%
EPS Next 3Y10.87%
EPS Next 5Y6.65%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%3.72%
Revenue Next Year1.24%
Revenue Next 2Y3.07%
Revenue Next 3Y3.84%
Revenue Next 5Y2.64%
EBIT growth 1Y2.78%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year28.15%
EBIT Next 3Y13.73%
EBIT Next 5Y11.96%
FCF growth 1Y-0.9%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y-0.73%
OCF growth 3Y15.02%
OCF growth 5Y9.82%
MERCK & CO. INC. / 1MRKX.MI FAQ
What is the ChartMill fundamental rating of MERCK & CO. INC. (1MRKX.MI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1MRKX.MI.
Can you provide the valuation status for MERCK & CO. INC.?
ChartMill assigns a valuation rating of 8 / 10 to MERCK & CO. INC. (1MRKX.MI). This can be considered as Undervalued.
What is the profitability of 1MRKX stock?
MERCK & CO. INC. (1MRKX.MI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of MERCK & CO. INC. (1MRKX.MI) stock?
The Price/Earnings (PE) ratio for MERCK & CO. INC. (1MRKX.MI) is 11.93 and the Price/Book (PB) ratio is 5.03.
Is the dividend of MERCK & CO. INC. sustainable?
The dividend rating of MERCK & CO. INC. (1MRKX.MI) is 6 / 10 and the dividend payout ratio is 42.6%.