MERCK & CO. INC. (1MRKX.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1MRKX • US58933Y1055
90.2 EUR
-0.2 (-0.22%)
Last: Jan 26, 2026, 07:00 PM
1MRKX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 55 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on 1MRKX. These ratings could make 1MRKX a good candidate 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.
- 1MRKX had positive earnings in each of the past 5 years.
- 1MRKX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 14.69%, 1MRKX belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
- 1MRKX has a better Return On Equity (36.71%) than 90.91% of its industry peers.
- 1MRKX has a Return On Invested Capital of 12.83%. This is in the better half of the industry: 1MRKX outperforms 65.45% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1MRKX is in line with the industry average of 13.98%.
| 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
- Looking at the Profit Margin, with a value of 29.63%, 1MRKX belongs to the top of the industry, outperforming 92.73% of the companies in the same industry.
- 1MRKX's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 38.08%, 1MRKX belongs to the top 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.
- 1MRKX has a better Gross Margin (78.72%) 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.
- 1MRKX has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1MRKX has been reduced compared to 5 years ago.
- 1MRKX has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.09 indicates that 1MRKX is not in any danger for bankruptcy at the moment.
- With a Altman-Z score value of 4.09, 1MRKX perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
- 1MRKX has a debt to FCF ratio of 3.17. This is a good value and a sign of high solvency as 1MRKX would need 3.17 years to pay back of all of its debts.
- The Debt to FCF ratio of 1MRKX (3.17) is better than 70.91% of its industry peers.
- A Debt/Equity ratio of 0.77 indicates that 1MRKX is somewhat dependend on debt financing.
- The Debt to Equity ratio of 1MRKX (0.77) is comparable to the rest of the 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.
- The Current ratio of 1MRKX (1.66) is better than 67.27% of its industry peers.
- 1MRKX has a Quick Ratio of 1.44. This is a normal value and indicates that 1MRKX is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of 1MRKX (1.44) is better 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.
- Measured over the past years, 1MRKX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.04% on average per year.
- 1MRKX shows a small growth in Revenue. In the last year, the Revenue has grown by 1.68%.
- 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
- The Earnings Per Share is expected to grow by 6.65% on average over the next years.
- The Revenue is expected to grow by 2.64% on average over the next years.
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
- The Price/Earnings ratio is 11.92, which indicates a very decent valuation of 1MRKX.
- 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.
- When comparing the Price/Earnings ratio of 1MRKX to the average of the S&P500 Index (28.32), we can say 1MRKX is valued rather cheaply.
- 1MRKX is valuated reasonably with a Price/Forward Earnings ratio of 11.37.
- 1MRKX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1MRKX is cheaper than 78.18% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of 1MRKX to the average of the S&P500 Index (25.57), we can say 1MRKX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
- 1MRKX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1MRKX is cheaper than 78.18% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 1MRKX is valued a bit cheaper than 70.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.97 | ||
| 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%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.92, 1MRKX pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, 1MRKX pays a better dividend.
| 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.
- 1MRKX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP42.6%
EPS Next 2Y9.96%
EPS Next 3Y10.87%
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 11.92 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%.