MERCK & CO. INC. (1MRKX.MI) Stock Fundamental Analysis
Europe - BIT:1MRKX - US58933Y1055 - Common Stock
75.2 EUR
+3.3 (+4.59%)
Taking everything into account, 1MRKX scores 7 out of 10 in our fundamental rating. 1MRKX was compared to 53 industry peers in the Pharmaceuticals industry. 1MRKX gets an excellent profitability rating and is at the same time showing great financial health properties. 1MRKX is valued quite cheap, while showing a decent growth score. This is a good combination! 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 has a better Return On Assets (13.96%) than 88.68% of its industry peers.
1MRKX has a better Return On Equity (33.49%) than 88.68% of its industry peers.
1MRKX's Return On Invested Capital of 13.81% is fine compared to the rest of the industry. 1MRKX outperforms 66.04% of its industry peers.
1MRKX had an Average Return On Invested Capital over the past 3 years of 13.67%. This is in line with the industry average of 14.46%.
The last Return On Invested Capital (13.81%) for 1MRKX is above the 3 year average (13.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 33.49% | ||
| ROIC | 13.81% |
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
1MRKX has a better Profit Margin (25.79%) than 86.79% of its industry peers.
1MRKX's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 37.52%, 1MRKX belongs to the top of the industry, outperforming 90.57% of the companies in the same industry.
In the last couple of years the Operating Margin of 1MRKX has grown nicely.
1MRKX has a better Gross Margin (78.32%) than 79.25% of its industry peers.
In the last couple of years the Gross Margin of 1MRKX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.52% | ||
| PM (TTM) | 25.79% | ||
| GM | 78.32% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1MRKX is creating some value.
The number of shares outstanding for 1MRKX remains at a similar level compared to 1 year ago.
1MRKX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1MRKX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.04 indicates that 1MRKX is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1MRKX (4.04) is better than 60.38% of its industry peers.
The Debt to FCF ratio of 1MRKX is 2.40, which is a good value as it means it would take 1MRKX, 2.40 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.40, 1MRKX is doing good in the industry, outperforming 73.58% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that 1MRKX is somewhat dependend on debt financing.
1MRKX has a Debt to Equity ratio (0.69) which is in line with its industry peers.
Even though the debt/equity ratio score it not favorable for 1MRKX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 4.04 |
ROIC/WACC1.69
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.42 indicates that 1MRKX should not have too much problems paying its short term obligations.
1MRKX has a Current ratio (1.42) which is comparable to the rest of the industry.
1MRKX has a Quick Ratio of 1.17. This is a normal value and indicates that 1MRKX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.17, 1MRKX is in the better half of the industry, outperforming 69.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
1MRKX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.28%, which is quite good.
1MRKX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.04% yearly.
Looking at the last year, 1MRKX shows a small growth in Revenue. The Revenue has grown by 1.82% in the last year.
The Revenue has been growing by 10.40% on average over the past years. This is quite good.
EPS 1Y (TTM)18.28%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%-3.95%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.9%
3.2 Future
The Earnings Per Share is expected to grow by 5.58% on average over the next years.
The Revenue is expected to grow by 1.93% on average over the next years.
EPS Next Y17.76%
EPS Next 2Y12.25%
EPS Next 3Y11.69%
EPS Next 5Y5.58%
Revenue Next Year1.02%
Revenue Next 2Y3.04%
Revenue Next 3Y3.96%
Revenue Next 5Y1.93%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 11.29, the valuation of 1MRKX can be described as reasonable.
1MRKX's Price/Earnings ratio is rather cheap when compared to the industry. 1MRKX is cheaper than 84.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1MRKX to the average of the S&P500 Index (26.11), we can say 1MRKX is valued rather cheaply.
1MRKX is valuated reasonably with a Price/Forward Earnings ratio of 9.03.
Based on the Price/Forward Earnings ratio, 1MRKX is valued cheaply inside the industry as 84.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, 1MRKX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.29 | ||
| Fwd PE | 9.03 |
4.2 Price Multiples
81.13% of the companies in the same industry are more expensive than 1MRKX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1MRKX is valued a bit cheaper than the industry average as 69.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.74 | ||
| EV/EBITDA | 8.54 |
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.
The excellent profitability rating of 1MRKX may justify a higher PE ratio.
PEG (NY)0.64
PEG (5Y)1.4
EPS Next 2Y12.25%
EPS Next 3Y11.69%
5. Dividend
5.1 Amount
1MRKX has a Yearly Dividend Yield of 3.72%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.99, 1MRKX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, 1MRKX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
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 48.95% 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.
DP48.95%
EPS Next 2Y12.25%
EPS Next 3Y11.69%
BIT:1MRKX (10/27/2025, 7:00:00 PM)
75.2
+3.3 (+4.59%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.53%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap187.83B
Revenue(TTM)63.62B
Net Income(TTM)16.41B
Analysts75.76
Price Target86.69 (15.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
Yearly Dividend2.67
Dividend Growth(5Y)6.9%
DP48.95%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.31%
Min EPS beat(2)2.93%
Max EPS beat(2)7.69%
EPS beat(4)4
Avg EPS beat(4)4.85%
Min EPS beat(4)2.93%
Max EPS beat(4)7.69%
EPS beat(8)8
Avg EPS beat(8)21.1%
EPS beat(12)12
Avg EPS beat(12)15.97%
EPS beat(16)16
Avg EPS beat(16)15.3%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.25%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)0.45%
Revenue beat(8)5
Avg Revenue beat(8)0.7%
Revenue beat(12)9
Avg Revenue beat(12)1.51%
Revenue beat(16)13
Avg Revenue beat(16)2.28%
PT rev (1m)-0.49%
PT rev (3m)-5.8%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-4.13%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.29 | ||
| Fwd PE | 9.03 | ||
| P/S | 3.41 | ||
| P/FCF | 14.74 | ||
| P/OCF | 11.71 | ||
| P/B | 4.43 | ||
| P/tB | 17.78 | ||
| EV/EBITDA | 8.54 |
EPS(TTM)6.66
EY8.86%
EPS(NY)8.33
Fwd EY11.08%
FCF(TTM)5.1
FCFY6.78%
OCF(TTM)6.42
OCFY8.54%
SpS22.04
BVpS16.98
TBVpS4.23
PEG (NY)0.64
PEG (5Y)1.4
Graham Number50.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 33.49% | ||
| ROCE | 26.09% | ||
| ROIC | 13.81% | ||
| ROICexc | 15.25% | ||
| ROICexgc | 27.43% | ||
| OM | 37.52% | ||
| PM (TTM) | 25.79% | ||
| GM | 78.32% | ||
| FCFM | 23.14% |
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-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 82.85% | ||
| Cap/Sales | 5.99% | ||
| Interest Coverage | 17.88 | ||
| Cash Conversion | 65.1% | ||
| Profit Quality | 89.74% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 4.04 |
F-Score7
WACC8.16%
ROIC/WACC1.69
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)18.28%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%-3.95%
EPS Next Y17.76%
EPS Next 2Y12.25%
EPS Next 3Y11.69%
EPS Next 5Y5.58%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.9%
Revenue Next Year1.02%
Revenue Next 2Y3.04%
Revenue Next 3Y3.96%
Revenue Next 5Y1.93%
EBIT growth 1Y1.85%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year29.99%
EBIT Next 3Y15.06%
EBIT Next 5Y9.07%
FCF growth 1Y35.96%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y22.95%
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.
What is the valuation status of MERCK & CO. INC. (1MRKX.MI) stock?
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.
Can you provide the PE and PB ratios for 1MRKX stock?
The Price/Earnings (PE) ratio for MERCK & CO. INC. (1MRKX.MI) is 11.29 and the Price/Book (PB) ratio is 4.43.
What is the financial health of MERCK & CO. INC. (1MRKX.MI) stock?
The financial health rating of MERCK & CO. INC. (1MRKX.MI) is 7 / 10.