MERCK & CO. INC. (1MRKX.MI) Fundamental Analysis & Valuation

BIT:1MRKX • US58933Y1055

Current stock price

99.5 EUR
-3.7 (-3.59%)
Last:

This 1MRKX.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. 1MRKX.MI Profitability Analysis

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.
  • Each year in the past 5 years 1MRKX had a positive operating cash flow.
1MRKX.MI Yearly Net Income VS EBIT VS OCF VS FCF1MRKX.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

1.2 Ratios

  • The Return On Assets of 1MRKX (13.34%) is better than 84.62% of its industry peers.
  • 1MRKX has a better Return On Equity (34.70%) than 80.77% of its industry peers.
  • 1MRKX has a better Return On Invested Capital (19.70%) than 78.85% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for 1MRKX is significantly above the industry average of 14.61%.
Industry RankSector Rank
ROA 13.34%
ROE 34.7%
ROIC 19.7%
ROA(3y)9.43%
ROA(5y)10.79%
ROE(3y)24.21%
ROE(5y)27.67%
ROIC(3y)22.5%
ROIC(5y)20.92%
1MRKX.MI Yearly ROA, ROE, ROIC1MRKX.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • 1MRKX's Profit Margin of 28.08% is amongst the best of the industry. 1MRKX outperforms 86.54% of its industry peers.
  • In the last couple of years the Profit Margin of 1MRKX has grown nicely.
  • 1MRKX has a Operating Margin of 38.11%. This is amongst the best in the industry. 1MRKX outperforms 88.46% of its industry peers.
  • In the last couple of years the Operating Margin of 1MRKX has grown nicely.
  • The Gross Margin of 1MRKX (78.55%) is better than 80.77% of its industry peers.
  • In the last couple of years the Gross Margin of 1MRKX has grown nicely.
Industry RankSector Rank
OM 38.11%
PM (TTM) 28.08%
GM 78.55%
OM growth 3Y6.33%
OM growth 5Y9.38%
PM growth 3Y4.66%
PM growth 5Y10.53%
GM growth 3Y4.72%
GM growth 5Y2.48%
1MRKX.MI Yearly Profit, Operating, Gross Margins1MRKX.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. 1MRKX.MI Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1MRKX is creating value.
  • The number of shares outstanding for 1MRKX has been reduced compared to 1 year ago.
  • 1MRKX has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, 1MRKX has a worse debt to assets ratio.
1MRKX.MI Yearly Shares Outstanding1MRKX.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
1MRKX.MI Yearly Total Debt VS Total Assets1MRKX.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • 1MRKX has an Altman-Z score of 4.03. This indicates that 1MRKX is financially healthy and has little risk of bankruptcy at the moment.
  • 1MRKX has a Altman-Z score of 4.03. This is comparable to the rest of the industry: 1MRKX outperforms 59.62% of its industry peers.
  • The Debt to FCF ratio of 1MRKX is 3.99, which is a good value as it means it would take 1MRKX, 3.99 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of 1MRKX (3.99) is comparable to the rest of the industry.
  • 1MRKX has a Debt/Equity ratio of 0.89. This is a neutral value indicating 1MRKX is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.89, 1MRKX is doing worse than 65.38% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 3.99
Altman-Z 4.03
ROIC/WACC2.12
WACC9.28%
1MRKX.MI Yearly LT Debt VS Equity VS FCF1MRKX.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.3 Liquidity

  • A Current Ratio of 1.54 indicates that 1MRKX should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.54, 1MRKX perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
  • A Quick Ratio of 1.30 indicates that 1MRKX should not have too much problems paying its short term obligations.
  • 1MRKX has a better Quick ratio (1.30) than 71.15% of its industry peers.
Industry RankSector Rank
Current Ratio 1.54
Quick Ratio 1.3
1MRKX.MI Yearly Current Assets VS Current Liabilites1MRKX.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. 1MRKX.MI Growth Analysis

3.1 Past

  • 1MRKX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.16%, which is quite impressive.
  • The Earnings Per Share has been growing by 9.13% on average over the past years. This is quite good.
  • 1MRKX shows a small growth in Revenue. In the last year, the Revenue has grown by 1.31%.
  • Measured over the past years, 1MRKX shows a quite strong growth in Revenue. The Revenue has been growing by 9.38% on average per year.
EPS 1Y (TTM)20.16%
EPS 3Y7.06%
EPS 5Y9.13%
EPS Q2Q%21.51%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y3.12%
Revenue growth 5Y9.38%
Sales Q2Q%4.97%

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 2.29% on average per year.
  • 1MRKX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.66% yearly.
EPS Next Y-43.62%
EPS Next 2Y3.58%
EPS Next 3Y6.11%
EPS Next 5Y2.29%
Revenue Next Year3.06%
Revenue Next 2Y4.26%
Revenue Next 3Y5.09%
Revenue Next 5Y2.66%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
1MRKX.MI Yearly Revenue VS Estimates1MRKX.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B
1MRKX.MI Yearly EPS VS Estimates1MRKX.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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4

4. 1MRKX.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 12.53, the valuation of 1MRKX can be described as correct.
  • Based on the Price/Earnings ratio, 1MRKX is valued a bit cheaper than 71.15% of the companies in the same industry.
  • 1MRKX is valuated cheaply when we compare the Price/Earnings ratio to 25.61, which is the current average of the S&P500 Index.
  • 1MRKX is valuated rather expensively with a Price/Forward Earnings ratio of 22.22.
  • 1MRKX's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, 1MRKX is valued at the same level.
Industry RankSector Rank
PE 12.53
Fwd PE 22.22
1MRKX.MI Price Earnings VS Forward Price Earnings1MRKX.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 1MRKX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1MRKX is cheaper than 69.23% of the companies in the same industry.
  • 1MRKX's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 23
EV/EBITDA 10.66
1MRKX.MI Per share data1MRKX.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • The excellent profitability rating of 1MRKX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.37
EPS Next 2Y3.58%
EPS Next 3Y6.11%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. 1MRKX.MI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.98%, 1MRKX has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.90, 1MRKX pays a bit more dividend than its industry peers.
  • 1MRKX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.98%

5.2 History

  • The dividend of 1MRKX has a limited annual growth rate of 5.92%.
Dividend Growth(5Y)5.92%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

  • 1MRKX pays out 44.79% 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.
DP44.79%
EPS Next 2Y3.58%
EPS Next 3Y6.11%
1MRKX.MI Yearly Income VS Free CF VS Dividend1MRKX.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B
1MRKX.MI Dividend Payout.1MRKX.MI Dividend Payout, showing the Payout Ratio.1MRKX.MI Dividend Payout.PayoutRetained Earnings

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1MRKX.MI Fundamentals: All Metrics, Ratios and Statistics

MERCK & CO. INC.

BIT:1MRKX (3/23/2026, 7:00:00 PM)

99.5

-3.7 (-3.59%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-03
Earnings (Next)04-30
Inst Owners81.17%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap246.00B
Revenue(TTM)65.01B
Net Income(TTM)18.25B
Analysts77.78
Price Target108.2 (8.74%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.98%
Yearly Dividend2.83
Dividend Growth(5Y)5.92%
DP44.79%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.02%
Min EPS beat(2)2.98%
Max EPS beat(2)13.06%
EPS beat(4)4
Avg EPS beat(4)6.66%
Min EPS beat(4)2.93%
Max EPS beat(4)13.06%
EPS beat(8)8
Avg EPS beat(8)6.19%
EPS beat(12)12
Avg EPS beat(12)16.34%
EPS beat(16)16
Avg EPS beat(16)14.5%
Revenue beat(2)2
Avg Revenue beat(2)0.57%
Min Revenue beat(2)0.31%
Max Revenue beat(2)0.83%
Revenue beat(4)3
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)0.83%
Revenue beat(8)6
Avg Revenue beat(8)0.46%
Revenue beat(12)9
Avg Revenue beat(12)1.15%
Revenue beat(16)13
Avg Revenue beat(16)1.9%
PT rev (1m)8.53%
PT rev (3m)17.91%
EPS NQ rev (1m)10.02%
EPS NQ rev (3m)-162.26%
EPS NY rev (1m)-4.35%
EPS NY rev (3m)-45.49%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)-1.22%
Revenue NY rev (3m)-1.8%
Valuation
Industry RankSector Rank
PE 12.53
Fwd PE 22.22
P/S 4.37
P/FCF 23
P/OCF 17.26
P/B 5.4
P/tB 65.41
EV/EBITDA 10.66
EPS(TTM)7.94
EY7.98%
EPS(NY)4.48
Fwd EY4.5%
FCF(TTM)4.33
FCFY4.35%
OCF(TTM)5.77
OCFY5.79%
SpS22.76
BVpS18.41
TBVpS1.52
PEG (NY)N/A
PEG (5Y)1.37
Graham Number57.36
Profitability
Industry RankSector Rank
ROA 13.34%
ROE 34.7%
ROCE 22.83%
ROIC 19.7%
ROICexc 22.75%
ROICexgc 46.78%
OM 38.11%
PM (TTM) 28.08%
GM 78.55%
FCFM 19.01%
ROA(3y)9.43%
ROA(5y)10.79%
ROE(3y)24.21%
ROE(5y)27.67%
ROIC(3y)22.5%
ROIC(5y)20.92%
ROICexc(3y)25.76%
ROICexc(5y)23.99%
ROICexgc(3y)53.32%
ROICexgc(5y)52.7%
ROCE(3y)26.06%
ROCE(5y)24.23%
ROICexgc growth 3Y-4.44%
ROICexgc growth 5Y2.75%
ROICexc growth 3Y0.21%
ROICexc growth 5Y7.95%
OM growth 3Y6.33%
OM growth 5Y9.38%
PM growth 3Y4.66%
PM growth 5Y10.53%
GM growth 3Y4.72%
GM growth 5Y2.48%
F-Score5
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 3.99
Debt/EBITDA 1.53
Cap/Depr 70.44%
Cap/Sales 6.33%
Interest Coverage 19.06
Cash Conversion 53.81%
Profit Quality 67.71%
Current Ratio 1.54
Quick Ratio 1.3
Altman-Z 4.03
F-Score5
WACC9.28%
ROIC/WACC2.12
Cap/Depr(3y)81.72%
Cap/Depr(5y)99.16%
Cap/Sales(3y)6%
Cap/Sales(5y)6.91%
Profit Quality(3y)892.79%
Profit Quality(5y)570.74%
High Growth Momentum
Growth
EPS 1Y (TTM)20.16%
EPS 3Y7.06%
EPS 5Y9.13%
EPS Q2Q%21.51%
EPS Next Y-43.62%
EPS Next 2Y3.58%
EPS Next 3Y6.11%
EPS Next 5Y2.29%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y3.12%
Revenue growth 5Y9.38%
Sales Q2Q%4.97%
Revenue Next Year3.06%
Revenue Next 2Y4.26%
Revenue Next 3Y5.09%
Revenue Next 5Y2.66%
EBIT growth 1Y1.98%
EBIT growth 3Y9.65%
EBIT growth 5Y19.64%
EBIT Next Year-19.93%
EBIT Next 3Y10.24%
EBIT Next 5Y4.83%
FCF growth 1Y-31.7%
FCF growth 3Y-5.63%
FCF growth 5Y16.24%
OCF growth 1Y-23.27%
OCF growth 3Y-4.81%
OCF growth 5Y9.95%

MERCK & CO. INC. / 1MRKX.MI Fundamental Analysis FAQ

What is the ChartMill fundamental rating of MERCK & CO. INC. (1MRKX.MI) stock?

ChartMill assigns a fundamental rating of 6 / 10 to 1MRKX.MI.


Can you provide the valuation status for MERCK & CO. INC.?

ChartMill assigns a valuation rating of 4 / 10 to MERCK & CO. INC. (1MRKX.MI). This can be considered as Fairly Valued.


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 12.53 and the Price/Book (PB) ratio is 5.4.


Is the dividend of MERCK & CO. INC. sustainable?

The dividend rating of MERCK & CO. INC. (1MRKX.MI) is 5 / 10 and the dividend payout ratio is 44.79%.