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

BIT:1MRKX • US58933Y1055

Current stock price

99.5 EUR
-2.5 (-2.45%)
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

  • In the past year 1MRKX was profitable.
  • In the past year 1MRKX had a positive cash flow from operations.
  • In the past 5 years 1MRKX has always been profitable.
  • In the past 5 years 1MRKX always reported a positive cash flow from operatings.
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

  • Looking at the Return On Assets, with a value of 13.34%, 1MRKX belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.
  • 1MRKX has a Return On Equity of 34.70%. This is amongst the best in the industry. 1MRKX outperforms 80.77% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 19.70%, 1MRKX is in the better half of the industry, outperforming 78.85% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for 1MRKX is significantly above the industry average of 17.40%.
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

  • Looking at the Profit Margin, with a value of 28.08%, 1MRKX belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
  • 1MRKX's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 38.11%, 1MRKX belongs to the best of the industry, outperforming 88.46% 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 (78.55%) than 82.69% 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

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1MRKX is creating value.
  • Compared to 1 year ago, 1MRKX has less shares outstanding
  • Compared to 5 years ago, 1MRKX has less shares outstanding
  • 1MRKX has a worse debt/assets ratio than last year.
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 3.97. This indicates that 1MRKX is financially healthy and has little risk of bankruptcy at the moment.
  • 1MRKX has a Altman-Z score (3.97) which is in line with 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.
  • Looking at the Debt to FCF ratio, with a value of 3.99, 1MRKX is in line with its industry, outperforming 53.85% of the companies in the same industry.
  • A Debt/Equity ratio of 0.89 indicates that 1MRKX is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.89, 1MRKX is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 3.99
Altman-Z 3.97
ROIC/WACC2.18
WACC9.03%
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

  • 1MRKX has a Current Ratio of 1.54. This is a normal value and indicates that 1MRKX is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of 1MRKX (1.54) is better than 63.46% of its industry peers.
  • A Quick Ratio of 1.30 indicates that 1MRKX should not have too much problems paying its short term obligations.
  • With a decent Quick ratio value of 1.30, 1MRKX is doing good in the industry, outperforming 73.08% of the companies in the same industry.
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

  • The Earnings Per Share has grown by an impressive 20.16% 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 9.13% on average per year.
  • 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 2Y4.23%
Revenue Next 3Y5.13%
Revenue Next 5Y2.66%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • 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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Find the best growth stocksShow best growing peers

4

4. 1MRKX.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • 1MRKX is valuated correctly with a Price/Earnings ratio of 12.48.
  • 78.85% of the companies in the same industry are more expensive than 1MRKX, based on the Price/Earnings ratio.
  • 1MRKX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.21.
  • The Price/Forward Earnings ratio is 22.16, which indicates a rather expensive current valuation of 1MRKX.
  • The rest of the industry has a similar Price/Forward Earnings ratio as 1MRKX.
  • When comparing the Price/Forward Earnings ratio of 1MRKX to the average of the S&P500 Index (23.10), we can say 1MRKX is valued inline with the index average.
Industry RankSector Rank
PE 12.48
Fwd PE 22.16
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

  • 75.00% of the companies in the same industry are more expensive than 1MRKX, based on the Enterprise Value to EBITDA ratio.
  • 1MRKX's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 22.94
EV/EBITDA 10.4
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

  • 1MRKX has an outstanding profitability rating, which 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

  • 1MRKX has a Yearly Dividend Yield of 2.84%.
  • Compared to an average industry Dividend Yield of 1.94, 1MRKX pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, 1MRKX pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.84%

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

  • 44.79% of the earnings are spent on dividend by 1MRKX. 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.
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

-2.5 (-2.45%)

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
Analysts78.29
Price Target108.2 (8.74%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.84%
Yearly Dividend2.84
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)11.77%
EPS NQ rev (3m)-161.05%
EPS NY rev (1m)-4.35%
EPS NY rev (3m)-45.49%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)-1.23%
Revenue NY rev (3m)-1.8%
Valuation
Industry RankSector Rank
PE 12.48
Fwd PE 22.16
P/S 4.36
P/FCF 22.94
P/OCF 17.21
P/B 5.39
P/tB 65.24
EV/EBITDA 10.4
EPS(TTM)7.97
EY8.01%
EPS(NY)4.49
Fwd EY4.51%
FCF(TTM)4.34
FCFY4.36%
OCF(TTM)5.78
OCFY5.81%
SpS22.82
BVpS18.46
TBVpS1.53
PEG (NY)N/A
PEG (5Y)1.37
Graham Number57.54
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 3.97
F-Score5
WACC9.03%
ROIC/WACC2.18
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 2Y4.23%
Revenue Next 3Y5.13%
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.


How profitable is MERCK & CO. INC. (1MRKX.MI) stock?

MERCK & CO. INC. (1MRKX.MI) has a profitability rating of 9 / 10.


Can you provide the financial health for 1MRKX stock?

The financial health rating of MERCK & CO. INC. (1MRKX.MI) is 5 / 10.


Can you provide the dividend sustainability for 1MRKX stock?

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