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
Taking everything into account, 1MRKX scores 7 out of 10 in our fundamental rating. 1MRKX was compared to 55 industry peers in the Pharmaceuticals industry. 1MRKX scores excellent on profitability, but there are some minor concerns on its financial health. 1MRKX is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make 1MRKX suitable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year 1MRKX was profitable.
- 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
- With an excellent Return On Assets value of 14.69%, 1MRKX belongs to the best of the industry, outperforming 89.09% of the companies in the same industry.
- 1MRKX has a Return On Equity of 36.71%. This is amongst the best in the industry. 1MRKX outperforms 90.91% of its industry peers.
- 1MRKX's Return On Invested Capital of 12.83% is fine compared to the rest of the industry. 1MRKX outperforms 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 14.23%.
| 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
- The Profit Margin of 1MRKX (29.63%) is better than 92.73% 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 38.08%, 1MRKX belongs to the top of the industry, outperforming 90.91% 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 (78.72%) than 80.00% 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 | 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1MRKX is still creating some value.
- 1MRKX has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 1MRKX has less shares outstanding
- 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.
- The Altman-Z score of 1MRKX (4.09) is comparable to the rest of the 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.
- With a decent Debt to FCF ratio value of 3.17, 1MRKX is doing good in the industry, outperforming 70.91% of the companies in the same industry.
- A Debt/Equity ratio of 0.77 indicates that 1MRKX is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.77, 1MRKX perfoms like the industry average, 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.
- 1MRKX has a Current ratio of 1.66. This is in the better half of the industry: 1MRKX outperforms 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.
- 1MRKX's Quick ratio of 1.44 is fine compared to the rest of the industry. 1MRKX outperforms 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.
- 1MRKX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.04% yearly.
- 1MRKX shows a small growth in Revenue. In the last year, the Revenue has grown by 1.68%.
- 1MRKX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.40% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- 1MRKX is valuated reasonably with a Price/Earnings ratio of 11.92.
- Based on the Price/Earnings ratio, 1MRKX is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
- 1MRKX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
- With a Price/Forward Earnings ratio of 11.37, 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. 1MRKX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
- 78.18% of the companies in the same industry are more expensive than 1MRKX, based on the Enterprise Value to EBITDA ratio.
- 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 | 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.
- The excellent profitability rating of 1MRKX 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.
- 1MRKX's Dividend Yield is a higher than the industry average which is at 1.95.
- 1MRKX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
- The dividend of 1MRKX is nicely growing with an annual growth rate of 6.90%!
Dividend Growth(5Y)6.9%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 42.60% 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.
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%.