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

  • 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

  • 1MRKX has a Return On Assets of 13.34%. This is amongst the best in the industry. 1MRKX outperforms 82.69% of its industry peers.
  • 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.
  • 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 above the industry average of 17.75%.
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.
  • 1MRKX has a better Operating Margin (38.11%) than 88.46% of its industry peers.
  • In the last couple of years the Operating Margin of 1MRKX has grown nicely.
  • 1MRKX has a better Gross Margin (78.55%) than 82.69% of its industry peers.
  • 1MRKX's Gross Margin has improved in the last couple of years.
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.
  • 1MRKX has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for 1MRKX has been reduced compared to 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 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.
  • 1MRKX has a debt to FCF ratio of 3.99. This is a good value and a sign of high solvency as 1MRKX would need 3.99 years to pay back of all of its debts.
  • 1MRKX has a Debt to FCF ratio (3.99) which is in line with its industry peers.
  • A Debt/Equity ratio of 0.89 indicates that 1MRKX is somewhat dependend on debt financing.
  • 1MRKX's Debt to Equity ratio of 0.89 is on the low side compared to the rest of the industry. 1MRKX is outperformed by 61.54% of its industry peers.
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

  • A Current Ratio of 1.54 indicates that 1MRKX should not have too much problems paying 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.
  • 1MRKX has a better Quick ratio (1.30) than 73.08% 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.
  • 1MRKX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.13% yearly.
  • The Revenue has been growing slightly by 1.31% in the past year.
  • The Revenue has been growing by 9.38% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 2.29% on average over the next years.
  • The Revenue is expected to grow by 2.66% on average over the next years.
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

  • 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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • With a Price/Earnings ratio of 12.48, 1MRKX is valued correctly.
  • 76.92% 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 25.60.
  • With a Price/Forward Earnings ratio of 22.16, 1MRKX is valued on the expensive side.
  • 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 (22.84), 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

  • Based on the Enterprise Value to EBITDA ratio, 1MRKX is valued a bit cheaper than 73.08% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MRKX is on the same level as its industry peers.
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%

More info and screens

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

4

5. 1MRKX.MI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.84%, 1MRKX has a reasonable but not impressive dividend return.
  • 1MRKX's Dividend Yield is a higher than the industry average which is at 1.98.
  • 1MRKX's Dividend Yield is a higher than the S&P500 average which is at 1.90.
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

  • 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

-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)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 12.48
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 2Y4.26%
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.


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%.