MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
Europe - FRA:6MK - US58933Y1055 - Common Stock
74.9 EUR
+0.7 (+0.94%)
We assign a fundamental rating of 7 out of 10 to 6MK. 6MK was compared to 53 industry peers in the Pharmaceuticals industry. Both the health and profitability get an excellent rating, making 6MK a very profitable company, without any liquidiy or solvency issues. 6MK may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make 6MK suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year 6MK was profitable.
6MK had a positive operating cash flow in the past year.
6MK had positive earnings in each of the past 5 years.
6MK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 6MK (13.96%) is better than 88.68% of its industry peers.
With an excellent Return On Equity value of 33.49%, 6MK belongs to the best of the industry, outperforming 86.79% of the companies in the same industry.
6MK's Return On Invested Capital of 13.81% is fine compared to the rest of the industry. 6MK outperforms 64.15% of its industry peers.
6MK had an Average Return On Invested Capital over the past 3 years of 13.67%. This is in line with the industry average of 15.19%.
The last Return On Invested Capital (13.81%) for 6MK 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
6MK has a Profit Margin of 25.79%. This is amongst the best in the industry. 6MK outperforms 86.79% of its industry peers.
6MK's Profit Margin has been stable in the last couple of years.
6MK has a better Operating Margin (37.52%) than 86.79% of its industry peers.
6MK's Operating Margin has improved in the last couple of years.
The Gross Margin of 6MK (78.32%) is better than 77.36% of its industry peers.
In the last couple of years the Gross Margin of 6MK 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), 6MK is creating some value.
6MK has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, 6MK has less shares outstanding
6MK has a better debt/assets ratio than last year.
2.2 Solvency
6MK has an Altman-Z score of 4.03. This indicates that 6MK is financially healthy and has little risk of bankruptcy at the moment.
6MK has a Altman-Z score (4.03) which is in line with its industry peers.
6MK has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as 6MK would need 2.40 years to pay back of all of its debts.
The Debt to FCF ratio of 6MK (2.40) is better than 75.47% of its industry peers.
6MK has a Debt/Equity ratio of 0.69. This is a neutral value indicating 6MK is somewhat dependend on debt financing.
6MK has a Debt to Equity ratio (0.69) which is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for 6MK, 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 | 4.03 |
ROIC/WACC1.72
WACC8.03%
2.3 Liquidity
A Current Ratio of 1.42 indicates that 6MK should not have too much problems paying its short term obligations.
The Current ratio of 6MK (1.42) is better than 62.26% of its industry peers.
6MK has a Quick Ratio of 1.17. This is a normal value and indicates that 6MK is financially healthy and should not expect problems in meeting its short term obligations.
6MK has a Quick ratio of 1.17. This is in the better half of the industry: 6MK outperforms 75.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
6MK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.28%, which is quite good.
The Earnings Per Share has been growing by 8.04% on average over the past years. This is quite good.
6MK shows a small growth in Revenue. In the last year, the Revenue has grown by 1.82%.
6MK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.40% yearly.
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
Based on estimates for the next years, 6MK will show a small growth in Earnings Per Share. The EPS will grow by 5.58% on average per year.
6MK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.93% yearly.
EPS Next Y17.93%
EPS Next 2Y12.87%
EPS Next 3Y12.24%
EPS Next 5Y5.58%
Revenue Next Year1.09%
Revenue Next 2Y3.15%
Revenue Next 3Y3.98%
Revenue Next 5Y1.93%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.33, the valuation of 6MK can be described as very reasonable.
Based on the Price/Earnings ratio, 6MK is valued cheaply inside the industry as 81.13% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.69, 6MK is valued rather cheaply.
6MK is valuated reasonably with a Price/Forward Earnings ratio of 8.97.
Based on the Price/Forward Earnings ratio, 6MK is valued cheaper than 84.91% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.18. 6MK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 8.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 6MK is valued a bit cheaper than 79.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 6MK is valued a bit cheaper than 73.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.81 | ||
| EV/EBITDA | 8.51 |
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.
6MK has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 6MK's earnings are expected to grow with 12.24% in the coming years.
PEG (NY)0.63
PEG (5Y)1.41
EPS Next 2Y12.87%
EPS Next 3Y12.24%
5. Dividend
5.1 Amount
6MK has a Yearly Dividend Yield of 3.86%. Purely for dividend investing, there may be better candidates out there.
6MK's Dividend Yield is a higher than the industry average which is at 3.00.
Compared to an average S&P500 Dividend Yield of 2.34, 6MK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
On average, the dividend of 6MK grows each year by 6.90%, which is quite nice.
Dividend Growth(5Y)6.9%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
48.95% of the earnings are spent on dividend by 6MK. This is a bit on the high side, but may be sustainable.
The dividend of 6MK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.95%
EPS Next 2Y12.87%
EPS Next 3Y12.24%
FRA:6MK (10/21/2025, 3:32:36 PM)
74.9
+0.7 (+0.94%)
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 Cap187.08B
Analysts75.76
Price Target86.17 (15.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend2.65
Dividend Growth(5Y)6.9%
DP48.95%
Div Incr Years8
Div Non Decr Years8
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)0.53%
PT rev (3m)-3.13%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-4.08%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 8.97 | ||
| P/S | 3.43 | ||
| P/FCF | 14.81 | ||
| P/OCF | 11.76 | ||
| P/B | 4.45 | ||
| P/tB | 17.86 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)6.61
EY8.83%
EPS(NY)8.35
Fwd EY11.15%
FCF(TTM)5.06
FCFY6.75%
OCF(TTM)6.37
OCFY8.5%
SpS21.85
BVpS16.83
TBVpS4.19
PEG (NY)0.63
PEG (5Y)1.41
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%
ROICexcg growth 3Y7.57%
ROICexcg 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 | 4.03 |
F-Score7
WACC8.03%
ROIC/WACC1.72
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 Y17.93%
EPS Next 2Y12.87%
EPS Next 3Y12.24%
EPS Next 5Y5.58%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.9%
Revenue Next Year1.09%
Revenue Next 2Y3.15%
Revenue Next 3Y3.98%
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%