MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
FRA:6MK - Deutsche Boerse Ag - US58933Y1055 - Common Stock - Currency: EUR
Overall 6MK gets a fundamental rating of 7 out of 10. We evaluated 6MK against 51 industry peers in the Pharmaceuticals industry. 6MK has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 6MK is valued quite cheap, while showing a decent growth score. This is a good combination! 6MK also has an excellent dividend rating. With these ratings, 6MK could be worth investigating further for value and dividend and quality investing!.
1. Profitability
1.1 Basic Checks
6MK had positive earnings in the past year.
In the past year 6MK had a positive cash flow from operations.
In the past 5 years 6MK has always been profitable.
Each year in the past 5 years 6MK had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 14.62%, 6MK belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
6MK's Return On Equity of 36.96% is amongst the best of the industry. 6MK outperforms 86.00% of its industry peers.
The Return On Invested Capital of 6MK (13.25%) is better than 72.00% of its industry peers.
6MK had an Average Return On Invested Capital over the past 3 years of 13.49%. This is in line with the industry average of 14.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.62% | ||
| ROE | 36.96% | ||
| ROIC | 13.25% |
ROA(3y)9.42%
ROA(5y)9.66%
ROE(3y)23.17%
ROE(5y)26.32%
ROIC(3y)13.49%
ROIC(5y)11.91%
1.3 Margins
6MK's Profit Margin of 26.68% is amongst the best of the industry. 6MK outperforms 88.00% of its industry peers.
6MK's Profit Margin has been stable in the last couple of years.
6MK has a better Operating Margin (34.59%) than 86.00% of its industry peers.
6MK's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 78.19%, 6MK is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
6MK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.59% | ||
| PM (TTM) | 26.68% | ||
| GM | 78.19% |
OM growth 3Y4.43%
OM growth 5Y7.18%
PM growth 3Y-0.15%
PM growth 5Y1.18%
GM growth 3Y3.55%
GM growth 5Y2.42%
2. Health
2.1 Basic Checks
6MK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
6MK has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for 6MK has been reduced compared to 5 years ago.
The debt/assets ratio for 6MK has been reduced compared to a year ago.
2.2 Solvency
6MK has an Altman-Z score of 3.72. This indicates that 6MK is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.72, 6MK is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
The Debt to FCF ratio of 6MK is 2.05, which is a good value as it means it would take 6MK, 2.05 years of fcf income to pay off all of its debts.
6MK's Debt to FCF ratio of 2.05 is amongst the best of the industry. 6MK outperforms 82.00% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that 6MK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.74, 6MK perfoms like the industry average, outperforming 44.00% of the companies in the same 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 | 0.74 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 3.72 |
ROIC/WACC1.5
WACC8.83%
2.3 Liquidity
6MK has a Current Ratio of 1.36. This is a normal value and indicates that 6MK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.36, 6MK is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.15 indicates that 6MK should not have too much problems paying its short term obligations.
6MK has a Quick ratio of 1.15. This is in the better half of the industry: 6MK outperforms 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
6MK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 258.99%, which is quite impressive.
6MK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.04% yearly.
Looking at the last year, 6MK shows a small growth in Revenue. The Revenue has grown by 4.10% in the last year.
The Revenue has been growing by 10.40% on average over the past years. This is quite good.
EPS 1Y (TTM)258.99%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%7.25%
Revenue 1Y (TTM)4.1%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.56%
3.2 Future
The Earnings Per Share is expected to grow by 6.16% on average over the next years.
Based on estimates for the next years, 6MK will show a small growth in Revenue. The Revenue will grow by 2.43% on average per year.
EPS Next Y18.6%
EPS Next 2Y14.32%
EPS Next 3Y13.3%
EPS Next 5Y6.16%
Revenue Next Year1.56%
Revenue Next 2Y3.93%
Revenue Next 3Y4.56%
Revenue Next 5Y2.43%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.13, the valuation of 6MK can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of 6MK indicates a somewhat cheap valuation: 6MK is cheaper than 76.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.78, 6MK is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.91, the valuation of 6MK can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 6MK indicates a rather cheap valuation: 6MK is cheaper than 86.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, 6MK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
6MK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 6MK is cheaper than 72.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 6MK is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.98 | ||
| EV/EBITDA | 8.3 |
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.
6MK's earnings are expected to grow with 13.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)1.26
EPS Next 2Y14.32%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
6MK has a Yearly Dividend Yield of 4.06%, which is a nice return.
In the last 3 months the price of 6MK has falen by -23.71%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
6MK's Dividend Yield is a higher than the industry average which is at 3.13.
6MK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
5.2 History
The dividend of 6MK is nicely growing with an annual growth rate of 6.90%!
Dividend Growth(5Y)6.9%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
45.80% 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.
DP45.8%
EPS Next 2Y14.32%
EPS Next 3Y13.3%
FRA:6MK (4/25/2025, 7:00:00 PM)
69.5
+0.6 (+0.87%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners79.95%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap174.89B
Analysts78.62
Price Target97.4 (40.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
Yearly Dividend2.73
Dividend Growth(5Y)6.9%
DP45.8%
Div Incr Years8
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.4%
Min EPS beat(2)3.35%
Max EPS beat(2)5.44%
EPS beat(4)4
Avg EPS beat(4)5.72%
Min EPS beat(4)3.35%
Max EPS beat(4)9.3%
EPS beat(8)8
Avg EPS beat(8)21.17%
EPS beat(12)12
Avg EPS beat(12)17.11%
EPS beat(16)14
Avg EPS beat(16)13.66%
Revenue beat(2)1
Avg Revenue beat(2)0.05%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)0.2%
Revenue beat(4)3
Avg Revenue beat(4)0.9%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)2.78%
Revenue beat(8)6
Avg Revenue beat(8)1.72%
Revenue beat(12)10
Avg Revenue beat(12)2.52%
Revenue beat(16)13
Avg Revenue beat(16)1.4%
PT rev (1m)-13.07%
PT rev (3m)-23.58%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-5.97%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-5.42%
Revenue NQ rev (1m)-1.71%
Revenue NQ rev (3m)-7.01%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-3.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 7.91 | ||
| P/S | 3.1 | ||
| P/FCF | 10.98 | ||
| P/OCF | 9.25 | ||
| P/B | 4.29 | ||
| P/tB | 24 | ||
| EV/EBITDA | 8.3 |
EPS(TTM)6.86
EY9.87%
EPS(NY)8.79
Fwd EY12.65%
FCF(TTM)6.33
FCFY9.11%
OCF(TTM)7.51
OCFY10.81%
SpS22.45
BVpS16.21
TBVpS2.9
PEG (NY)0.54
PEG (5Y)1.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.62% | ||
| ROE | 36.96% | ||
| ROCE | 25.03% | ||
| ROIC | 13.25% | ||
| ROICexc | 15.67% | ||
| ROICexgc | 31.8% | ||
| OM | 34.59% | ||
| PM (TTM) | 26.68% | ||
| GM | 78.19% | ||
| FCFM | 28.2% |
ROA(3y)9.42%
ROA(5y)9.66%
ROE(3y)23.17%
ROE(5y)26.32%
ROIC(3y)13.49%
ROIC(5y)11.91%
ROICexc(3y)15.56%
ROICexc(5y)13.63%
ROICexgc(3y)33.79%
ROICexgc(5y)31.28%
ROCE(3y)25.47%
ROCE(5y)22.5%
ROICexcg growth 3Y6.23%
ROICexcg growth 5Y2.59%
ROICexc growth 3Y13.83%
ROICexc growth 5Y9.86%
OM growth 3Y4.43%
OM growth 5Y7.18%
PM growth 3Y-0.15%
PM growth 5Y1.18%
GM growth 3Y3.55%
GM growth 5Y2.42%
F-Score8
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.05 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 74.95% | ||
| Cap/Sales | 5.25% | ||
| Interest Coverage | 17.07 | ||
| Cash Conversion | 80.42% | ||
| Profit Quality | 105.72% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 3.72 |
F-Score8
WACC8.83%
ROIC/WACC1.5
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)258.99%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%7.25%
EPS Next Y18.6%
EPS Next 2Y14.32%
EPS Next 3Y13.3%
EPS Next 5Y6.16%
Revenue 1Y (TTM)4.1%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.56%
Revenue Next Year1.56%
Revenue Next 2Y3.93%
Revenue Next 3Y4.56%
Revenue Next 5Y2.43%
EBIT growth 1Y4.93%
EBIT growth 3Y14.48%
EBIT growth 5Y18.33%
EBIT Next Year31.15%
EBIT Next 3Y15.65%
EBIT Next 5Y9.19%
FCF growth 1Y97.92%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y65.06%
OCF growth 3Y15.02%
OCF growth 5Y9.82%