MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:6MK - US58933Y1055 - Common Stock
85.4 EUR
+1.1 (+1.3%)
6MK gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 53 industry peers in the Pharmaceuticals industry. While 6MK has a great profitability rating, there are some minor concerns on its financial health. 6MK may be a bit undervalued, certainly considering the very reasonable score on growth This makes 6MK very considerable for value investing!
1. Profitability
1.1 Basic Checks
6MK had positive earnings in the past year.
6MK had a positive operating cash flow in the past year.
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
The Return On Assets of 6MK (14.69%) is better than 88.68% of its industry peers.
6MK's Return On Equity of 36.71% is amongst the best of the industry. 6MK outperforms 90.57% of its industry peers.
With a decent Return On Invested Capital value of 12.83%, 6MK is doing good in the industry, outperforming 64.15% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 6MK is in line with the industry average of 13.94%.
| 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
With an excellent Profit Margin value of 29.63%, 6MK belongs to the best of the industry, outperforming 92.45% of the companies in the same industry.
6MK's Profit Margin has been stable in the last couple of years.
6MK's Operating Margin of 38.08% is amongst the best of the industry. 6MK outperforms 90.57% of its industry peers.
6MK's Operating Margin has improved in the last couple of years.
6MK has a Gross Margin of 78.72%. This is amongst the best in the industry. 6MK outperforms 81.13% 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 | 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
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
Compared to 1 year ago, 6MK has an improved debt to assets ratio.
2.2 Solvency
6MK has an Altman-Z score of 3.99. This indicates that 6MK is financially healthy and has little risk of bankruptcy at the moment.
6MK has a Altman-Z score (3.99) which is in line with its industry peers.
6MK has a debt to FCF ratio of 3.17. This is a good value and a sign of high solvency as 6MK would need 3.17 years to pay back of all of its debts.
6MK has a better Debt to FCF ratio (3.17) than 62.26% of its industry peers.
6MK has a Debt/Equity ratio of 0.77. This is a neutral value indicating 6MK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, 6MK is in line with its industry, outperforming 41.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 3.99 |
ROIC/WACC1.47
WACC8.7%
2.3 Liquidity
A Current Ratio of 1.66 indicates that 6MK should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.66, 6MK is in the better half of the industry, outperforming 66.04% of the companies in the same industry.
A Quick Ratio of 1.44 indicates that 6MK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.44, 6MK is in the better half of the industry, outperforming 75.47% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 8.04% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.68% in the past year.
The Revenue has been growing by 10.40% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 5.92% 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 2.39% on average per year.
EPS Next Y18.58%
EPS Next 2Y11.48%
EPS Next 3Y11.36%
EPS Next 5Y5.92%
Revenue Next Year1.22%
Revenue Next 2Y3.07%
Revenue Next 3Y3.9%
Revenue Next 5Y2.39%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 11.36, the valuation of 6MK can be described as very reasonable.
81.13% of the companies in the same industry are more expensive than 6MK, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.26, 6MK is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.54, the valuation of 6MK can be described as reasonable.
79.25% of the companies in the same industry are more expensive than 6MK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 6MK to the average of the S&P500 Index (23.68), we can say 6MK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 10.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 6MK is valued a bit cheaper than the industry average as 77.36% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 6MK is valued a bit cheaper than 71.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.04 | ||
| EV/EBITDA | 9.35 |
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 6MK may justify a higher PE ratio.
PEG (NY)0.61
PEG (5Y)1.41
EPS Next 2Y11.48%
EPS Next 3Y11.36%
5. Dividend
5.1 Amount
6MK has a Yearly Dividend Yield of 3.43%.
6MK's Dividend Yield is a higher than the industry average which is at 1.83.
Compared to an average S&P500 Dividend Yield of 1.87, 6MK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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
42.60% 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.
DP42.6%
EPS Next 2Y11.48%
EPS Next 3Y11.36%
FRA:6MK (12/18/2025, 7:00:00 PM)
85.4
+1.1 (+1.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.3%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap211.96B
Revenue(TTM)64.23B
Net Income(TTM)19.03B
Analysts76.47
Price Target91.55 (7.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend2.64
Dividend Growth(5Y)6.9%
DP42.6%
Div Incr Years8
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.37%
Min EPS beat(2)7.69%
Max EPS beat(2)13.06%
EPS beat(4)4
Avg EPS beat(4)7.28%
Min EPS beat(4)2.93%
Max EPS beat(4)13.06%
EPS beat(8)8
Avg EPS beat(8)21.72%
EPS beat(12)12
Avg EPS beat(12)16.45%
EPS beat(16)16
Avg EPS beat(16)15.36%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.83%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)0.83%
Revenue beat(8)5
Avg Revenue beat(8)0.41%
Revenue beat(12)9
Avg Revenue beat(12)1.14%
Revenue beat(16)13
Avg Revenue beat(16)1.98%
PT rev (1m)5.3%
PT rev (3m)6.81%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-7.03%
EPS NY rev (1m)0.32%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 10.54 | ||
| P/S | 3.87 | ||
| P/FCF | 19.04 | ||
| P/OCF | 14.56 | ||
| P/B | 4.79 | ||
| P/tB | 16.62 | ||
| EV/EBITDA | 9.35 |
EPS(TTM)7.52
EY8.81%
EPS(NY)8.1
Fwd EY9.49%
FCF(TTM)4.49
FCFY5.25%
OCF(TTM)5.87
OCFY6.87%
SpS22.08
BVpS17.83
TBVpS5.14
PEG (NY)0.61
PEG (5Y)1.41
Graham Number54.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.69% | ||
| ROE | 36.71% | ||
| ROCE | 24.24% | ||
| ROIC | 12.83% | ||
| ROICexc | 15.66% | ||
| ROICexgc | 28.27% | ||
| OM | 38.08% | ||
| PM (TTM) | 29.63% | ||
| GM | 78.72% | ||
| FCFM | 20.31% |
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%
ROICexgc growth 3Y7.57%
ROICexgc 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-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 87.9% | ||
| Cap/Sales | 6.25% | ||
| Interest Coverage | 18.43 | ||
| Cash Conversion | 58.79% | ||
| Profit Quality | 68.56% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 3.99 |
F-Score6
WACC8.7%
ROIC/WACC1.47
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)48.07%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%70.7%
EPS Next Y18.58%
EPS Next 2Y11.48%
EPS Next 3Y11.36%
EPS Next 5Y5.92%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%3.72%
Revenue Next Year1.22%
Revenue Next 2Y3.07%
Revenue Next 3Y3.9%
Revenue Next 5Y2.39%
EBIT growth 1Y2.78%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year28.1%
EBIT Next 3Y13.81%
EBIT Next 5Y8.95%
FCF growth 1Y-0.9%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y-0.73%
OCF growth 3Y15.02%
OCF growth 5Y9.82%
MERCK & CO. INC. / 6MK.DE FAQ
Can you provide the ChartMill fundamental rating for MERCK & CO. INC.?
ChartMill assigns a fundamental rating of 7 / 10 to 6MK.DE.
What is the valuation status of MERCK & CO. INC. (6MK.DE) stock?
ChartMill assigns a valuation rating of 8 / 10 to MERCK & CO. INC. (6MK.DE). This can be considered as Undervalued.
What is the profitability of 6MK stock?
MERCK & CO. INC. (6MK.DE) has a profitability rating of 8 / 10.
What is the valuation of MERCK & CO. INC. based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MERCK & CO. INC. (6MK.DE) is 11.36 and the Price/Book (PB) ratio is 4.79.
Can you provide the dividend sustainability for 6MK stock?
The dividend rating of MERCK & CO. INC. (6MK.DE) is 6 / 10 and the dividend payout ratio is 42.6%.