MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
Europe - FRA:6MK - US58933Y1055 - Common Stock
80.9 EUR
+0.4 (+0.5%)
Taking everything into account, 6MK scores 7 out of 10 in our fundamental rating. 6MK was compared to 54 industry peers in the Pharmaceuticals industry. While 6MK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 6MK scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes 6MK very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year 6MK was profitable.
In the past year 6MK had a positive cash flow from operations.
In the past 5 years 6MK has always been profitable.
In the past 5 years 6MK always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.96%, 6MK belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
6MK has a better Return On Equity (33.49%) than 85.19% of its industry peers.
6MK has a Return On Invested Capital of 13.43%. This is in the better half of the industry: 6MK outperforms 62.96% 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 14.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 33.49% | ||
| ROIC | 13.43% |
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
Looking at the Profit Margin, with a value of 25.79%, 6MK belongs to the top of the industry, outperforming 83.33% 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 36.48% is amongst the best of the industry. 6MK outperforms 87.04% of its industry peers.
6MK's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 77.31%, 6MK is doing good in the industry, outperforming 77.78% of the companies in the same industry.
6MK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.48% | ||
| PM (TTM) | 25.79% | ||
| GM | 77.31% |
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.
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 4.17. This indicates that 6MK is financially healthy and has little risk of bankruptcy at the moment.
6MK has a Altman-Z score (4.17) 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.
Looking at the Debt to FCF ratio, with a value of 2.40, 6MK is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
6MK has a Debt/Equity ratio of 0.69. This is a neutral value indicating 6MK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.69, 6MK is in line with its industry, outperforming 42.59% 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 | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 4.17 |
ROIC/WACC1.63
WACC8.22%
2.3 Liquidity
6MK has a Current Ratio of 1.42. 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 Current ratio (1.42) which is comparable to the rest of the industry.
A Quick Ratio of 1.17 indicates that 6MK should not have too much problems paying its short term obligations.
6MK has a better Quick ratio (1.17) than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.07% over the past year.
6MK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.04% yearly.
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 5.86% on average over the next years.
The Revenue is expected to grow by 2.98% on average over the next years.
EPS Next Y18.21%
EPS Next 2Y11.65%
EPS Next 3Y11.32%
EPS Next 5Y5.86%
Revenue Next Year1.08%
Revenue Next 2Y3.07%
Revenue Next 3Y3.96%
Revenue Next 5Y2.98%
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
The Price/Earnings ratio is 10.67, which indicates a very decent valuation of 6MK.
Compared to the rest of the industry, the Price/Earnings ratio of 6MK indicates a rather cheap valuation: 6MK is cheaper than 85.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, 6MK is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.87, the valuation of 6MK can be described as very reasonable.
83.33% of the companies in the same industry are more expensive than 6MK, based on the Price/Forward Earnings ratio.
6MK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 9.87 |
4.2 Price Multiples
70.37% of the companies in the same industry are more expensive than 6MK, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 6MK is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.95 | ||
| EV/EBITDA | 9.34 |
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)0.59
PEG (5Y)1.33
EPS Next 2Y11.65%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
6MK has a Yearly Dividend Yield of 3.78%.
6MK's Dividend Yield is rather good when compared to the industry average which is at 2.89. 6MK pays more dividend than 81.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, 6MK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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
6MK pays out 48.95% of its income as dividend. This is a bit on the high side, but may be sustainable.
6MK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.95%
EPS Next 2Y11.65%
EPS Next 3Y11.32%
FRA:6MK (11/14/2025, 5:25:00 PM)
80.9
+0.4 (+0.5%)
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 Cap202.07B
Revenue(TTM)64.23B
Net Income(TTM)16.41B
Analysts75.76
Price Target86.95 (7.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend2.68
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)0.9%
PT rev (3m)-0.37%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 9.87 | ||
| P/S | 3.69 | ||
| P/FCF | 15.95 | ||
| P/OCF | 12.67 | ||
| P/B | 4.79 | ||
| P/tB | 19.23 | ||
| EV/EBITDA | 9.34 |
EPS(TTM)7.58
EY9.37%
EPS(NY)8.2
Fwd EY10.13%
FCF(TTM)5.07
FCFY6.27%
OCF(TTM)6.39
OCFY7.89%
SpS21.92
BVpS16.88
TBVpS4.21
PEG (NY)0.59
PEG (5Y)1.33
Graham Number53.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 33.49% | ||
| ROCE | 25.37% | ||
| ROIC | 13.43% | ||
| ROICexc | 14.83% | ||
| ROICexgc | 26.67% | ||
| OM | 36.48% | ||
| PM (TTM) | 25.79% | ||
| GM | 77.31% | ||
| 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%
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-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 82.85% | ||
| Cap/Sales | 5.99% | ||
| Interest Coverage | 17.39 | ||
| Cash Conversion | 66.65% | ||
| Profit Quality | 89.74% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 4.17 |
F-Score7
WACC8.22%
ROIC/WACC1.63
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 Y18.21%
EPS Next 2Y11.65%
EPS Next 3Y11.32%
EPS Next 5Y5.86%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%3.72%
Revenue Next Year1.08%
Revenue Next 2Y3.07%
Revenue Next 3Y3.96%
Revenue Next 5Y2.98%
EBIT growth 1Y-0.96%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year29.99%
EBIT Next 3Y15.06%
EBIT Next 5Y10.12%
FCF growth 1Y35.96%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y22.95%
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 10.67 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 48.95%.