MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:6MK • US58933Y1055
91.1 EUR
-0.3 (-0.33%)
Last: Jan 30, 2026, 04:59 PM
We assign a fundamental rating of 6 out of 10 to 6MK. 6MK was compared to 55 industry peers in the Pharmaceuticals industry. 6MK scores excellent on profitability, but there are some minor concerns on its financial health. 6MK is not valued too expensively and it also shows a decent growth rate.
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.
- 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
- Looking at the Return On Assets, with a value of 14.69%, 6MK belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
- 6MK has a better Return On Equity (36.71%) than 90.91% of its industry peers.
- The Return On Invested Capital of 6MK (12.83%) is better than 61.82% 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 14.00%.
| 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
- The Profit Margin of 6MK (29.63%) is better than 92.73% of its industry peers.
- In the last couple of years the Profit Margin of 6MK has remained more or less at the same level.
- 6MK has a Operating Margin of 38.08%. This is amongst the best in the industry. 6MK outperforms 90.91% of its industry peers.
- In the last couple of years the Operating Margin of 6MK has grown nicely.
- 6MK has a better Gross Margin (78.72%) than 81.82% 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.
- 6MK has less shares outstanding than it did 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 of 4.17. This is comparable to the rest of the industry: 6MK outperforms 54.55% of its industry peers.
- The Debt to FCF ratio of 6MK is 3.17, which is a good value as it means it would take 6MK, 3.17 years of fcf income to pay off all of its debts.
- 6MK has a Debt to FCF ratio of 3.17. This is in the better half of the industry: 6MK outperforms 69.09% of its industry peers.
- A Debt/Equity ratio of 0.77 indicates that 6MK is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.77, 6MK perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 4.17 |
ROIC/WACC1.47
WACC8.75%
2.3 Liquidity
- 6MK has a Current Ratio of 1.66. 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 of 1.66. This is in the better half of the industry: 6MK outperforms 69.09% of its industry peers.
- A Quick Ratio of 1.44 indicates that 6MK should not have too much problems paying its short term obligations.
- 6MK has a better Quick ratio (1.44) than 78.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
- 6MK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.07%, which is quite impressive.
- Measured over the past years, 6MK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.04% on average per year.
- 6MK shows a small growth in Revenue. In the last year, the Revenue has grown by 1.68%.
- Measured over the past years, 6MK shows a quite strong growth in Revenue. The Revenue has been growing by 10.40% on average per year.
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
- 6MK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.65% yearly.
- Based on estimates for the next years, 6MK will show a small growth in Revenue. The Revenue will grow by 2.64% on average per year.
EPS Next Y18.51%
EPS Next 2Y-13.49%
EPS Next 3Y10.11%
EPS Next 5Y6.65%
Revenue Next Year1.23%
Revenue Next 2Y2.83%
Revenue Next 3Y3.72%
Revenue Next 5Y2.64%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- Based on the Price/Earnings ratio of 12.38, the valuation of 6MK can be described as correct.
- 6MK's Price/Earnings ratio is a bit cheaper when compared to the industry. 6MK is cheaper than 78.18% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.39. 6MK is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 19.07, which indicates a rather expensive current valuation of 6MK.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 6MK is on the same level as its industry peers.
- 6MK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 19.07 |
4.2 Price Multiples
- 76.36% of the companies in the same industry are more expensive than 6MK, based on the Enterprise Value to EBITDA ratio.
- 69.09% of the companies in the same industry are more expensive than 6MK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.74 | ||
| EV/EBITDA | 10.15 |
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.
PEG (NY)0.67
PEG (5Y)1.54
EPS Next 2Y-13.49%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.11%, 6MK has a reasonable but not impressive dividend return.
- 6MK's Dividend Yield is rather good when compared to the industry average which is at 1.62. 6MK pays more dividend than 83.64% of the companies in the same industry.
- 6MK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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
- 6MK pays out 42.60% of its income as dividend. 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 2Y-13.49%
EPS Next 3Y10.11%
MERCK & CO. INC. / 6MK.DE FAQ
Can you provide the ChartMill fundamental rating for MERCK & CO. INC.?
ChartMill assigns a fundamental rating of 6 / 10 to 6MK.DE.
What is the valuation status for 6MK stock?
ChartMill assigns a valuation rating of 6 / 10 to MERCK & CO. INC. (6MK.DE). This can be considered as Fairly Valued.
What is the profitability of 6MK stock?
MERCK & CO. INC. (6MK.DE) has a profitability rating of 8 / 10.
What are the PE and PB ratios of MERCK & CO. INC. (6MK.DE) stock?
The Price/Earnings (PE) ratio for MERCK & CO. INC. (6MK.DE) is 12.38 and the Price/Book (PB) ratio is 5.22.
Is the dividend of MERCK & CO. INC. sustainable?
The dividend rating of MERCK & CO. INC. (6MK.DE) is 6 / 10 and the dividend payout ratio is 42.6%.