MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:6MK - US58933Y1055 - Common Stock
85.8 EUR
-1.2 (-1.38%)
Taking everything into account, 6MK scores 6 out of 10 in our fundamental rating. 6MK was compared to 55 industry peers in the Pharmaceuticals industry. While 6MK has a great profitability rating, 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
6MK had positive earnings in the past year.
6MK had a positive operating cash flow in the past year.
6MK had positive earnings in each of the past 5 years.
Each year in the past 5 years 6MK had a positive operating cash flow.
1.2 Ratios
6MK has a Return On Assets of 14.69%. This is amongst the best in the industry. 6MK outperforms 87.27% of its industry peers.
6MK has a Return On Equity of 36.71%. This is amongst the best in the industry. 6MK outperforms 89.09% of its industry peers.
6MK's Return On Invested Capital of 12.83% is fine compared to the rest of the industry. 6MK outperforms 63.64% 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 13.92%.
| 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
6MK's Profit Margin of 29.63% is amongst the best of the industry. 6MK outperforms 92.73% of its industry peers.
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 89.09% of its industry peers.
In the last couple of years the Operating Margin of 6MK has grown nicely.
Looking at the Gross Margin, with a value of 78.72%, 6MK is in the better half of the industry, outperforming 80.00% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 6MK is still creating some value.
The number of shares outstanding for 6MK remains at a similar level compared to 1 year ago.
The number of shares outstanding for 6MK has been reduced compared to 5 years ago.
Compared to 1 year ago, 6MK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.03 indicates that 6MK is not in any danger for bankruptcy at the moment.
6MK has a Altman-Z score (4.03) which is comparable to the rest of the industry.
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.
The Debt to FCF ratio of 6MK (3.17) is better than 65.45% 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.
6MK has a Debt to Equity ratio of 0.77. This is comparable to the rest of the industry: 6MK outperforms 47.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 4.03 |
ROIC/WACC1.52
WACC8.45%
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 better Current ratio (1.66) than 67.27% of its industry peers.
6MK has a Quick Ratio of 1.44. 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 1.44. This is in the better half of the industry: 6MK outperforms 74.55% of its industry peers.
| 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
6MK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.92% yearly.
6MK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.39% yearly.
EPS Next Y18.21%
EPS Next 2Y11.65%
EPS Next 3Y11.32%
EPS Next 5Y5.92%
Revenue Next Year1.08%
Revenue Next 2Y3.07%
Revenue Next 3Y3.96%
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
A Price/Earnings ratio of 11.36 indicates a reasonable valuation of 6MK.
Based on the Price/Earnings ratio, 6MK is valued a bit cheaper than 78.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of 6MK to the average of the S&P500 Index (26.46), we can say 6MK is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.51, the valuation of 6MK can be described as reasonable.
Based on the Price/Forward Earnings ratio, 6MK is valued a bit cheaper than 76.36% of the companies in the same industry.
6MK is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 10.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 6MK is valued a bit cheaper than the industry average as 76.36% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 6MK is valued a bit cheaper than 70.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.04 | ||
| EV/EBITDA | 9.5 |
4.3 Compensation for Growth
6MK's 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)0.62
PEG (5Y)1.41
EPS Next 2Y11.65%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
6MK has a Yearly Dividend Yield of 3.25%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.86, 6MK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, 6MK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
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 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 2Y11.65%
EPS Next 3Y11.32%
FRA:6MK (12/5/2025, 7:00:00 PM)
85.8
-1.2 (-1.38%)
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 Cap212.96B
Revenue(TTM)64.23B
Net Income(TTM)19.03B
Analysts75.76
Price Target89.41 (4.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
Yearly Dividend2.68
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)3.76%
PT rev (3m)2.36%
EPS NQ rev (1m)-6.16%
EPS NQ rev (3m)-6.79%
EPS NY rev (1m)0.38%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 10.51 | ||
| P/S | 3.87 | ||
| P/FCF | 19.04 | ||
| P/OCF | 14.56 | ||
| P/B | 4.79 | ||
| P/tB | 16.62 | ||
| EV/EBITDA | 9.5 |
EPS(TTM)7.55
EY8.8%
EPS(NY)8.16
Fwd EY9.51%
FCF(TTM)4.51
FCFY5.25%
OCF(TTM)5.89
OCFY6.87%
SpS22.18
BVpS17.91
TBVpS5.16
PEG (NY)0.62
PEG (5Y)1.41
Graham Number55.15
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 | 4.03 |
F-Score6
WACC8.45%
ROIC/WACC1.52
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 5Y5.92%
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 5Y2.39%
EBIT growth 1Y2.78%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year29.99%
EBIT Next 3Y15.06%
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 6 / 10 to 6MK.DE.
What is the valuation status of MERCK & CO. INC. (6MK.DE) stock?
ChartMill assigns a valuation rating of 7 / 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 5 / 10 and the dividend payout ratio is 42.6%.