MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
Europe - FRA:6MK - US58933Y1055 - Common Stock
81.1 EUR
-0.1 (-0.12%)
Overall 6MK gets a fundamental rating of 7 out of 10. We evaluated 6MK against 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on 6MK. 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.
Each year in the past 5 years 6MK has 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 88.89% of its industry peers.
The Return On Equity of 6MK (36.71%) is better than 90.74% of its industry peers.
With a decent Return On Invested Capital value of 12.83%, 6MK is doing good in the industry, outperforming 64.81% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 6MK is in line with the industry average of 14.51%.
| 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 92.59% of its industry peers.
In the last couple of years the Profit Margin of 6MK has remained more or less at the same level.
With an excellent Operating Margin value of 38.08%, 6MK belongs to the best of the industry, outperforming 90.74% of the companies in the same industry.
6MK's Operating Margin has improved in the last couple of years.
The Gross Margin of 6MK (78.72%) is better than 81.48% 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
6MK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 6MK remains at a similar level compared to 1 year ago.
Compared to 5 years ago, 6MK has less shares outstanding
6MK has a better debt/assets ratio than last year.
2.2 Solvency
6MK has an Altman-Z score of 3.89. This indicates that 6MK is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 6MK (3.89) is comparable to the rest of the industry.
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 Debt to FCF ratio of 3.17. This is in the better half of the industry: 6MK outperforms 64.81% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that 6MK is somewhat dependend on debt financing.
6MK's Debt to Equity ratio of 0.77 is in line compared to the rest of the industry. 6MK outperforms 42.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 3.89 |
ROIC/WACC1.57
WACC8.17%
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 66.67% of its industry peers.
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 74.07% 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.
6MK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.04% yearly.
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
Based on estimates for the next years, 6MK will show a small growth in Earnings Per Share. The EPS will grow by 5.86% on average per year.
6MK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
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.
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
With a Price/Earnings ratio of 10.67, 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 rather cheap valuation: 6MK is cheaper than 87.04% of the companies listed in the same industry.
6MK is valuated cheaply when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.87, the valuation of 6MK can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 6MK indicates a rather cheap valuation: 6MK is cheaper than 85.19% of the companies listed in the same industry.
6MK is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 9.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 6MK is valued cheaply inside the industry as 81.48% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 6MK indicates a somewhat cheap valuation: 6MK is cheaper than 68.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18 | ||
| EV/EBITDA | 8.89 |
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 3.49%.
6MK's Dividend Yield is a higher than the industry average which is at 3.01.
6MK's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
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
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 2Y11.65%
EPS Next 3Y11.32%
FRA:6MK (11/17/2025, 7:00:00 PM)
81.1
-0.1 (-0.12%)
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 Cap202.57B
Revenue(TTM)64.23B
Net Income(TTM)19.03B
Analysts75.76
Price Target87.12 (7.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
Yearly Dividend2.66
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)1.1%
PT rev (3m)-0.17%
EPS NQ rev (1m)-6.85%
EPS NQ rev (3m)-7.2%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-0.76%
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 | 3.66 | ||
| P/FCF | 18 | ||
| P/OCF | 13.76 | ||
| P/B | 4.53 | ||
| P/tB | 15.71 | ||
| EV/EBITDA | 8.89 |
EPS(TTM)7.6
EY9.37%
EPS(NY)8.21
Fwd EY10.13%
FCF(TTM)4.51
FCFY5.56%
OCF(TTM)5.89
OCFY7.27%
SpS22.18
BVpS17.91
TBVpS5.16
PEG (NY)0.59
PEG (5Y)1.33
Graham Number55.33
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 | 3.89 |
F-Score6
WACC8.17%
ROIC/WACC1.57
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 1Y2.78%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year29.99%
EBIT Next 3Y15.06%
EBIT Next 5Y10.12%
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 10.67 and the Price/Book (PB) ratio is 4.53.
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%.