MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:6MK - US58933Y1055 - Common Stock
83.3 EUR
-2 (-2.34%)
Overall 6MK gets a fundamental rating of 6 out of 10. We evaluated 6MK against 54 industry peers in the Pharmaceuticals industry. 6MK scores excellent on profitability, but there are some minor concerns on its financial health. 6MK is valued quite cheap, while showing a decent growth score. This is a good 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.
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
Looking at the Return On Assets, with a value of 14.69%, 6MK belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
6MK has a Return On Equity of 36.71%. This is amongst the best in the industry. 6MK outperforms 88.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.83%, 6MK is in the better half of the industry, outperforming 64.81% of the companies in the same industry.
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 13.89%.
| 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
Looking at the Profit Margin, with a value of 29.63%, 6MK belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
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 90.74% of its industry peers.
In the last couple of years the Operating Margin of 6MK has grown nicely.
With an excellent Gross Margin value of 78.72%, 6MK belongs to the best of the industry, outperforming 81.48% 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
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.
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 3.98 indicates that 6MK is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.98, 6MK perfoms like the industry average, outperforming 55.56% of the companies in the same 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.
6MK has a Debt to FCF ratio of 3.17. This is in the better half of the industry: 6MK outperforms 62.96% 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.
The Debt to Equity ratio of 6MK (0.77) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 3.98 |
ROIC/WACC1.5
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.66 indicates that 6MK should not have too much problems paying its short term obligations.
6MK has a better Current ratio (1.66) than 64.81% 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 Quick ratio of 1.44. This is in the better half of the industry: 6MK outperforms 75.93% 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.
6MK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.04% yearly.
Looking at the last year, 6MK shows a small growth in Revenue. The Revenue has grown by 1.68% in the last year.
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
The Earnings Per Share is expected to grow by 5.92% on average over the next years.
6MK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.39% yearly.
EPS Next Y18.58%
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
6MK is valuated reasonably with a Price/Earnings ratio of 11.02.
6MK's Price/Earnings ratio is a bit cheaper when compared to the industry. 6MK is cheaper than 79.63% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.28. 6MK is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.23, which indicates a very decent valuation of 6MK.
Based on the Price/Forward Earnings ratio, 6MK is valued a bit cheaper than 77.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 6MK to the average of the S&P500 Index (23.52), we can say 6MK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 10.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 6MK indicates a somewhat cheap valuation: 6MK is cheaper than 74.07% of the companies listed in the same industry.
68.52% 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 | 18.47 | ||
| EV/EBITDA | 9.3 |
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)0.59
PEG (5Y)1.37
EPS Next 2Y11.48%
EPS Next 3Y11.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.37%, 6MK has a reasonable but not impressive dividend return.
6MK's Dividend Yield is a higher than the industry average which is at 2.90.
Compared to an average S&P500 Dividend Yield of 2.31, 6MK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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 2Y11.48%
EPS Next 3Y11.36%
FRA:6MK (12/9/2025, 7:00:00 PM)
83.3
-2 (-2.34%)
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 Cap206.75B
Revenue(TTM)64.23B
Net Income(TTM)19.03B
Analysts76.47
Price Target91.55 (9.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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)5.3%
PT rev (3m)4.81%
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 | 11.02 | ||
| Fwd PE | 10.23 | ||
| P/S | 3.75 | ||
| P/FCF | 18.47 | ||
| P/OCF | 14.12 | ||
| P/B | 4.65 | ||
| P/tB | 16.12 | ||
| EV/EBITDA | 9.3 |
EPS(TTM)7.56
EY9.08%
EPS(NY)8.15
Fwd EY9.78%
FCF(TTM)4.51
FCFY5.42%
OCF(TTM)5.9
OCFY7.08%
SpS22.21
BVpS17.92
TBVpS5.17
PEG (NY)0.59
PEG (5Y)1.37
Graham Number55.22
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 | 3.98 |
F-Score6
WACC8.53%
ROIC/WACC1.5
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 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 11.02 and the Price/Book (PB) ratio is 4.65.
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%.