MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:6MK - US58933Y1055 - Common Stock
85.8 EUR
-1.2 (-1.38%)
6MK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 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. These ratings would make 6MK suitable 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.
6MK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
6MK's Return On Assets of 14.69% is amongst the best of the industry. 6MK outperforms 87.27% of its industry peers.
6MK's Return On Equity of 36.71% is amongst the best of the industry. 6MK outperforms 89.09% of its industry peers.
6MK has a better Return On Invested Capital (12.83%) than 63.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 6MK 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 has a better Profit Margin (29.63%) than 92.73% of its industry peers.
6MK's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 38.08%, 6MK belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
6MK's Operating Margin has improved in the last couple of years.
6MK has a better Gross Margin (78.72%) than 80.00% of its industry peers.
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.
6MK has about the same amout of shares outstanding than it did 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
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 of 4.03. This is comparable to the rest of the industry: 6MK outperforms 56.36% of its industry peers.
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's Debt to FCF ratio of 3.17 is fine compared to the rest of the industry. 6MK outperforms 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's Debt to Equity ratio of 0.77 is in line compared 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/WACC1.51
WACC8.48%
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's Current ratio of 1.66 is fine compared to the rest of the industry. 6MK outperforms 67.27% 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's Quick ratio of 1.44 is fine compared to the rest 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
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.
The Revenue has been growing slightly by 1.68% in the past year.
6MK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.40% yearly.
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 5.92% on average per year.
Based on estimates for the next years, 6MK will show a small growth in Revenue. The Revenue will grow by 2.39% on average per year.
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.
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
The Price/Earnings ratio is 11.36, which indicates a very decent valuation of 6MK.
Based on the Price/Earnings ratio, 6MK is valued a bit cheaper than the industry average as 78.18% of the companies are valued more expensively.
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.
The Price/Forward Earnings ratio is 10.51, which indicates a very decent valuation of 6MK.
76.36% of the companies in the same industry are more expensive than 6MK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 6MK to the average of the S&P500 Index (36.10), we can say 6MK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 10.51 |
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 76.36% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 6MK is valued a bit cheaper than the industry average as 70.91% of the companies are valued more expensively.
| 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 3.37%. Purely for dividend investing, there may be better candidates out there.
6MK's Dividend Yield is a higher than the industry average which is at 2.82.
6MK's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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.
6MK's earnings are growing slower than its dividend. 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 Owners80.3%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap212.96B
Revenue(TTM)64.23B
Net Income(TTM)19.03B
Analysts76.47
Price Target91.55 (6.7%)
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)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
WACC8.48%
ROIC/WACC1.51
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%.