MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:6MK - US58933Y1055 - Common Stock
94.2 EUR
-0.6 (-0.63%)
Overall 6MK gets a fundamental rating of 7 out of 10. We evaluated 6MK against 54 industry peers in the Pharmaceuticals industry. While 6MK has a great profitability rating, there are some minor concerns on its financial health. 6MK may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make 6MK a good candidate for value investing.
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.
- 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 86.79% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 36.71%, 6MK belongs to the top of the industry, outperforming 88.68% of the companies in the same industry.
- With a decent Return On Invested Capital value of 12.83%, 6MK is doing good in the industry, outperforming 62.26% 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 13.93%.
| 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 92.45% 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 better Operating Margin (38.08%) than 88.68% of its industry peers.
- In the last couple of years the Operating Margin of 6MK has grown nicely.
- The Gross Margin of 6MK (78.72%) is better than 81.13% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 6MK is creating some value.
- Compared to 1 year ago, 6MK has about the same amount of shares outstanding.
- Compared to 5 years ago, 6MK has less shares outstanding
- Compared to 1 year ago, 6MK has an improved debt to assets ratio.
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's Altman-Z score of 4.17 is in line compared to the rest of the industry. 6MK outperforms 54.72% 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 has a better Debt to FCF ratio (3.17) than 67.92% of its industry peers.
- A Debt/Equity ratio of 0.77 indicates that 6MK is somewhat dependend on debt financing.
- 6MK has a Debt to Equity ratio (0.77) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 4.17 |
ROIC/WACC1.47
WACC8.74%
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 Current ratio of 1.66. This is in the better half of the industry: 6MK outperforms 66.04% 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 75.47% 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.
- The Earnings Per Share has been growing by 8.04% on average over the past years. This is quite good.
- Looking at the last year, 6MK shows a small growth in Revenue. The Revenue has grown by 1.68% in the last 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
- Based on estimates for the next years, 6MK will show a small growth in Earnings Per Share. The EPS will grow by 6.65% on average per year.
- 6MK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.64% yearly.
EPS Next Y18.62%
EPS Next 2Y9.96%
EPS Next 3Y10.87%
EPS Next 5Y6.65%
Revenue Next Year1.23%
Revenue Next 2Y2.95%
Revenue Next 3Y3.69%
Revenue Next 5Y2.64%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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 12.43 indicates a correct valuation of 6MK.
- Compared to the rest of the industry, the Price/Earnings ratio of 6MK indicates a somewhat cheap valuation: 6MK is cheaper than 79.25% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.38. 6MK is valued rather cheaply when compared to this.
- 6MK is valuated reasonably with a Price/Forward Earnings ratio of 11.85.
- 79.25% of the companies in the same industry are more expensive than 6MK, based on the Price/Forward Earnings ratio.
- 6MK is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
- 77.36% of the companies in the same industry are more expensive than 6MK, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, 6MK is valued a bit cheaper than 69.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.81 | ||
| EV/EBITDA | 10.15 |
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.
- 6MK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.67
PEG (5Y)1.55
EPS Next 2Y9.96%
EPS Next 3Y10.87%
5. Dividend
5.1 Amount
- 6MK has a Yearly Dividend Yield of 3.06%.
- Compared to an average industry Dividend Yield of 1.59, 6MK pays a better dividend. On top of this 6MK pays more dividend than 83.02% of the companies listed in the same industry.
- 6MK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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 2Y9.96%
EPS Next 3Y10.87%
FRA:6MK (1/16/2026, 7:00:00 PM)
94.2
-0.6 (-0.63%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-03 2026-02-03/amc
Inst Owners80.32%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap233.81B
Revenue(TTM)64.23B
Net Income(TTM)19.03B
Analysts77.06
Price Target97.86 (3.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend2.67
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)6.89%
PT rev (3m)13.57%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-7%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.79%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 11.85 | ||
| P/S | 4.23 | ||
| P/FCF | 20.81 | ||
| P/OCF | 15.92 | ||
| P/B | 5.24 | ||
| P/tB | 18.17 | ||
| EV/EBITDA | 10.15 |
EPS(TTM)7.58
EY8.05%
EPS(NY)7.95
Fwd EY8.44%
FCF(TTM)4.53
FCFY4.8%
OCF(TTM)5.92
OCFY6.28%
SpS22.28
BVpS17.98
TBVpS5.18
PEG (NY)0.67
PEG (5Y)1.55
Graham Number55.38
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 | 4.17 |
F-Score6
WACC8.74%
ROIC/WACC1.47
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 Y18.62%
EPS Next 2Y9.96%
EPS Next 3Y10.87%
EPS Next 5Y6.65%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%3.72%
Revenue Next Year1.23%
Revenue Next 2Y2.95%
Revenue Next 3Y3.69%
Revenue Next 5Y2.64%
EBIT growth 1Y2.78%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year28.15%
EBIT Next 3Y13.73%
EBIT Next 5Y11.96%
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 for 6MK 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 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 12.43 and the Price/Book (PB) ratio is 5.24.
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%.