MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:6MK • US58933Y1055
91.7 EUR
+0.3 (+0.33%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 6 out of 10 to 6MK. 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 6MK was profitable.
- 6MK had a positive operating cash flow in the past year.
- Each year in the past 5 years 6MK has been profitable.
- In the past 5 years 6MK always reported a positive cash flow from operatings.
1.2 Ratios
- 6MK has a Return On Assets of 14.69%. This is amongst the best in the industry. 6MK outperforms 89.09% of its industry peers.
- Looking at the Return On Equity, with a value of 36.71%, 6MK belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- 6MK's Return On Invested Capital of 12.83% is fine compared to the rest of the industry. 6MK outperforms 61.82% 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 14.00%.
| 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
- With an excellent Profit Margin value of 29.63%, 6MK belongs to the best of the industry, outperforming 92.73% of the companies in the same industry.
- 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 90.91% 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 81.82% 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
- 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.
- The number of shares outstanding for 6MK has been reduced compared to 5 years ago.
- The debt/assets ratio for 6MK has been reduced compared to a year ago.
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 54.55% 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 69.09% 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 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 4.17 |
ROIC/WACC1.46
WACC8.76%
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.
- With a decent Current ratio value of 1.66, 6MK is doing good in the industry, outperforming 69.09% of the companies in the same industry.
- 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.
- With a decent Quick ratio value of 1.44, 6MK is doing good in the industry, outperforming 78.18% of the companies in the same industry.
| 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.
- 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 6.65% 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 2.64% yearly.
EPS Next Y18.51%
EPS Next 2Y-13.49%
EPS Next 3Y10.11%
EPS Next 5Y6.65%
Revenue Next Year1.23%
Revenue Next 2Y2.83%
Revenue Next 3Y3.72%
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
- 6MK is valuated correctly with a Price/Earnings ratio of 12.46.
- 6MK's Price/Earnings ratio is a bit cheaper when compared to the industry. 6MK is cheaper than 78.18% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, 6MK is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 19.19, the valuation of 6MK can be described as rather expensive.
- 6MK's Price/Forward Earnings is on the same level as the industry average.
- 6MK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.46 | ||
| Fwd PE | 19.19 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 6MK is valued a bit cheaper than 76.36% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 6MK indicates a somewhat cheap valuation: 6MK is cheaper than 69.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.87 | ||
| 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.
- The excellent profitability rating of 6MK may justify a higher PE ratio.
PEG (NY)0.67
PEG (5Y)1.55
EPS Next 2Y-13.49%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.14%, 6MK has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.72, 6MK pays a better dividend. On top of this 6MK pays more dividend than 83.64% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, 6MK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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 2Y-13.49%
EPS Next 3Y10.11%
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 for 6MK stock?
ChartMill assigns a valuation rating of 6 / 10 to MERCK & CO. INC. (6MK.DE). This can be considered as Fairly Valued.
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 12.46 and the Price/Book (PB) ratio is 5.25.
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%.