MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
FRA:6MK - Deutsche Boerse Ag - US58933Y1055 - Common Stock - Currency: EUR
6MK gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 50 industry peers in the Pharmaceuticals industry. 6MK has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 6MK is valued quite cheap, while showing a decent growth score. This is a good combination! 6MK also has an excellent dividend rating. This makes 6MK very considerable for value and dividend and quality investing!
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.
Each year in the past 5 years 6MK had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 15.14%, 6MK belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
6MK has a better Return On Equity (36.07%) than 88.00% of its industry peers.
6MK's Return On Invested Capital of 12.73% is fine compared to the rest of the industry. 6MK outperforms 66.00% 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 14.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.14% | ||
| ROE | 36.07% | ||
| ROIC | 12.73% |
ROA(3y)9.42%
ROA(5y)9.66%
ROE(3y)23.17%
ROE(5y)26.32%
ROIC(3y)13.49%
ROIC(5y)11.91%
1.3 Margins
Looking at the Profit Margin, with a value of 27.27%, 6MK belongs to the top of the industry, outperforming 94.00% of the companies in the same industry.
6MK's Profit Margin has been stable in the last couple of years.
The Operating Margin of 6MK (33.84%) is better than 90.00% of its industry peers.
In the last couple of years the Operating Margin of 6MK has grown nicely.
6MK has a Gross Margin of 78.17%. This is in the better half of the industry: 6MK outperforms 76.00% of its industry peers.
In the last couple of years the Gross Margin of 6MK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.84% | ||
| PM (TTM) | 27.27% | ||
| GM | 78.17% |
OM growth 3Y4.43%
OM growth 5Y7.18%
PM growth 3Y-0.15%
PM growth 5Y1.18%
GM growth 3Y3.55%
GM growth 5Y2.42%
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.
The number of shares outstanding for 6MK remains at a similar level compared to 1 year ago.
6MK has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 6MK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.86 indicates that 6MK is not in any danger for bankruptcy at the moment.
6MK has a Altman-Z score of 3.86. This is comparable to the rest of the industry: 6MK outperforms 58.00% of its industry peers.
The Debt to FCF ratio of 6MK is 2.04, which is a good value as it means it would take 6MK, 2.04 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 6MK (2.04) is better than 88.00% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that 6MK is somewhat dependend on debt financing.
6MK has a Debt to Equity ratio (0.69) which is in line with its industry peers.
Although 6MK does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.04 | ||
| Altman-Z | 3.86 |
ROIC/WACC1.43
WACC8.88%
2.3 Liquidity
6MK has a Current Ratio of 1.41. 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 (1.41) which is in line with its industry peers.
6MK has a Quick Ratio of 1.16. 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 better Quick ratio (1.16) than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
6MK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 258.99%, 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.
The Revenue has been growing slightly by 4.10% in the past year.
The Revenue has been growing by 10.40% on average over the past years. This is quite good.
EPS 1Y (TTM)258.99%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%7.25%
Revenue 1Y (TTM)4.1%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.56%
3.2 Future
The Earnings Per Share is expected to grow by 5.96% on average over the next years.
Based on estimates for the next years, 6MK will show a small growth in Revenue. The Revenue will grow by 2.20% on average per year.
EPS Next Y17.71%
EPS Next 2Y13.67%
EPS Next 3Y12.76%
EPS Next 5Y5.96%
Revenue Next Year1.67%
Revenue Next 2Y3.7%
Revenue Next 3Y4.26%
Revenue Next 5Y2.2%
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 decreasing.
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
6MK is valuated reasonably with a Price/Earnings ratio of 10.09.
6MK's Price/Earnings ratio is a bit cheaper when compared to the industry. 6MK is cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.15. 6MK is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.97, the valuation of 6MK can be described as very cheap.
6MK's Price/Forward Earnings ratio is rather cheap when compared to the industry. 6MK is cheaper than 86.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.60. 6MK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 7.97 |
4.2 Price Multiples
74.00% of the companies in the same industry are more expensive than 6MK, based on the Enterprise Value to EBITDA ratio.
86.00% 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 | 11.59 | ||
| EV/EBITDA | 8.48 |
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.
6MK's earnings are expected to grow with 12.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)1.25
EPS Next 2Y13.67%
EPS Next 3Y12.76%
5. Dividend
5.1 Amount
6MK has a Yearly Dividend Yield of 4.11%, which is a nice return.
Compared to an average industry Dividend Yield of 3.03, 6MK pays a bit more dividend than its industry peers.
6MK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
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
45.54% 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.
DP45.54%
EPS Next 2Y13.67%
EPS Next 3Y12.76%
FRA:6MK (6/30/2025, 7:00:00 PM)
67.1
-0.2 (-0.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.57%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap168.49B
Analysts76.88
Price Target91.49 (36.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
Yearly Dividend2.65
Dividend Growth(5Y)6.9%
DP45.54%
Div Incr Years8
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.19%
Min EPS beat(2)2.93%
Max EPS beat(2)5.44%
EPS beat(4)4
Avg EPS beat(4)4.13%
Min EPS beat(4)2.93%
Max EPS beat(4)5.44%
EPS beat(8)8
Avg EPS beat(8)20.93%
EPS beat(12)12
Avg EPS beat(12)16.06%
EPS beat(16)15
Avg EPS beat(16)14.76%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)0.45%
Revenue beat(4)3
Avg Revenue beat(4)0.32%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)0.71%
Revenue beat(8)6
Avg Revenue beat(8)1.27%
Revenue beat(12)10
Avg Revenue beat(12)1.96%
Revenue beat(16)14
Avg Revenue beat(16)2.49%
PT rev (1m)-3.34%
PT rev (3m)-14.49%
EPS NQ rev (1m)0.8%
EPS NQ rev (3m)-7.26%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 7.97 | ||
| P/S | 3.09 | ||
| P/FCF | 11.59 | ||
| P/OCF | 9.46 | ||
| P/B | 4.09 | ||
| P/tB | 18.13 | ||
| EV/EBITDA | 8.48 |
EPS(TTM)6.65
EY9.91%
EPS(NY)8.42
Fwd EY12.55%
FCF(TTM)5.79
FCFY8.63%
OCF(TTM)7.09
OCFY10.57%
SpS21.72
BVpS16.42
TBVpS3.7
PEG (NY)0.57
PEG (5Y)1.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.14% | ||
| ROE | 36.07% | ||
| ROCE | 24.05% | ||
| ROIC | 12.73% | ||
| ROICexc | 14.19% | ||
| ROICexgc | 26.46% | ||
| OM | 33.84% | ||
| PM (TTM) | 27.27% | ||
| GM | 78.17% | ||
| FCFM | 26.66% |
ROA(3y)9.42%
ROA(5y)9.66%
ROE(3y)23.17%
ROE(5y)26.32%
ROIC(3y)13.49%
ROIC(5y)11.91%
ROICexc(3y)15.56%
ROICexc(5y)13.63%
ROICexgc(3y)33.79%
ROICexgc(5y)31.28%
ROCE(3y)25.47%
ROCE(5y)22.5%
ROICexcg growth 3Y6.23%
ROICexcg growth 5Y2.59%
ROICexc growth 3Y13.83%
ROICexc growth 5Y9.86%
OM growth 3Y4.43%
OM growth 5Y7.18%
PM growth 3Y-0.15%
PM growth 5Y1.18%
GM growth 3Y3.55%
GM growth 5Y2.42%
F-Score8
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.04 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 83.2% | ||
| Cap/Sales | 6.01% | ||
| Interest Coverage | 16.44 | ||
| Cash Conversion | 79.55% | ||
| Profit Quality | 97.73% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 3.86 |
F-Score8
WACC8.88%
ROIC/WACC1.43
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)258.99%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%7.25%
EPS Next Y17.71%
EPS Next 2Y13.67%
EPS Next 3Y12.76%
EPS Next 5Y5.96%
Revenue 1Y (TTM)4.1%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.56%
Revenue Next Year1.67%
Revenue Next 2Y3.7%
Revenue Next 3Y4.26%
Revenue Next 5Y2.2%
EBIT growth 1Y-3.79%
EBIT growth 3Y14.48%
EBIT growth 5Y18.33%
EBIT Next Year30.08%
EBIT Next 3Y15.02%
EBIT Next 5Y9.31%
FCF growth 1Y51.3%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y33.21%
OCF growth 3Y15.02%
OCF growth 5Y9.82%