MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
Europe - FRA:6MK - US58933Y1055 - Common Stock
68.4 EUR
-0.7 (-1.01%)
Taking everything into account, 6MK scores 7 out of 10 in our fundamental rating. 6MK was compared to 49 industry peers in the Pharmaceuticals industry. 6MK gets an excellent profitability rating and is at the same time showing great financial health properties. 6MK may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make 6MK suitable for value 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.
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
6MK has a Return On Assets of 13.96%. This is amongst the best in the industry. 6MK outperforms 91.84% of its industry peers.
6MK's Return On Equity of 33.49% is amongst the best of the industry. 6MK outperforms 89.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.81%, 6MK is in the better half of the industry, outperforming 67.35% 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 15.25%.
The 3 year average ROIC (13.67%) for 6MK is below the current ROIC(13.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 33.49% | ||
| ROIC | 13.81% |
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 25.79%, 6MK belongs to the top of the industry, outperforming 87.76% 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 better Operating Margin (37.52%) than 89.80% of its industry peers.
6MK's Operating Margin has improved in the last couple of years.
6MK's Gross Margin of 78.32% is fine compared to the rest of the industry. 6MK outperforms 79.59% 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 | 37.52% | ||
| PM (TTM) | 25.79% | ||
| GM | 78.32% |
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.
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
6MK has an Altman-Z score of 3.92. This indicates that 6MK is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.92, 6MK is doing good in the industry, outperforming 63.27% of the companies in the same industry.
6MK has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as 6MK would need 2.40 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.40, 6MK is doing good in the industry, outperforming 73.47% of the companies in the same industry.
6MK has a Debt/Equity ratio of 0.69. This is a neutral value indicating 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 | 2.4 | ||
| Altman-Z | 3.92 |
ROIC/WACC1.54
WACC8.96%
2.3 Liquidity
6MK has a Current Ratio of 1.42. 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 Current ratio value of 1.42, 6MK perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
6MK has a Quick Ratio of 1.17. This is a normal value and indicates that 6MK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.17, 6MK is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
6MK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.28%, which is quite good.
6MK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.04% yearly.
6MK shows a small growth in Revenue. In the last year, the Revenue has grown by 1.82%.
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)18.28%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%-3.95%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.9%
3.2 Future
The Earnings Per Share is expected to grow by 5.37% 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 1.86% yearly.
EPS Next Y17.86%
EPS Next 2Y12.72%
EPS Next 3Y12.19%
EPS Next 5Y5.37%
Revenue Next Year1.18%
Revenue Next 2Y3.05%
Revenue Next 3Y3.96%
Revenue Next 5Y1.86%
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.
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 10.46 indicates a reasonable valuation of 6MK.
Based on the Price/Earnings ratio, 6MK is valued a bit cheaper than 77.55% of the companies in the same industry.
6MK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.27.
6MK is valuated reasonably with a Price/Forward Earnings ratio of 8.29.
6MK's Price/Forward Earnings ratio is rather cheap when compared to the industry. 6MK is cheaper than 83.67% of the companies in the same industry.
6MK is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 8.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 6MK is valued a bit cheaper than 79.59% of the companies in the same industry.
79.59% 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 | 13.65 | ||
| EV/EBITDA | 8.05 |
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.
A more expensive valuation may be justified as 6MK's earnings are expected to grow with 12.19% in the coming years.
PEG (NY)0.59
PEG (5Y)1.3
EPS Next 2Y12.72%
EPS Next 3Y12.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.81%, 6MK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.04, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
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
48.95% 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.
DP48.95%
EPS Next 2Y12.72%
EPS Next 3Y12.19%
FRA:6MK (9/16/2025, 5:19:45 PM)
68.4
-0.7 (-1.01%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.5%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap170.85B
Analysts75.76
Price Target85.72 (25.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Yearly Dividend2.64
Dividend Growth(5Y)6.9%
DP48.95%
Div Incr Years8
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.31%
Min EPS beat(2)2.93%
Max EPS beat(2)7.69%
EPS beat(4)4
Avg EPS beat(4)4.85%
Min EPS beat(4)2.93%
Max EPS beat(4)7.69%
EPS beat(8)8
Avg EPS beat(8)21.1%
EPS beat(12)12
Avg EPS beat(12)15.97%
EPS beat(16)16
Avg EPS beat(16)15.3%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.25%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)0.45%
Revenue beat(8)5
Avg Revenue beat(8)0.7%
Revenue beat(12)9
Avg Revenue beat(12)1.51%
Revenue beat(16)13
Avg Revenue beat(16)2.28%
PT rev (1m)-1.78%
PT rev (3m)-7.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.52%
EPS NY rev (1m)0.42%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 8.29 | ||
| P/S | 3.16 | ||
| P/FCF | 13.65 | ||
| P/OCF | 10.85 | ||
| P/B | 4.1 | ||
| P/tB | 16.46 | ||
| EV/EBITDA | 8.05 |
EPS(TTM)6.54
EY9.56%
EPS(NY)8.25
Fwd EY12.06%
FCF(TTM)5.01
FCFY7.32%
OCF(TTM)6.31
OCFY9.22%
SpS21.65
BVpS16.67
TBVpS4.15
PEG (NY)0.59
PEG (5Y)1.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 33.49% | ||
| ROCE | 26.09% | ||
| ROIC | 13.81% | ||
| ROICexc | 15.25% | ||
| ROICexgc | 27.43% | ||
| OM | 37.52% | ||
| PM (TTM) | 25.79% | ||
| GM | 78.32% | ||
| FCFM | 23.14% |
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%
ROICexcg growth 3Y7.57%
ROICexcg 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-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 82.85% | ||
| Cap/Sales | 5.99% | ||
| Interest Coverage | 17.88 | ||
| Cash Conversion | 65.1% | ||
| Profit Quality | 89.74% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 3.92 |
F-Score7
WACC8.96%
ROIC/WACC1.54
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)18.28%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%-3.95%
EPS Next Y17.86%
EPS Next 2Y12.72%
EPS Next 3Y12.19%
EPS Next 5Y5.37%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.9%
Revenue Next Year1.18%
Revenue Next 2Y3.05%
Revenue Next 3Y3.96%
Revenue Next 5Y1.86%
EBIT growth 1Y1.85%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year29.85%
EBIT Next 3Y14.96%
EBIT Next 5Y9.07%
FCF growth 1Y35.96%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y22.95%
OCF growth 3Y15.02%
OCF growth 5Y9.82%