MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
Europe - FRA:6MK - US58933Y1055 - Common Stock
74.3 EUR
+0.1 (+0.13%)
Taking everything into account, 6MK scores 7 out of 10 in our fundamental rating. 6MK was compared to 53 industry peers in the Pharmaceuticals industry. Both the health and profitability get an excellent rating, making 6MK a very profitable company, without any liquidiy or solvency issues. 6MK is valued quite cheap, while showing a decent growth score. This is a good combination! This makes 6MK very considerable for value and quality 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.
6MK had positive earnings in each of the past 5 years.
6MK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.96%, 6MK belongs to the top of the industry, outperforming 86.79% of the companies in the same industry.
The Return On Equity of 6MK (33.49%) is better than 86.79% of its industry peers.
6MK has a better Return On Invested Capital (13.43%) than 64.15% of its industry peers.
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 14.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 33.49% | ||
| ROIC | 13.43% |
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 (25.79%) than 84.91% of its industry peers.
6MK's Profit Margin has been stable in the last couple of years.
6MK has a Operating Margin of 36.48%. This is amongst the best in the industry. 6MK outperforms 88.68% of its industry peers.
In the last couple of years the Operating Margin of 6MK has grown nicely.
With a decent Gross Margin value of 77.31%, 6MK is doing good in the industry, outperforming 77.36% of the companies in the same industry.
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 | 36.48% | ||
| PM (TTM) | 25.79% | ||
| GM | 77.31% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 6MK is still creating some value.
Compared to 1 year ago, 6MK has about the same amount of shares outstanding.
6MK has less shares outstanding than it did 5 years ago.
6MK has a better debt/assets ratio than last year.
2.2 Solvency
6MK has an Altman-Z score of 3.99. This indicates that 6MK is financially healthy and has little risk of bankruptcy at the moment.
6MK's Altman-Z score of 3.99 is fine compared to the rest of the industry. 6MK outperforms 60.38% of its industry peers.
The Debt to FCF ratio of 6MK is 2.40, which is a good value as it means it would take 6MK, 2.40 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.40, 6MK is in the better half of the industry, outperforming 71.70% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that 6MK is somewhat dependend on debt financing.
6MK's Debt to Equity ratio of 0.69 is on the low side compared to the rest of the industry. 6MK is outperformed by 60.38% of 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 | 3.99 |
ROIC/WACC1.67
WACC8.05%
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.
6MK's Current ratio of 1.42 is fine compared to the rest of the industry. 6MK outperforms 60.38% of its industry peers.
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.
With a decent Quick ratio value of 1.17, 6MK is doing good in the industry, outperforming 71.70% 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 46.39%, 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.
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)46.39%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%64.33%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%3.72%
3.2 Future
6MK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.58% yearly.
6MK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.93% yearly.
EPS Next Y17.76%
EPS Next 2Y12.25%
EPS Next 3Y11.69%
EPS Next 5Y5.58%
Revenue Next Year1.02%
Revenue Next 2Y3.04%
Revenue Next 3Y3.96%
Revenue Next 5Y1.93%
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
6MK is valuated reasonably with a Price/Earnings ratio of 9.84.
86.79% of the companies in the same industry are more expensive than 6MK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 6MK to the average of the S&P500 Index (25.83), we can say 6MK is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.90, the valuation of 6MK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, 6MK is valued cheaply inside the industry as 84.91% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 32.68. 6MK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 8.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 6MK is valued a bit cheaper than 79.25% of the companies in the same industry.
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 | 14.54 | ||
| EV/EBITDA | 8.63 |
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)0.55
PEG (5Y)1.22
EPS Next 2Y12.25%
EPS Next 3Y11.69%
5. Dividend
5.1 Amount
6MK has a Yearly Dividend Yield of 3.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.99, 6MK pays a better dividend. On top of this 6MK pays more dividend than 81.13% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, 6MK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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 48.95% 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.
DP48.95%
EPS Next 2Y12.25%
EPS Next 3Y11.69%
FRA:6MK (11/7/2025, 5:26:20 PM)
74.3
+0.1 (+0.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.53%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap185.59B
Revenue(TTM)64.23B
Net Income(TTM)16.41B
Analysts75.76
Price Target86.95 (17.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
Yearly Dividend2.68
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)1.43%
PT rev (3m)-2.26%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-0.86%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 8.9 | ||
| P/S | 3.36 | ||
| P/FCF | 14.54 | ||
| P/OCF | 11.55 | ||
| P/B | 4.37 | ||
| P/tB | 17.53 | ||
| EV/EBITDA | 8.63 |
EPS(TTM)7.55
EY10.16%
EPS(NY)8.35
Fwd EY11.23%
FCF(TTM)5.11
FCFY6.88%
OCF(TTM)6.43
OCFY8.66%
SpS22.08
BVpS17.01
TBVpS4.24
PEG (NY)0.55
PEG (5Y)1.22
Graham Number53.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 33.49% | ||
| ROCE | 25.37% | ||
| ROIC | 13.43% | ||
| ROICexc | 14.83% | ||
| ROICexgc | 26.67% | ||
| OM | 36.48% | ||
| PM (TTM) | 25.79% | ||
| GM | 77.31% | ||
| 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%
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-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 82.85% | ||
| Cap/Sales | 5.99% | ||
| Interest Coverage | 17.39 | ||
| Cash Conversion | 66.65% | ||
| Profit Quality | 89.74% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 3.99 |
F-Score7
WACC8.05%
ROIC/WACC1.67
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)46.39%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%64.33%
EPS Next Y17.76%
EPS Next 2Y12.25%
EPS Next 3Y11.69%
EPS Next 5Y5.58%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%3.72%
Revenue Next Year1.02%
Revenue Next 2Y3.04%
Revenue Next 3Y3.96%
Revenue Next 5Y1.93%
EBIT growth 1Y-0.96%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year29.99%
EBIT Next 3Y15.06%
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%
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 of MERCK & CO. INC. (6MK.DE) stock?
ChartMill assigns a valuation rating of 8 / 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 9.84 and the Price/Book (PB) ratio is 4.37.
Can you provide the dividend sustainability for 6MK stock?
The dividend rating of MERCK & CO. INC. (6MK.DE) is 6 / 10 and the dividend payout ratio is 48.95%.