MERCK KGAA (MRK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MRK - DE0006599905 - Common Stock
128.3 EUR
+0.6 (+0.47%)
MRK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 55 industry peers in the Pharmaceuticals industry. MRK has an average financial health and profitability rating. MRK has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MRK was profitable.
MRK had a positive operating cash flow in the past year.
In the past 5 years MRK has always been profitable.
MRK 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 5.80%, MRK is in line with its industry, outperforming 52.73% of the companies in the same industry.
The Return On Equity of MRK (10.21%) is comparable to the rest of the industry.
The Return On Invested Capital of MRK (7.46%) is comparable to the rest of the industry.
MRK had an Average Return On Invested Capital over the past 3 years of 9.28%. This is below the industry average of 13.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | 10.21% | ||
| ROIC | 7.46% |
ROA(3y)6.02%
ROA(5y)5.91%
ROE(3y)10.9%
ROE(5y)11.75%
ROIC(3y)9.28%
ROIC(5y)9.07%
1.3 Margins
The Profit Margin of MRK (13.89%) is comparable to the rest of the industry.
MRK's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 18.53%, MRK perfoms like the industry average, outperforming 49.09% of the companies in the same industry.
MRK's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 58.69%, MRK is not doing good in the industry: 65.45% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MRK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.53% | ||
| PM (TTM) | 13.89% | ||
| GM | 58.69% |
OM growth 3Y-2.38%
OM growth 5Y5.83%
PM growth 3Y-5.43%
PM growth 5Y9.94%
GM growth 3Y-1.81%
GM growth 5Y-1.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MRK is still creating some value.
The number of shares outstanding for MRK remains at a similar level compared to 1 year ago.
Compared to 5 years ago, MRK has about the same amount of shares outstanding.
The debt/assets ratio for MRK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.96 indicates that MRK is not a great score, but indicates only limited risk for bankruptcy at the moment.
MRK has a Altman-Z score (2.96) which is in line with its industry peers.
MRK has a debt to FCF ratio of 6.26. This is a slightly negative value and a sign of low solvency as MRK would need 6.26 years to pay back of all of its debts.
MRK's Debt to FCF ratio of 6.26 is in line compared to the rest of the industry. MRK outperforms 41.82% of its industry peers.
MRK has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
MRK has a Debt to Equity ratio of 0.36. This is in the better half of the industry: MRK outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 2.96 |
ROIC/WACC1.1
WACC6.79%
2.3 Liquidity
A Current Ratio of 1.49 indicates that MRK should not have too much problems paying its short term obligations.
MRK has a Current ratio of 1.49. This is comparable to the rest of the industry: MRK outperforms 58.18% of its industry peers.
A Quick Ratio of 0.97 indicates that MRK may have some problems paying its short term obligations.
With a Quick ratio value of 0.97, MRK perfoms like the industry average, outperforming 47.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
MRK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.43%.
MRK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.19% yearly.
The Revenue has been growing slightly by 1.47% in the past year.
The Revenue has been growing slightly by 5.55% on average over the past years.
EPS 1Y (TTM)1.43%
EPS 3Y-0.35%
EPS 5Y9.19%
EPS Q2Q%0.87%
Revenue 1Y (TTM)1.47%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%0.99%
3.2 Future
Based on estimates for the next years, MRK will show a small growth in Earnings Per Share. The EPS will grow by 4.57% on average per year.
Based on estimates for the next years, MRK will show a small growth in Revenue. The Revenue will grow by 3.16% on average per year.
EPS Next Y-1.47%
EPS Next 2Y-0.29%
EPS Next 3Y1.74%
EPS Next 5Y4.57%
Revenue Next Year0.36%
Revenue Next 2Y1.05%
Revenue Next 3Y2.06%
Revenue Next 5Y3.16%
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
Based on the Price/Earnings ratio of 15.04, the valuation of MRK can be described as correct.
MRK's Price/Earnings ratio is a bit cheaper when compared to the industry. MRK is cheaper than 74.55% of the companies in the same industry.
MRK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.95, the valuation of MRK can be described as correct.
Based on the Price/Forward Earnings ratio, MRK is valued a bit cheaper than 70.91% of the companies in the same industry.
MRK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 14.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MRK indicates a somewhat cheap valuation: MRK is cheaper than 67.27% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MRK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.86 | ||
| EV/EBITDA | 10.89 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.64
EPS Next 2Y-0.29%
EPS Next 3Y1.74%
5. Dividend
5.1 Amount
MRK has a Yearly Dividend Yield of 1.72%. Purely for dividend investing, there may be better candidates out there.
MRK's Dividend Yield is a higher than the industry average which is at 1.54.
MRK's Dividend Yield is comparable with the S&P500 average which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
The dividend of MRK is nicely growing with an annual growth rate of 11.88%!
Dividend Growth(5Y)11.88%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
9.61% of the earnings are spent on dividend by MRK. This is a low number and sustainable payout ratio.
The dividend of MRK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.61%
EPS Next 2Y-0.29%
EPS Next 3Y1.74%
FRA:MRK (1/9/2026, 7:00:00 PM)
128.3
+0.6 (+0.47%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners54.91%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap55.78B
Revenue(TTM)21.27B
Net Income(TTM)2.96B
Analysts79.13
Price Target142.92 (11.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend0.65
Dividend Growth(5Y)11.88%
DP9.61%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.73%
Min EPS beat(2)-4.83%
Max EPS beat(2)3.38%
EPS beat(4)1
Avg EPS beat(4)-1.86%
Min EPS beat(4)-4.83%
Max EPS beat(4)3.38%
EPS beat(8)3
Avg EPS beat(8)0.95%
EPS beat(12)4
Avg EPS beat(12)0.14%
EPS beat(16)7
Avg EPS beat(16)0.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)0.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)0.09%
Revenue beat(8)2
Avg Revenue beat(8)-1.11%
Revenue beat(12)2
Avg Revenue beat(12)-1.29%
Revenue beat(16)4
Avg Revenue beat(16)-0.94%
PT rev (1m)-1.98%
PT rev (3m)-4.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.74%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 14.95 | ||
| P/S | 2.62 | ||
| P/FCF | 28.86 | ||
| P/OCF | 14.41 | ||
| P/B | 1.93 | ||
| P/tB | 16.89 | ||
| EV/EBITDA | 10.89 |
EPS(TTM)8.53
EY6.65%
EPS(NY)8.58
Fwd EY6.69%
FCF(TTM)4.45
FCFY3.47%
OCF(TTM)8.91
OCFY6.94%
SpS48.92
BVpS66.55
TBVpS7.59
PEG (NY)N/A
PEG (5Y)1.64
Graham Number113.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | 10.21% | ||
| ROCE | 9.32% | ||
| ROIC | 7.46% | ||
| ROICexc | 8.02% | ||
| ROICexgc | 22.98% | ||
| OM | 18.53% | ||
| PM (TTM) | 13.89% | ||
| GM | 58.69% | ||
| FCFM | 9.09% |
ROA(3y)6.02%
ROA(5y)5.91%
ROE(3y)10.9%
ROE(5y)11.75%
ROIC(3y)9.28%
ROIC(5y)9.07%
ROICexc(3y)9.79%
ROICexc(5y)9.49%
ROICexgc(3y)29.91%
ROICexgc(5y)31.66%
ROCE(3y)11.59%
ROCE(5y)11.34%
ROICexgc growth 3Y-8.23%
ROICexgc growth 5Y-5.36%
ROICexc growth 3Y-3.27%
ROICexc growth 5Y7.94%
OM growth 3Y-2.38%
OM growth 5Y5.83%
PM growth 3Y-5.43%
PM growth 5Y9.94%
GM growth 3Y-1.81%
GM growth 5Y-1.2%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 6.26 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 100% | ||
| Cap/Sales | 9.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.84% | ||
| Profit Quality | 65.41% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.96 |
F-Score6
WACC6.79%
ROIC/WACC1.1
Cap/Depr(3y)99.64%
Cap/Depr(5y)92.04%
Cap/Sales(3y)9.36%
Cap/Sales(5y)8.84%
Profit Quality(3y)74.2%
Profit Quality(5y)84.7%
High Growth Momentum
Growth
EPS 1Y (TTM)1.43%
EPS 3Y-0.35%
EPS 5Y9.19%
EPS Q2Q%0.87%
EPS Next Y-1.47%
EPS Next 2Y-0.29%
EPS Next 3Y1.74%
EPS Next 5Y4.57%
Revenue 1Y (TTM)1.47%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%0.99%
Revenue Next Year0.36%
Revenue Next 2Y1.05%
Revenue Next 3Y2.06%
Revenue Next 5Y3.16%
EBIT growth 1Y14.16%
EBIT growth 3Y-0.01%
EBIT growth 5Y11.7%
EBIT Next Year37.82%
EBIT Next 3Y13.34%
EBIT Next 5Y10.71%
FCF growth 1Y8.96%
FCF growth 3Y-9.07%
FCF growth 5Y5.53%
OCF growth 1Y3.36%
OCF growth 3Y-0.22%
OCF growth 5Y9.93%
MERCK KGAA / MRK.DE FAQ
What is the fundamental rating for MRK stock?
ChartMill assigns a fundamental rating of 4 / 10 to MRK.DE.
Can you provide the valuation status for MERCK KGAA?
ChartMill assigns a valuation rating of 4 / 10 to MERCK KGAA (MRK.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for MERCK KGAA?
MERCK KGAA (MRK.DE) has a profitability rating of 5 / 10.
What is the financial health of MERCK KGAA (MRK.DE) stock?
The financial health rating of MERCK KGAA (MRK.DE) is 4 / 10.
How sustainable is the dividend of MERCK KGAA (MRK.DE) stock?
The dividend rating of MERCK KGAA (MRK.DE) is 5 / 10 and the dividend payout ratio is 9.61%.