MERCK KGAA (MRK.DE) Stock Fundamental Analysis
FRA:MRK - Deutsche Boerse Ag - DE0006599905 - Common Stock - Currency: EUR
Taking everything into account, MRK scores 4 out of 10 in our fundamental rating. MRK was compared to 50 industry peers in the Pharmaceuticals industry. MRK has an average financial health and profitability rating. MRK is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MRK had positive earnings in the past year.
In the past year MRK had a positive cash flow from operations.
Each year in the past 5 years MRK has been profitable.
In the past 5 years MRK always reported a positive cash flow from operatings.
1.2 Ratios
MRK has a Return On Assets of 5.71%. This is comparable to the rest of the industry: MRK outperforms 56.00% of its industry peers.
Looking at the Return On Equity, with a value of 9.45%, MRK is in line with its industry, outperforming 52.00% of the companies in the same industry.
MRK has a Return On Invested Capital of 7.49%. This is comparable to the rest of the industry: MRK outperforms 52.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRK is significantly below the industry average of 14.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 9.45% | ||
| ROIC | 7.49% |
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
With a decent Profit Margin value of 13.22%, MRK is doing good in the industry, outperforming 62.00% of the companies in the same industry.
In the last couple of years the Profit Margin of MRK has grown nicely.
MRK's Operating Margin of 17.49% is in line compared to the rest of the industry. MRK outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of MRK has grown nicely.
MRK has a Gross Margin of 59.21%. This is in the lower half of the industry: MRK underperforms 66.00% of its industry peers.
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 | 17.49% | ||
| PM (TTM) | 13.22% | ||
| GM | 59.21% |
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.
Compared to 1 year ago, MRK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.98 indicates that MRK is not a great score, but indicates only limited risk for bankruptcy at the moment.
MRK has a Altman-Z score (2.98) which is comparable to the rest of the industry.
MRK has a debt to FCF ratio of 4.00. This is a neutral value as MRK would need 4.00 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.00, MRK is in line with its industry, outperforming 58.00% of the companies in the same industry.
MRK has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
MRK's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. MRK outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 4 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.12
WACC6.66%
2.3 Liquidity
MRK has a Current Ratio of 1.31. This is a normal value and indicates that MRK is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.31, MRK perfoms like the industry average, outperforming 42.00% of the companies in the same industry.
A Quick Ratio of 0.83 indicates that MRK may have some problems paying its short term obligations.
With a Quick ratio value of 0.83, MRK is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
MRK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.23%.
Measured over the past years, MRK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.19% on average per year.
Looking at the last year, MRK shows a small growth in Revenue. The Revenue has grown by 2.38% in the last year.
Measured over the past years, MRK shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
EPS 1Y (TTM)6.23%
EPS 3Y-0.35%
EPS 5Y9.19%
EPS Q2Q%2.91%
Revenue 1Y (TTM)2.38%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%3.13%
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 5.71% on average per year.
Based on estimates for the next years, MRK will show a small growth in Revenue. The Revenue will grow by 3.19% on average per year.
EPS Next Y8.35%
EPS Next 2Y8.91%
EPS Next 3Y7.86%
EPS Next 5Y5.71%
Revenue Next Year2.85%
Revenue Next 2Y3.29%
Revenue Next 3Y3.5%
Revenue Next 5Y3.19%
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
A Price/Earnings ratio of 12.66 indicates a correct valuation of MRK.
Based on the Price/Earnings ratio, MRK is valued a bit cheaper than the industry average as 72.00% of the companies are valued more expensively.
MRK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
A Price/Forward Earnings ratio of 10.75 indicates a reasonable valuation of MRK.
MRK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MRK is cheaper than 72.00% of the companies in the same industry.
MRK is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 10.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRK is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
MRK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.04 | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
MRK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.52
PEG (5Y)1.38
EPS Next 2Y8.91%
EPS Next 3Y7.86%
5. Dividend
5.1 Amount
MRK has a Yearly Dividend Yield of 1.97%.
MRK's Dividend Yield is comparable with the industry average which is at 3.03.
MRK's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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
MRK pays out 10.08% of its income as dividend. This is a sustainable payout ratio.
MRK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP10.08%
EPS Next 2Y8.91%
EPS Next 3Y7.86%
FRA:MRK (6/30/2025, 7:00:00 PM)
110
-2.65 (-2.35%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners48.59%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap47.83B
Analysts80
Price Target163.99 (49.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly Dividend0.65
Dividend Growth(5Y)11.88%
DP10.08%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3%
Min EPS beat(2)-3.43%
Max EPS beat(2)-2.56%
EPS beat(4)1
Avg EPS beat(4)1.06%
Min EPS beat(4)-3.43%
Max EPS beat(4)10.63%
EPS beat(8)3
Avg EPS beat(8)1.42%
EPS beat(12)5
Avg EPS beat(12)0.55%
EPS beat(16)7
Avg EPS beat(16)0.51%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)-0.68%
Revenue beat(4)1
Avg Revenue beat(4)-0.96%
Min Revenue beat(4)-2.1%
Max Revenue beat(4)0.28%
Revenue beat(8)1
Avg Revenue beat(8)-1.22%
Revenue beat(12)3
Avg Revenue beat(12)-0.96%
Revenue beat(16)4
Avg Revenue beat(16)-0.81%
PT rev (1m)-4.67%
PT rev (3m)-9.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 10.75 | ||
| P/S | 2.24 | ||
| P/FCF | 22.04 | ||
| P/OCF | 11.64 | ||
| P/B | 1.6 | ||
| P/tB | 9.08 | ||
| EV/EBITDA | 9.42 |
EPS(TTM)8.69
EY7.9%
EPS(NY)10.24
Fwd EY9.31%
FCF(TTM)4.99
FCFY4.54%
OCF(TTM)9.45
OCFY8.59%
SpS49.03
BVpS68.59
TBVpS12.11
PEG (NY)1.52
PEG (5Y)1.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 9.45% | ||
| ROCE | 9.35% | ||
| ROIC | 7.49% | ||
| ROICexc | 7.8% | ||
| ROICexgc | 21.8% | ||
| OM | 17.49% | ||
| PM (TTM) | 13.22% | ||
| GM | 59.21% | ||
| FCFM | 10.18% |
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%
ROICexcg growth 3Y-8.23%
ROICexcg 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-Score8
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 4 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 89.97% | ||
| Cap/Sales | 9.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.82% | ||
| Profit Quality | 77.03% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 2.98 |
F-Score8
WACC6.66%
ROIC/WACC1.12
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)6.23%
EPS 3Y-0.35%
EPS 5Y9.19%
EPS Q2Q%2.91%
EPS Next Y8.35%
EPS Next 2Y8.91%
EPS Next 3Y7.86%
EPS Next 5Y5.71%
Revenue 1Y (TTM)2.38%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%3.13%
Revenue Next Year2.85%
Revenue Next 2Y3.29%
Revenue Next 3Y3.5%
Revenue Next 5Y3.19%
EBIT growth 1Y4.98%
EBIT growth 3Y-0.01%
EBIT growth 5Y11.7%
EBIT Next Year40.77%
EBIT Next 3Y16.3%
EBIT Next 5Y10.96%
FCF growth 1Y-6.18%
FCF growth 3Y-9.07%
FCF growth 5Y5.53%
OCF growth 1Y-3.86%
OCF growth 3Y-0.22%
OCF growth 5Y9.93%