MERCK KGAA (MRK.DE) Stock Fundamental Analysis
Europe - FRA:MRK - DE0006599905 - Common Stock
110.9 EUR
-0.75 (-0.67%)
Taking everything into account, MRK scores 4 out of 10 in our fundamental rating. MRK was compared to 54 industry peers in the Pharmaceuticals industry. Both the profitability and the financial health of MRK get a neutral evaluation. Nothing too spectacular is happening here. MRK has a valuation in line with the averages, 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.
MRK had positive earnings in each of the past 5 years.
Each year in the past 5 years MRK had a positive operating cash flow.
1.2 Ratios
MRK's Return On Assets of 6.04% is in line compared to the rest of the industry. MRK outperforms 53.70% of its industry peers.
The Return On Equity of MRK (10.13%) is comparable to the rest of the industry.
The Return On Invested Capital of MRK (8.18%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MRK is significantly below the industry average of 14.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.04% | ||
| ROE | 10.13% | ||
| ROIC | 8.18% |
ROA(3y)6.02%
ROA(5y)5.91%
ROE(3y)10.9%
ROE(5y)11.75%
ROIC(3y)9.28%
ROIC(5y)9.07%
1.3 Margins
With a Profit Margin value of 13.49%, MRK perfoms like the industry average, outperforming 57.41% of the companies in the same industry.
In the last couple of years the Profit Margin of MRK has grown nicely.
MRK has a Operating Margin (18.05%) which is comparable to the rest of the industry.
MRK's Operating Margin has improved in the last couple of years.
MRK has a worse Gross Margin (58.51%) than 62.96% 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 | 18.05% | ||
| PM (TTM) | 13.49% | ||
| GM | 58.51% |
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.
MRK has about the same amout of shares outstanding than it did 1 year ago.
MRK has about the same amout of shares outstanding than it did 5 years ago.
MRK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.01 indicates that MRK is not in any danger for bankruptcy at the moment.
MRK's Altman-Z score of 3.01 is in line compared to the rest of the industry. MRK outperforms 46.30% of its industry peers.
The Debt to FCF ratio of MRK is 5.26, which is a neutral value as it means it would take MRK, 5.26 years of fcf income to pay off all of its debts.
MRK has a Debt to FCF ratio (5.26) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.22 indicates that MRK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.22, MRK is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.18
WACC6.94%
2.3 Liquidity
MRK has a Current Ratio of 1.24. This is a normal value and indicates that MRK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.24, MRK is doing worse than 62.96% of the companies in the same industry.
MRK has a Quick Ratio of 1.24. This is a bad value and indicates that MRK is not financially healthy enough and could expect problems in meeting its short term obligations.
MRK's Quick ratio of 0.78 is on the low side compared to the rest of the industry. MRK is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
MRK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.87%.
The Earnings Per Share has been growing by 9.19% on average over the past years. This is quite good.
Looking at the last year, MRK shows a small growth in Revenue. The Revenue has grown by 0.78% in the last year.
MRK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
EPS 1Y (TTM)-17.87%
EPS 3Y-0.35%
EPS 5Y9.19%
EPS Q2Q%-69.68%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%1.61%
3.2 Future
MRK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.29% yearly.
MRK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.29% yearly.
EPS Next Y-1.79%
EPS Next 2Y1.04%
EPS Next 3Y2.21%
EPS Next 5Y5.29%
Revenue Next Year0.28%
Revenue Next 2Y1.48%
Revenue Next 3Y2.22%
Revenue Next 5Y3.29%
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
With a Price/Earnings ratio of 16.05, MRK is valued correctly.
61.11% of the companies in the same industry are more expensive than MRK, based on the Price/Earnings ratio.
MRK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.51.
A Price/Forward Earnings ratio of 12.59 indicates a correct valuation of MRK.
MRK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MRK is cheaper than 68.52% of the companies in the same industry.
MRK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 12.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRK is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as MRK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.06 | ||
| EV/EBITDA | 9.71 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.75
EPS Next 2Y1.04%
EPS Next 3Y2.21%
5. Dividend
5.1 Amount
MRK has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.01, MRK has a dividend in line with its industry peers.
MRK's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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
9.92% 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.
DP9.92%
EPS Next 2Y1.04%
EPS Next 3Y2.21%
FRA:MRK (11/19/2025, 5:29:45 PM)
110.9
-0.75 (-0.67%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners55.76%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap48.22B
Revenue(TTM)21.16B
Net Income(TTM)2.86B
Analysts77.5
Price Target147.22 (32.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend0.65
Dividend Growth(5Y)11.88%
DP9.92%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.13%
Min EPS beat(2)-4.83%
Max EPS beat(2)-3.43%
EPS beat(4)0
Avg EPS beat(4)-2.8%
Min EPS beat(4)-4.83%
Max EPS beat(4)-0.39%
EPS beat(8)3
Avg EPS beat(8)0.89%
EPS beat(12)4
Avg EPS beat(12)-0.1%
EPS beat(16)6
Avg EPS beat(16)-0.14%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-2.1%
Max Revenue beat(4)-0.68%
Revenue beat(8)1
Avg Revenue beat(8)-1.41%
Revenue beat(12)2
Avg Revenue beat(12)-1.23%
Revenue beat(16)3
Avg Revenue beat(16)-1%
PT rev (1m)-1.7%
PT rev (3m)-6.31%
EPS NQ rev (1m)3.98%
EPS NQ rev (3m)3.37%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-9.36%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 12.59 | ||
| P/S | 2.27 | ||
| P/FCF | 27.06 | ||
| P/OCF | 12.65 | ||
| P/B | 1.71 | ||
| P/tB | 9.04 | ||
| EV/EBITDA | 9.71 |
EPS(TTM)6.91
EY6.23%
EPS(NY)8.81
Fwd EY7.95%
FCF(TTM)4.1
FCFY3.7%
OCF(TTM)8.77
OCFY7.91%
SpS48.8
BVpS65
TBVpS12.27
PEG (NY)N/A
PEG (5Y)1.75
Graham Number100.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.04% | ||
| ROE | 10.13% | ||
| ROCE | 10.21% | ||
| ROIC | 8.18% | ||
| ROICexc | 8.53% | ||
| ROICexgc | 23.59% | ||
| OM | 18.05% | ||
| PM (TTM) | 13.49% | ||
| GM | 58.51% | ||
| FCFM | 8.4% |
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-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 5.26 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 105.23% | ||
| Cap/Sales | 9.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.21% | ||
| Profit Quality | 62.26% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 3.01 |
F-Score7
WACC6.94%
ROIC/WACC1.18
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)-17.87%
EPS 3Y-0.35%
EPS 5Y9.19%
EPS Q2Q%-69.68%
EPS Next Y-1.79%
EPS Next 2Y1.04%
EPS Next 3Y2.21%
EPS Next 5Y5.29%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%1.61%
Revenue Next Year0.28%
Revenue Next 2Y1.48%
Revenue Next 3Y2.22%
Revenue Next 5Y3.29%
EBIT growth 1Y13.79%
EBIT growth 3Y-0.01%
EBIT growth 5Y11.7%
EBIT Next Year38.63%
EBIT Next 3Y15.07%
EBIT Next 5Y11.7%
FCF growth 1Y-13.28%
FCF growth 3Y-9.07%
FCF growth 5Y5.53%
OCF growth 1Y-5.67%
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.
What is the valuation status of MERCK KGAA (MRK.DE) stock?
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.
Can you provide the expected EPS growth for MRK stock?
The Earnings per Share (EPS) of MERCK KGAA (MRK.DE) is expected to decline by -1.79% in the next year.
How sustainable is the dividend of MERCK KGAA (MRK.DE) stock?
The dividend rating of MERCK KGAA (MRK.DE) is 4 / 10 and the dividend payout ratio is 9.92%.