MERCK KGAA (MRK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MRK - DE0006599905 - Common Stock
120.45 EUR
+0.35 (+0.29%)
MRK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 54 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 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.
Each year in the past 5 years MRK had a positive operating cash flow.
1.2 Ratios
MRK's Return On Assets of 5.80% is in line compared to the rest of the industry. MRK outperforms 51.85% of its industry peers.
Looking at the Return On Equity, with a value of 10.21%, MRK is in line with its industry, outperforming 48.15% of the companies in the same industry.
MRK has a Return On Invested Capital (7.46%) which is in line with its industry peers.
MRK had an Average Return On Invested Capital over the past 3 years of 9.28%. This is below the industry average of 13.79%.
| 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
MRK has a Profit Margin of 13.89%. This is comparable to the rest of the industry: MRK outperforms 57.41% of its industry peers.
In the last couple of years the Profit Margin of MRK has grown nicely.
MRK has a Operating Margin (18.53%) which is comparable to the rest of the industry.
MRK's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 58.69%, MRK is doing worse than 62.96% of the companies in the same industry.
MRK's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MRK is 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.
Compared to 1 year ago, MRK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.87 indicates that MRK is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.87, MRK is in line with its industry, outperforming 48.15% of the companies in the same industry.
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.
The Debt to FCF ratio of MRK (6.26) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.36 indicates that MRK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.36, MRK is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 2.87 |
ROIC/WACC1.03
WACC7.25%
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 in the better half of the industry: MRK outperforms 61.11% of its industry peers.
A Quick Ratio of 0.97 indicates that MRK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.97, MRK is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.43% over the past year.
The Earnings Per Share has been growing by 9.19% on average over the past years. This is quite good.
MRK shows a small growth in Revenue. In the last year, the Revenue has grown by 1.47%.
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)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.
MRK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.16% yearly.
EPS Next Y-1.42%
EPS Next 2Y-0.06%
EPS Next 3Y1.79%
EPS Next 5Y4.57%
Revenue Next Year0.32%
Revenue Next 2Y1.1%
Revenue Next 3Y2.07%
Revenue Next 5Y3.16%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 14.12, MRK is valued correctly.
MRK's Price/Earnings ratio is a bit cheaper when compared to the industry. MRK is cheaper than 72.22% of the companies in the same industry.
MRK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.61.
A Price/Forward Earnings ratio of 13.97 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 70.37% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, MRK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 13.97 |
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 72.22% 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 | 27.09 | ||
| EV/EBITDA | 10.32 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.54
EPS Next 2Y-0.06%
EPS Next 3Y1.79%
5. Dividend
5.1 Amount
MRK has a Yearly Dividend Yield of 1.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.85, MRK has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, MRK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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 9.61% of its income as dividend. This is a 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-0.06%
EPS Next 3Y1.79%
FRA:MRK (12/23/2025, 10:34:19 AM)
120.45
+0.35 (+0.29%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners54.11%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap52.37B
Revenue(TTM)21.27B
Net Income(TTM)2.96B
Analysts77.5
Price Target143.76 (19.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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)-2.35%
PT rev (3m)-4.01%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-5.74%
EPS NY rev (1m)0.37%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 13.97 | ||
| P/S | 2.46 | ||
| P/FCF | 27.09 | ||
| P/OCF | 13.53 | ||
| P/B | 1.81 | ||
| P/tB | 15.86 | ||
| EV/EBITDA | 10.32 |
EPS(TTM)8.53
EY7.08%
EPS(NY)8.62
Fwd EY7.16%
FCF(TTM)4.45
FCFY3.69%
OCF(TTM)8.91
OCFY7.39%
SpS48.92
BVpS66.55
TBVpS7.59
PEG (NY)N/A
PEG (5Y)1.54
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 | 2.87 |
F-Score6
WACC7.25%
ROIC/WACC1.03
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-1.42%
EPS Next 2Y-0.06%
EPS Next 3Y1.79%
EPS Next 5Y4.57%
Revenue 1Y (TTM)1.47%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%0.99%
Revenue Next Year0.32%
Revenue Next 2Y1.1%
Revenue Next 3Y2.07%
Revenue Next 5Y3.16%
EBIT growth 1Y14.16%
EBIT growth 3Y-0.01%
EBIT growth 5Y11.7%
EBIT Next Year37.7%
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.
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 -1.42% 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 9.61%.