MERCK KGAA (MRK.DE) Fundamental Analysis & Valuation

FRA:MRK • DE0006599905

Current stock price

107.35 EUR
-2.45 (-2.23%)
Last:

This MRK.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. MRK.DE Profitability Analysis

1.1 Basic Checks

  • MRK had positive earnings in the past year.
  • MRK had a positive operating cash flow in the past year.
  • MRK had positive earnings in each of the past 5 years.
  • MRK had a positive operating cash flow in each of the past 5 years.
MRK.DE Yearly Net Income VS EBIT VS OCF VS FCFMRK.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 5.06%, MRK is in line with its industry, outperforming 47.06% of the companies in the same industry.
  • The Return On Equity of MRK (9.12%) is comparable to the rest of the industry.
  • MRK has a Return On Invested Capital of 6.66%. This is comparable to the rest of the industry: MRK outperforms 43.14% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MRK is significantly below the industry average of 17.40%.
Industry RankSector Rank
ROA 5.06%
ROE 9.12%
ROIC 6.66%
ROA(3y)5.42%
ROA(5y)5.97%
ROE(3y)9.66%
ROE(5y)11.23%
ROIC(3y)8.24%
ROIC(5y)9.04%
MRK.DE Yearly ROA, ROE, ROICMRK.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • MRK has a Profit Margin (12.36%) which is comparable to the rest of the industry.
  • MRK's Profit Margin has improved in the last couple of years.
  • The Operating Margin of MRK (16.99%) is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of MRK has grown nicely.
  • The Gross Margin of MRK (58.51%) is worse than 70.59% 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 RankSector Rank
OM 16.99%
PM (TTM) 12.36%
GM 58.51%
OM growth 3Y-5.15%
OM growth 5Y2.87%
PM growth 3Y-6.17%
PM growth 5Y1.75%
GM growth 3Y-1.55%
GM growth 5Y-0.67%
MRK.DE Yearly Profit, Operating, Gross MarginsMRK.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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4

2. MRK.DE Health Analysis

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.
  • Compared to 1 year ago, MRK has about the same amount of shares outstanding.
  • Compared to 5 years ago, MRK has about the same amount of shares outstanding.
  • The debt/assets ratio for MRK is higher compared to a year ago.
MRK.DE Yearly Shares OutstandingMRK.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
MRK.DE Yearly Total Debt VS Total AssetsMRK.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • An Altman-Z score of 2.64 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 2.64, MRK is in line with its industry, outperforming 49.02% of the companies in the same industry.
  • The Debt to FCF ratio of MRK is 6.05, which is on the high side as it means it would take MRK, 6.05 years of fcf income to pay off all of its debts.
  • MRK's Debt to FCF ratio of 6.05 is in line compared to the rest of the industry. MRK outperforms 47.06% of its industry peers.
  • MRK has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
  • MRK has a Debt to Equity ratio of 0.38. This is in the better half of the industry: MRK outperforms 60.78% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 6.05
Altman-Z 2.64
ROIC/WACC0.94
WACC7.11%
MRK.DE Yearly LT Debt VS Equity VS FCFMRK.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.3 Liquidity

  • MRK has a Current Ratio of 1.46. This is a normal value and indicates that MRK is financially healthy and should not expect problems in meeting its short term obligations.
  • MRK has a Current ratio (1.46) which is comparable to the rest of the industry.
  • MRK has a Quick Ratio of 1.46. 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 has a Quick ratio (0.96) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 0.96
MRK.DE Yearly Current Assets VS Current LiabilitesMRK.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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4

3. MRK.DE Growth Analysis

3.1 Past

  • The earnings per share for MRK have decreased by -3.36% in the last year.
  • Measured over the past 5 years, MRK shows a small growth in Earnings Per Share. The EPS has been growing by 4.45% on average per year.
  • Looking at the last year, MRK shows a decrease in Revenue. The Revenue has decreased by -0.26% in the last year.
  • Measured over the past years, MRK shows a small growth in Revenue. The Revenue has been growing by 3.77% on average per year.
EPS 1Y (TTM)-3.36%
EPS 3Y-6.03%
EPS 5Y4.45%
EPS Q2Q%-9.18%
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y-1.72%
Revenue growth 5Y3.77%
Sales Q2Q%-3.12%

3.2 Future

  • Based on estimates for the next years, MRK will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.26% on average per year.
  • MRK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.17% yearly.
EPS Next Y-0.87%
EPS Next 2Y3.24%
EPS Next 3Y5.79%
EPS Next 5Y8.26%
Revenue Next Year-1%
Revenue Next 2Y1.87%
Revenue Next 3Y3.01%
Revenue Next 5Y4.17%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
MRK.DE Yearly Revenue VS EstimatesMRK.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B 25B
MRK.DE Yearly EPS VS EstimatesMRK.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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4

4. MRK.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.87, MRK is valued correctly.
  • MRK's Price/Earnings ratio is a bit cheaper when compared to the industry. MRK is cheaper than 72.55% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.21. MRK is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 12.98, MRK is valued correctly.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MRK indicates a somewhat cheap valuation: MRK is cheaper than 74.51% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of MRK to the average of the S&P500 Index (23.13), we can say MRK is valued slightly cheaper.
Industry RankSector Rank
PE 12.87
Fwd PE 12.98
MRK.DE Price Earnings VS Forward Price EarningsMRK.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • MRK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MRK is cheaper than 76.47% of the companies in the same industry.
  • MRK's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 23.64
EV/EBITDA 9.45
MRK.DE Per share dataMRK.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)2.9
EPS Next 2Y3.24%
EPS Next 3Y5.79%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. MRK.DE Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.09%, MRK has a reasonable but not impressive dividend return.
  • MRK's Dividend Yield is a higher than the industry average which is at 1.94.
  • MRK's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.09%

5.2 History

  • The dividend of MRK is nicely growing with an annual growth rate of 11.07%!
Dividend Growth(5Y)11.07%
Div Incr Years0
Div Non Decr Years5
MRK.DE Yearly Dividends per shareMRK.DE Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • MRK pays out 10.89% 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.
DP10.89%
EPS Next 2Y3.24%
EPS Next 3Y5.79%
MRK.DE Yearly Income VS Free CF VS DividendMRK.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
MRK.DE Dividend Payout.MRK.DE Dividend Payout, showing the Payout Ratio.MRK.DE Dividend Payout.PayoutRetained Earnings

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MRK.DE Fundamentals: All Metrics, Ratios and Statistics

MERCK KGAA

FRA:MRK (4/7/2026, 5:36:15 PM)

107.35

-2.45 (-2.23%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)03-05
Earnings (Next)05-13
Inst Owners55.29%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap46.67B
Revenue(TTM)21.10B
Net Income(TTM)2.61B
Analysts79.13
Price Target144.33 (34.45%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.09%
Yearly Dividend0.65
Dividend Growth(5Y)11.07%
DP10.89%
Div Incr Years0
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.18%
Min EPS beat(2)-3.73%
Max EPS beat(2)3.38%
EPS beat(4)1
Avg EPS beat(4)-2.15%
Min EPS beat(4)-4.83%
Max EPS beat(4)3.38%
EPS beat(8)3
Avg EPS beat(8)1.02%
EPS beat(12)4
Avg EPS beat(12)0.36%
EPS beat(16)7
Avg EPS beat(16)0.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)0.09%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)0.09%
Revenue beat(8)2
Avg Revenue beat(8)-1.02%
Revenue beat(12)2
Avg Revenue beat(12)-1.25%
Revenue beat(16)4
Avg Revenue beat(16)-1.01%
PT rev (1m)-4.11%
PT rev (3m)0.99%
EPS NQ rev (1m)3.05%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.64%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.22%
Revenue NY rev (3m)-2.87%
Valuation
Industry RankSector Rank
PE 12.87
Fwd PE 12.98
P/S 2.21
P/FCF 23.64
P/OCF 11.87
P/B 1.63
P/tB 15.58
EV/EBITDA 9.45
EPS(TTM)8.34
EY7.77%
EPS(NY)8.27
Fwd EY7.7%
FCF(TTM)4.54
FCFY4.23%
OCF(TTM)9.04
OCFY8.42%
SpS48.53
BVpS65.76
TBVpS6.89
PEG (NY)N/A
PEG (5Y)2.9
Graham Number111.09
Profitability
Industry RankSector Rank
ROA 5.06%
ROE 9.12%
ROCE 8.44%
ROIC 6.66%
ROICexc 7.24%
ROICexgc 21.01%
OM 16.99%
PM (TTM) 12.36%
GM 58.51%
FCFM 9.35%
ROA(3y)5.42%
ROA(5y)5.97%
ROE(3y)9.66%
ROE(5y)11.23%
ROIC(3y)8.24%
ROIC(5y)9.04%
ROICexc(3y)8.8%
ROICexc(5y)9.52%
ROICexgc(3y)25.77%
ROICexgc(5y)29.92%
ROCE(3y)10.44%
ROCE(5y)11.46%
ROICexgc growth 3Y-11.85%
ROICexgc growth 5Y-4.57%
ROICexc growth 3Y-8.4%
ROICexc growth 5Y2.06%
OM growth 3Y-5.15%
OM growth 5Y2.87%
PM growth 3Y-6.17%
PM growth 5Y1.75%
GM growth 3Y-1.55%
GM growth 5Y-0.67%
F-Score4
Asset Turnover0.41
Health
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 6.05
Debt/EBITDA 1.82
Cap/Depr 85.2%
Cap/Sales 9.28%
Interest Coverage 250
Cash Conversion 66.84%
Profit Quality 75.69%
Current Ratio 1.46
Quick Ratio 0.96
Altman-Z 2.64
F-Score4
WACC7.11%
ROIC/WACC0.94
Cap/Depr(3y)98.38%
Cap/Depr(5y)92.95%
Cap/Sales(3y)9.75%
Cap/Sales(5y)8.92%
Profit Quality(3y)74.85%
Profit Quality(5y)80.58%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.36%
EPS 3Y-6.03%
EPS 5Y4.45%
EPS Q2Q%-9.18%
EPS Next Y-0.87%
EPS Next 2Y3.24%
EPS Next 3Y5.79%
EPS Next 5Y8.26%
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y-1.72%
Revenue growth 5Y3.77%
Sales Q2Q%-3.12%
Revenue Next Year-1%
Revenue Next 2Y1.87%
Revenue Next 3Y3.01%
Revenue Next 5Y4.17%
EBIT growth 1Y-1.83%
EBIT growth 3Y-6.79%
EBIT growth 5Y6.75%
EBIT Next Year30.18%
EBIT Next 3Y14.33%
EBIT Next 5Y11.37%
FCF growth 1Y-17.82%
FCF growth 3Y-6.99%
FCF growth 5Y0.62%
OCF growth 1Y-14.26%
OCF growth 3Y-2.63%
OCF growth 5Y2.49%

MERCK KGAA / MRK.DE Fundamental Analysis 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.


What is the profitability of MRK stock?

MERCK KGAA (MRK.DE) has a profitability rating of 5 / 10.


Can you provide the PE and PB ratios for MRK stock?

The Price/Earnings (PE) ratio for MERCK KGAA (MRK.DE) is 12.87 and the Price/Book (PB) ratio is 1.63.


Can you provide the financial health for MRK stock?

The financial health rating of MERCK KGAA (MRK.DE) is 4 / 10.