MERCK KGAA (MRK.DE) Stock Fundamental Analysis
Europe - FRA:MRK - DE0006599905 - Common Stock
106.45 EUR
-0.25 (-0.23%)
We assign a fundamental rating of 4 out of 10 to MRK. MRK was compared to 49 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
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
The Return On Assets of MRK (6.04%) is comparable to the rest of the industry.
MRK has a Return On Equity (10.13%) which is in line with its industry peers.
MRK has a Return On Invested Capital of 8.18%. This is comparable to the rest of the industry: MRK outperforms 53.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRK is significantly below the industry average of 15.25%.
| 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
MRK's Profit Margin of 13.49% is in line compared to the rest of the industry. MRK outperforms 59.18% of its industry peers.
In the last couple of years the Profit Margin of MRK has grown nicely.
The Operating Margin of MRK (18.05%) is comparable to the rest of the industry.
MRK's Operating Margin has improved in the last couple of years.
MRK has a Gross Margin of 58.51%. This is in the lower half of the industry: MRK underperforms 63.27% of its industry peers.
MRK's Gross Margin has been stable in the last couple of years.
| 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.
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 2.94 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 2.94, MRK is in line with its industry, outperforming 51.02% of the companies in the same industry.
MRK has a debt to FCF ratio of 5.26. This is a neutral value as MRK would need 5.26 years to pay back of all of its debts.
MRK has a Debt to FCF ratio of 5.26. This is comparable to the rest of the industry: MRK outperforms 48.98% of its industry peers.
MRK has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MRK (0.22) is better than 67.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.22
WACC6.69%
2.3 Liquidity
A Current Ratio of 1.24 indicates that MRK should not have too much problems paying its short term obligations.
The Current ratio of MRK (1.24) is worse than 61.22% of its industry peers.
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 has a Quick ratio of 0.78. This is in the lower half of the industry: MRK underperforms 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.03% over the past year.
MRK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.19% yearly.
MRK shows a small growth in Revenue. In the last year, the Revenue has grown by 1.67%.
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)4.03%
EPS 3Y-0.35%
EPS 5Y9.19%
EPS Q2Q%-8.18%
Revenue 1Y (TTM)1.67%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%-1.81%
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 5.62% on average per year.
MRK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.41% yearly.
EPS Next Y-0.56%
EPS Next 2Y3.04%
EPS Next 3Y4.06%
EPS Next 5Y5.62%
Revenue Next Year0.51%
Revenue Next 2Y1.97%
Revenue Next 3Y2.54%
Revenue Next 5Y3.41%
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
Based on the Price/Earnings ratio of 12.51, 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 71.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.27. MRK is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.62, which indicates a very decent valuation of MRK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRK indicates a somewhat cheap valuation: MRK is cheaper than 71.43% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.77. MRK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 11.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRK is valued a bit cheaper than the industry average as 65.31% of the companies are valued more expensively.
MRK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.97 | ||
| EV/EBITDA | 9.34 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.36
EPS Next 2Y3.04%
EPS Next 3Y4.06%
5. Dividend
5.1 Amount
MRK has a Yearly Dividend Yield of 2.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.04, MRK pays a bit more dividend than its industry peers.
MRK's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
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 9.92% 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.
DP9.92%
EPS Next 2Y3.04%
EPS Next 3Y4.06%
FRA:MRK (9/16/2025, 5:36:15 PM)
106.45
-0.25 (-0.23%)
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 Cap46.28B
Analysts77.5
Price Target149.77 (40.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
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)-4.69%
PT rev (3m)-8.83%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-9.44%
EPS NY rev (1m)-8.22%
EPS NY rev (3m)-8.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)-1.3%
Revenue NY rev (3m)-2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 11.62 | ||
| P/S | 2.18 | ||
| P/FCF | 25.97 | ||
| P/OCF | 12.14 | ||
| P/B | 1.64 | ||
| P/tB | 8.68 | ||
| EV/EBITDA | 9.34 |
EPS(TTM)8.51
EY7.99%
EPS(NY)9.16
Fwd EY8.61%
FCF(TTM)4.1
FCFY3.85%
OCF(TTM)8.77
OCFY8.24%
SpS48.8
BVpS65
TBVpS12.27
PEG (NY)N/A
PEG (5Y)1.36
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%
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-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 | 2.94 |
F-Score7
WACC6.69%
ROIC/WACC1.22
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)4.03%
EPS 3Y-0.35%
EPS 5Y9.19%
EPS Q2Q%-8.18%
EPS Next Y-0.56%
EPS Next 2Y3.04%
EPS Next 3Y4.06%
EPS Next 5Y5.62%
Revenue 1Y (TTM)1.67%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%-1.81%
Revenue Next Year0.51%
Revenue Next 2Y1.97%
Revenue Next 3Y2.54%
Revenue Next 5Y3.41%
EBIT growth 1Y13.79%
EBIT growth 3Y-0.01%
EBIT growth 5Y11.7%
EBIT Next Year40.77%
EBIT Next 3Y16.3%
EBIT Next 5Y11.3%
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%