MERCK KGAA (MRK.DE) Fundamental Analysis & Valuation

FRA:MRK • DE0006599905

Current stock price

105.45 EUR
-0.7 (-0.66%)
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.
  • 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.
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

  • MRK has a Return On Assets (5.06%) which is in line with its industry peers.
  • MRK has a Return On Equity (9.12%) which is comparable to the rest of the industry.
  • Looking at the Return On Invested Capital, with a value of 6.66%, MRK is in line with its industry, outperforming 47.06% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for MRK is significantly below the industry average of 14.61%.
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's Profit Margin of 12.36% is in line compared to the rest of the industry. MRK outperforms 52.94% of its industry peers.
  • In the last couple of years the Profit Margin of MRK has grown nicely.
  • The Operating Margin of MRK (16.99%) is comparable to the rest of the industry.
  • MRK's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 58.51%, MRK is not doing good in the industry: 68.63% of the companies in the same industry are doing better.
  • MRK's Gross Margin has been stable in the last couple of years.
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

  • MRK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, MRK has about the same amount of shares outstanding.
  • MRK has about the same amout of shares outstanding than it did 5 years ago.
  • 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 2.60 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 2.60, MRK is in line with its industry, outperforming 47.06% of the companies in the same industry.
  • MRK has a debt to FCF ratio of 6.05. This is a slightly negative value and a sign of low solvency as MRK would need 6.05 years to pay back of all of its debts.
  • MRK has a Debt to FCF ratio (6.05) which is in line with 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.
  • With a decent Debt to Equity ratio value of 0.38, MRK is doing good in the industry, outperforming 60.78% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 6.05
Altman-Z 2.6
ROIC/WACC0.88
WACC7.53%
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.
  • Looking at the Current ratio, with a value of 1.46, MRK is in line with its industry, outperforming 56.86% of the companies in the same 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.
  • With a Quick ratio value of 0.96, MRK perfoms like the industry average, outperforming 49.02% of the companies in the same industry.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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.
  • The Revenue has decreased by -0.26% in the past year.
  • The Revenue has been growing slightly by 3.77% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 8.26% on average over the next years. This is quite good.
  • 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 Year0.22%
Revenue Next 2Y2%
Revenue Next 3Y3.51%
Revenue Next 5Y4.17%

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 accelerating.
  • 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 12.64, MRK is valued correctly.
  • 76.47% of the companies in the same industry are more expensive than MRK, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 25.61, MRK is valued rather cheaply.
  • The Price/Forward Earnings ratio is 12.75, which 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 74.51% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.79. MRK is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 12.64
Fwd PE 12.75
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

  • 76.47% of the companies in the same industry are more expensive than MRK, based on the Enterprise Value to EBITDA ratio.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as MRK.
Industry RankSector Rank
P/FCF 23.23
EV/EBITDA 9.18
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)2.84
EPS Next 2Y3.24%
EPS Next 3Y5.79%

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

4

5. MRK.DE Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.05%, MRK has a reasonable but not impressive dividend return.
  • MRK's Dividend Yield is comparable with the industry average which is at 1.90.
  • MRK's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.05%

5.2 History

  • On average, the dividend of MRK grows each year by 11.07%, which is quite nice.
Dividend Growth(5Y)11.07%
Div Incr Years0
Div Non Decr Years4
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.
  • MRK's earnings are growing slower than its dividend. 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 (3/26/2026, 9:23:02 AM)

105.45

-0.7 (-0.66%)

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 Cap45.85B
Revenue(TTM)21.10B
Net Income(TTM)2.61B
Analysts79.13
Price Target150.51 (42.73%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.05%
Yearly Dividend0.65
Dividend Growth(5Y)11.07%
DP10.89%
Div Incr Years0
Div Non Decr Years4
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)-0.76%
PT rev (3m)4.7%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.81%
EPS NY rev (3m)-4.09%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.67%
Revenue NY rev (3m)-1.77%
Valuation
Industry RankSector Rank
PE 12.64
Fwd PE 12.75
P/S 2.17
P/FCF 23.23
P/OCF 11.66
P/B 1.6
P/tB 15.3
EV/EBITDA 9.18
EPS(TTM)8.34
EY7.91%
EPS(NY)8.27
Fwd EY7.84%
FCF(TTM)4.54
FCFY4.31%
OCF(TTM)9.04
OCFY8.58%
SpS48.53
BVpS65.76
TBVpS6.89
PEG (NY)N/A
PEG (5Y)2.84
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 2.6
F-Score4
WACC7.53%
ROIC/WACC0.88
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 Year0.22%
Revenue Next 2Y2%
Revenue Next 3Y3.51%
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.


Can you provide the profitability details for MERCK KGAA?

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


What is the financial health of MERCK KGAA (MRK.DE) stock?

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


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 10.89%.