MERCK KGAA (MRK.DE) Stock Fundamental Analysis
Europe - FRA:MRK - DE0006599905 - Common Stock
115.75 EUR
-1.8 (-1.53%)
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. 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
In the past year MRK was profitable.
MRK had a positive operating cash flow in the past year.
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 6.04% is in line compared to the rest of the industry. MRK outperforms 51.85% of its industry peers.
MRK has a Return On Equity of 10.13%. This is comparable to the rest of the industry: MRK outperforms 46.30% of its industry peers.
The Return On Invested Capital of MRK (8.18%) is comparable to the rest of the industry.
MRK had an Average Return On Invested Capital over the past 3 years of 9.28%. This 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 55.56% of the companies in the same industry.
In the last couple of years the Profit Margin of MRK has grown nicely.
Looking at the Operating Margin, with a value of 18.05%, MRK is in line with its industry, outperforming 48.15% of the companies in the same industry.
In the last couple of years the Operating Margin of MRK has grown nicely.
Looking at the Gross Margin, with a value of 58.51%, MRK is doing worse than 64.81% 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 | 18.05% | ||
| 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.
The number of shares outstanding for MRK remains at a similar level compared to 5 years ago.
Compared to 1 year ago, MRK has an improved debt to assets ratio.
2.2 Solvency
MRK has an Altman-Z score of 3.09. This indicates that MRK is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MRK (3.09) is comparable to the rest of the 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.
Looking at the Debt to FCF ratio, with a value of 5.26, MRK is in line with its industry, outperforming 48.15% of the companies in the same industry.
MRK has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.22, MRK is in the better half of the industry, outperforming 64.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 3.09 |
ROIC/WACC1.18
WACC6.94%
2.3 Liquidity
A Current Ratio of 1.24 indicates that MRK should not have too much problems paying its short term obligations.
MRK has a Current ratio of 1.24. This is in the lower half of the industry: MRK underperforms 64.81% 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's Quick ratio of 0.78 is on the low side compared to the rest of the industry. MRK is outperformed by 68.52% 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 for MRK have decreased strongly by -17.87% in the last 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.
Looking at the last year, MRK shows a small growth in Revenue. The Revenue has grown by 0.78% in the last year.
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)-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.
The Revenue is expected to grow by 3.29% on average over the next years.
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
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
MRK is valuated correctly with a Price/Earnings ratio of 16.75.
The rest of the industry has a similar Price/Earnings ratio as MRK.
The average S&P500 Price/Earnings ratio is at 25.56. MRK is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.14, which indicates a correct 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 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.62, MRK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.75 | ||
| Fwd PE | 13.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRK is valued a bit cheaper than the industry average as 64.81% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.24 | ||
| EV/EBITDA | 10.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.82
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.
MRK's Dividend Yield is comparable with the industry average which is at 3.01.
Compared to the average S&P500 Dividend Yield of 2.44, MRK is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
On average, the dividend of MRK grows each year by 11.88%, which is quite nice.
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 2Y1.04%
EPS Next 3Y2.21%
FRA:MRK (11/17/2025, 7:00:00 PM)
115.75
-1.8 (-1.53%)
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 Cap50.33B
Revenue(TTM)21.16B
Net Income(TTM)2.86B
Analysts77.5
Price Target147.22 (27.19%)
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 | 16.75 | ||
| Fwd PE | 13.14 | ||
| P/S | 2.37 | ||
| P/FCF | 28.24 | ||
| P/OCF | 13.2 | ||
| P/B | 1.78 | ||
| P/tB | 9.43 | ||
| EV/EBITDA | 10.16 |
EPS(TTM)6.91
EY5.97%
EPS(NY)8.81
Fwd EY7.61%
FCF(TTM)4.1
FCFY3.54%
OCF(TTM)8.77
OCFY7.58%
SpS48.8
BVpS65
TBVpS12.27
PEG (NY)N/A
PEG (5Y)1.82
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 | 3.09 |
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%.