MERCK KGAA (MRK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MRK - DE0006599905 - Common Stock
130 EUR
+1.1 (+0.85%)
Taking everything into account, MRK scores 4 out of 10 in our fundamental rating. MRK was compared to 53 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
- In the past year MRK was profitable.
- In the past year MRK had a positive cash flow from operations.
- MRK had positive earnings in each of the past 5 years.
- In the past 5 years MRK always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of MRK (5.80%) is comparable to the rest of the industry.
- MRK has a Return On Equity of 10.21%. This is comparable to the rest of the industry: MRK outperforms 45.28% of its industry peers.
- MRK's Return On Invested Capital of 7.46% is in line compared to the rest of the industry. MRK outperforms 47.17% of 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 14.02%.
| 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
- Looking at the Profit Margin, with a value of 13.89%, MRK is in line with its industry, outperforming 54.72% of the companies in the same industry.
- MRK's Profit Margin has improved in the last couple of years.
- MRK has a Operating Margin (18.53%) which 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 (58.69%) is worse than 66.04% of its industry peers.
- 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
- 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.
- MRK has about the same amout of shares outstanding than it did 5 years ago.
- MRK has a better debt/assets ratio than last year.
2.2 Solvency
- MRK has an Altman-Z score of 2.98. This is not the best score and indicates that MRK is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of MRK (2.98) is comparable to the rest of the industry.
- The Debt to FCF ratio of MRK is 6.26, which is on the high side as it means it would take MRK, 6.26 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 6.26, MRK is in line with its industry, outperforming 49.06% of the companies in the same industry.
- A Debt/Equity ratio of 0.36 indicates that MRK is not too dependend on debt financing.
- MRK has a Debt to Equity ratio of 0.36. This is in the better half of the industry: MRK outperforms 66.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.06
WACC7.04%
2.3 Liquidity
- MRK has a Current Ratio of 1.49. This is a normal value and indicates that MRK is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.49, MRK is doing good in the industry, outperforming 60.38% of the companies in the same industry.
- MRK has a Quick Ratio of 1.49. This is a bad value and indicates that MRK is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.97, MRK is in line with its industry, outperforming 47.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- MRK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.43%.
- The Earnings Per Share has been growing by 9.19% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 1.47% in the past year.
- MRK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
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 5.00% on average per year.
- Based on estimates for the next years, MRK will show a small growth in Revenue. The Revenue will grow by 3.01% on average per year.
EPS Next Y-1.47%
EPS Next 2Y-0.29%
EPS Next 3Y1.74%
EPS Next 5Y5%
Revenue Next Year0.36%
Revenue Next 2Y1.05%
Revenue Next 3Y2.06%
Revenue Next 5Y3.01%
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
- The Price/Earnings ratio is 15.24, which indicates a correct valuation of MRK.
- MRK's Price/Earnings ratio is a bit cheaper when compared to the industry. MRK is cheaper than 75.47% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, MRK is valued a bit cheaper.
- The Price/Forward Earnings ratio is 15.15, 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 71.70% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, MRK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 15.15 |
4.2 Price Multiples
- 67.92% of the companies in the same industry are more expensive than MRK, based on the Enterprise Value to EBITDA ratio.
- MRK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.24 | ||
| EV/EBITDA | 10.97 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.66
EPS Next 2Y-0.29%
EPS Next 3Y1.74%
5. Dividend
5.1 Amount
- MRK has a Yearly Dividend Yield of 1.72%.
- MRK's Dividend Yield is comparable with the industry average which is at 1.72.
- Compared to an average S&P500 Dividend Yield of 1.89, MRK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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
- 9.61% of the earnings are spent on dividend by MRK. This is a low number and sustainable payout ratio.
- MRK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.61%
EPS Next 2Y-0.29%
EPS Next 3Y1.74%
FRA:MRK (1/16/2026, 7:00:00 PM)
130
+1.1 (+0.85%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-13 2025-11-13/dmh
Earnings (Next)03-05 2026-03-05/amc
Inst Owners54.91%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap56.52B
Revenue(TTM)21.27B
Net Income(TTM)2.96B
Analysts79.13
Price Target142.92 (9.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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)-0.59%
PT rev (3m)-4.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.74%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 15.15 | ||
| P/S | 2.66 | ||
| P/FCF | 29.24 | ||
| P/OCF | 14.6 | ||
| P/B | 1.95 | ||
| P/tB | 17.12 | ||
| EV/EBITDA | 10.97 |
EPS(TTM)8.53
EY6.56%
EPS(NY)8.58
Fwd EY6.6%
FCF(TTM)4.45
FCFY3.42%
OCF(TTM)8.91
OCFY6.85%
SpS48.92
BVpS66.55
TBVpS7.59
PEG (NY)N/A
PEG (5Y)1.66
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 | 2.98 |
F-Score6
WACC7.04%
ROIC/WACC1.06
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-1.47%
EPS Next 2Y-0.29%
EPS Next 3Y1.74%
EPS Next 5Y5%
Revenue 1Y (TTM)1.47%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%0.99%
Revenue Next Year0.36%
Revenue Next 2Y1.05%
Revenue Next 3Y2.06%
Revenue Next 5Y3.01%
EBIT growth 1Y14.16%
EBIT growth 3Y-0.01%
EBIT growth 5Y11.7%
EBIT Next Year37.82%
EBIT Next 3Y13.34%
EBIT Next 5Y11.09%
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.
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 9.61%.