MERCK KGAA (MRK.DE) Fundamental Analysis & Valuation
FRA:MRK • DE0006599905
Current stock price
110.05 EUR
+1.85 (+1.71%)
Last:
This MRK.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. MRK.DE Profitability Analysis
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.
- MRK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 5.06%, MRK perfoms like the industry average, outperforming 53.06% of the companies in the same industry.
- MRK has a Return On Equity (9.12%) which 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 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 14.21%.
| Industry Rank | Sector 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%
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.
- MRK has a Operating Margin (16.99%) which 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 69.39% of its industry peers.
- MRK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
- The number of shares outstanding for MRK remains at a similar level compared to 1 year ago.
- The number of shares outstanding for MRK remains at a similar level compared to 5 years ago.
- MRK has a worse debt/assets ratio than last year.
2.2 Solvency
- MRK has an Altman-Z score of 2.64. 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.
- MRK has a Altman-Z score of 2.64. This is comparable to the rest of the industry: MRK outperforms 46.94% of its industry peers.
- 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.
- With a Debt to FCF ratio value of 6.05, MRK perfoms like the industry average, outperforming 44.90% of the companies in the same industry.
- A Debt/Equity ratio of 0.38 indicates that MRK is not too dependend on debt financing.
- MRK has a Debt to Equity ratio of 0.38. This is in the better half of the industry: MRK outperforms 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.93
WACC7.16%
2.3 Liquidity
- A Current Ratio of 1.46 indicates that MRK should not have too much problems paying its short term obligations.
- MRK's Current ratio of 1.46 is fine compared to the rest of the industry. MRK outperforms 61.22% of its industry peers.
- 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.
- Looking at the Quick ratio, with a value of 0.96, MRK is in line with its industry, outperforming 48.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.96 |
3. MRK.DE Growth Analysis
3.1 Past
- The earnings per share for MRK have decreased by -3.36% in the last year.
- MRK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.45% yearly.
- MRK shows a decrease in Revenue. In the last year, the revenue decreased by -0.26%.
- MRK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.77% yearly.
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 small growth in Earnings Per Share. The EPS will grow by 6.59% on average per year.
- MRK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.73% yearly.
EPS Next Y-5.43%
EPS Next 2Y2.27%
EPS Next 3Y5.02%
EPS Next 5Y6.59%
Revenue Next Year-1%
Revenue Next 2Y1.87%
Revenue Next 3Y3.01%
Revenue Next 5Y3.73%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. MRK.DE Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.20, the valuation of MRK can be described as correct.
- Based on the Price/Earnings ratio, MRK is valued a bit cheaper than 75.51% of the companies in the same industry.
- MRK is valuated cheaply when we compare the Price/Earnings ratio to 26.64, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 13.95, which indicates a correct valuation of MRK.
- 67.35% of the companies in the same industry are more expensive than MRK, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 21.36. MRK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 13.95 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MRK indicates a somewhat cheap valuation: MRK is cheaper than 73.47% of the companies listed in the same industry.
- 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 | 24.24 | ||
| EV/EBITDA | 9.46 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.97
EPS Next 2Y2.27%
EPS Next 3Y5.02%
5. MRK.DE Dividend Analysis
5.1 Amount
- MRK has a Yearly Dividend Yield of 2.00%.
- Compared to an average industry Dividend Yield of 1.91, MRK pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.80, MRK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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 Years5
5.3 Sustainability
- 10.89% 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.
DP10.89%
EPS Next 2Y2.27%
EPS Next 3Y5.02%
MRK.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:MRK (4/30/2026, 7:00:00 PM)
110.05
+1.85 (+1.71%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Industry Strength51.35
Industry Growth57.33
Earnings (Last)03-05 2026-03-05/dmh
Earnings (Next)05-13 2026-05-13
Inst Owners55.45%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap47.85B
Revenue(TTM)21.10B
Net Income(TTM)2.61B
Analysts79.13
Price Target143.95 (30.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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)-0.27%
PT rev (3m)-3.55%
EPS NQ rev (1m)-2.4%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.6%
EPS NY rev (3m)-8.24%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 13.95 | ||
| P/S | 2.27 | ||
| P/FCF | 24.24 | ||
| P/OCF | 12.17 | ||
| P/B | 1.67 | ||
| P/tB | 15.97 | ||
| EV/EBITDA | 9.46 |
EPS(TTM)8.34
EY7.58%
EPS(NY)7.89
Fwd EY7.17%
FCF(TTM)4.54
FCFY4.13%
OCF(TTM)9.04
OCFY8.22%
SpS48.53
BVpS65.76
TBVpS6.89
PEG (NY)N/A
PEG (5Y)2.97
Graham Number111.087 (0.94%)
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC7.16%
ROIC/WACC0.93
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-5.43%
EPS Next 2Y2.27%
EPS Next 3Y5.02%
EPS Next 5Y6.59%
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 5Y3.73%
EBIT growth 1Y-1.83%
EBIT growth 3Y-6.79%
EBIT growth 5Y6.75%
EBIT Next Year27.23%
EBIT Next 3Y13.95%
EBIT Next 5Y10.92%
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 13.2 and the Price/Book (PB) ratio is 1.67.
Can you provide the financial health for MRK stock?
The financial health rating of MERCK KGAA (MRK.DE) is 4 / 10.