MERCK KGAA (MRK.DE) Stock Fundamental Analysis
Europe - FRA:MRK - DE0006599905 - Common Stock
112.2 EUR
+0.35 (+0.31%)
Overall MRK gets a fundamental rating of 4 out of 10. We evaluated MRK against 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.
In the past year MRK had a positive cash flow from operations.
In the past 5 years MRK has always been profitable.
MRK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MRK has a Return On Assets of 6.04%. This is comparable to the rest of the industry: MRK outperforms 57.41% of its industry peers.
Looking at the Return On Equity, with a value of 10.13%, MRK is in line with its industry, outperforming 46.30% of the companies in the same industry.
MRK has a Return On Invested Capital (8.18%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MRK is significantly below the industry average of 14.71%.
| 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 has a Profit Margin of 13.49%. This is comparable to the rest of the industry: MRK outperforms 59.26% of its industry peers.
MRK's Profit Margin has improved in the last couple of years.
The Operating Margin of MRK (18.05%) 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 (58.51%) is worse than 64.81% of its industry peers.
In the last couple of years the Gross Margin of MRK has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MRK is 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 3.01 indicates that MRK is not in any danger for bankruptcy at the moment.
MRK has a Altman-Z score of 3.01. This is comparable to the rest of the industry: MRK outperforms 46.30% of its industry peers.
The Debt to FCF ratio of MRK is 5.26, which is a neutral value as it means it would take MRK, 5.26 years of fcf income to pay off all of its debts.
MRK has a Debt to FCF ratio (5.26) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.22 indicates that MRK is not too dependend on debt financing.
MRK has a better Debt to Equity ratio (0.22) than 68.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.18
WACC6.9%
2.3 Liquidity
MRK has a Current Ratio of 1.24. This is a normal value and indicates that MRK is financially healthy and should not expect problems in meeting its short term obligations.
MRK has a Current ratio (1.24) which is comparable to the rest of the industry.
A Quick Ratio of 0.78 indicates that MRK may have some problems paying its short term obligations.
With a Quick ratio value of 0.78, MRK is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
| 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.
Measured over the past years, MRK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.19% on average per year.
The Revenue has been growing slightly by 1.67% in the past 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)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
MRK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.53% yearly.
MRK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.32% yearly.
EPS Next Y-1.4%
EPS Next 2Y2.69%
EPS Next 3Y3.75%
EPS Next 5Y5.53%
Revenue Next Year0.39%
Revenue Next 2Y1.97%
Revenue Next 3Y2.54%
Revenue Next 5Y3.32%
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
With a Price/Earnings ratio of 13.18, MRK is valued correctly.
Based on the Price/Earnings ratio, MRK is valued a bit cheaper than 70.37% of the companies in the same industry.
MRK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.40.
MRK is valuated correctly with a Price/Forward Earnings ratio of 12.33.
Based on the Price/Forward Earnings ratio, MRK is valued a bit cheaper than 68.52% of the companies in the same industry.
MRK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 12.33 |
4.2 Price Multiples
MRK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MRK is cheaper than 66.67% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MRK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.38 | ||
| EV/EBITDA | 9.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.43
EPS Next 2Y2.69%
EPS Next 3Y3.75%
5. Dividend
5.1 Amount
MRK has a Yearly Dividend Yield of 1.97%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.10, MRK has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, MRK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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
9.92% of the earnings are spent on dividend by MRK. This is a low number and 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 2Y2.69%
EPS Next 3Y3.75%
FRA:MRK (10/17/2025, 7:00:00 PM)
112.2
+0.35 (+0.31%)
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 Cap48.78B
Analysts77.5
Price Target149.77 (33.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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)0%
PT rev (3m)-8.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.93%
EPS NY rev (1m)-0.85%
EPS NY rev (3m)-9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.48%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 12.33 | ||
| P/S | 2.3 | ||
| P/FCF | 27.38 | ||
| P/OCF | 12.79 | ||
| P/B | 1.73 | ||
| P/tB | 9.15 | ||
| EV/EBITDA | 9.75 |
EPS(TTM)8.51
EY7.58%
EPS(NY)9.1
Fwd EY8.11%
FCF(TTM)4.1
FCFY3.65%
OCF(TTM)8.77
OCFY7.82%
SpS48.8
BVpS65
TBVpS12.27
PEG (NY)N/A
PEG (5Y)1.43
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 | 3.01 |
F-Score7
WACC6.9%
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)4.03%
EPS 3Y-0.35%
EPS 5Y9.19%
EPS Q2Q%-8.18%
EPS Next Y-1.4%
EPS Next 2Y2.69%
EPS Next 3Y3.75%
EPS Next 5Y5.53%
Revenue 1Y (TTM)1.67%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%-1.81%
Revenue Next Year0.39%
Revenue Next 2Y1.97%
Revenue Next 3Y2.54%
Revenue Next 5Y3.32%
EBIT growth 1Y13.79%
EBIT growth 3Y-0.01%
EBIT growth 5Y11.7%
EBIT Next Year38.63%
EBIT Next 3Y15.07%
EBIT Next 5Y11.2%
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%