MERCK KGAA (MRK.DE) Stock Fundamental Analysis

FRA:MRK • DE0006599905

127.75 EUR
+2.1 (+1.67%)
Last: Feb 27, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

4

Overall MRK gets a fundamental rating of 4 out of 10. We evaluated MRK against 49 industry peers in the Pharmaceuticals industry. MRK has only an average score on both its financial health and profitability. MRK is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • MRK had positive earnings in the past year.
  • MRK had a positive operating cash flow in the past year.
  • 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.
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 1B 2B 3B 4B 5B

1.2 Ratios

  • MRK's Return On Assets of 5.80% is in line compared to the rest of the industry. MRK outperforms 51.92% of its industry peers.
  • With a Return On Equity value of 10.21%, MRK perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
  • The Return On Invested Capital of MRK (7.46%) 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 below the industry average of 13.98%.
Industry RankSector 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%
MRK.DE Yearly ROA, ROE, ROICMRK.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 13.89%, MRK is in line with its industry, outperforming 53.85% of the companies in the same industry.
  • In the last couple of years the Profit Margin of MRK has grown nicely.
  • With a Operating Margin value of 18.53%, MRK perfoms like the industry average, outperforming 48.08% 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 58.69%, MRK is doing worse than 65.38% of the companies in the same industry.
  • MRK's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
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 20 40 60

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4

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.
  • Compared to 1 year ago, MRK has an improved debt to assets ratio.
MRK.DE Yearly Shares OutstandingMRK.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 10B 20B 30B 40B 50B

2.2 Solvency

  • An Altman-Z score of 2.96 indicates that MRK is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • MRK has a Altman-Z score of 2.96. This is comparable to the rest of the industry: MRK outperforms 50.00% of its industry peers.
  • 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 50.00% 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 better Debt to Equity ratio (0.36) than 65.38% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 6.26
Altman-Z 2.96
ROIC/WACC1.01
WACC7.42%
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 5B 10B 15B 20B 25B

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.
  • MRK has a Current ratio (1.49) which is in line with its industry peers.
  • A Quick Ratio of 0.97 indicates that MRK may have some problems paying its short term obligations.
  • The Quick ratio of MRK (0.97) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.49
Quick Ratio 0.97
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 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

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%.
  • MRK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.19% yearly.
  • MRK shows a small growth in Revenue. In the last year, the Revenue has grown by 1.47%.
  • The Revenue has been growing slightly by 5.55% on average over the past years.
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 5.02% on average per year.
  • The Revenue is expected to grow by 3.01% on average over the next years.
EPS Next Y-0.97%
EPS Next 2Y-0.2%
EPS Next 3Y1.89%
EPS Next 5Y5.02%
Revenue Next Year0.19%
Revenue Next 2Y0.21%
Revenue Next 3Y1.39%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 14.98, the valuation of MRK can be described as correct.
  • Based on the Price/Earnings ratio, MRK is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.07, MRK is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 14.86 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 73.08% of the companies listed in the same industry.
  • MRK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.05, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.98
Fwd PE 14.86
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

  • Based on the Enterprise Value to EBITDA ratio, MRK is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as MRK.
Industry RankSector Rank
P/FCF 28.73
EV/EBITDA 10.89
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)1.63
EPS Next 2Y-0.2%
EPS Next 3Y1.89%

More info and screens

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

4

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.75%, MRK has a reasonable but not impressive dividend return.
  • MRK's Dividend Yield is comparable with the industry average which is at 1.84.
  • MRK's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.75%

5.2 History

  • The dividend of MRK is nicely growing with an annual growth rate of 11.88%!
Dividend Growth(5Y)11.88%
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 0.5 1 1.5 2 2.5

5.3 Sustainability

  • MRK pays out 9.61% 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.
DP9.61%
EPS Next 2Y-0.2%
EPS Next 3Y1.89%
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 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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MERCK KGAA

FRA:MRK (2/27/2026, 7:00:00 PM)

127.75

+2.1 (+1.67%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-13
Earnings (Next)03-05
Inst Owners54.91%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap55.54B
Revenue(TTM)21.27B
Net Income(TTM)2.96B
Analysts81.74
Price Target150.51 (17.82%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.75%
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)0.85%
PT rev (3m)3.23%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)0.03%
EPS NY rev (1m)0%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.09%
Valuation
Industry RankSector Rank
PE 14.98
Fwd PE 14.86
P/S 2.61
P/FCF 28.73
P/OCF 14.34
P/B 1.92
P/tB 16.82
EV/EBITDA 10.89
EPS(TTM)8.53
EY6.68%
EPS(NY)8.6
Fwd EY6.73%
FCF(TTM)4.45
FCFY3.48%
OCF(TTM)8.91
OCFY6.97%
SpS48.92
BVpS66.55
TBVpS7.59
PEG (NY)N/A
PEG (5Y)1.63
Graham Number113.02
Profitability
Industry RankSector 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 RankSector 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 2.96
F-Score6
WACC7.42%
ROIC/WACC1.01
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-0.97%
EPS Next 2Y-0.2%
EPS Next 3Y1.89%
EPS Next 5Y5.02%
Revenue 1Y (TTM)1.47%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%0.99%
Revenue Next Year0.19%
Revenue Next 2Y0.21%
Revenue Next 3Y1.39%
Revenue Next 5Y3.01%
EBIT growth 1Y14.16%
EBIT growth 3Y-0.01%
EBIT growth 5Y11.7%
EBIT Next Year38.99%
EBIT Next 3Y12.95%
EBIT Next 5Y10.96%
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%.