MERCK KGAA (MRK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MRK - DE0006599905 - Common Stock
115.9 EUR
+0.5 (+0.43%)
Taking everything into account, MRK scores 4 out of 10 in our fundamental rating. MRK was compared to 55 industry peers in the Pharmaceuticals industry. Both the profitability and the financial health of MRK get a neutral evaluation. Nothing too spectacular is happening here. MRK is valued correctly, 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.
In the past 5 years MRK always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 6.04%, MRK perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.13%, MRK is in line with its industry, outperforming 47.27% of the companies in the same industry.
The Return On Invested Capital of MRK (8.18%) 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 14.90%.
| 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's Profit Margin of 13.49% is in line compared to the rest of the industry. MRK outperforms 56.36% of its industry peers.
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 47.27% of the companies in the same industry.
MRK's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 58.51%, MRK is doing worse than 67.27% of the companies in the same industry.
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
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.
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
MRK has an Altman-Z score of 3.06. This indicates that MRK is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.06, MRK perfoms like the industry average, outperforming 50.91% of the companies in the same 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.
MRK has a Debt to FCF ratio of 5.26. This is comparable to the rest of the industry: MRK outperforms 47.27% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that MRK is not too dependend on debt financing.
MRK has a Debt to Equity ratio of 0.22. This is in the better half of the industry: MRK outperforms 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 3.06 |
ROIC/WACC1.19
WACC6.86%
2.3 Liquidity
A Current Ratio of 1.24 indicates that MRK should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.24, MRK is doing worse than 63.64% of the companies in the same industry.
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 has a worse Quick ratio (0.78) than 69.09% 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 has been growing slightly by 1.43% over the past year.
The Earnings Per Share has been growing by 9.19% on average over the past years. This is quite good.
Looking at the last year, MRK shows a small growth in Revenue. The Revenue has grown by 0.78% in the last 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)0.78%
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 5.29% on average per year.
Based on estimates for the next years, MRK will show a small growth in Revenue. The Revenue will grow by 3.29% on average per year.
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
A Price/Earnings ratio of 13.59 indicates a correct valuation of MRK.
MRK's Price/Earnings ratio is a bit cheaper when compared to the industry. MRK is cheaper than 69.09% of the companies in the same industry.
MRK is valuated rather cheaply when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.15, which indicates a correct valuation of MRK.
MRK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MRK is cheaper than 67.27% of the companies in the same industry.
MRK is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 13.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRK is valued a bit cheaper than the industry average as 67.27% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as MRK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.28 | ||
| EV/EBITDA | 10 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.48
EPS Next 2Y1.04%
EPS Next 3Y2.21%
5. Dividend
5.1 Amount
MRK has a Yearly Dividend Yield of 1.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.00, MRK has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, MRK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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
5.3 Sustainability
MRK pays out 9.92% 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.
DP9.92%
EPS Next 2Y1.04%
EPS Next 3Y2.21%
FRA:MRK (11/26/2025, 12:00:33 PM)
115.9
+0.5 (+0.43%)
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 Cap50.39B
Revenue(TTM)21.16B
Net Income(TTM)2.86B
Analysts77.5
Price Target145.8 (25.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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)-2.65%
PT rev (3m)-3.34%
EPS NQ rev (1m)4.41%
EPS NQ rev (3m)4.41%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-1.24%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 13.15 | ||
| P/S | 2.37 | ||
| P/FCF | 28.28 | ||
| P/OCF | 13.22 | ||
| P/B | 1.78 | ||
| P/tB | 9.45 | ||
| EV/EBITDA | 10 |
EPS(TTM)8.53
EY7.36%
EPS(NY)8.81
Fwd EY7.6%
FCF(TTM)4.1
FCFY3.54%
OCF(TTM)8.77
OCFY7.57%
SpS48.8
BVpS65
TBVpS12.27
PEG (NY)N/A
PEG (5Y)1.48
Graham Number111.69
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 | 3.06 |
F-Score7
WACC6.86%
ROIC/WACC1.19
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-1.79%
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%0.99%
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%.