MERCK KGAA (MRK.DE) Fundamental Analysis & Valuation

FRA:MRK • DE0006599905

Current stock price

111.4 EUR
-1.5 (-1.33%)
Last:

This MRK.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. MRK.DE Profitability Analysis

1.1 Basic Checks

  • MRK had positive earnings in the past year.
  • In the past year MRK had a positive cash flow from operations.
  • Each year in the past 5 years MRK has been profitable.
  • 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 2025 1B 2B 3B 4B 5B

1.2 Ratios

  • With a Return On Assets value of 5.06%, MRK perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
  • With a Return On Equity value of 9.12%, MRK perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
  • The Return On Invested Capital of MRK (6.66%) is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for MRK is significantly below the industry average of 17.40%.
Industry RankSector 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%
MRK.DE Yearly ROA, ROE, ROICMRK.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

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.
  • With a Operating Margin value of 16.99%, MRK perfoms like the industry average, outperforming 47.06% of the companies in the same 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 70.59% 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 RankSector 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%
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 2025 20 40 60

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4

2. MRK.DE Health Analysis

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.
  • MRK has about the same amout of shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, MRK has a worse debt to assets ratio.
MRK.DE Yearly Shares OutstandingMRK.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • MRK has an Altman-Z score of 2.68. 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 2.68. This is comparable to the rest of the industry: MRK outperforms 49.02% 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.
  • Looking at the Debt to FCF ratio, with a value of 6.05, MRK is in line with its industry, outperforming 47.06% of the companies in the same industry.
  • MRK has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
  • MRK has a better Debt to Equity ratio (0.38) than 60.78% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 6.05
Altman-Z 2.68
ROIC/WACC0.94
WACC7.11%
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 2025 5B 10B 15B 20B 25B

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 in line compared to the rest of the industry. MRK outperforms 56.86% 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.
  • The Quick ratio of MRK (0.96) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 0.96
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 2025 2B 4B 6B 8B 10B

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

4

3. MRK.DE Growth Analysis

3.1 Past

  • MRK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.36%.
  • The Earnings Per Share has been growing slightly by 4.45% on average over the past years.
  • MRK shows a decrease in Revenue. In the last year, the revenue decreased by -0.26%.
  • The Revenue has been growing slightly by 3.77% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 8.26% on average over the next years. This is quite good.
  • Based on estimates for the next years, MRK will show a small growth in Revenue. The Revenue will grow by 4.17% on average per year.
EPS Next Y-0.87%
EPS Next 2Y3.24%
EPS Next 3Y5.79%
EPS Next 5Y8.26%
Revenue Next Year-1%
Revenue Next 2Y1.87%
Revenue Next 3Y3.01%
Revenue Next 5Y4.17%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
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. MRK.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 13.36, MRK is valued correctly.
  • Based on the Price/Earnings ratio, MRK is valued a bit cheaper than 72.55% of the companies in the same industry.
  • MRK is valuated cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 13.47, the valuation of MRK can be described as correct.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MRK indicates a somewhat cheap valuation: MRK is cheaper than 72.55% of the companies listed in the same industry.
  • MRK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.69.
Industry RankSector Rank
PE 13.36
Fwd PE 13.47
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 74.51% of the companies are valued more expensively.
  • 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 RankSector Rank
P/FCF 24.54
EV/EBITDA 9.68
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)3
EPS Next 2Y3.24%
EPS Next 3Y5.79%

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

5

5. MRK.DE Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.09%, MRK has a reasonable but not impressive dividend return.
  • MRK's Dividend Yield is a higher than the industry average which is at 1.94.
  • Compared to an average S&P500 Dividend Yield of 1.89, MRK has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.09%

5.2 History

  • The dividend of MRK is nicely growing with an annual growth rate of 11.07%!
Dividend Growth(5Y)11.07%
Div Incr Years0
Div Non Decr Years5
MRK.DE Yearly Dividends per shareMRK.DE Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 10.89% 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.
DP10.89%
EPS Next 2Y3.24%
EPS Next 3Y5.79%
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 2025 1B 2B 3B
MRK.DE Dividend Payout.MRK.DE Dividend Payout, showing the Payout Ratio.MRK.DE Dividend Payout.PayoutRetained Earnings

More info and screens

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MRK.DE Fundamentals: All Metrics, Ratios and Statistics

MERCK KGAA

FRA:MRK (4/9/2026, 5:36:16 PM)

111.4

-1.5 (-1.33%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)03-05
Earnings (Next)05-13
Inst Owners55.29%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap48.43B
Revenue(TTM)21.10B
Net Income(TTM)2.61B
Analysts79.13
Price Target144.33 (29.56%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.09%
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)-4.11%
PT rev (3m)0.99%
EPS NQ rev (1m)3.05%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.64%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.22%
Revenue NY rev (3m)-2.87%
Valuation
Industry RankSector Rank
PE 13.36
Fwd PE 13.47
P/S 2.3
P/FCF 24.54
P/OCF 12.32
P/B 1.69
P/tB 16.17
EV/EBITDA 9.68
EPS(TTM)8.34
EY7.49%
EPS(NY)8.27
Fwd EY7.42%
FCF(TTM)4.54
FCFY4.08%
OCF(TTM)9.04
OCFY8.12%
SpS48.53
BVpS65.76
TBVpS6.89
PEG (NY)N/A
PEG (5Y)3
Graham Number111.09
Profitability
Industry RankSector 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 RankSector 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 2.68
F-Score4
WACC7.11%
ROIC/WACC0.94
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-0.87%
EPS Next 2Y3.24%
EPS Next 3Y5.79%
EPS Next 5Y8.26%
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 5Y4.17%
EBIT growth 1Y-1.83%
EBIT growth 3Y-6.79%
EBIT growth 5Y6.75%
EBIT Next Year30.18%
EBIT Next 3Y14.33%
EBIT Next 5Y11.37%
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 13.36 and the Price/Book (PB) ratio is 1.69.


Can you provide the financial health for MRK stock?

The financial health rating of MERCK KGAA (MRK.DE) is 4 / 10.