MERCK KGAA (MRK.DE) Stock Fundamental Analysis
Europe - FRA:MRK - DE0006599905 - Common Stock
110.05 EUR
-0.45 (-0.41%)
We assign a fundamental rating of 4 out of 10 to MRK. MRK was compared to 53 industry peers in the Pharmaceuticals industry. MRK has only an average score on both its financial health and profitability. 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.
MRK had a positive operating cash flow in the past year.
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.
1.2 Ratios
The Return On Assets of MRK (6.04%) is comparable to the rest of the industry.
With a Return On Equity value of 10.13%, MRK perfoms like the industry average, outperforming 49.06% 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 14.46%.
| 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
Looking at the Profit Margin, with a value of 13.49%, MRK is in line with its industry, outperforming 58.49% of the companies in the same industry.
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.
With a Gross Margin value of 58.51%, MRK is not doing good in the industry: 62.26% of the companies in the same industry are doing better.
MRK's Gross Margin has been stable in the last couple of years.
| 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
MRK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MRK has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for MRK remains at a similar level compared to 5 years ago.
The debt/assets ratio for MRK has been reduced compared to a year ago.
2.2 Solvency
MRK has an Altman-Z score of 2.99. 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 (2.99) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 5.26, MRK is in line with its industry, outperforming 47.17% of the companies in the same industry.
MRK has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
MRK's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. MRK outperforms 66.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.21
WACC6.76%
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 in line with its industry, outperforming 43.40% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that MRK may have some problems paying its short term obligations.
The Quick ratio of MRK (0.78) is worse than 64.15% 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 4.03% over the past year.
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 1.67%.
MRK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
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
The Earnings Per Share is expected to grow by 5.53% on average over the next years.
The Revenue is expected to grow by 3.32% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 12.93 indicates a correct valuation of MRK.
Compared to the rest of the industry, the Price/Earnings ratio of MRK indicates a somewhat cheap valuation: MRK is cheaper than 69.81% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.13. MRK is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.09, MRK is valued correctly.
MRK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MRK is cheaper than 67.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, MRK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 12.09 |
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 66.04% of the companies listed in the same industry.
MRK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.85 | ||
| EV/EBITDA | 9.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.41
EPS Next 2Y2.69%
EPS Next 3Y3.75%
5. Dividend
5.1 Amount
MRK has a Yearly Dividend Yield of 1.95%.
Compared to an average industry Dividend Yield of 2.99, MRK has a dividend in line with its industry peers.
MRK's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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
MRK pays out 9.92% of its income as dividend. This is a 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 (11/6/2025, 1:45:00 PM)
110.05
-0.45 (-0.41%)
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 Cap47.85B
Revenue(TTM)21.22B
Net Income(TTM)2.86B
Analysts77.5
Price Target147.22 (33.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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)-1.7%
PT rev (3m)-10.23%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-1.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-9%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-2.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 12.09 | ||
| P/S | 2.25 | ||
| P/FCF | 26.85 | ||
| P/OCF | 12.55 | ||
| P/B | 1.69 | ||
| P/tB | 8.97 | ||
| EV/EBITDA | 9.63 |
EPS(TTM)8.51
EY7.73%
EPS(NY)9.1
Fwd EY8.27%
FCF(TTM)4.1
FCFY3.72%
OCF(TTM)8.77
OCFY7.97%
SpS48.8
BVpS65
TBVpS12.27
PEG (NY)N/A
PEG (5Y)1.41
Graham Number111.56
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 | 2.99 |
F-Score7
WACC6.76%
ROIC/WACC1.21
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%
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 -1.4% 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%.