MERCK & CO. INC. (MRK) Stock Fundamental Analysis

NYSE:MRK • US58933Y1055

123.82 USD
+4.52 (+3.79%)
At close: Feb 27, 2026
123.31 USD
-0.51 (-0.41%)
After Hours: 2/27/2026, 8:20:59 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

MRK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 193 industry peers in the Pharmaceuticals industry. MRK has an excellent profitability rating, but there are some minor concerns on its financial health. MRK has a correct valuation and a medium growth rate. Finally MRK also has an excellent dividend rating. These ratings would make MRK suitable for dividend investing!


Dividend Valuation Growth Profitability Health

8

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 4 of the past 5 years.
MRK Yearly Net Income VS EBIT VS OCF VS FCFMRK 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 5B 10B 15B 20B 25B

1.2 Ratios

  • MRK's Return On Assets of 14.69% is amongst the best of the industry. MRK outperforms 95.34% of its industry peers.
  • The Return On Equity of MRK (36.71%) is better than 95.85% of its industry peers.
  • MRK has a better Return On Invested Capital (20.32%) than 96.89% of its industry peers.
Industry RankSector Rank
ROA 14.69%
ROE 36.71%
ROIC 20.32%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
MRK Yearly ROA, ROE, ROICMRK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 29.63%, MRK belongs to the top of the industry, outperforming 94.30% of the companies in the same industry.
  • MRK's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 36.99%, MRK belongs to the best of the industry, outperforming 96.37% of the companies in the same industry.
  • MRK's Operating Margin has improved in the last couple of years.
  • The Gross Margin of MRK (77.69%) is better than 84.46% of its industry peers.
  • In the last couple of years the Gross Margin of MRK has grown nicely.
Industry RankSector Rank
OM 36.99%
PM (TTM) 29.63%
GM 77.69%
OM growth 3Y6.33%
OM growth 5Y9.38%
PM growth 3Y4.66%
PM growth 5Y10.53%
GM growth 3Y4.72%
GM growth 5Y2.48%
MRK Yearly Profit, Operating, Gross MarginsMRK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

2.1 Basic Checks

  • MRK has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • MRK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
MRK Yearly Shares OutstandingMRK Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B
MRK Yearly Total Debt VS Total AssetsMRK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

  • MRK has an Altman-Z score of 4.43. This indicates that MRK is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.43, MRK is doing good in the industry, outperforming 72.54% of the companies in the same industry.
  • The Debt to FCF ratio of MRK is 3.17, which is a good value as it means it would take MRK, 3.17 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of MRK (3.17) is better than 90.16% of its industry peers.
  • MRK has a Debt/Equity ratio of 0.77. This is a neutral value indicating MRK is somewhat dependend on debt financing.
  • MRK's Debt to Equity ratio of 0.77 is on the low side compared to the rest of the industry. MRK is outperformed by 68.39% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 3.17
Altman-Z 4.43
ROIC/WACC2.26
WACC9%
MRK Yearly LT Debt VS Equity VS FCFMRK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.3 Liquidity

  • A Current Ratio of 1.66 indicates that MRK should not have too much problems paying its short term obligations.
  • The Current ratio of MRK (1.66) is worse than 66.32% of its industry peers.
  • MRK has a Quick Ratio of 1.44. This is a normal value and indicates that MRK is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.44, MRK is not doing good in the industry: 63.21% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.66
Quick Ratio 1.44
MRK Yearly Current Assets VS Current LiabilitesMRK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 20.16% 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 9.13% on average per year.
  • Looking at the last year, MRK shows a small growth in Revenue. The Revenue has grown by 1.31% in the last year.
  • The Revenue has been growing by 9.38% on average over the past years. This is quite good.
EPS 1Y (TTM)20.16%
EPS 3Y7.06%
EPS 5Y9.13%
EPS Q2Q%21.51%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y3.12%
Revenue growth 5Y9.38%
Sales Q2Q%4.97%

3.2 Future

  • The Earnings Per Share is expected to grow by 1.63% on average over the next years.
  • Based on estimates for the next years, MRK will show a small growth in Revenue. The Revenue will grow by 2.49% on average per year.
EPS Next Y-41.06%
EPS Next 2Y4.38%
EPS Next 3Y5.65%
EPS Next 5Y1.63%
Revenue Next Year2.98%
Revenue Next 2Y4.12%
Revenue Next 3Y4.9%
Revenue Next 5Y2.49%

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 Yearly Revenue VS EstimatesMRK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B
MRK Yearly EPS VS EstimatesMRK 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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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 13.49 indicates a correct valuation of MRK.
  • Compared to the rest of the industry, the Price/Earnings ratio of MRK indicates a rather cheap valuation: MRK is cheaper than 88.08% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.07. MRK is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 22.88, MRK is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MRK indicates a somewhat cheap valuation: MRK is cheaper than 77.20% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, MRK is valued at the same level.
Industry RankSector Rank
PE 13.49
Fwd PE 22.88
MRK Price Earnings VS Forward Price EarningsMRK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • MRK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MRK is cheaper than 87.05% of the companies in the same industry.
  • MRK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MRK is cheaper than 84.46% of the companies in the same industry.
Industry RankSector Rank
P/FCF 23.55
EV/EBITDA 11.66
MRK Per share dataMRK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • MRK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.48
EPS Next 2Y4.38%
EPS Next 3Y5.65%

More info and screens

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

7

5. Dividend

5.1 Amount

  • MRK has a Yearly Dividend Yield of 2.85%.
  • MRK's Dividend Yield is rather good when compared to the industry average which is at 0.66. MRK pays more dividend than 93.78% of the companies in the same industry.
  • MRK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.85%

5.2 History

  • The dividend of MRK is nicely growing with an annual growth rate of 6.90%!
  • MRK has paid a dividend for at least 10 years, which is a reliable track record.
  • MRK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.9%
Div Incr Years14
Div Non Decr Years34
MRK Yearly Dividends per shareMRK Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 42.60% of the earnings are spent on dividend by MRK. This is a bit on the high side, but may be sustainable.
  • MRK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP42.6%
EPS Next 2Y4.38%
EPS Next 3Y5.65%
MRK Yearly Income VS Free CF VS DividendMRK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B
MRK Dividend Payout.MRK Dividend Payout, showing the Payout Ratio.MRK Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

MERCK & CO. INC.

NYSE:MRK (2/27/2026, 8:20:59 PM)

After market: 123.31 -0.51 (-0.41%)

123.82

+4.52 (+3.79%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-03
Earnings (Next)04-30
Inst Owners80.32%
Inst Owner Change-1.74%
Ins Owners0.05%
Ins Owner Change-0.69%
Market Cap307.32B
Revenue(TTM)65.01B
Net Income(TTM)19.03B
Analysts77.06
Price Target128.08 (3.44%)
Short Float %1.16%
Short Ratio2.05
Dividend
Industry RankSector Rank
Dividend Yield 2.85%
Yearly Dividend3.1
Dividend Growth(5Y)6.9%
DP42.6%
Div Incr Years14
Div Non Decr Years34
Ex-Date03-16
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.37%
Min EPS beat(2)7.69%
Max EPS beat(2)13.06%
EPS beat(4)4
Avg EPS beat(4)7.28%
Min EPS beat(4)2.93%
Max EPS beat(4)13.06%
EPS beat(8)8
Avg EPS beat(8)21.72%
EPS beat(12)12
Avg EPS beat(12)16.45%
EPS beat(16)16
Avg EPS beat(16)15.36%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.83%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)0.83%
Revenue beat(8)5
Avg Revenue beat(8)0.41%
Revenue beat(12)9
Avg Revenue beat(12)1.14%
Revenue beat(16)13
Avg Revenue beat(16)1.98%
PT rev (1m)12.55%
PT rev (3m)25.18%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)-5.38%
EPS NY rev (3m)-43.18%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)-1.42%
Revenue NY rev (3m)-1.86%
Valuation
Industry RankSector Rank
PE 13.49
Fwd PE 22.88
P/S 4.78
P/FCF 23.55
P/OCF 18.01
P/B 5.93
P/tB 20.56
EV/EBITDA 11.66
EPS(TTM)9.18
EY7.41%
EPS(NY)5.41
Fwd EY4.37%
FCF(TTM)5.26
FCFY4.25%
OCF(TTM)6.88
OCFY5.55%
SpS25.88
BVpS20.89
TBVpS6.02
PEG (NY)N/A
PEG (5Y)1.48
Graham Number65.69
Profitability
Industry RankSector Rank
ROA 14.69%
ROE 36.71%
ROCE 23.54%
ROIC 20.32%
ROICexc 24.8%
ROICexgc 44.78%
OM 36.99%
PM (TTM) 29.63%
GM 77.69%
FCFM 20.31%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y6.33%
OM growth 5Y9.38%
PM growth 3Y4.66%
PM growth 5Y10.53%
GM growth 3Y4.72%
GM growth 5Y2.48%
F-Score6
Asset Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 3.17
Debt/EBITDA 1.41
Cap/Depr 87.9%
Cap/Sales 6.25%
Interest Coverage 17.91
Cash Conversion 60.24%
Profit Quality 68.56%
Current Ratio 1.66
Quick Ratio 1.44
Altman-Z 4.43
F-Score6
WACC9%
ROIC/WACC2.26
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.16%
EPS 3Y7.06%
EPS 5Y9.13%
EPS Q2Q%21.51%
EPS Next Y-41.06%
EPS Next 2Y4.38%
EPS Next 3Y5.65%
EPS Next 5Y1.63%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y3.12%
Revenue growth 5Y9.38%
Sales Q2Q%4.97%
Revenue Next Year2.98%
Revenue Next 2Y4.12%
Revenue Next 3Y4.9%
Revenue Next 5Y2.49%
EBIT growth 1Y-0.15%
EBIT growth 3Y9.65%
EBIT growth 5Y19.64%
EBIT Next Year-19.93%
EBIT Next 3Y10.24%
EBIT Next 5Y2.8%
FCF growth 1Y-12.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-6.56%
OCF growth 3YN/A
OCF growth 5YN/A

MERCK & CO. INC. / MRK FAQ

What is the fundamental rating for MRK stock?

ChartMill assigns a fundamental rating of 6 / 10 to MRK.


Can you provide the valuation status for MERCK & CO. INC.?

ChartMill assigns a valuation rating of 6 / 10 to MERCK & CO. INC. (MRK). This can be considered as Fairly Valued.


Can you provide the profitability details for MERCK & CO. INC.?

MERCK & CO. INC. (MRK) has a profitability rating of 8 / 10.


What is the financial health of MERCK & CO. INC. (MRK) stock?

The financial health rating of MERCK & CO. INC. (MRK) is 5 / 10.


How sustainable is the dividend of MERCK & CO. INC. (MRK) stock?

The dividend rating of MERCK & CO. INC. (MRK) is 7 / 10 and the dividend payout ratio is 42.6%.