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

NYSE:MRK • US58933Y1055

123.82 USD
+4.52 (+3.79%)
At close: Feb 27, 2026
122.99 USD
-0.83 (-0.67%)
Pre-Market: 3/2/2026, 7:00:00 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to MRK. MRK was compared to 193 industry peers in the Pharmaceuticals industry. While MRK belongs to the best of the industry regarding profitability, 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

  • 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.
  • 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

  • With an excellent Return On Assets value of 14.69%, MRK belongs to the best of the industry, outperforming 95.34% of the companies in the same industry.
  • MRK has a Return On Equity of 36.71%. This is amongst the best in the industry. MRK outperforms 95.85% of its industry peers.
  • MRK has a Return On Invested Capital of 20.32%. This is amongst the best in the industry. MRK outperforms 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

  • MRK has a Profit Margin of 29.63%. This is amongst the best in the industry. MRK outperforms 94.30% of its industry peers.
  • In the last couple of years the Profit Margin of MRK has grown nicely.
  • MRK's Operating Margin of 36.99% is amongst the best of the industry. MRK outperforms 96.37% of its industry peers.
  • MRK's Operating Margin has improved in the last couple of years.
  • MRK's Gross Margin of 77.69% is amongst the best of the industry. MRK outperforms 83.94% 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.
  • MRK has a better Altman-Z score (4.43) than 72.54% of its industry peers.
  • 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.
  • MRK has a better Debt to FCF ratio (3.17) 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.
  • Looking at the Debt to Equity ratio, with a value of 0.77, MRK is doing worse than 68.39% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 3.17
Altman-Z 4.43
ROIC/WACC2.28
WACC8.93%
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.
  • MRK has a Current ratio of 1.66. This is in the lower half of the industry: MRK underperforms 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.
  • The Quick ratio of MRK (1.44) is worse than 63.21% of its industry peers.
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

  • MRK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.16%, which is quite impressive.
  • The Earnings Per Share has been growing by 9.13% 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 1.31% in the last year.
  • MRK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.38% yearly.
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • Based on the Price/Earnings ratio of 13.49, the valuation of MRK can be described as correct.
  • Based on the Price/Earnings ratio, MRK is valued cheaper than 88.08% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.07. MRK is valued rather cheaply when compared to this.
  • MRK is valuated rather expensively with a Price/Forward Earnings ratio of 22.88.
  • MRK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MRK is cheaper than 77.20% of the companies in the same industry.
  • MRK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.05.
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

  • Based on the Enterprise Value to EBITDA ratio, MRK is valued 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%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.66, MRK pays a better dividend. On top of this MRK pays more dividend than 93.78% of the companies listed 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 been paying a dividend for at least 10 years, so it has 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

  • MRK pays out 42.60% of its income as dividend. 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

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Find the best dividend stocksShow peers with best dividend

MERCK & CO. INC.

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

Premarket: 122.99 -0.83 (-0.67%)

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-1.51%
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
WACC8.93%
ROIC/WACC2.28
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%.