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

NYSE:MRK • US58933Y1055

120.28 USD
+0.45 (+0.38%)
At close: Mar 4, 2026
120.03 USD
-0.25 (-0.21%)
After Hours: 3/4/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

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 scores excellent on profitability, but there are some minor concerns on its financial health. MRK is not valued too expensively and it also shows a decent growth rate. MRK also has an excellent dividend rating. With these ratings, MRK could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

8

1. MRK Profitability Analysis

1.1 Basic Checks

  • MRK had positive earnings in the past year.
  • MRK had a positive operating cash flow in the past year.
  • 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 has a Return On Assets of 14.69%. This is amongst the best in 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's Return On Invested Capital of 20.32% is amongst the best of 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

  • With an excellent Profit Margin value of 29.63%, MRK belongs to the best 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.
  • In the last couple of years the Operating Margin of MRK has grown nicely.
  • MRK has a Gross Margin of 77.69%. This is amongst the best in 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. MRK Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MRK is creating value.
  • There is no outstanding debt for MRK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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 4.35. This indicates that MRK is financially healthy and has little risk of bankruptcy at the moment.
  • MRK has a Altman-Z score of 4.35. This is in the better half of the industry: MRK outperforms 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.
  • The Debt to Equity ratio of MRK (0.77) is worse than 68.39% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 3.17
Altman-Z 4.35
ROIC/WACC2.26
WACC9.01%
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

  • MRK has a Current Ratio of 1.66. This is a normal value and indicates that MRK is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.66, MRK is doing worse than 66.32% of the companies in the same industry.
  • 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. MRK Growth Analysis

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.
  • MRK shows a small growth in Revenue. In the last year, the Revenue has grown by 1.31%.
  • 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

  • Based on estimates for the next years, MRK will show a small growth in Earnings Per Share. The EPS will grow by 1.63% on average per year.
  • 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

  • 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.
  • 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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6

4. MRK Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 13.10 indicates a correct valuation of MRK.
  • Based on the Price/Earnings ratio, MRK is valued cheaper than 88.08% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.03, MRK is valued rather cheaply.
  • MRK is valuated rather expensively with a Price/Forward Earnings ratio of 22.23.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MRK indicates a somewhat cheap valuation: MRK is cheaper than 77.72% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of MRK to the average of the S&P500 Index (25.11), we can say MRK is valued inline with the index average.
Industry RankSector Rank
PE 13.1
Fwd PE 22.23
MRK Price Earnings VS Forward Price EarningsMRK 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 cheaply inside the industry as 87.56% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, MRK is valued cheaper than 84.46% of the companies in the same industry.
Industry RankSector Rank
P/FCF 22.88
EV/EBITDA 11.31
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)1.43
EPS Next 2Y4.38%
EPS Next 3Y5.65%

More info and screens

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

7

5. MRK Dividend Analysis

5.1 Amount

  • MRK has a Yearly Dividend Yield of 2.85%.
  • Compared to an average industry Dividend Yield of 0.67, 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

  • 42.60% of the earnings are spent on dividend by MRK. This is a bit on the high side, but may be sustainable.
  • The dividend of MRK is growing, but the earnings are growing slower. 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

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MRK Fundamentals: All Metrics, Ratios and Statistics

MERCK & CO. INC.

NYSE:MRK (3/4/2026, 8:04:00 PM)

After market: 120.03 -0.25 (-0.21%)

120.28

+0.45 (+0.38%)

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 Cap298.54B
Revenue(TTM)65.01B
Net Income(TTM)19.03B
Analysts77.06
Price Target128.08 (6.48%)
Short Float %1.13%
Short Ratio2.13
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 13.1
Fwd PE 22.23
P/S 4.65
P/FCF 22.88
P/OCF 17.49
P/B 5.76
P/tB 19.97
EV/EBITDA 11.31
EPS(TTM)9.18
EY7.63%
EPS(NY)5.41
Fwd EY4.5%
FCF(TTM)5.26
FCFY4.37%
OCF(TTM)6.88
OCFY5.72%
SpS25.88
BVpS20.89
TBVpS6.02
PEG (NY)N/A
PEG (5Y)1.43
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 4.35
F-Score6
WACC9.01%
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%.