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

USA • New York Stock Exchange • NYSE:MRK • US58933Y1055

118.33 USD
+2.49 (+2.15%)
At close: Feb 4, 2026
118.1 USD
-0.23 (-0.19%)
Pre-Market: 2/5/2026, 7:14:13 AM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to MRK. MRK was compared to 191 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 is not valued too expensively and it also shows a decent growth rate. MRK also has an excellent dividend rating. This makes MRK very considerable 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.
  • Of the past 5 years MRK 4 years had a positive operating cash flow.
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 94.76% of its industry peers.
  • Looking at the Return On Equity, with a value of 36.71%, MRK belongs to the top of the industry, outperforming 95.81% of the companies in the same industry.
  • MRK's Return On Invested Capital of 20.92% is amongst the best of the industry. MRK outperforms 96.34% of its industry peers.
Industry RankSector Rank
ROA 14.69%
ROE 36.71%
ROIC 20.92%
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 94.24% of the companies in the same industry.
  • MRK's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 38.08%, MRK belongs to the top of the industry, outperforming 96.34% of the companies in the same industry.
  • MRK's Operating Margin has improved in the last couple of years.
  • MRK has a better Gross Margin (78.72%) than 83.77% of its industry peers.
  • In the last couple of years the Gross Margin of MRK has grown nicely.
Industry RankSector Rank
OM 38.08%
PM (TTM) 29.63%
GM 78.72%
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

More info and screens

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 4.34. This indicates that MRK is financially healthy and has little risk of bankruptcy at the moment.
  • MRK's Altman-Z score of 4.34 is fine compared to the rest of the industry. MRK outperforms 71.20% 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.
  • Looking at the Debt to FCF ratio, with a value of 3.17, MRK belongs to the top of the industry, outperforming 88.48% of the companies in the same industry.
  • A Debt/Equity ratio of 0.77 indicates that MRK is somewhat dependend on debt financing.
  • MRK has a Debt to Equity ratio of 0.77. This is in the lower half of the industry: MRK underperforms 69.63% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 3.17
Altman-Z 4.34
ROIC/WACC2.26
WACC9.25%
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 67.54% 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.
  • MRK has a worse Quick ratio (1.44) than 64.40% 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

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 19.50% 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 9.01% yearly.
  • MRK shows a small growth in Revenue. In the last year, the Revenue has grown by 1.31%.
  • 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)19.5%
EPS 3Y6.87%
EPS 5Y9.01%
EPS Q2Q%18.6%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y3.12%
Revenue growth 5Y9.38%
Sales Q2Q%4.97%

3.2 Future

  • MRK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.53% yearly.
  • The Revenue is expected to grow by 1.73% on average over the next years.
EPS Next Y-40.74%
EPS Next 2Y4.66%
EPS Next 3Y5.85%
EPS Next 5Y1.53%
Revenue Next Year4.34%
Revenue Next 2Y4.82%
Revenue Next 3Y4.55%
Revenue Next 5Y1.73%

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

  • MRK is valuated correctly with a Price/Earnings ratio of 12.96.
  • Compared to the rest of the industry, the Price/Earnings ratio of MRK indicates a rather cheap valuation: MRK is cheaper than 87.43% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of MRK to the average of the S&P500 Index (28.25), we can say MRK is valued rather cheaply.
  • The Price/Forward Earnings ratio is 21.87, which indicates a rather expensive current valuation of MRK.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MRK indicates a somewhat cheap valuation: MRK is cheaper than 78.01% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.50, MRK is valued a bit cheaper.
Industry RankSector Rank
PE 12.96
Fwd PE 21.87
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

  • 87.96% of the companies in the same industry are more expensive than MRK, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, MRK is valued cheaper than 83.77% of the companies in the same industry.
Industry RankSector Rank
P/FCF 22.51
EV/EBITDA 10.91
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

  • The excellent profitability rating of MRK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.44
EPS Next 2Y4.66%
EPS Next 3Y5.85%

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 2.94%.
  • MRK's Dividend Yield is rather good when compared to the industry average which is at 0.62. MRK pays more dividend than 93.72% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, MRK pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.94%

5.2 History

  • On average, the dividend of MRK grows each year by 6.90%, which is quite nice.
  • 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

  • MRK pays out 42.60% of its income as dividend. 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 2Y4.66%
EPS Next 3Y5.85%
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 (2/4/2026, 8:04:00 PM)

Premarket: 118.1 -0.23 (-0.19%)

118.33

+2.49 (+2.15%)

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-2.27%
Ins Owners0.05%
Ins Owner Change4.53%
Market Cap293.70B
Revenue(TTM)65.01B
Net Income(TTM)19.03B
Analysts77.06
Price Target118.61 (0.24%)
Short Float %1.36%
Short Ratio2.41
Dividend
Industry RankSector Rank
Dividend Yield 2.94%
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)3.11%
PT rev (3m)12.64%
EPS NQ rev (1m)-2.26%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
Industry RankSector Rank
PE 12.96
Fwd PE 21.87
P/S 4.57
P/FCF 22.51
P/OCF 17.21
P/B 5.66
P/tB 19.65
EV/EBITDA 10.91
EPS(TTM)9.13
EY7.72%
EPS(NY)5.41
Fwd EY4.57%
FCF(TTM)5.26
FCFY4.44%
OCF(TTM)6.88
OCFY5.81%
SpS25.88
BVpS20.89
TBVpS6.02
PEG (NY)N/A
PEG (5Y)1.44
Graham Number65.51
Profitability
Industry RankSector Rank
ROA 14.69%
ROE 36.71%
ROCE 24.24%
ROIC 20.92%
ROICexc 25.53%
ROICexgc 46.09%
OM 38.08%
PM (TTM) 29.63%
GM 78.72%
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 1.38
Cap/Depr 87.9%
Cap/Sales 6.25%
Interest Coverage 18.43
Cash Conversion 58.79%
Profit Quality 68.56%
Current Ratio 1.66
Quick Ratio 1.44
Altman-Z 4.34
F-Score6
WACC9.25%
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)19.5%
EPS 3Y6.87%
EPS 5Y9.01%
EPS Q2Q%18.6%
EPS Next Y-40.74%
EPS Next 2Y4.66%
EPS Next 3Y5.85%
EPS Next 5Y1.53%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y3.12%
Revenue growth 5Y9.38%
Sales Q2Q%4.97%
Revenue Next Year4.34%
Revenue Next 2Y4.82%
Revenue Next 3Y4.55%
Revenue Next 5Y1.73%
EBIT growth 1Y2.78%
EBIT growth 3Y9.65%
EBIT growth 5Y19.64%
EBIT Next Year-15.41%
EBIT Next 3Y12.42%
EBIT Next 5Y3.04%
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%.