MERCK KGAA (1MRK.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MRK - DE0006599905 - Common Stock
129.7 EUR
+0.65 (+0.5%)
Taking everything into account, 1MRK scores 4 out of 10 in our fundamental rating. 1MRK was compared to 54 industry peers in the Pharmaceuticals industry. 1MRK has only an average score on both its financial health and profitability. 1MRK has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- 1MRK had positive earnings in the past year.
- In the past year 1MRK had a positive cash flow from operations.
- 1MRK had positive earnings in each of the past 5 years.
- In the past 5 years 1MRK always reported a positive cash flow from operatings.
1.2 Ratios
- 1MRK's Return On Assets of 5.80% is in line compared to the rest of the industry. 1MRK outperforms 50.00% of its industry peers.
- 1MRK has a Return On Equity of 10.21%. This is comparable to the rest of the industry: 1MRK outperforms 44.44% of its industry peers.
- With a Return On Invested Capital value of 7.46%, 1MRK perfoms like the industry average, outperforming 46.30% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1MRK is below the industry average of 13.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | 10.21% | ||
| ROIC | 7.46% |
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
- With a Profit Margin value of 13.89%, 1MRK perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
- 1MRK's Profit Margin has improved in the last couple of years.
- The Operating Margin of 1MRK (18.53%) is comparable to the rest of the industry.
- 1MRK's Operating Margin has improved in the last couple of years.
- 1MRK has a worse Gross Margin (58.69%) than 66.67% of its industry peers.
- 1MRK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.53% | ||
| PM (TTM) | 13.89% | ||
| GM | 58.69% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1MRK is creating some value.
- The number of shares outstanding for 1MRK remains at a similar level compared to 1 year ago.
- The number of shares outstanding for 1MRK remains at a similar level compared to 5 years ago.
- Compared to 1 year ago, 1MRK has an improved debt to assets ratio.
2.2 Solvency
- 1MRK has an Altman-Z score of 2.99. This is not the best score and indicates that 1MRK is in the grey zone with still only limited risk for bankruptcy at the moment.
- 1MRK has a Altman-Z score (2.99) which is comparable to the rest of the industry.
- The Debt to FCF ratio of 1MRK is 6.26, which is on the high side as it means it would take 1MRK, 6.26 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 6.26, 1MRK is in line with its industry, outperforming 48.15% of the companies in the same industry.
- A Debt/Equity ratio of 0.36 indicates that 1MRK is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.36, 1MRK is in the better half of the industry, outperforming 64.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.07
WACC7%
2.3 Liquidity
- 1MRK has a Current Ratio of 1.49. This is a normal value and indicates that 1MRK is financially healthy and should not expect problems in meeting its short term obligations.
- 1MRK's Current ratio of 1.49 is in line compared to the rest of the industry. 1MRK outperforms 59.26% of its industry peers.
- A Quick Ratio of 0.97 indicates that 1MRK may have some problems paying its short term obligations.
- With a Quick ratio value of 0.97, 1MRK perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- 1MRK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.43%.
- The Earnings Per Share has been growing by 9.19% on average over the past years. This is quite good.
- Looking at the last year, 1MRK shows a small growth in Revenue. The Revenue has grown by 1.47% in the last year.
- 1MRK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
EPS 1Y (TTM)1.43%
EPS 3Y-0.35%
EPS 5Y9.19%
EPS Q2Q%0.87%
Revenue 1Y (TTM)1.47%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%0.99%
3.2 Future
- The Earnings Per Share is expected to grow by 4.57% on average over the next years.
- The Revenue is expected to grow by 3.16% on average over the next years.
EPS Next Y-1.47%
EPS Next 2Y-0.29%
EPS Next 3Y1.74%
EPS Next 5Y4.57%
Revenue Next Year0.36%
Revenue Next 2Y1.05%
Revenue Next 3Y2.06%
Revenue Next 5Y3.16%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 15.21, 1MRK is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of 1MRK indicates a somewhat cheap valuation: 1MRK is cheaper than 72.22% of the companies listed in the same industry.
- 1MRK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 15.12 indicates a correct valuation of 1MRK.
- Based on the Price/Forward Earnings ratio, 1MRK is valued a bit cheaper than 68.52% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. 1MRK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.21 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MRK indicates a somewhat cheap valuation: 1MRK is cheaper than 64.81% of the companies listed in the same industry.
- 1MRK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.17 | ||
| EV/EBITDA | 11.03 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.65
EPS Next 2Y-0.29%
EPS Next 3Y1.74%
5. Dividend
5.1 Amount
- 1MRK has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.59, 1MRK pays a bit more dividend than its industry peers.
- 1MRK's Dividend Yield is comparable with the S&P500 average which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
- The dividend of 1MRK is nicely growing with an annual growth rate of 11.88%!
Dividend Growth(5Y)11.88%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 9.61% of the earnings are spent on dividend by 1MRK. This is a low number and sustainable payout ratio.
- 1MRK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.61%
EPS Next 2Y-0.29%
EPS Next 3Y1.74%
BIT:1MRK (1/16/2026, 7:00:00 PM)
129.7
+0.65 (+0.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-13 2025-11-13/dmh
Earnings (Next)03-05 2026-03-05/amc
Inst Owners54.11%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap56.39B
Revenue(TTM)21.27B
Net Income(TTM)2.96B
Analysts77.5
Price Target142.08 (9.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend0.65
Dividend Growth(5Y)11.88%
DP9.61%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.73%
Min EPS beat(2)-4.83%
Max EPS beat(2)3.38%
EPS beat(4)1
Avg EPS beat(4)-1.86%
Min EPS beat(4)-4.83%
Max EPS beat(4)3.38%
EPS beat(8)3
Avg EPS beat(8)0.95%
EPS beat(12)4
Avg EPS beat(12)0.14%
EPS beat(16)7
Avg EPS beat(16)0.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)0.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)0.09%
Revenue beat(8)2
Avg Revenue beat(8)-1.11%
Revenue beat(12)2
Avg Revenue beat(12)-1.29%
Revenue beat(16)4
Avg Revenue beat(16)-0.94%
PT rev (1m)-1.76%
PT rev (3m)-5.4%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-5.74%
EPS NY rev (1m)0.33%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.21 | ||
| Fwd PE | 15.12 | ||
| P/S | 2.65 | ||
| P/FCF | 29.17 | ||
| P/OCF | 14.56 | ||
| P/B | 1.95 | ||
| P/tB | 17.08 | ||
| EV/EBITDA | 11.03 |
EPS(TTM)8.53
EY6.58%
EPS(NY)8.58
Fwd EY6.62%
FCF(TTM)4.45
FCFY3.43%
OCF(TTM)8.91
OCFY6.87%
SpS48.92
BVpS66.55
TBVpS7.59
PEG (NY)N/A
PEG (5Y)1.65
Graham Number113.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | 10.21% | ||
| ROCE | 9.32% | ||
| ROIC | 7.46% | ||
| ROICexc | 8.02% | ||
| ROICexgc | 22.98% | ||
| OM | 18.53% | ||
| PM (TTM) | 13.89% | ||
| GM | 58.69% | ||
| FCFM | 9.09% |
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-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 6.26 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 100% | ||
| Cap/Sales | 9.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.84% | ||
| Profit Quality | 65.41% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.99 |
F-Score6
WACC7%
ROIC/WACC1.07
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)1.43%
EPS 3Y-0.35%
EPS 5Y9.19%
EPS Q2Q%0.87%
EPS Next Y-1.47%
EPS Next 2Y-0.29%
EPS Next 3Y1.74%
EPS Next 5Y4.57%
Revenue 1Y (TTM)1.47%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%0.99%
Revenue Next Year0.36%
Revenue Next 2Y1.05%
Revenue Next 3Y2.06%
Revenue Next 5Y3.16%
EBIT growth 1Y14.16%
EBIT growth 3Y-0.01%
EBIT growth 5Y11.7%
EBIT Next Year37.82%
EBIT Next 3Y13.34%
EBIT Next 5Y10.71%
FCF growth 1Y8.96%
FCF growth 3Y-9.07%
FCF growth 5Y5.53%
OCF growth 1Y3.36%
OCF growth 3Y-0.22%
OCF growth 5Y9.93%
MERCK KGAA / 1MRK.MI FAQ
What is the fundamental rating for 1MRK stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1MRK.MI.
Can you provide the valuation status for MERCK KGAA?
ChartMill assigns a valuation rating of 4 / 10 to MERCK KGAA (1MRK.MI). This can be considered as Fairly Valued.
How profitable is MERCK KGAA (1MRK.MI) stock?
MERCK KGAA (1MRK.MI) has a profitability rating of 5 / 10.
What are the PE and PB ratios of MERCK KGAA (1MRK.MI) stock?
The Price/Earnings (PE) ratio for MERCK KGAA (1MRK.MI) is 15.21 and the Price/Book (PB) ratio is 1.95.
How sustainable is the dividend of MERCK KGAA (1MRK.MI) stock?
The dividend rating of MERCK KGAA (1MRK.MI) is 5 / 10 and the dividend payout ratio is 9.61%.