MERCK KGAA (1MRK.MI) Fundamental Analysis & Valuation

BIT:1MRK • DE0006599905

Current stock price

110.9 EUR
+3.2 (+2.97%)
Last:

This 1MRK.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. 1MRK.MI Profitability Analysis

1.1 Basic Checks

  • In the past year 1MRK was profitable.
  • In the past year 1MRK had a positive cash flow from operations.
  • 1MRK had positive earnings in each of the past 5 years.
  • Each year in the past 5 years 1MRK had a positive operating cash flow.
1MRK.MI Yearly Net Income VS EBIT VS OCF VS FCF1MRK.MI 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 1B 2B 3B 4B 5B

1.2 Ratios

  • 1MRK has a Return On Assets (5.80%) which is in line with its industry peers.
  • The Return On Equity of 1MRK (10.21%) is comparable to the rest of the industry.
  • 1MRK has a Return On Invested Capital (7.46%) which is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for 1MRK is significantly below the industry average of 14.78%.
Industry RankSector 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%
1MRK.MI Yearly ROA, ROE, ROIC1MRK.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 13.89%, 1MRK is in line with its industry, outperforming 53.70% of the companies in the same industry.
  • In the last couple of years the Profit Margin of 1MRK has grown nicely.
  • Looking at the Operating Margin, with a value of 18.53%, 1MRK is in line with its industry, outperforming 46.30% of the companies in the same industry.
  • In the last couple of years the Operating Margin of 1MRK has grown nicely.
  • With a Gross Margin value of 58.69%, 1MRK is not doing good in the industry: 68.52% of the companies in the same industry are doing better.
  • In the last couple of years the Gross Margin of 1MRK has remained more or less at the same level.
Industry RankSector 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%
1MRK.MI Yearly Profit, Operating, Gross Margins1MRK.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. 1MRK.MI Health Analysis

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.
  • 1MRK has about the same amout of shares outstanding than it did 5 years ago.
  • The debt/assets ratio for 1MRK is higher compared to a year ago.
1MRK.MI Yearly Shares Outstanding1MRK.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
1MRK.MI Yearly Total Debt VS Total Assets1MRK.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • 1MRK has an Altman-Z score of 2.76. 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.
  • The Altman-Z score of 1MRK (2.76) 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.
  • 1MRK has a Debt to FCF ratio (6.26) which is comparable to the rest of the industry.
  • 1MRK has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
  • 1MRK's Debt to Equity ratio of 0.36 is fine compared to the rest of the industry. 1MRK outperforms 62.96% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 6.26
Altman-Z 2.76
ROIC/WACC1.01
WACC7.41%
1MRK.MI Yearly LT Debt VS Equity VS FCF1MRK.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.3 Liquidity

  • A Current Ratio of 1.49 indicates that 1MRK should not have too much problems paying its short term obligations.
  • 1MRK has a Current ratio of 1.49. This is comparable to the rest of the industry: 1MRK outperforms 53.70% of its industry peers.
  • 1MRK has a Quick Ratio of 1.49. This is a bad value and indicates that 1MRK is not financially healthy enough and could expect problems in meeting its short term obligations.
  • 1MRK has a Quick ratio (0.97) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.49
Quick Ratio 0.97
1MRK.MI Yearly Current Assets VS Current Liabilites1MRK.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

More info and screens

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

3

3. 1MRK.MI Growth Analysis

3.1 Past

  • 1MRK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.43%.
  • Measured over the past years, 1MRK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.19% on average per year.
  • 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 5.02% on average over the next years.
  • The Revenue is expected to grow by 3.01% on average over the next years.
EPS Next Y-0.97%
EPS Next 2Y-0.2%
EPS Next 3Y1.89%
EPS Next 5Y5.02%
Revenue Next Year0.19%
Revenue Next 2Y0.21%
Revenue Next 3Y1.39%
Revenue Next 5Y3.01%

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.
1MRK.MI Yearly Revenue VS Estimates1MRK.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B 25B
1MRK.MI Yearly EPS VS Estimates1MRK.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

More info and screens

Find the best growth stocksShow best growing peers

4

4. 1MRK.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 13.00 indicates a correct valuation of 1MRK.
  • Based on the Price/Earnings ratio, 1MRK is valued a bit cheaper than the industry average as 74.07% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 25.70. 1MRK is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 12.90, 1MRK is valued correctly.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MRK indicates a somewhat cheap valuation: 1MRK is cheaper than 74.07% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.84. 1MRK is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 13
Fwd PE 12.9
1MRK.MI Price Earnings VS Forward Price Earnings1MRK.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 74.07% of the companies in the same industry are more expensive than 1MRK, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MRK is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 24.94
EV/EBITDA 9.64
1MRK.MI Per share data1MRK.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)1.41
EPS Next 2Y-0.2%
EPS Next 3Y1.89%

More info and screens

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

4

5. 1MRK.MI Dividend Analysis

5.1 Amount

  • 1MRK has a Yearly Dividend Yield of 2.01%. Purely for dividend investing, there may be better candidates out there.
  • In the last 3 months the price of 1MRK has falen by -28.38%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 1.94, 1MRK has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, 1MRK has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.01%

5.2 History

  • The dividend of 1MRK is nicely growing with an annual growth rate of 11.07%!
Dividend Growth(5Y)11.07%
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.
  • The dividend of 1MRK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.61%
EPS Next 2Y-0.2%
EPS Next 3Y1.89%
1MRK.MI Yearly Income VS Free CF VS Dividend1MRK.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
1MRK.MI Dividend Payout.1MRK.MI Dividend Payout, showing the Payout Ratio.1MRK.MI Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

1MRK.MI Fundamentals: All Metrics, Ratios and Statistics

MERCK KGAA

BIT:1MRK (3/10/2026, 7:00:00 PM)

110.9

+3.2 (+2.97%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)03-05
Earnings (Next)05-13
Inst Owners55.29%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap48.22B
Revenue(TTM)21.27B
Net Income(TTM)2.96B
Analysts79.13
Price Target150.63 (35.83%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.01%
Yearly Dividend0.65
Dividend Growth(5Y)11.07%
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)1.55%
PT rev (3m)4.15%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)0%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.09%
Valuation
Industry RankSector Rank
PE 13
Fwd PE 12.9
P/S 2.27
P/FCF 24.94
P/OCF 12.45
P/B 1.67
P/tB 14.6
EV/EBITDA 9.64
EPS(TTM)8.53
EY7.69%
EPS(NY)8.6
Fwd EY7.75%
FCF(TTM)4.45
FCFY4.01%
OCF(TTM)8.91
OCFY8.03%
SpS48.92
BVpS66.55
TBVpS7.59
PEG (NY)N/A
PEG (5Y)1.41
Graham Number113.02
Profitability
Industry RankSector 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 RankSector 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 2.76
F-Score6
WACC7.41%
ROIC/WACC1.01
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-0.97%
EPS Next 2Y-0.2%
EPS Next 3Y1.89%
EPS Next 5Y5.02%
Revenue 1Y (TTM)1.47%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%0.99%
Revenue Next Year0.19%
Revenue Next 2Y0.21%
Revenue Next 3Y1.39%
Revenue Next 5Y3.01%
EBIT growth 1Y14.16%
EBIT growth 3Y-0.01%
EBIT growth 5Y11.7%
EBIT Next Year38.99%
EBIT Next 3Y12.95%
EBIT Next 5Y10.96%
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 Fundamental Analysis 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 13 and the Price/Book (PB) ratio is 1.67.


How sustainable is the dividend of MERCK KGAA (1MRK.MI) stock?

The dividend rating of MERCK KGAA (1MRK.MI) is 4 / 10 and the dividend payout ratio is 9.61%.