MERCK KGAA (1MRK.MI) Fundamental Analysis & Valuation
BIT:1MRK • DE0006599905
Current stock price
108.8 EUR
+1.4 (+1.3%)
Last:
This 1MRK.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. 1MRK.MI Profitability Analysis
1.1 Basic Checks
- In the past year 1MRK was profitable.
- 1MRK had a positive operating cash flow in the past year.
- Each year in the past 5 years 1MRK has been profitable.
- In the past 5 years 1MRK always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 5.06%, 1MRK perfoms like the industry average, outperforming 49.02% of the companies in the same industry.
- The Return On Equity of 1MRK (9.12%) is comparable to the rest of the industry.
- 1MRK has a Return On Invested Capital (6.66%) which is in line with its industry peers.
- 1MRK had an Average Return On Invested Capital over the past 3 years of 8.24%. This is significantly below the industry average of 14.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 9.12% | ||
| ROIC | 6.66% |
ROA(3y)5.42%
ROA(5y)5.97%
ROE(3y)9.66%
ROE(5y)11.23%
ROIC(3y)8.24%
ROIC(5y)9.04%
1.3 Margins
- 1MRK's Profit Margin of 12.36% is in line compared to the rest of the industry. 1MRK outperforms 52.94% of its industry peers.
- 1MRK's Profit Margin has improved in the last couple of years.
- 1MRK has a Operating Margin (16.99%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of 1MRK has grown nicely.
- 1MRK has a Gross Margin of 58.51%. This is in the lower half of the industry: 1MRK underperforms 70.59% of its industry peers.
- In the last couple of years the Gross Margin of 1MRK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.99% | ||
| PM (TTM) | 12.36% | ||
| GM | 58.51% |
OM growth 3Y-5.15%
OM growth 5Y2.87%
PM growth 3Y-6.17%
PM growth 5Y1.75%
GM growth 3Y-1.55%
GM growth 5Y-0.67%
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.
- The number of shares outstanding for 1MRK remains at a similar level compared to 5 years ago.
- 1MRK has a worse debt/assets ratio than last year.
2.2 Solvency
- 1MRK has an Altman-Z score of 2.74. 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 (2.74) is comparable to the rest of the industry.
- The Debt to FCF ratio of 1MRK is 6.05, which is on the high side as it means it would take 1MRK, 6.05 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 6.05, 1MRK perfoms like the industry average, outperforming 43.14% of the companies in the same industry.
- 1MRK has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
- 1MRK's Debt to Equity ratio of 0.38 is in line compared to the rest of the industry. 1MRK outperforms 58.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.93
WACC7.16%
2.3 Liquidity
- A Current Ratio of 1.46 indicates that 1MRK should not have too much problems paying its short term obligations.
- The Current ratio of 1MRK (1.46) is comparable to the rest of the industry.
- 1MRK has a Quick Ratio of 1.46. 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 of 0.96. This is comparable to the rest of the industry: 1MRK outperforms 49.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.96 |
3. 1MRK.MI Growth Analysis
3.1 Past
- 1MRK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.36%.
- Measured over the past 5 years, 1MRK shows a small growth in Earnings Per Share. The EPS has been growing by 4.45% on average per year.
- 1MRK shows a decrease in Revenue. In the last year, the revenue decreased by -0.26%.
- 1MRK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.77% yearly.
EPS 1Y (TTM)-3.36%
EPS 3Y-6.03%
EPS 5Y4.45%
EPS Q2Q%-9.18%
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y-1.72%
Revenue growth 5Y3.77%
Sales Q2Q%-3.12%
3.2 Future
- Based on estimates for the next years, 1MRK will show a small growth in Earnings Per Share. The EPS will grow by 6.59% on average per year.
- The Revenue is expected to grow by 3.73% on average over the next years.
EPS Next Y-5.43%
EPS Next 2Y2.27%
EPS Next 3Y5.02%
EPS Next 5Y6.59%
Revenue Next Year-1%
Revenue Next 2Y1.87%
Revenue Next 3Y3.01%
Revenue Next 5Y3.73%
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 accelerating.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. 1MRK.MI Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.05, 1MRK is valued correctly.
- 1MRK's Price/Earnings ratio is a bit cheaper when compared to the industry. 1MRK is cheaper than 72.55% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.54, 1MRK is valued rather cheaply.
- 1MRK is valuated correctly with a Price/Forward Earnings ratio of 13.79.
- Based on the Price/Forward Earnings ratio, 1MRK is valued a bit cheaper than the industry average as 72.55% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 21.68, 1MRK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 13.79 |
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 72.55% 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 | 23.96 | ||
| EV/EBITDA | 10.07 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.93
EPS Next 2Y2.27%
EPS Next 3Y5.02%
5. 1MRK.MI Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.96%, 1MRK has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.96, 1MRK pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 1MRK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
- On average, the dividend of 1MRK grows each year by 11.07%, which is quite nice.
Dividend Growth(5Y)11.07%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 10.89% 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.
DP10.89%
EPS Next 2Y2.27%
EPS Next 3Y5.02%
1MRK.MI Fundamentals: All Metrics, Ratios and Statistics
BIT:1MRK (4/27/2026, 7:00:00 PM)
108.8
+1.4 (+1.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Industry Strength49.32
Industry Growth58.67
Earnings (Last)03-05 2026-03-05/dmh
Earnings (Next)05-13 2026-05-13
Inst Owners55.45%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap47.30B
Revenue(TTM)21.10B
Net Income(TTM)2.61B
Analysts79.13
Price Target144.33 (32.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend0.65
Dividend Growth(5Y)11.07%
DP10.89%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.18%
Min EPS beat(2)-3.73%
Max EPS beat(2)3.38%
EPS beat(4)1
Avg EPS beat(4)-2.15%
Min EPS beat(4)-4.83%
Max EPS beat(4)3.38%
EPS beat(8)3
Avg EPS beat(8)1.02%
EPS beat(12)4
Avg EPS beat(12)0.36%
EPS beat(16)7
Avg EPS beat(16)0.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)0.09%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)0.09%
Revenue beat(8)2
Avg Revenue beat(8)-1.02%
Revenue beat(12)2
Avg Revenue beat(12)-1.25%
Revenue beat(16)4
Avg Revenue beat(16)-1.01%
PT rev (1m)-4.18%
PT rev (3m)-2.7%
EPS NQ rev (1m)-2.4%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.6%
EPS NY rev (3m)-8.24%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.22%
Revenue NY rev (3m)-2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 13.79 | ||
| P/S | 2.24 | ||
| P/FCF | 23.96 | ||
| P/OCF | 12.03 | ||
| P/B | 1.65 | ||
| P/tB | 15.79 | ||
| EV/EBITDA | 10.07 |
EPS(TTM)8.34
EY7.67%
EPS(NY)7.89
Fwd EY7.25%
FCF(TTM)4.54
FCFY4.17%
OCF(TTM)9.04
OCFY8.31%
SpS48.53
BVpS65.76
TBVpS6.89
PEG (NY)N/A
PEG (5Y)2.93
Graham Number111.087 (2.1%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 9.12% | ||
| ROCE | 8.44% | ||
| ROIC | 6.66% | ||
| ROICexc | 7.24% | ||
| ROICexgc | 21.01% | ||
| OM | 16.99% | ||
| PM (TTM) | 12.36% | ||
| GM | 58.51% | ||
| FCFM | 9.35% |
ROA(3y)5.42%
ROA(5y)5.97%
ROE(3y)9.66%
ROE(5y)11.23%
ROIC(3y)8.24%
ROIC(5y)9.04%
ROICexc(3y)8.8%
ROICexc(5y)9.52%
ROICexgc(3y)25.77%
ROICexgc(5y)29.92%
ROCE(3y)10.44%
ROCE(5y)11.46%
ROICexgc growth 3Y-11.85%
ROICexgc growth 5Y-4.57%
ROICexc growth 3Y-8.4%
ROICexc growth 5Y2.06%
OM growth 3Y-5.15%
OM growth 5Y2.87%
PM growth 3Y-6.17%
PM growth 5Y1.75%
GM growth 3Y-1.55%
GM growth 5Y-0.67%
F-Score4
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 6.05 | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | 85.2% | ||
| Cap/Sales | 9.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.84% | ||
| Profit Quality | 75.69% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2.74 |
F-Score4
WACC7.16%
ROIC/WACC0.93
Cap/Depr(3y)98.38%
Cap/Depr(5y)92.95%
Cap/Sales(3y)9.75%
Cap/Sales(5y)8.92%
Profit Quality(3y)74.85%
Profit Quality(5y)80.58%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.36%
EPS 3Y-6.03%
EPS 5Y4.45%
EPS Q2Q%-9.18%
EPS Next Y-5.43%
EPS Next 2Y2.27%
EPS Next 3Y5.02%
EPS Next 5Y6.59%
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y-1.72%
Revenue growth 5Y3.77%
Sales Q2Q%-3.12%
Revenue Next Year-1%
Revenue Next 2Y1.87%
Revenue Next 3Y3.01%
Revenue Next 5Y3.73%
EBIT growth 1Y-1.83%
EBIT growth 3Y-6.79%
EBIT growth 5Y6.75%
EBIT Next Year27.23%
EBIT Next 3Y13.95%
EBIT Next 5Y10.92%
FCF growth 1Y-17.82%
FCF growth 3Y-6.99%
FCF growth 5Y0.62%
OCF growth 1Y-14.26%
OCF growth 3Y-2.63%
OCF growth 5Y2.49%
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.
What is the profitability of 1MRK stock?
MERCK KGAA (1MRK.MI) has a profitability rating of 5 / 10.
Can you provide the financial health for 1MRK stock?
The financial health rating of MERCK KGAA (1MRK.MI) is 3 / 10.
Is the dividend of MERCK KGAA sustainable?
The dividend rating of MERCK KGAA (1MRK.MI) is 4 / 10 and the dividend payout ratio is 10.89%.