MERCK KGAA (1MRK.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1MRK • DE0006599905
126.15 EUR
-3.55 (-2.74%)
Last: Feb 2, 2026, 07:00 PM
Overall 1MRK gets a fundamental rating of 4 out of 10. We evaluated 1MRK against 55 industry peers in the Pharmaceuticals industry. 1MRK has only an average score on both its financial health and profitability. 1MRK is valued correctly, but it does not seem to be growing.
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.
- Each year in the past 5 years 1MRK has been profitable.
- Each year in the past 5 years 1MRK had a positive operating cash flow.
1.2 Ratios
- 1MRK's Return On Assets of 5.80% is in line compared to the rest of the industry. 1MRK outperforms 49.09% of its industry peers.
- With a Return On Equity value of 10.21%, 1MRK perfoms like the industry average, outperforming 43.64% of the companies in the same industry.
- 1MRK's Return On Invested Capital of 7.46% is in line compared to the rest of the industry. 1MRK outperforms 45.45% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1MRK is below the industry average of 14.23%.
| 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
- Looking at the Profit Margin, with a value of 13.89%, 1MRK is in line with its industry, outperforming 54.55% 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.
- In the last couple of years the Operating Margin of 1MRK has grown nicely.
- 1MRK has a worse Gross Margin (58.69%) than 67.27% 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.
- 1MRK has about the same amout of shares outstanding than it did 1 year ago.
- 1MRK has about the same amout of shares outstanding than it did 5 years ago.
- 1MRK has a better debt/assets ratio than last year.
2.2 Solvency
- 1MRK has an Altman-Z score of 2.97. 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.
- Looking at the Altman-Z score, with a value of 2.97, 1MRK is in line with its industry, outperforming 49.09% of the companies in the same 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.
- The Debt to FCF ratio of 1MRK (6.26) 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 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.06
WACC7.04%
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 fine compared to the rest of the industry. 1MRK outperforms 61.82% 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 of 0.97. This is comparable to the rest of the industry: 1MRK outperforms 45.45% of its industry peers.
| 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.
- 1MRK shows a small growth in Revenue. In the last year, the Revenue has grown by 1.47%.
- The Revenue has been growing slightly by 5.55% on average over the past years.
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
- 1MRK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.00% yearly.
- Based on estimates for the next years, 1MRK will show a small growth in Revenue. The Revenue will grow by 3.01% on average per year.
EPS Next Y-0.97%
EPS Next 2Y-0.2%
EPS Next 3Y1.89%
EPS Next 5Y5%
Revenue Next Year0.36%
Revenue Next 2Y1.05%
Revenue Next 3Y2.06%
Revenue Next 5Y3.01%
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.
4. Valuation
4.1 Price/Earnings Ratio
- 1MRK is valuated correctly with a Price/Earnings ratio of 14.79.
- 72.73% of the companies in the same industry are more expensive than 1MRK, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.25, 1MRK is valued a bit cheaper.
- A Price/Forward Earnings ratio of 14.68 indicates a correct valuation of 1MRK.
- Based on the Price/Forward Earnings ratio, 1MRK is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
- 1MRK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.79 | ||
| Fwd PE | 14.68 |
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 70.91% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as 1MRK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.37 | ||
| EV/EBITDA | 10.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.61
EPS Next 2Y-0.2%
EPS Next 3Y1.89%
5. Dividend
5.1 Amount
- 1MRK has a Yearly Dividend Yield of 1.75%.
- 1MRK's Dividend Yield is comparable with the industry average which is at 1.95.
- 1MRK's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
- On average, the dividend of 1MRK grows each year by 11.88%, which is quite nice.
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-0.2%
EPS Next 3Y1.89%
BIT:1MRK (2/2/2026, 7:00:00 PM)
126.15
-3.55 (-2.74%)
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 Owners54.91%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap54.85B
Revenue(TTM)21.27B
Net Income(TTM)2.96B
Analysts79.13
Price Target148.33 (17.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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)4.4%
PT rev (3m)-0.54%
EPS NQ rev (1m)0.64%
EPS NQ rev (3m)-5.13%
EPS NY rev (1m)0.51%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-1.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.79 | ||
| Fwd PE | 14.68 | ||
| P/S | 2.58 | ||
| P/FCF | 28.37 | ||
| P/OCF | 14.17 | ||
| P/B | 1.9 | ||
| P/tB | 16.61 | ||
| EV/EBITDA | 10.92 |
EPS(TTM)8.53
EY6.76%
EPS(NY)8.6
Fwd EY6.81%
FCF(TTM)4.45
FCFY3.52%
OCF(TTM)8.91
OCFY7.06%
SpS48.92
BVpS66.55
TBVpS7.59
PEG (NY)N/A
PEG (5Y)1.61
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 | 2.97 |
F-Score6
WACC7.04%
ROIC/WACC1.06
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%
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 5Y3.01%
EBIT growth 1Y14.16%
EBIT growth 3Y-0.01%
EBIT growth 5Y11.7%
EBIT Next Year37.82%
EBIT Next 3Y13.34%
EBIT Next 5Y11.09%
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 14.79 and the Price/Book (PB) ratio is 1.9.
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%.