MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
Europe - FRA:6MK - US58933Y1055 - Common Stock
75.6 EUR
+0.6 (+0.8%)
Taking everything into account, 6MK scores 7 out of 10 in our fundamental rating. 6MK was compared to 53 industry peers in the Pharmaceuticals industry. Both the health and profitability get an excellent rating, making 6MK a very profitable company, without any liquidiy or solvency issues. 6MK may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make 6MK a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year 6MK was profitable.
In the past year 6MK had a positive cash flow from operations.
In the past 5 years 6MK has always been profitable.
In the past 5 years 6MK always reported a positive cash flow from operatings.
1.2 Ratios
6MK has a better Return On Assets (13.96%) than 88.68% of its industry peers.
Looking at the Return On Equity, with a value of 33.49%, 6MK belongs to the top of the industry, outperforming 86.79% of the companies in the same industry.
6MK's Return On Invested Capital of 13.81% is fine compared to the rest of the industry. 6MK outperforms 64.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 6MK is in line with the industry average of 15.19%.
The 3 year average ROIC (13.67%) for 6MK is below the current ROIC(13.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 33.49% | ||
| ROIC | 13.81% |
ROA(3y)9.42%
ROA(5y)9.66%
ROE(3y)23.17%
ROE(5y)26.32%
ROIC(3y)13.67%
ROIC(5y)12.02%
1.3 Margins
The Profit Margin of 6MK (25.79%) is better than 86.79% of its industry peers.
In the last couple of years the Profit Margin of 6MK has remained more or less at the same level.
The Operating Margin of 6MK (37.52%) is better than 86.79% of its industry peers.
In the last couple of years the Operating Margin of 6MK has grown nicely.
The Gross Margin of 6MK (78.32%) is better than 77.36% of its industry peers.
In the last couple of years the Gross Margin of 6MK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.52% | ||
| PM (TTM) | 25.79% | ||
| GM | 78.32% |
OM growth 3Y5.75%
OM growth 5Y7.99%
PM growth 3Y-0.15%
PM growth 5Y1.18%
GM growth 3Y1.92%
GM growth 5Y1.45%
2. Health
2.1 Basic Checks
6MK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 6MK has about the same amount of shares outstanding.
Compared to 5 years ago, 6MK has less shares outstanding
Compared to 1 year ago, 6MK has an improved debt to assets ratio.
2.2 Solvency
6MK has an Altman-Z score of 4.04. This indicates that 6MK is financially healthy and has little risk of bankruptcy at the moment.
6MK has a Altman-Z score (4.04) which is in line with its industry peers.
6MK has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as 6MK would need 2.40 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.40, 6MK is doing good in the industry, outperforming 75.47% of the companies in the same industry.
6MK has a Debt/Equity ratio of 0.69. This is a neutral value indicating 6MK is somewhat dependend on debt financing.
6MK has a Debt to Equity ratio (0.69) which is comparable to the rest of the industry.
Although 6MK does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 4.04 |
ROIC/WACC1.72
WACC8.04%
2.3 Liquidity
A Current Ratio of 1.42 indicates that 6MK should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.42, 6MK is doing good in the industry, outperforming 62.26% of the companies in the same industry.
A Quick Ratio of 1.17 indicates that 6MK should not have too much problems paying its short term obligations.
The Quick ratio of 6MK (1.17) is better than 75.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.28% over the past year.
6MK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.04% yearly.
The Revenue has been growing slightly by 1.82% in the past year.
6MK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.40% yearly.
EPS 1Y (TTM)18.28%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%-3.95%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.9%
3.2 Future
Based on estimates for the next years, 6MK will show a small growth in Earnings Per Share. The EPS will grow by 5.58% on average per year.
Based on estimates for the next years, 6MK will show a small growth in Revenue. The Revenue will grow by 1.93% on average per year.
EPS Next Y17.93%
EPS Next 2Y12.87%
EPS Next 3Y12.24%
EPS Next 5Y5.58%
Revenue Next Year1.09%
Revenue Next 2Y3.15%
Revenue Next 3Y3.98%
Revenue Next 5Y1.93%
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
Based on the Price/Earnings ratio of 11.39, the valuation of 6MK can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of 6MK indicates a rather cheap valuation: 6MK is cheaper than 84.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.91, 6MK is valued rather cheaply.
6MK is valuated reasonably with a Price/Forward Earnings ratio of 9.00.
Based on the Price/Forward Earnings ratio, 6MK is valued cheaper than 84.91% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, 6MK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 6MK is valued a bit cheaper than the industry average as 79.25% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 6MK indicates a somewhat cheap valuation: 6MK is cheaper than 73.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.87 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
6MK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of 6MK may justify a higher PE ratio.
A more expensive valuation may be justified as 6MK's earnings are expected to grow with 12.24% in the coming years.
PEG (NY)0.64
PEG (5Y)1.42
EPS Next 2Y12.87%
EPS Next 3Y12.24%
5. Dividend
5.1 Amount
6MK has a Yearly Dividend Yield of 3.86%.
6MK's Dividend Yield is a higher than the industry average which is at 3.00.
Compared to an average S&P500 Dividend Yield of 2.34, 6MK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
On average, the dividend of 6MK grows each year by 6.90%, which is quite nice.
Dividend Growth(5Y)6.9%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
6MK pays out 48.95% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 6MK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.95%
EPS Next 2Y12.87%
EPS Next 3Y12.24%
FRA:6MK (10/24/2025, 7:00:00 PM)
75.6
+0.6 (+0.8%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.53%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap188.83B
Revenue(TTM)63.62B
Net Income(TTM)16.41B
Analysts75.76
Price Target86.17 (13.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend2.65
Dividend Growth(5Y)6.9%
DP48.95%
Div Incr Years8
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.31%
Min EPS beat(2)2.93%
Max EPS beat(2)7.69%
EPS beat(4)4
Avg EPS beat(4)4.85%
Min EPS beat(4)2.93%
Max EPS beat(4)7.69%
EPS beat(8)8
Avg EPS beat(8)21.1%
EPS beat(12)12
Avg EPS beat(12)15.97%
EPS beat(16)16
Avg EPS beat(16)15.3%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.25%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)0.45%
Revenue beat(8)5
Avg Revenue beat(8)0.7%
Revenue beat(12)9
Avg Revenue beat(12)1.51%
Revenue beat(16)13
Avg Revenue beat(16)2.28%
PT rev (1m)0.53%
PT rev (3m)-3.13%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-4.08%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 9 | ||
| P/S | 3.44 | ||
| P/FCF | 14.87 | ||
| P/OCF | 11.81 | ||
| P/B | 4.47 | ||
| P/tB | 17.93 | ||
| EV/EBITDA | 8.55 |
EPS(TTM)6.64
EY8.78%
EPS(NY)8.4
Fwd EY11.11%
FCF(TTM)5.08
FCFY6.73%
OCF(TTM)6.4
OCFY8.47%
SpS21.97
BVpS16.92
TBVpS4.22
PEG (NY)0.64
PEG (5Y)1.42
Graham Number50.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 33.49% | ||
| ROCE | 26.09% | ||
| ROIC | 13.81% | ||
| ROICexc | 15.25% | ||
| ROICexgc | 27.43% | ||
| OM | 37.52% | ||
| PM (TTM) | 25.79% | ||
| GM | 78.32% | ||
| FCFM | 23.14% |
ROA(3y)9.42%
ROA(5y)9.66%
ROE(3y)23.17%
ROE(5y)26.32%
ROIC(3y)13.67%
ROIC(5y)12.02%
ROICexc(3y)15.77%
ROICexc(5y)13.76%
ROICexgc(3y)34.22%
ROICexgc(5y)31.54%
ROCE(3y)25.81%
ROCE(5y)22.7%
ROICexgc growth 3Y7.57%
ROICexgc growth 5Y3.37%
ROICexc growth 3Y15.27%
ROICexc growth 5Y10.69%
OM growth 3Y5.75%
OM growth 5Y7.99%
PM growth 3Y-0.15%
PM growth 5Y1.18%
GM growth 3Y1.92%
GM growth 5Y1.45%
F-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 82.85% | ||
| Cap/Sales | 5.99% | ||
| Interest Coverage | 17.88 | ||
| Cash Conversion | 65.1% | ||
| Profit Quality | 89.74% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 4.04 |
F-Score7
WACC8.04%
ROIC/WACC1.72
Cap/Depr(3y)95.66%
Cap/Depr(5y)110.48%
Cap/Sales(3y)6.36%
Cap/Sales(5y)7.78%
Profit Quality(3y)903.98%
Profit Quality(5y)573.68%
High Growth Momentum
Growth
EPS 1Y (TTM)18.28%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%-3.95%
EPS Next Y17.93%
EPS Next 2Y12.87%
EPS Next 3Y12.24%
EPS Next 5Y5.58%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.9%
Revenue Next Year1.09%
Revenue Next 2Y3.15%
Revenue Next 3Y3.98%
Revenue Next 5Y1.93%
EBIT growth 1Y1.85%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year29.99%
EBIT Next 3Y15.06%
EBIT Next 5Y9.07%
FCF growth 1Y35.96%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y22.95%
OCF growth 3Y15.02%
OCF growth 5Y9.82%
MERCK & CO. INC. / 6MK.DE FAQ
Can you provide the ChartMill fundamental rating for MERCK & CO. INC.?
ChartMill assigns a fundamental rating of 7 / 10 to 6MK.DE.
What is the valuation status of MERCK & CO. INC. (6MK.DE) stock?
ChartMill assigns a valuation rating of 8 / 10 to MERCK & CO. INC. (6MK.DE). This can be considered as Undervalued.
What is the profitability of 6MK stock?
MERCK & CO. INC. (6MK.DE) has a profitability rating of 8 / 10.
What is the valuation of MERCK & CO. INC. based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MERCK & CO. INC. (6MK.DE) is 11.39 and the Price/Book (PB) ratio is 4.47.
Can you provide the dividend sustainability for 6MK stock?
The dividend rating of MERCK & CO. INC. (6MK.DE) is 6 / 10 and the dividend payout ratio is 48.95%.