MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
FRA:6MK - US58933Y1055 - Common Stock
72 EUR
+0.6 (+0.84%)
Overall 6MK gets a fundamental rating of 6 out of 10. We evaluated 6MK against 50 industry peers in the Pharmaceuticals industry. 6MK has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on 6MK. With these ratings, 6MK could be worth investigating further 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.
6MK had positive earnings in each of the past 5 years.
6MK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
6MK has a better Return On Assets (13.96%) than 90.00% of its industry peers.
6MK's Return On Equity of 33.49% is amongst the best of the industry. 6MK outperforms 88.00% of its industry peers.
6MK has a better Return On Invested Capital (13.81%) than 68.00% of its industry peers.
6MK had an Average Return On Invested Capital over the past 3 years of 13.67%. This is in line with the industry average of 15.31%.
The last Return On Invested Capital (13.81%) for 6MK is above the 3 year average (13.67%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 25.79%, 6MK belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 6MK has remained more or less at the same level.
With an excellent Operating Margin value of 37.52%, 6MK belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
6MK's Operating Margin has improved in the last couple of years.
6MK has a better Gross Margin (78.32%) than 80.00% of its industry peers.
6MK's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 6MK is still creating some value.
6MK has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for 6MK has been reduced compared to 5 years ago.
6MK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.96 indicates that 6MK is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.96, 6MK is in line with its industry, outperforming 60.00% of the companies in the same industry.
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.
6MK has a better Debt to FCF ratio (2.40) than 76.00% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that 6MK is somewhat dependend on debt financing.
6MK's Debt to Equity ratio of 0.69 is in line compared to the rest of the industry. 6MK outperforms 46.00% of its industry peers.
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 | 3.96 |
ROIC/WACC1.49
WACC9.25%
2.3 Liquidity
6MK has a Current Ratio of 1.42. This is a normal value and indicates that 6MK is financially healthy and should not expect problems in meeting its short term obligations.
6MK's Current ratio of 1.42 is in line compared to the rest of the industry. 6MK outperforms 58.00% of its industry peers.
6MK has a Quick Ratio of 1.17. This is a normal value and indicates that 6MK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.17, 6MK is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
| 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.
Measured over the past years, 6MK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.04% on average per year.
Looking at the last year, 6MK shows a small growth in Revenue. The Revenue has grown by 1.82% in the last year.
The Revenue has been growing by 10.40% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 5.37% on average over the next years.
6MK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.86% yearly.
EPS Next Y17.86%
EPS Next 2Y12.72%
EPS Next 3Y12.19%
EPS Next 5Y5.37%
Revenue Next Year1.17%
Revenue Next 2Y3.05%
Revenue Next 3Y3.98%
Revenue Next 5Y1.86%
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 10.91, the valuation of 6MK can be described as very reasonable.
6MK's Price/Earnings ratio is rather cheap when compared to the industry. 6MK is cheaper than 82.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.13, 6MK is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.65, the valuation of 6MK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, 6MK is valued cheaply inside the industry as 84.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.76, 6MK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 8.65 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than 6MK, based on the Enterprise Value to EBITDA ratio.
6MK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 6MK is cheaper than 78.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.24 | ||
| EV/EBITDA | 8.22 |
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 12.19% in the coming years.
PEG (NY)0.61
PEG (5Y)1.36
EPS Next 2Y12.72%
EPS Next 3Y12.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.89%, 6MK has a reasonable but not impressive dividend return.
6MK's Dividend Yield is a higher than the industry average which is at 3.04.
Compared to an average S&P500 Dividend Yield of 2.32, 6MK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
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 2Y12.72%
EPS Next 3Y12.19%
FRA:6MK (9/1/2025, 3:49:49 PM)
72
+0.6 (+0.84%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.5%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap179.84B
Analysts76.25
Price Target87.35 (21.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
Yearly Dividend2.66
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)-1.8%
PT rev (3m)-7.72%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-4.19%
EPS NY rev (1m)0.42%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 8.65 | ||
| P/S | 3.3 | ||
| P/FCF | 14.24 | ||
| P/OCF | 11.31 | ||
| P/B | 4.28 | ||
| P/tB | 17.17 | ||
| EV/EBITDA | 8.22 |
EPS(TTM)6.6
EY9.17%
EPS(NY)8.33
Fwd EY11.57%
FCF(TTM)5.06
FCFY7.02%
OCF(TTM)6.36
OCFY8.84%
SpS21.85
BVpS16.83
TBVpS4.19
PEG (NY)0.61
PEG (5Y)1.36
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%
ROICexcg growth 3Y7.57%
ROICexcg 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 | 3.96 |
F-Score7
WACC9.25%
ROIC/WACC1.49
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 Y17.86%
EPS Next 2Y12.72%
EPS Next 3Y12.19%
EPS Next 5Y5.37%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.9%
Revenue Next Year1.17%
Revenue Next 2Y3.05%
Revenue Next 3Y3.98%
Revenue Next 5Y1.86%
EBIT growth 1Y1.85%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year29.85%
EBIT Next 3Y14.96%
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%