MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
FRA:6MK - Deutsche Boerse Ag - US58933Y1055 - Common Stock - Currency: EUR
Overall 6MK gets a fundamental rating of 7 out of 10. We evaluated 6MK against 51 industry peers in the Pharmaceuticals industry. 6MK gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on 6MK. These ratings could make 6MK a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
6MK had positive earnings in the past year.
6MK had a positive operating cash flow in the past year.
Each year in the past 5 years 6MK has been profitable.
Each year in the past 5 years 6MK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.14%, 6MK belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
The Return On Equity of 6MK (36.07%) is better than 84.31% of its industry peers.
With a decent Return On Invested Capital value of 12.73%, 6MK is doing good in the industry, outperforming 62.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 6MK is in line with the industry average of 14.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.14% | ||
| ROE | 36.07% | ||
| ROIC | 12.73% |
ROA(3y)9.42%
ROA(5y)9.66%
ROE(3y)23.17%
ROE(5y)26.32%
ROIC(3y)13.49%
ROIC(5y)11.91%
1.3 Margins
6MK has a better Profit Margin (27.27%) than 92.16% of its industry peers.
6MK's Profit Margin has been stable in the last couple of years.
6MK has a better Operating Margin (33.84%) than 88.24% of its industry peers.
In the last couple of years the Operating Margin of 6MK has grown nicely.
With a decent Gross Margin value of 78.17%, 6MK is doing good in the industry, outperforming 74.51% of the companies in the same industry.
In the last couple of years the Gross Margin of 6MK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.84% | ||
| PM (TTM) | 27.27% | ||
| GM | 78.17% |
OM growth 3Y4.43%
OM growth 5Y7.18%
PM growth 3Y-0.15%
PM growth 5Y1.18%
GM growth 3Y3.55%
GM growth 5Y2.42%
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.
The number of shares outstanding for 6MK remains at a similar level compared to 1 year ago.
The number of shares outstanding for 6MK has been reduced compared to 5 years ago.
Compared to 1 year ago, 6MK has an improved debt to assets ratio.
2.2 Solvency
6MK has an Altman-Z score of 3.92. This indicates that 6MK is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.92, 6MK is in the better half of the industry, outperforming 60.78% of the companies in the same industry.
6MK has a debt to FCF ratio of 2.04. This is a good value and a sign of high solvency as 6MK would need 2.04 years to pay back of all of its debts.
The Debt to FCF ratio of 6MK (2.04) is better than 86.27% of its industry peers.
6MK has a Debt/Equity ratio of 0.69. This is a neutral value indicating 6MK is somewhat dependend on debt financing.
The Debt to Equity ratio of 6MK (0.69) is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for 6MK, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.04 | ||
| Altman-Z | 3.92 |
ROIC/WACC1.41
WACC9.03%
2.3 Liquidity
6MK has a Current Ratio of 1.41. This is a normal value and indicates that 6MK is financially healthy and should not expect problems in meeting its short term obligations.
6MK has a Current ratio (1.41) which is comparable to the rest of the industry.
6MK has a Quick Ratio of 1.16. 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 Quick ratio of 1.16 is fine compared to the rest of the industry. 6MK outperforms 68.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
6MK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 258.99%, which is quite impressive.
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 4.10% 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)258.99%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%7.25%
Revenue 1Y (TTM)4.1%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.56%
3.2 Future
6MK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.96% yearly.
The Revenue is expected to grow by 2.20% on average over the next years.
EPS Next Y17.73%
EPS Next 2Y13.58%
EPS Next 3Y12.74%
EPS Next 5Y5.96%
Revenue Next Year1.67%
Revenue Next 2Y3.7%
Revenue Next 3Y4.26%
Revenue Next 5Y2.2%
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
A Price/Earnings ratio of 10.30 indicates a reasonable valuation of 6MK.
Based on the Price/Earnings ratio, 6MK is valued a bit cheaper than 78.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of 6MK to the average of the S&P500 Index (26.32), we can say 6MK is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.14, the valuation of 6MK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, 6MK is valued cheaper than 84.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 6MK to the average of the S&P500 Index (22.13), we can say 6MK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.3 | ||
| Fwd PE | 8.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 6MK is valued a bit cheaper than the industry average as 72.55% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 6MK is valued cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.82 | ||
| EV/EBITDA | 8.72 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
6MK has an outstanding profitability rating, which may justify a higher PE ratio.
6MK's earnings are expected to grow with 12.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)1.28
EPS Next 2Y13.58%
EPS Next 3Y12.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.96%, 6MK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.92, 6MK pays a better dividend. On top of this 6MK pays more dividend than 82.35% of the companies listed in the same industry.
6MK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
The dividend of 6MK is nicely growing with an annual growth rate of 6.90%!
Dividend Growth(5Y)6.9%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
45.54% of the earnings are spent on dividend by 6MK. 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.
DP45.54%
EPS Next 2Y13.58%
EPS Next 3Y12.74%
FRA:6MK (6/16/2025, 5:06:37 PM)
69.7
-0.8 (-1.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.57%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap175.02B
Analysts76.88
Price Target92.77 (33.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Yearly Dividend2.69
Dividend Growth(5Y)6.9%
DP45.54%
Div Incr Years8
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.19%
Min EPS beat(2)2.93%
Max EPS beat(2)5.44%
EPS beat(4)4
Avg EPS beat(4)4.13%
Min EPS beat(4)2.93%
Max EPS beat(4)5.44%
EPS beat(8)8
Avg EPS beat(8)20.93%
EPS beat(12)12
Avg EPS beat(12)16.06%
EPS beat(16)15
Avg EPS beat(16)14.76%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)0.45%
Revenue beat(4)3
Avg Revenue beat(4)0.32%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)0.71%
Revenue beat(8)6
Avg Revenue beat(8)1.27%
Revenue beat(12)10
Avg Revenue beat(12)1.96%
Revenue beat(16)14
Avg Revenue beat(16)2.49%
PT rev (1m)-1.99%
PT rev (3m)-17.2%
EPS NQ rev (1m)0.9%
EPS NQ rev (3m)-7.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.3 | ||
| Fwd PE | 8.14 | ||
| P/S | 3.15 | ||
| P/FCF | 11.82 | ||
| P/OCF | 9.65 | ||
| P/B | 4.17 | ||
| P/tB | 18.5 | ||
| EV/EBITDA | 8.72 |
EPS(TTM)6.77
EY9.71%
EPS(NY)8.56
Fwd EY12.28%
FCF(TTM)5.89
FCFY8.46%
OCF(TTM)7.22
OCFY10.36%
SpS22.11
BVpS16.72
TBVpS3.77
PEG (NY)0.58
PEG (5Y)1.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.14% | ||
| ROE | 36.07% | ||
| ROCE | 24.05% | ||
| ROIC | 12.73% | ||
| ROICexc | 14.19% | ||
| ROICexgc | 26.46% | ||
| OM | 33.84% | ||
| PM (TTM) | 27.27% | ||
| GM | 78.17% | ||
| FCFM | 26.66% |
ROA(3y)9.42%
ROA(5y)9.66%
ROE(3y)23.17%
ROE(5y)26.32%
ROIC(3y)13.49%
ROIC(5y)11.91%
ROICexc(3y)15.56%
ROICexc(5y)13.63%
ROICexgc(3y)33.79%
ROICexgc(5y)31.28%
ROCE(3y)25.47%
ROCE(5y)22.5%
ROICexcg growth 3Y6.23%
ROICexcg growth 5Y2.59%
ROICexc growth 3Y13.83%
ROICexc growth 5Y9.86%
OM growth 3Y4.43%
OM growth 5Y7.18%
PM growth 3Y-0.15%
PM growth 5Y1.18%
GM growth 3Y3.55%
GM growth 5Y2.42%
F-Score8
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.04 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 83.2% | ||
| Cap/Sales | 6.01% | ||
| Interest Coverage | 16.44 | ||
| Cash Conversion | 79.55% | ||
| Profit Quality | 97.73% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 3.92 |
F-Score8
WACC9.03%
ROIC/WACC1.41
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)258.99%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%7.25%
EPS Next Y17.73%
EPS Next 2Y13.58%
EPS Next 3Y12.74%
EPS Next 5Y5.96%
Revenue 1Y (TTM)4.1%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%-1.56%
Revenue Next Year1.67%
Revenue Next 2Y3.7%
Revenue Next 3Y4.26%
Revenue Next 5Y2.2%
EBIT growth 1Y-3.79%
EBIT growth 3Y14.48%
EBIT growth 5Y18.33%
EBIT Next Year30.08%
EBIT Next 3Y15.02%
EBIT Next 5Y9.31%
FCF growth 1Y51.3%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y33.21%
OCF growth 3Y15.02%
OCF growth 5Y9.82%