MERCK & CO. INC. (6MK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:6MK - US58933Y1055 - Common Stock
90.4 EUR
-0.1 (-0.11%)
Taking everything into account, 6MK scores 6 out of 10 in our fundamental rating. 6MK was compared to 55 industry peers in the Pharmaceuticals industry. While 6MK has a great profitability rating, 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
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.
In the past 5 years 6MK always reported a positive cash flow from operatings.
1.2 Ratios
6MK has a Return On Assets of 14.69%. This is amongst the best in the industry. 6MK outperforms 85.45% of its industry peers.
With an excellent Return On Equity value of 36.71%, 6MK belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.83%, 6MK is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
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 14.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.69% | ||
| ROE | 36.71% | ||
| ROIC | 12.83% |
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
Looking at the Profit Margin, with a value of 29.63%, 6MK belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
6MK's Profit Margin has been stable in the last couple of years.
6MK has a better Operating Margin (38.08%) than 87.27% of its industry peers.
In the last couple of years the Operating Margin of 6MK has grown nicely.
6MK's Gross Margin of 78.72% is fine compared to the rest of the industry. 6MK outperforms 78.18% 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 | 38.08% | ||
| PM (TTM) | 29.63% | ||
| GM | 78.72% |
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.
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 4.10. This indicates that 6MK is financially healthy and has little risk of bankruptcy at the moment.
6MK has a Altman-Z score (4.10) which is comparable to the rest of the industry.
6MK has a debt to FCF ratio of 3.17. This is a good value and a sign of high solvency as 6MK would need 3.17 years to pay back of all of its debts.
The Debt to FCF ratio of 6MK (3.17) is better than 63.64% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that 6MK is somewhat dependend on debt financing.
6MK's Debt to Equity ratio of 0.77 is in line compared to the rest of the industry. 6MK outperforms 47.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 4.1 |
ROIC/WACC1.55
WACC8.26%
2.3 Liquidity
6MK has a Current Ratio of 1.66. 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 Current ratio, with a value of 1.66, 6MK is in the better half of the industry, outperforming 67.27% of the companies in the same industry.
A Quick Ratio of 1.44 indicates that 6MK should not have too much problems paying its short term obligations.
The Quick ratio of 6MK (1.44) is better than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
6MK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.07%, which is quite impressive.
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 1.68% in the last 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)48.07%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%70.7%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%3.72%
3.2 Future
6MK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.86% yearly.
The Revenue is expected to grow by 2.98% on average over the next years.
EPS Next Y18.21%
EPS Next 2Y11.65%
EPS Next 3Y11.32%
EPS Next 5Y5.86%
Revenue Next Year1.08%
Revenue Next 2Y3.07%
Revenue Next 3Y3.96%
Revenue Next 5Y2.98%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 11.89, which indicates a very decent valuation of 6MK.
Based on the Price/Earnings ratio, 6MK is valued a bit cheaper than the industry average as 76.36% of the companies are valued more expensively.
6MK is valuated cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.00, which indicates a very decent valuation of 6MK.
Based on the Price/Forward Earnings ratio, 6MK is valued a bit cheaper than 74.55% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 6MK to the average of the S&P500 Index (36.12), we can say 6MK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 6MK is valued a bit cheaper than 69.09% of the companies in the same industry.
65.45% of the companies in the same industry are more expensive than 6MK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.05 | ||
| EV/EBITDA | 9.82 |
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.
6MK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.65
PEG (5Y)1.48
EPS Next 2Y11.65%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.58%, 6MK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.00, 6MK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, 6MK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
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 42.60% of its income as dividend. This is a bit on the high side, but may be sustainable.
6MK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP42.6%
EPS Next 2Y11.65%
EPS Next 3Y11.32%
FRA:6MK (11/28/2025, 9:11:36 AM)
90.4
-0.1 (-0.11%)
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 Cap225.80B
Revenue(TTM)64.23B
Net Income(TTM)19.03B
Analysts75.76
Price Target89.41 (-1.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Yearly Dividend2.69
Dividend Growth(5Y)6.9%
DP42.6%
Div Incr Years8
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.37%
Min EPS beat(2)7.69%
Max EPS beat(2)13.06%
EPS beat(4)4
Avg EPS beat(4)7.28%
Min EPS beat(4)2.93%
Max EPS beat(4)13.06%
EPS beat(8)8
Avg EPS beat(8)21.72%
EPS beat(12)12
Avg EPS beat(12)16.45%
EPS beat(16)16
Avg EPS beat(16)15.36%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.83%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)0.83%
Revenue beat(8)5
Avg Revenue beat(8)0.41%
Revenue beat(12)9
Avg Revenue beat(12)1.14%
Revenue beat(16)13
Avg Revenue beat(16)1.98%
PT rev (1m)3.76%
PT rev (3m)2.36%
EPS NQ rev (1m)-6.11%
EPS NQ rev (3m)-6.74%
EPS NY rev (1m)0.38%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 11 | ||
| P/S | 4.07 | ||
| P/FCF | 20.05 | ||
| P/OCF | 15.33 | ||
| P/B | 5.05 | ||
| P/tB | 17.5 | ||
| EV/EBITDA | 9.82 |
EPS(TTM)7.6
EY8.41%
EPS(NY)8.22
Fwd EY9.09%
FCF(TTM)4.51
FCFY4.99%
OCF(TTM)5.9
OCFY6.52%
SpS22.2
BVpS17.92
TBVpS5.17
PEG (NY)0.65
PEG (5Y)1.48
Graham Number55.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.69% | ||
| ROE | 36.71% | ||
| ROCE | 24.24% | ||
| ROIC | 12.83% | ||
| ROICexc | 15.66% | ||
| ROICexgc | 28.27% | ||
| OM | 38.08% | ||
| PM (TTM) | 29.63% | ||
| GM | 78.72% | ||
| FCFM | 20.31% |
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-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.17 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 87.9% | ||
| Cap/Sales | 6.25% | ||
| Interest Coverage | 18.43 | ||
| Cash Conversion | 58.79% | ||
| Profit Quality | 68.56% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 4.1 |
F-Score6
WACC8.26%
ROIC/WACC1.55
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)48.07%
EPS 3Y6.87%
EPS 5Y8.04%
EPS Q2Q%70.7%
EPS Next Y18.21%
EPS Next 2Y11.65%
EPS Next 3Y11.32%
EPS Next 5Y5.86%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.63%
Revenue growth 5Y10.4%
Sales Q2Q%3.72%
Revenue Next Year1.08%
Revenue Next 2Y3.07%
Revenue Next 3Y3.96%
Revenue Next 5Y2.98%
EBIT growth 1Y2.78%
EBIT growth 3Y15.93%
EBIT growth 5Y19.23%
EBIT Next Year29.99%
EBIT Next 3Y15.06%
EBIT Next 5Y10.12%
FCF growth 1Y-0.9%
FCF growth 3Y23.27%
FCF growth 5Y12.67%
OCF growth 1Y-0.73%
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 6 / 10 to 6MK.DE.
What is the valuation status of MERCK & CO. INC. (6MK.DE) stock?
ChartMill assigns a valuation rating of 7 / 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 11.89 and the Price/Book (PB) ratio is 5.05.
Can you provide the dividend sustainability for 6MK stock?
The dividend rating of MERCK & CO. INC. (6MK.DE) is 5 / 10 and the dividend payout ratio is 42.6%.