MERCK KGAA (MRK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MRK - DE0006599905 - Common Stock
116 EUR
+0.2 (+0.17%)
Taking everything into account, MRK scores 4 out of 10 in our fundamental rating. MRK was compared to 55 industry peers in the Pharmaceuticals industry. Both the profitability and the financial health of MRK get a neutral evaluation. Nothing too spectacular is happening here. MRK is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MRK had positive earnings in the past year.
In the past year MRK had a positive cash flow from operations.
MRK had positive earnings in each of the past 5 years.
MRK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MRK has a Return On Assets (5.80%) which is comparable to the rest of the industry.
With a Return On Equity value of 10.21%, MRK perfoms like the industry average, outperforming 47.27% of the companies in the same industry.
MRK's Return On Invested Capital of 7.46% is in line compared to the rest of the industry. MRK outperforms 49.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRK is below the industry average of 13.92%.
| 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
MRK's Profit Margin of 13.89% is in line compared to the rest of the industry. MRK outperforms 56.36% of its industry peers.
MRK's Profit Margin has improved in the last couple of years.
MRK's Operating Margin of 18.53% is in line compared to the rest of the industry. MRK outperforms 47.27% of its industry peers.
MRK's Operating Margin has improved in the last couple of years.
MRK's Gross Margin of 58.69% is on the low side compared to the rest of the industry. MRK is outperformed by 67.27% of its industry peers.
MRK'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
MRK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MRK has about the same amout of shares outstanding than it did 1 year ago.
MRK has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, MRK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.82 indicates that MRK is not a great score, but indicates only limited risk for bankruptcy at the moment.
MRK has a Altman-Z score of 2.82. This is comparable to the rest of the industry: MRK outperforms 50.91% of its industry peers.
The Debt to FCF ratio of MRK is 6.26, which is on the high side as it means it would take MRK, 6.26 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MRK (6.26) is worse than 60.00% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that MRK is not too dependend on debt financing.
MRK has a Debt to Equity ratio of 0.36. This is in the better half of the industry: MRK outperforms 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 2.82 |
ROIC/WACC1.1
WACC6.77%
2.3 Liquidity
MRK has a Current Ratio of 1.49. This is a normal value and indicates that MRK is financially healthy and should not expect problems in meeting its short term obligations.
MRK has a Current ratio (1.49) which is comparable to the rest of the industry.
MRK has a Quick Ratio of 1.49. This is a bad value and indicates that MRK is not financially healthy enough and could expect problems in meeting its short term obligations.
MRK has a Quick ratio (0.97) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.43% over the past year.
MRK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.19% yearly.
MRK shows a small growth in Revenue. In the last year, the Revenue has grown by 1.47%.
Measured over the past years, MRK shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
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
Based on estimates for the next years, MRK will show a small growth in Earnings Per Share. The EPS will grow by 4.57% on average per year.
The Revenue is expected to grow by 3.16% on average over the next years.
EPS Next Y-1.79%
EPS Next 2Y1.04%
EPS Next 3Y2.21%
EPS Next 5Y4.57%
Revenue Next Year0.28%
Revenue Next 2Y1.48%
Revenue Next 3Y2.22%
Revenue Next 5Y3.16%
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.
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 13.60 indicates a correct valuation of MRK.
MRK's Price/Earnings ratio is a bit cheaper when compared to the industry. MRK is cheaper than 70.91% of the companies in the same industry.
MRK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
The Price/Forward Earnings ratio is 13.17, which indicates a correct valuation of MRK.
67.27% of the companies in the same industry are more expensive than MRK, based on the Price/Forward Earnings ratio.
MRK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRK is valued a bit cheaper than 67.27% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.09 | ||
| EV/EBITDA | 10.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.48
EPS Next 2Y1.04%
EPS Next 3Y2.21%
5. Dividend
5.1 Amount
MRK has a Yearly Dividend Yield of 1.90%. Purely for dividend investing, there may be better candidates out there.
MRK's Dividend Yield is comparable with the industry average which is at 2.86.
Compared to an average S&P500 Dividend Yield of 2.32, MRK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
The dividend of MRK is nicely growing with an annual growth rate of 11.88%!
Dividend Growth(5Y)11.88%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
MRK pays out 9.61% of its income as dividend. This is a sustainable payout ratio.
The dividend of MRK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.61%
EPS Next 2Y1.04%
EPS Next 3Y2.21%
FRA:MRK (11/28/2025, 7:00:00 PM)
116
+0.2 (+0.17%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners55.76%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap50.43B
Revenue(TTM)21.27B
Net Income(TTM)2.96B
Analysts77.5
Price Target145.8 (25.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend0.65
Dividend Growth(5Y)11.88%
DP9.61%
Div Incr Years0
Div Non Decr Years4
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)-2.65%
PT rev (3m)-3.34%
EPS NQ rev (1m)-5.57%
EPS NQ rev (3m)-5.74%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-1.24%
Revenue NQ rev (1m)-1.17%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 13.17 | ||
| P/S | 2.37 | ||
| P/FCF | 26.09 | ||
| P/OCF | 13.03 | ||
| P/B | 1.74 | ||
| P/tB | 15.27 | ||
| EV/EBITDA | 10.02 |
EPS(TTM)8.53
EY7.35%
EPS(NY)8.81
Fwd EY7.6%
FCF(TTM)4.45
FCFY3.83%
OCF(TTM)8.91
OCFY7.68%
SpS48.92
BVpS66.55
TBVpS7.59
PEG (NY)N/A
PEG (5Y)1.48
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 | 2.82 |
F-Score6
WACC6.77%
ROIC/WACC1.1
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-1.79%
EPS Next 2Y1.04%
EPS Next 3Y2.21%
EPS Next 5Y4.57%
Revenue 1Y (TTM)1.47%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%0.99%
Revenue Next Year0.28%
Revenue Next 2Y1.48%
Revenue Next 3Y2.22%
Revenue Next 5Y3.16%
EBIT growth 1Y14.16%
EBIT growth 3Y-0.01%
EBIT growth 5Y11.7%
EBIT Next Year38.63%
EBIT Next 3Y15.07%
EBIT Next 5Y10.71%
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 / MRK.DE FAQ
What is the fundamental rating for MRK stock?
ChartMill assigns a fundamental rating of 4 / 10 to MRK.DE.
What is the valuation status of MERCK KGAA (MRK.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to MERCK KGAA (MRK.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for MERCK KGAA?
MERCK KGAA (MRK.DE) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for MRK stock?
The Earnings per Share (EPS) of MERCK KGAA (MRK.DE) is expected to decline by -1.79% in the next year.
How sustainable is the dividend of MERCK KGAA (MRK.DE) stock?
The dividend rating of MERCK KGAA (MRK.DE) is 4 / 10 and the dividend payout ratio is 9.61%.