MERCK KGAA (MRK.DE) Stock Fundamental Analysis
Europe - FRA:MRK - DE0006599905 - Common Stock
113.65 EUR
+0.15 (+0.13%)
We assign a fundamental rating of 4 out of 10 to MRK. MRK was compared to 52 industry peers in the Pharmaceuticals industry. MRK has only an average score on both its financial health and profitability. MRK has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MRK was profitable.
In the past year MRK had a positive cash flow from operations.
In the past 5 years MRK has always been profitable.
In the past 5 years MRK always reported a positive cash flow from operatings.
1.2 Ratios
MRK has a Return On Assets (6.04%) which is in line with its industry peers.
The Return On Equity of MRK (10.13%) is comparable to the rest of the industry.
The Return On Invested Capital of MRK (8.18%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for MRK is significantly below the industry average of 15.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.04% | ||
| ROE | 10.13% | ||
| ROIC | 8.18% |
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 has a Profit Margin (13.49%) which is comparable to the rest of the industry.
MRK's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.05%, MRK is in line with its industry, outperforming 48.08% of the companies in the same industry.
MRK's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 58.51%, MRK is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
MRK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.05% | ||
| PM (TTM) | 13.49% | ||
| GM | 58.51% |
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.
The debt/assets ratio for MRK has been reduced compared to a year ago.
2.2 Solvency
MRK has an Altman-Z score of 3.03. This indicates that MRK is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.03, MRK perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
MRK has a debt to FCF ratio of 5.26. This is a neutral value as MRK would need 5.26 years to pay back of all of its debts.
The Debt to FCF ratio of MRK (5.26) is comparable to the rest of the industry.
MRK has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
MRK has a better Debt to Equity ratio (0.22) than 67.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 3.03 |
ROIC/WACC1.16
WACC7.04%
2.3 Liquidity
MRK has a Current Ratio of 1.24. This is a normal value and indicates that MRK is financially healthy and should not expect problems in meeting its short term obligations.
MRK's Current ratio of 1.24 is in line compared to the rest of the industry. MRK outperforms 42.31% of its industry peers.
A Quick Ratio of 0.78 indicates that MRK may have some problems paying its short term obligations.
With a Quick ratio value of 0.78, MRK is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
MRK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.03%.
The Earnings Per Share has been growing by 9.19% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.67% in the past year.
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)4.03%
EPS 3Y-0.35%
EPS 5Y9.19%
EPS Q2Q%-8.18%
Revenue 1Y (TTM)1.67%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%-1.81%
3.2 Future
MRK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.53% yearly.
The Revenue is expected to grow by 3.32% on average over the next years.
EPS Next Y-1.4%
EPS Next 2Y2.69%
EPS Next 3Y3.75%
EPS Next 5Y5.53%
Revenue Next Year0.39%
Revenue Next 2Y1.97%
Revenue Next 3Y2.54%
Revenue Next 5Y3.32%
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
A Price/Earnings ratio of 13.35 indicates a correct valuation of MRK.
Based on the Price/Earnings ratio, MRK is valued a bit cheaper than the industry average as 78.85% of the companies are valued more expensively.
MRK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.00.
A Price/Forward Earnings ratio of 12.49 indicates a correct valuation of MRK.
Based on the Price/Forward Earnings ratio, MRK is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MRK to the average of the S&P500 Index (22.87), we can say MRK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 12.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRK is valued a bit cheaper than the industry average as 67.31% of the companies are valued more expensively.
MRK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.73 | ||
| EV/EBITDA | 9.85 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.45
EPS Next 2Y2.69%
EPS Next 3Y3.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.91%, MRK has a reasonable but not impressive dividend return.
MRK's Dividend Yield is comparable with the industry average which is at 2.98.
MRK's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
On average, the dividend of MRK grows each year by 11.88%, which is quite nice.
Dividend Growth(5Y)11.88%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
9.92% of the earnings are spent on dividend by MRK. This is a low number and sustainable payout ratio.
The dividend of MRK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.92%
EPS Next 2Y2.69%
EPS Next 3Y3.75%
FRA:MRK (10/29/2025, 12:53:28 PM)
113.65
+0.15 (+0.13%)
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 Cap49.41B
Revenue(TTM)21.22B
Net Income(TTM)2.86B
Analysts77.5
Price Target149.77 (31.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend0.65
Dividend Growth(5Y)11.88%
DP9.92%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.13%
Min EPS beat(2)-4.83%
Max EPS beat(2)-3.43%
EPS beat(4)0
Avg EPS beat(4)-2.8%
Min EPS beat(4)-4.83%
Max EPS beat(4)-0.39%
EPS beat(8)3
Avg EPS beat(8)0.89%
EPS beat(12)4
Avg EPS beat(12)-0.1%
EPS beat(16)6
Avg EPS beat(16)-0.14%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-2.1%
Max Revenue beat(4)-0.68%
Revenue beat(8)1
Avg Revenue beat(8)-1.41%
Revenue beat(12)2
Avg Revenue beat(12)-1.23%
Revenue beat(16)3
Avg Revenue beat(16)-1%
PT rev (1m)0%
PT rev (3m)-8.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.31%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 12.49 | ||
| P/S | 2.33 | ||
| P/FCF | 27.73 | ||
| P/OCF | 12.96 | ||
| P/B | 1.75 | ||
| P/tB | 9.26 | ||
| EV/EBITDA | 9.85 |
EPS(TTM)8.51
EY7.49%
EPS(NY)9.1
Fwd EY8.01%
FCF(TTM)4.1
FCFY3.61%
OCF(TTM)8.77
OCFY7.72%
SpS48.8
BVpS65
TBVpS12.27
PEG (NY)N/A
PEG (5Y)1.45
Graham Number111.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.04% | ||
| ROE | 10.13% | ||
| ROCE | 10.21% | ||
| ROIC | 8.18% | ||
| ROICexc | 8.53% | ||
| ROICexgc | 23.59% | ||
| OM | 18.05% | ||
| PM (TTM) | 13.49% | ||
| GM | 58.51% | ||
| FCFM | 8.4% |
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-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 5.26 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 105.23% | ||
| Cap/Sales | 9.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.21% | ||
| Profit Quality | 62.26% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 3.03 |
F-Score7
WACC7.04%
ROIC/WACC1.16
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)4.03%
EPS 3Y-0.35%
EPS 5Y9.19%
EPS Q2Q%-8.18%
EPS Next Y-1.4%
EPS Next 2Y2.69%
EPS Next 3Y3.75%
EPS Next 5Y5.53%
Revenue 1Y (TTM)1.67%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%-1.81%
Revenue Next Year0.39%
Revenue Next 2Y1.97%
Revenue Next 3Y2.54%
Revenue Next 5Y3.32%
EBIT growth 1Y13.79%
EBIT growth 3Y-0.01%
EBIT growth 5Y11.7%
EBIT Next Year38.63%
EBIT Next 3Y15.07%
EBIT Next 5Y11.2%
FCF growth 1Y-13.28%
FCF growth 3Y-9.07%
FCF growth 5Y5.53%
OCF growth 1Y-5.67%
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 -1.4% 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 9.92%.