MERCK KGAA (MRK.DE) Stock Fundamental Analysis
Europe - FRA:MRK - DE0006599905 - Common Stock
119.35 EUR
-0.85 (-0.71%)
We assign a fundamental rating of 4 out of 10 to MRK. MRK was compared to 51 industry peers in the Pharmaceuticals industry. MRK has an average financial health and profitability rating. MRK has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years MRK has always been profitable.
MRK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MRK's Return On Assets of 6.04% is in line compared to the rest of the industry. MRK outperforms 56.86% of its industry peers.
MRK's Return On Equity of 10.13% is in line compared to the rest of the industry. MRK outperforms 47.06% of its industry peers.
MRK has a Return On Invested Capital of 8.18%. This is comparable to the rest of the industry: MRK outperforms 50.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRK is significantly below the industry average of 15.09%.
| 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
The Profit Margin of MRK (13.49%) is comparable to the rest of the industry.
MRK's Profit Margin has improved in the last couple of years.
MRK has a Operating Margin (18.05%) which is in line with its industry peers.
MRK's Operating Margin has improved in the last couple of years.
MRK has a Gross Margin of 58.51%. This is in the lower half of the industry: MRK underperforms 64.71% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MRK is creating some value.
MRK has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for MRK remains at a similar level compared to 5 years ago.
MRK has a better debt/assets ratio than last year.
2.2 Solvency
MRK has an Altman-Z score of 3.12. This indicates that MRK is financially healthy and has little risk of bankruptcy at the moment.
MRK has a Altman-Z score (3.12) which is comparable to the rest of the industry.
The Debt to FCF ratio of MRK is 5.26, which is a neutral value as it means it would take MRK, 5.26 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MRK (5.26) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.22 indicates that MRK is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.22, MRK is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 3.12 |
ROIC/WACC1.21
WACC6.78%
2.3 Liquidity
A Current Ratio of 1.24 indicates that MRK should not have too much problems paying its short term obligations.
MRK's Current ratio of 1.24 is in line compared to the rest of the industry. MRK outperforms 43.14% of its industry peers.
MRK has a Quick Ratio of 1.24. This is a bad value and indicates that MRK is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.78, MRK is not doing good in the industry: 62.75% 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
The Earnings Per Share has been growing slightly by 4.03% over the past year.
Measured over the past years, MRK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.19% on average per year.
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
Based on estimates for the next years, MRK will show a small growth in Earnings Per Share. The EPS will grow by 5.53% on average per year.
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.
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
The Price/Earnings ratio is 14.02, which indicates a correct valuation of MRK.
Based on the Price/Earnings ratio, MRK is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.90. MRK is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.11 indicates a correct valuation of MRK.
68.63% 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 valuation a bit cheaper than the S&P500 average which is at 23.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 13.11 |
4.2 Price Multiples
MRK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MRK is cheaper than 64.71% 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 | 29.12 | ||
| EV/EBITDA | 10.36 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.53
EPS Next 2Y2.69%
EPS Next 3Y3.75%
5. Dividend
5.1 Amount
MRK has a Yearly Dividend Yield of 1.87%. Purely for dividend investing, there may be better candidates out there.
MRK's Dividend Yield is comparable with the industry average which is at 3.01.
MRK's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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
9.92% of the earnings are spent on dividend by MRK. This is a low number and sustainable payout ratio.
MRK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.92%
EPS Next 2Y2.69%
EPS Next 3Y3.75%
FRA:MRK (10/7/2025, 12:11:43 PM)
119.35
-0.85 (-0.71%)
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 Cap51.89B
Analysts77.5
Price Target149.77 (25.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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)-0.71%
PT rev (3m)-8.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.93%
EPS NY rev (1m)-0.85%
EPS NY rev (3m)-9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.48%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 13.11 | ||
| P/S | 2.45 | ||
| P/FCF | 29.12 | ||
| P/OCF | 13.61 | ||
| P/B | 1.84 | ||
| P/tB | 9.73 | ||
| EV/EBITDA | 10.36 |
EPS(TTM)8.51
EY7.13%
EPS(NY)9.1
Fwd EY7.63%
FCF(TTM)4.1
FCFY3.43%
OCF(TTM)8.77
OCFY7.35%
SpS48.8
BVpS65
TBVpS12.27
PEG (NY)N/A
PEG (5Y)1.53
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%
ROICexcg growth 3Y-8.23%
ROICexcg 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 | 3.12 |
F-Score7
WACC6.78%
ROIC/WACC1.21
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%