MERCK KGAA (MRK.DE) Stock Fundamental Analysis

FRA:MRK • DE0006599905

125.55 EUR
-0.35 (-0.28%)
Last: Feb 24, 2026, 03:30 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

4

MRK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 52 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.


Dividend Valuation Growth Profitability Health

5

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.
  • MRK had a positive operating cash flow in each of the past 5 years.
MRK.DE Yearly Net Income VS EBIT VS OCF VS FCFMRK.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 5.80%, MRK is in line with its industry, outperforming 51.92% of the companies in the same industry.
  • With a Return On Equity value of 10.21%, MRK perfoms like the industry average, outperforming 46.15% 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 48.08% of its industry peers.
  • MRK had an Average Return On Invested Capital over the past 3 years of 9.28%. This is below the industry average of 14.12%.
Industry RankSector 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%
MRK.DE Yearly ROA, ROE, ROICMRK.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • MRK has a Profit Margin (13.89%) which is in line with its industry peers.
  • MRK's Profit Margin has improved in the last couple of years.
  • The Operating Margin of MRK (18.53%) is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of MRK has grown nicely.
  • Looking at the Gross Margin, with a value of 58.69%, MRK is doing worse than 65.38% of the companies in the same industry.
  • MRK's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
MRK.DE Yearly Profit, Operating, Gross MarginsMRK.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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4

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.
  • 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.
MRK.DE Yearly Shares OutstandingMRK.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
MRK.DE Yearly Total Debt VS Total AssetsMRK.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

  • MRK has an Altman-Z score of 2.94. This is not the best score and indicates that MRK is in the grey zone with still only limited risk for bankruptcy at the moment.
  • MRK has a Altman-Z score (2.94) which is comparable to the rest of the industry.
  • MRK has a debt to FCF ratio of 6.26. This is a slightly negative value and a sign of low solvency as MRK would need 6.26 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 6.26, MRK is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • MRK has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
  • MRK has a better Debt to Equity ratio (0.36) than 65.38% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 6.26
Altman-Z 2.94
ROIC/WACC1
WACC7.43%
MRK.DE Yearly LT Debt VS Equity VS FCFMRK.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.3 Liquidity

  • A Current Ratio of 1.49 indicates that MRK should not have too much problems paying its short term obligations.
  • MRK has a Current ratio (1.49) which is in line with its industry peers.
  • 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 of 0.97. This is comparable to the rest of the industry: MRK outperforms 46.15% of its industry peers.
Industry RankSector Rank
Current Ratio 1.49
Quick Ratio 0.97
MRK.DE Yearly Current Assets VS Current LiabilitesMRK.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 1.43% 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.
  • Looking at the last year, MRK shows a small growth in Revenue. The Revenue has grown by 1.47% in the last year.
  • The Revenue has been growing slightly by 5.55% on average over the past years.
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 5.02% on average per year.
  • MRK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.01% yearly.
EPS Next Y-0.97%
EPS Next 2Y-0.2%
EPS Next 3Y1.89%
EPS Next 5Y5.02%
Revenue Next Year0.36%
Revenue Next 2Y1.05%
Revenue Next 3Y2.06%
Revenue Next 5Y3.01%

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.
MRK.DE Yearly Revenue VS EstimatesMRK.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B 25B
MRK.DE Yearly EPS VS EstimatesMRK.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 14.72, which indicates a correct valuation of MRK.
  • 73.08% of the companies in the same industry are more expensive than MRK, based on the Price/Earnings ratio.
  • MRK is valuated rather cheaply when we compare the Price/Earnings ratio to 26.64, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 14.61, which indicates a correct valuation of MRK.
  • Based on the Price/Forward Earnings ratio, MRK is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 27.75. MRK is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.72
Fwd PE 14.61
MRK.DE Price Earnings VS Forward Price EarningsMRK.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, MRK is valued a bit cheaper than 73.08% of the companies in the same industry.
  • MRK's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 28.24
EV/EBITDA 10.75
MRK.DE Per share dataMRK.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)1.6
EPS Next 2Y-0.2%
EPS Next 3Y1.89%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • MRK has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.89, MRK has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.80, MRK has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.75%

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
MRK.DE Yearly Dividends per shareMRK.DE Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

  • MRK pays out 9.61% of its income as dividend. This is a sustainable payout ratio.
  • MRK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.61%
EPS Next 2Y-0.2%
EPS Next 3Y1.89%
MRK.DE Yearly Income VS Free CF VS DividendMRK.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
MRK.DE Dividend Payout.MRK.DE Dividend Payout, showing the Payout Ratio.MRK.DE Dividend Payout.PayoutRetained Earnings

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MERCK KGAA

FRA:MRK (2/24/2026, 3:30:18 PM)

125.55

-0.35 (-0.28%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-13
Earnings (Next)03-05
Inst Owners54.91%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap54.59B
Revenue(TTM)21.27B
Net Income(TTM)2.96B
Analysts81.74
Price Target151.66 (20.8%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.75%
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)1.62%
PT rev (3m)4.02%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)0%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
Industry RankSector Rank
PE 14.72
Fwd PE 14.61
P/S 2.57
P/FCF 28.24
P/OCF 14.1
P/B 1.89
P/tB 16.53
EV/EBITDA 10.75
EPS(TTM)8.53
EY6.79%
EPS(NY)8.6
Fwd EY6.85%
FCF(TTM)4.45
FCFY3.54%
OCF(TTM)8.91
OCFY7.09%
SpS48.92
BVpS66.55
TBVpS7.59
PEG (NY)N/A
PEG (5Y)1.6
Graham Number113.02
Profitability
Industry RankSector 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 RankSector 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 2.94
F-Score6
WACC7.43%
ROIC/WACC1
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-0.97%
EPS Next 2Y-0.2%
EPS Next 3Y1.89%
EPS Next 5Y5.02%
Revenue 1Y (TTM)1.47%
Revenue growth 3Y2.43%
Revenue growth 5Y5.55%
Sales Q2Q%0.99%
Revenue Next Year0.36%
Revenue Next 2Y1.05%
Revenue Next 3Y2.06%
Revenue Next 5Y3.01%
EBIT growth 1Y14.16%
EBIT growth 3Y-0.01%
EBIT growth 5Y11.7%
EBIT Next Year37.82%
EBIT Next 3Y13.34%
EBIT Next 5Y10.96%
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.


Can you provide the valuation status for MERCK KGAA?

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.


What is the financial health of MERCK KGAA (MRK.DE) stock?

The financial health rating of MERCK KGAA (MRK.DE) is 4 / 10.


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%.