MERCK KGAA (MRK.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:MRK • DE0006599905
125.55 EUR
-0.3 (-0.24%)
Last: Jan 30, 2026, 05:36 PM
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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year MRK was profitable.
- MRK had a positive operating cash flow in the past year.
- Each year in the past 5 years MRK has 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 of 5.80%. This is comparable to the rest of the industry: MRK outperforms 50.91% of its industry peers.
- MRK has a Return On Equity (10.21%) which is comparable to the rest of the industry.
- MRK's Return On Invested Capital of 7.46% is in line compared to the rest of the industry. MRK outperforms 47.27% 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 14.00%.
| 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 has a Profit Margin (13.89%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of MRK has grown nicely.
- MRK has a Operating Margin of 18.53%. This is comparable 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 has a Gross Margin of 58.69%. This is in the lower half of the industry: MRK underperforms 65.45% of its industry peers.
- In the last couple of years the Gross Margin of MRK has remained more or less at the same level.
| 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.
- The number of shares outstanding for MRK remains at a similar level compared to 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 2.94 indicates that MRK is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.94, MRK is in line with its industry, outperforming 47.27% of the companies in the same 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.
- With a Debt to FCF ratio value of 6.26, MRK perfoms like the industry average, outperforming 49.09% 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.
- The Debt to Equity ratio of MRK (0.36) is better than 67.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.06
WACC7.05%
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.
- With a decent Current ratio value of 1.49, MRK is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- A Quick Ratio of 0.97 indicates that MRK may have some problems paying 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%.
- MRK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
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 5.00% on average per year.
- The Revenue is expected to grow by 3.01% on average over the next years.
EPS Next Y-0.97%
EPS Next 2Y-0.2%
EPS Next 3Y1.89%
EPS Next 5Y5%
Revenue Next Year0.36%
Revenue Next 2Y1.05%
Revenue Next 3Y2.06%
Revenue Next 5Y3.01%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 14.72, which indicates a correct valuation of MRK.
- MRK's Price/Earnings ratio is a bit cheaper when compared to the industry. MRK is cheaper than 74.55% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.39. MRK is valued slightly cheaper when compared to this.
- 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 74.55% of the companies in the same industry.
- MRK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 14.61 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MRK is valued a bit cheaper than the industry average as 69.09% of the companies are valued more expensively.
- The rest of the industry has a similar Price/Free Cash Flow ratio as MRK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.24 | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.6
EPS Next 2Y-0.2%
EPS Next 3Y1.89%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.71%, MRK has a reasonable but not impressive dividend return.
- MRK's Dividend Yield is comparable with the industry average which is at 1.62.
- Compared to an average S&P500 Dividend Yield of 1.82, MRK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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 2Y-0.2%
EPS Next 3Y1.89%
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%.