MERCK & CO. INC. (MRK) Fundamental Analysis & Valuation

NYSE:MRK • US58933Y1055

Current stock price

122.995 USD
-0.19 (-0.15%)
Last:

This MRK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. MRK Profitability Analysis

1.1 Basic Checks

  • In the past year MRK was profitable.
  • In the past year MRK had a positive cash flow from operations.
  • Each year in the past 5 years MRK has been profitable.
  • MRK had a positive operating cash flow in each of the past 5 years.
MRK Yearly Net Income VS EBIT VS OCF VS FCFMRK 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 2025 5B 10B 15B 20B 25B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 13.34%, MRK belongs to the top of the industry, outperforming 94.27% of the companies in the same industry.
  • MRK has a better Return On Equity (34.70%) than 95.31% of its industry peers.
  • The Return On Invested Capital of MRK (19.70%) is better than 96.35% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for MRK is significantly above the industry average of 13.06%.
Industry RankSector Rank
ROA 13.34%
ROE 34.7%
ROIC 19.7%
ROA(3y)9.43%
ROA(5y)10.79%
ROE(3y)24.21%
ROE(5y)27.67%
ROIC(3y)22.5%
ROIC(5y)20.92%
MRK Yearly ROA, ROE, ROICMRK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • MRK has a better Profit Margin (28.08%) than 93.23% of its industry peers.
  • MRK's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 38.11%, MRK belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
  • MRK's Operating Margin has improved in the last couple of years.
  • MRK's Gross Margin of 78.55% is amongst the best of the industry. MRK outperforms 83.85% of its industry peers.
  • In the last couple of years the Gross Margin of MRK has grown nicely.
Industry RankSector Rank
OM 38.11%
PM (TTM) 28.08%
GM 78.55%
OM growth 3Y6.33%
OM growth 5Y9.38%
PM growth 3Y4.66%
PM growth 5Y10.53%
GM growth 3Y4.72%
GM growth 5Y2.48%
MRK Yearly Profit, Operating, Gross MarginsMRK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. MRK Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MRK is creating value.
  • The number of shares outstanding for MRK has been reduced compared to 1 year ago.
  • MRK has less shares outstanding than it did 5 years ago.
  • MRK has a worse debt/assets ratio than last year.
MRK Yearly Shares OutstandingMRK Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
MRK Yearly Total Debt VS Total AssetsMRK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • MRK has an Altman-Z score of 4.12. This indicates that MRK is financially healthy and has little risk of bankruptcy at the moment.
  • MRK's Altman-Z score of 4.12 is fine compared to the rest of the industry. MRK outperforms 71.88% of its industry peers.
  • The Debt to FCF ratio of MRK is 3.99, which is a good value as it means it would take MRK, 3.99 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of MRK (3.99) is better than 85.94% of its industry peers.
  • MRK has a Debt/Equity ratio of 0.89. This is a neutral value indicating MRK is somewhat dependend on debt financing.
  • The Debt to Equity ratio of MRK (0.89) is worse than 71.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 3.99
Altman-Z 4.12
ROIC/WACC2.21
WACC8.92%
MRK Yearly LT Debt VS Equity VS FCFMRK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.3 Liquidity

  • A Current Ratio of 1.54 indicates that MRK should not have too much problems paying its short term obligations.
  • MRK has a Current ratio of 1.54. This is in the lower half of the industry: MRK underperforms 72.92% of its industry peers.
  • MRK has a Quick Ratio of 1.30. 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 Quick ratio of 1.30 is on the low side compared to the rest of the industry. MRK is outperformed by 70.83% of its industry peers.
Industry RankSector Rank
Current Ratio 1.54
Quick Ratio 1.3
MRK Yearly Current Assets VS Current LiabilitesMRK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

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

5

3. MRK Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 20.16% over the past year.
  • The Earnings Per Share has been growing by 9.13% on average over the past years. This is quite good.
  • Looking at the last year, MRK shows a small growth in Revenue. The Revenue has grown by 1.31% in the last year.
  • Measured over the past years, MRK shows a quite strong growth in Revenue. The Revenue has been growing by 9.38% on average per year.
EPS 1Y (TTM)20.16%
EPS 3Y7.06%
EPS 5Y9.13%
EPS Q2Q%21.51%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y3.12%
Revenue growth 5Y9.38%
Sales Q2Q%4.97%

3.2 Future

  • The Earnings Per Share is expected to grow by 2.29% on average over the next years.
  • MRK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.66% yearly.
EPS Next Y-43.62%
EPS Next 2Y3.58%
EPS Next 3Y6.11%
EPS Next 5Y2.29%
Revenue Next Year3.06%
Revenue Next 2Y4.23%
Revenue Next 3Y5.13%
Revenue Next 5Y2.66%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • 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 Yearly Revenue VS EstimatesMRK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B
MRK Yearly EPS VS EstimatesMRK 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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Find the best growth stocksShow best growing peers

6

4. MRK Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 13.40, MRK is valued correctly.
  • Compared to the rest of the industry, the Price/Earnings ratio of MRK indicates a rather cheap valuation: MRK is cheaper than 86.98% of the companies listed in the same industry.
  • MRK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.91.
  • With a Price/Forward Earnings ratio of 23.77, MRK is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, MRK is valued a bit cheaper than the industry average as 76.04% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of MRK to the average of the S&P500 Index (23.69), we can say MRK is valued inline with the index average.
Industry RankSector Rank
PE 13.4
Fwd PE 23.77
MRK Price Earnings VS Forward Price EarningsMRK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MRK indicates a rather cheap valuation: MRK is cheaper than 85.94% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, MRK is valued cheaply inside the industry as 83.85% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 24.6
EV/EBITDA 11.08
MRK Per share dataMRK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • The excellent profitability rating of MRK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.47
EPS Next 2Y3.58%
EPS Next 3Y6.11%

More info and screens

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

7

5. MRK Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.84%, MRK has a reasonable but not impressive dividend return.
  • MRK's Dividend Yield is rather good when compared to the industry average which is at 0.64. MRK pays more dividend than 93.75% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, MRK pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.84%

5.2 History

  • The dividend of MRK has a limited annual growth rate of 5.92%.
  • MRK has paid a dividend for at least 10 years, which is a reliable track record.
  • MRK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.92%
Div Incr Years15
Div Non Decr Years34
MRK Yearly Dividends per shareMRK Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • MRK pays out 44.79% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of MRK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP44.79%
EPS Next 2Y3.58%
EPS Next 3Y6.11%
MRK Yearly Income VS Free CF VS DividendMRK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B
MRK Dividend Payout.MRK Dividend Payout, showing the Payout Ratio.MRK Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

MRK Fundamentals: All Metrics, Ratios and Statistics

MERCK & CO. INC.

NYSE:MRK (4/9/2026, 9:44:05 AM)

122.995

-0.19 (-0.15%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-03
Earnings (Next)04-30
Inst Owners81.17%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change-0.69%
Market Cap304.09B
Revenue(TTM)65.01B
Net Income(TTM)18.25B
Analysts78.29
Price Target130.39 (6.01%)
Short Float %1.18%
Short Ratio2.45
Dividend
Industry RankSector Rank
Dividend Yield 2.84%
Yearly Dividend3.27
Dividend Growth(5Y)5.92%
DP44.79%
Div Incr Years15
Div Non Decr Years34
Ex-Date03-16
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.02%
Min EPS beat(2)2.98%
Max EPS beat(2)13.06%
EPS beat(4)4
Avg EPS beat(4)6.66%
Min EPS beat(4)2.93%
Max EPS beat(4)13.06%
EPS beat(8)8
Avg EPS beat(8)6.19%
EPS beat(12)12
Avg EPS beat(12)16.34%
EPS beat(16)16
Avg EPS beat(16)14.5%
Revenue beat(2)2
Avg Revenue beat(2)0.57%
Min Revenue beat(2)0.31%
Max Revenue beat(2)0.83%
Revenue beat(4)3
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)0.83%
Revenue beat(8)6
Avg Revenue beat(8)0.46%
Revenue beat(12)9
Avg Revenue beat(12)1.15%
Revenue beat(16)13
Avg Revenue beat(16)1.9%
PT rev (1m)1.8%
PT rev (3m)18.14%
EPS NQ rev (1m)2.02%
EPS NQ rev (3m)-160.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-43.98%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.8%
Valuation
Industry RankSector Rank
PE 13.4
Fwd PE 23.77
P/S 4.68
P/FCF 24.6
P/OCF 18.46
P/B 5.78
P/tB 69.97
EV/EBITDA 11.08
EPS(TTM)9.18
EY7.46%
EPS(NY)5.18
Fwd EY4.21%
FCF(TTM)5
FCFY4.06%
OCF(TTM)6.66
OCFY5.42%
SpS26.29
BVpS21.28
TBVpS1.76
PEG (NY)N/A
PEG (5Y)1.47
Graham Number66.29
Profitability
Industry RankSector Rank
ROA 13.34%
ROE 34.7%
ROCE 22.83%
ROIC 19.7%
ROICexc 22.75%
ROICexgc 46.78%
OM 38.11%
PM (TTM) 28.08%
GM 78.55%
FCFM 19.01%
ROA(3y)9.43%
ROA(5y)10.79%
ROE(3y)24.21%
ROE(5y)27.67%
ROIC(3y)22.5%
ROIC(5y)20.92%
ROICexc(3y)25.76%
ROICexc(5y)23.99%
ROICexgc(3y)53.32%
ROICexgc(5y)52.7%
ROCE(3y)26.06%
ROCE(5y)24.23%
ROICexgc growth 3Y-4.44%
ROICexgc growth 5Y2.75%
ROICexc growth 3Y0.21%
ROICexc growth 5Y7.95%
OM growth 3Y6.33%
OM growth 5Y9.38%
PM growth 3Y4.66%
PM growth 5Y10.53%
GM growth 3Y4.72%
GM growth 5Y2.48%
F-Score5
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 3.99
Debt/EBITDA 1.53
Cap/Depr 70.44%
Cap/Sales 6.33%
Interest Coverage 19.06
Cash Conversion 53.81%
Profit Quality 67.71%
Current Ratio 1.54
Quick Ratio 1.3
Altman-Z 4.12
F-Score5
WACC8.92%
ROIC/WACC2.21
Cap/Depr(3y)81.72%
Cap/Depr(5y)99.16%
Cap/Sales(3y)6%
Cap/Sales(5y)6.91%
Profit Quality(3y)892.79%
Profit Quality(5y)570.74%
High Growth Momentum
Growth
EPS 1Y (TTM)20.16%
EPS 3Y7.06%
EPS 5Y9.13%
EPS Q2Q%21.51%
EPS Next Y-43.62%
EPS Next 2Y3.58%
EPS Next 3Y6.11%
EPS Next 5Y2.29%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y3.12%
Revenue growth 5Y9.38%
Sales Q2Q%4.97%
Revenue Next Year3.06%
Revenue Next 2Y4.23%
Revenue Next 3Y5.13%
Revenue Next 5Y2.66%
EBIT growth 1Y1.98%
EBIT growth 3Y9.65%
EBIT growth 5Y19.64%
EBIT Next Year-19.93%
EBIT Next 3Y10.24%
EBIT Next 5Y4.83%
FCF growth 1Y-31.7%
FCF growth 3Y-5.63%
FCF growth 5Y16.24%
OCF growth 1Y-23.27%
OCF growth 3Y-4.81%
OCF growth 5Y9.95%

MERCK & CO. INC. / MRK Fundamental Analysis FAQ

What is the fundamental rating for MRK stock?

ChartMill assigns a fundamental rating of 7 / 10 to MRK.


Can you provide the valuation status for MERCK & CO. INC.?

ChartMill assigns a valuation rating of 6 / 10 to MERCK & CO. INC. (MRK). This can be considered as Fairly Valued.


What is the profitability of MRK stock?

MERCK & CO. INC. (MRK) has a profitability rating of 9 / 10.


Can you provide the PE and PB ratios for MRK stock?

The Price/Earnings (PE) ratio for MERCK & CO. INC. (MRK) is 13.4 and the Price/Book (PB) ratio is 5.78.


Can you provide the financial health for MRK stock?

The financial health rating of MERCK & CO. INC. (MRK) is 6 / 10.