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

NYSE:MRK • US58933Y1055

Current stock price

112.56 USD
-4.54 (-3.88%)
At close:
112.78 USD
+0.22 (+0.2%)
After Hours:

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

  • MRK had positive earnings in the past year.
  • MRK had a positive operating cash flow in the past year.
  • In the past 5 years MRK has always been profitable.
  • Each year in the past 5 years MRK had a positive operating cash flow.
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

  • The Return On Assets of MRK (13.34%) is better than 94.24% of its industry peers.
  • The Return On Equity of MRK (34.70%) is better than 95.29% of its industry peers.
  • MRK's Return On Invested Capital of 19.70% is amongst the best of the industry. MRK outperforms 96.34% of its industry peers.
  • MRK had an Average Return On Invested Capital over the past 3 years of 22.50%. This is significantly above the industry average of 13.11%.
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

  • Looking at the Profit Margin, with a value of 28.08%, MRK belongs to the top of the industry, outperforming 93.19% of the companies in the same industry.
  • In the last couple of years the Profit Margin of MRK has grown nicely.
  • MRK has a Operating Margin of 38.11%. This is amongst the best in the industry. MRK outperforms 96.86% of its industry peers.
  • MRK's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 78.55%, MRK belongs to the best of the industry, outperforming 84.29% of the companies in the same industry.
  • MRK's Gross Margin has improved in the last couple of years.
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

  • MRK has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • MRK has less shares outstanding than it did 1 year ago.
  • MRK has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for MRK is higher compared to a year ago.
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

  • An Altman-Z score of 4.01 indicates that MRK is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.01, MRK is doing good in the industry, outperforming 69.11% of the companies in the same industry.
  • 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.
  • MRK has a better Debt to FCF ratio (3.99) than 85.86% of its industry peers.
  • A Debt/Equity ratio of 0.89 indicates that MRK is somewhat dependend on debt financing.
  • MRK has a Debt to Equity ratio of 0.89. This is in the lower half of the industry: MRK underperforms 74.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 3.99
Altman-Z 4.01
ROIC/WACC2.16
WACC9.14%
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.
  • The Current ratio of MRK (1.54) is worse than 74.87% of its industry peers.
  • A Quick Ratio of 1.30 indicates that MRK should not have too much problems paying its short term obligations.
  • MRK has a worse Quick ratio (1.30) than 73.30% 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

  • MRK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.16%, which is quite impressive.
  • The Earnings Per Share has been growing by 9.13% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 1.31% in the past year.
  • MRK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.38% yearly.
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

  • MRK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.29% yearly.
  • 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-44.53%
EPS Next 2Y3.38%
EPS Next 3Y6.12%
EPS Next 5Y2.29%
Revenue Next Year2.94%
Revenue Next 2Y4.17%
Revenue Next 3Y5.09%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • Based on the Price/Earnings ratio of 12.26, the valuation of MRK can be described as correct.
  • Compared to the rest of the industry, the Price/Earnings ratio of MRK indicates a rather cheap valuation: MRK is cheaper than 88.48% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.71, MRK is valued rather cheaply.
  • MRK is valuated rather expensively with a Price/Forward Earnings ratio of 22.11.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MRK indicates a somewhat cheap valuation: MRK is cheaper than 77.49% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 38.09, MRK is valued a bit cheaper.
Industry RankSector Rank
PE 12.26
Fwd PE 22.11
MRK Price Earnings VS Forward Price EarningsMRK 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 cheaply inside the industry as 87.43% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRK indicates a rather cheap valuation: MRK is cheaper than 83.77% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 22.49
EV/EBITDA 10.58
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)1.34
EPS Next 2Y3.38%
EPS Next 3Y6.12%

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

7

5. MRK Dividend Analysis

5.1 Amount

  • MRK has a Yearly Dividend Yield of 2.94%. Purely for dividend investing, there may be better candidates out there.
  • MRK's Dividend Yield is rather good when compared to the industry average which is at 0.68. MRK pays more dividend than 93.72% of the companies in the same industry.
  • MRK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 2.94%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
  • MRK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.79%
EPS Next 2Y3.38%
EPS Next 3Y6.12%
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

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MRK Fundamentals: All Metrics, Ratios and Statistics

MERCK & CO. INC.

NYSE:MRK (4/21/2026, 7:53:00 PM)

After market: 112.78 +0.22 (+0.2%)

112.56

-4.54 (-3.88%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-03
Earnings (Next)04-30
Inst Owners81.29%
Inst Owner Change-0.03%
Ins Owners0.05%
Ins Owner Change-0.69%
Market Cap278.01B
Revenue(TTM)65.01B
Net Income(TTM)18.25B
Analysts78.29
Price Target131.56 (16.88%)
Short Float %1.12%
Short Ratio2.44
Dividend
Industry RankSector Rank
Dividend Yield 2.94%
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)2.71%
PT rev (3m)15.61%
EPS NQ rev (1m)-11.98%
EPS NQ rev (3m)-210.06%
EPS NY rev (1m)-1.61%
EPS NY rev (3m)-44.88%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.69%
Valuation
Industry RankSector Rank
PE 12.26
Fwd PE 22.11
P/S 4.28
P/FCF 22.49
P/OCF 16.88
P/B 5.28
P/tB 63.97
EV/EBITDA 10.58
EPS(TTM)9.18
EY8.16%
EPS(NY)5.09
Fwd EY4.52%
FCF(TTM)5
FCFY4.45%
OCF(TTM)6.67
OCFY5.92%
SpS26.32
BVpS21.3
TBVpS1.76
PEG (NY)N/A
PEG (5Y)1.34
Graham Number66.3273 (-41.07%)
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 4.01
F-Score5
WACC9.14%
ROIC/WACC2.16
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-44.53%
EPS Next 2Y3.38%
EPS Next 3Y6.12%
EPS Next 5Y2.29%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y3.12%
Revenue growth 5Y9.38%
Sales Q2Q%4.97%
Revenue Next Year2.94%
Revenue Next 2Y4.17%
Revenue Next 3Y5.09%
Revenue Next 5Y2.66%
EBIT growth 1Y1.98%
EBIT growth 3Y9.65%
EBIT growth 5Y19.64%
EBIT Next Year-19.34%
EBIT Next 3Y10.63%
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 12.26 and the Price/Book (PB) ratio is 5.28.


Can you provide the financial health for MRK stock?

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