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

NYSE:MRK • US58933Y1055

Current stock price

119.28 USD
-1.57 (-1.3%)
At close:
120.25 USD
+0.97 (+0.81%)
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.
  • MRK had positive earnings in each of the past 5 years.
  • 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

  • MRK's Return On Assets of 13.34% is amongst the best of the industry. MRK outperforms 94.27% of its industry peers.
  • MRK's Return On Equity of 34.70% is amongst the best of the industry. MRK outperforms 95.31% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 19.70%, MRK belongs to the top of the industry, outperforming 96.35% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years 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

  • Looking at the Profit Margin, with a value of 28.08%, MRK belongs to the top of the industry, outperforming 93.23% of the companies in the same industry.
  • MRK's Profit Margin has improved in the last couple of years.
  • MRK has a better Operating Margin (38.11%) than 96.88% of its industry peers.
  • In the last couple of years the Operating Margin of MRK has grown nicely.
  • MRK has a Gross Margin of 78.55%. This is amongst the best in 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. MRK Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MRK is creating value.
  • Compared to 1 year ago, MRK has less shares outstanding
  • The number of shares outstanding for MRK has been reduced compared to 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

  • MRK has an Altman-Z score of 4.08. This indicates that MRK is financially healthy and has little risk of bankruptcy at the moment.
  • MRK's Altman-Z score of 4.08 is fine compared to the rest of the industry. MRK outperforms 72.40% of its industry peers.
  • MRK has a debt to FCF ratio of 3.99. This is a good value and a sign of high solvency as MRK would need 3.99 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 3.99, MRK belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
  • A Debt/Equity ratio of 0.89 indicates that MRK is somewhat dependend on debt financing.
  • MRK's Debt to Equity ratio of 0.89 is on the low side compared to the rest of the industry. MRK is outperformed by 71.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 3.99
Altman-Z 4.08
ROIC/WACC2.2
WACC8.94%
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 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.
  • The Quick ratio of MRK (1.30) is worse than 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

More info and screens

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.
  • Measured over the past years, MRK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.13% on average per year.
  • 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

  • The Earnings Per Share is expected to grow by 2.29% on average over the next years.
  • Based on estimates for the next years, MRK will show a small growth in Revenue. The Revenue will grow by 2.66% on average per year.
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

  • 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 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

More info and screens

Find the best growth stocksShow best growing peers

6

4. MRK Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 12.99, which indicates a correct valuation of MRK.
  • Based on the Price/Earnings ratio, MRK is valued cheaper than 86.98% of the companies in the same industry.
  • MRK is valuated cheaply when we compare the Price/Earnings ratio to 26.21, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 23.05, the valuation of MRK can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, MRK is valued a bit cheaper than 76.04% of the companies in the same industry.
  • MRK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.10.
Industry RankSector Rank
PE 12.99
Fwd PE 23.05
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

  • MRK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MRK is cheaper than 85.94% of the companies 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 23.86
EV/EBITDA 10.9
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

  • MRK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.42
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

  • 44.79% of the earnings are spent on dividend by MRK. 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 2Y3.58%
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 (4/7/2026, 7:00:00 PM)

After market: 120.25 +0.97 (+0.81%)

119.28

-1.57 (-1.3%)

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 Cap294.91B
Revenue(TTM)65.01B
Net Income(TTM)18.25B
Analysts78.29
Price Target130.39 (9.31%)
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 12.99
Fwd PE 23.05
P/S 4.54
P/FCF 23.86
P/OCF 17.9
P/B 5.61
P/tB 67.86
EV/EBITDA 10.9
EPS(TTM)9.18
EY7.7%
EPS(NY)5.18
Fwd EY4.34%
FCF(TTM)5
FCFY4.19%
OCF(TTM)6.66
OCFY5.59%
SpS26.29
BVpS21.28
TBVpS1.76
PEG (NY)N/A
PEG (5Y)1.42
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 4.08
F-Score5
WACC8.94%
ROIC/WACC2.2
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 12.99 and the Price/Book (PB) ratio is 5.61.


Can you provide the financial health for MRK stock?

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