MRK Stock Analysis: Merck | NYSE
Drug Manufacturers - General | NYSE, USA | Market Cap: 363.044m USD | 12M Return: 97.4% | US58933Y1055 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 1.35B
EPS Trend: 51.3%
Qual. Beats: 2
Rev. Trend: 95.4%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Merck & Co., Inc. (MRK) is a U.S.-based global healthcare company operating across two core segments: human health pharmaceuticals and animal health. The human health portfolio is anchored by Keytruda, a PD-1 immune checkpoint inhibitor that has become one of the leading oncology franchises in the industry, alongside a broad range of vaccines (including Gardasil and ProQuad), hospital specialty products, and treatments in virology, diabetes, and sleep medicine. Mercks pharmaceutical business is concentrated in therapeutic areas where high R&D intensity and patent protection are defining features of the competitive landscape.
The animal health segment provides veterinary pharmaceuticals, vaccines, and health management solutions and services for both livestock and companion animals. Livestock offerings span the Nuflor, Bovilis, Banamine, and Safe-Guard brands, while the companion animal portfolio includes the Bravecto parasiticides franchise, Sentinel parasiticides, Nobivac vaccines, and the Allflex Livestock Intelligence identification and monitoring platform. This dual human-and-animal health structure is relatively uncommon among large-cap drugmakers and provides diversification across regulatory environments and end markets.
Merck maintains an extensive network of external partnerships, including co-development and co-commercialization agreements with Daiichi Sankyo (for deruxtecan ADC candidates), AstraZeneca (for Lynparza), and Eisai, as well as collaborations with Bayer, Ridgeback Biotherapeutics, Moderna, LaNova, and Infinimmune. Founded in 1891 and headquartered in Rahway, New Jersey, the company is classified within the GICS Pharmaceuticals sub-industry and is a constituent of the mega-cap tier of U.S. listed equities.
- Winrevair launch accelerates as Keytruda patent cliff approaches 2028
- Gardasil vaccine sales decline on weak China demand and inventory normalization
- Daiichi Sankyo ADC partnership expands oncology pipeline beyond Keytruda
| Net Income: 3.17b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA -0.15 > 1.0 |
| NWC/Revenue: 13.48% < 20% (prev 17.31%; Δ -3.84% < -1%) |
| CFO/TA 0.15 > 3% & CFO 20.0b > Net Income 3.17b |
| Net Debt (46.8b) to EBITDA (13.8b): 3.38 < 3 |
| Current Ratio: 1.32 > 1.5 & < 3 |
| Outstanding Shares: last quarter (2.47b) vs 12m ago -1.63% < -2% |
| Gross Margin: 75.38% > 18% (prev 75.45%; Δ -0.07% > 0.5%) |
| Asset Turnover: 53.69% > 50% (prev 54.20%; Δ -0.51% > 0%) |
| Interest Coverage Ratio: 4.14 > 6 (EBIT TTM 7.21b / Interest Expense TTM 1.74b) |
| A: 0.07 (Total Current Assets 36.7b - Total Current Liabilities 27.7b) / Total Assets 130b |
| B: 0.49 (Retained Earnings 63.3b / Total Assets 130b) |
| C: 0.06 (EBIT TTM 7.21b / Avg Total Assets 124b) |
| D: 0.48 (Book Value of Equity 41.9b / Total Liabilities 87.8b) |
| Altman-Z'' = 2.93 = A |
| DSRI: 1.02 (Receivables 12.6b/11.8b, Revenue 66.4b/63.7b) |
| GMI: 1.00 (GM 75.45% / 75.38%) |
| AQI: 1.10 (AQ_t 0.52 / AQ_t-1 0.47) |
| SGI: 1.04 (Revenue 66.4b / 63.7b) |
| TATA: -0.13 (NI 3.17b - CFO 20.0b) / TA 130b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of September 27, 2026, the stock is trading at USD 148.78 with a total of 8,289,455 shares traded. Over the past week, the price has changed by +1.30%, over one month by -4.34%, over three months by +19.30% and over the past year by +97.36%.
Current recommended Stop Loss: 144.20 (which is 3.1% or 1.2 ATR below the current price).
Merck has received a consensus analysts rating of 4.04. Therefore, it is recommended to buy MRK.
- StrongBuy: 12
- Buy: 3
- Hold: 11
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 153 | 2.8% |
P/E Trailing = 115.8661
P/E Forward = 14.9477
P/S = 5.4537
P/B = 8.5259
P/EG = 2.6468
Revenue TTM = 66.4b USD
EBIT TTM = 7.21b USD
EBITDA TTM = 13.8b USD
Long Term Debt = 51.1b USD (from longTermDebt, last quarter)
Short Term Debt = 2.83b USD (from shortTermDebt, last quarter)
Debt = 53.9b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 46.8b USD (calculated: Debt 53.9b - CCE 7.14b)
Enterprise Value = 410b USD (363b + Debt 53.9b - CCE 7.14b)
Interest Coverage Ratio = 4.14 (Ebit TTM 7.21b / Interest Expense TTM 1.74b)
EV/FCF = 25.51x (Enterprise Value 410b / FCF TTM 16.1b)
FCF Yield = 3.92% (FCF TTM 16.1b / Enterprise Value 410b)
FCF Margin = 24.19% (FCF TTM 16.1b / Revenue TTM 66.4b)
Net Margin = 4.78% (Net Income TTM 3.17b / Revenue TTM 66.4b)
Gross Margin = 75.38% ((Revenue TTM 66.4b - Cost of Revenue TTM 16.4b) / Revenue TTM)
Gross Margin QoQ = 73.54% (prev 81.92%)
Tobins Q-Ratio = 3.16 (Enterprise Value 410b / Total Assets 130b)
Interest Expense / Debt = 3.23% (Interest Expense 1.74b / Debt 53.9b)
Taxrate = 46.72% (2.78b / 5.95b)
NOPAT = 3.84b (EBIT 7.21b * (1 - 46.72%))
Current Ratio = 1.32 (Total Current Assets 36.7b / Total Current Liabilities 27.7b)
Debt / Equity = 1.29 (Debt 53.9b / totalStockholderEquity, last quarter 41.9b)
Debt / EBITDA = 3.38 (Net Debt 46.8b / EBITDA 13.8b)
Debt / FCF = 2.91 (Net Debt 46.8b / FCF TTM 16.1b)
Total Stockholder Equity = 48.1b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.57% (Net Income 3.17b / Total Assets 130b)
RoE = 6.60% (Net Income TTM 3.17b / Total Stockholder Equity 48.1b)
RoCE = 7.27% (EBIT 7.21b / Capital Employed (Equity 48.1b + L.T.Debt 51.1b))
RoIC = 3.78% (NOPAT 3.84b / Invested Capital 102b)
WACC = 5.50% (E(363b)/V(417b) * Re(6.06%) + D(53.9b)/V(417b) * Rd(3.23%) * (1-Tc(0.47)))
Discount Rate = 6.06% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -93.25 | Cagr: -1.07%
[DCF] Terminal Value 76.56% ; FCFF base≈15.5b ; Y1≈16.8b ; Y5≈20.5b
[DCF] Fair Price = 108.6 (EV 315b - Net Debt 46.8b = Equity 268b / Shares 2.47b; r=8.35% [WACC [floored]]; 5y FCF grow 9.11% → 2.50% )
EPS Correlation: 51.34 | EPS CAGR: 40.26% | SUE: 1.63 | # QB: 2
Revenue Correlation: 95.44 | Revenue CAGR: 3.67% | SUE: 1.66 | # QB: 2
EPS current Quarter (2026-09-30): EPS=2.21 | Chg30d=-0.32% | Revisions=-62% | Analysts=17
EPS current Year (2026-12-31): EPS=2.75 | Chg30d=-0.04% | Revisions=+39% | GrowthEPS=-69.4% | GrowthRev=+3.3%
EPS next Year (2027-12-31): EPS=9.55 | Chg30d=-0.04% | Revisions=-15% | GrowthEPS=+247.9% | GrowthRev=+4.7%
[Analyst] Revisions Ratio: -9% (up=19, down=23)