MRK

Merck & Co., Inc.

Fundamental data last updated:August 20, 2026

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company profile

SECTOR

Healthcare

industry

Drug Manufacturers - General

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Merck & Co., Inc. is a global healthcare leader with operations spanning two core divisions: Pharmaceuticals and Animal Health. The Pharmaceutical segment is dedicated to human health, offering a broad spectrum of medicinal products. These cover crucial therapeutic areas such as oncology, acute hospital care, immunology, neuroscience, virology, cardiovascular conditions, and diabetes. This division also develops vital preventive vaccines for pediatric, adolescent, and adult populations. Meanwhile, the Animal Health segment focuses on the research, development, manufacturing, and marketing of veterinary medications, vaccines, and comprehensive health management solutions for animals. This division further provides innovative digital products designed for animal identification, traceability, and continuous monitoring. Merck's extensive clientele encompasses drug wholesalers, pharmacies, hospitals, and government agencies. It also serves managed healthcare organizations, including health maintenance organizations (HMOs) and pharmacy benefit managers, as well as various other institutional clients. Additionally, the company supplies products to individual physicians and their distributors, veterinarians, and livestock producers. The organization actively engages in strategic collaborations with companies such as AstraZeneca PLC, Bayer AG, Eisai Co., Ltd., Ridgeback Biotherapeutics, and Gilead Sciences, Inc. These partnerships are specifically aimed at the joint development and commercialization of prolonged-acting therapies for HIV. Established in 1891, Merck & Co., Inc. maintains its corporate headquarters in Kenilworth, New Jersey.

 


VALUATION

P/E

35.08

Market Cap ($M USD)

$313.12B

Forward P/E

12.75

PEG

0.07

PRICE TO SALES

4.77

PRICE TO BOOK

6.83

EV / EBITDA

19.01

5-Year Average P/E

Free Cash Flow Yield

4.51%

DCF Value

$206.56

Graham Number

$38.85

Price to FCF

22.18

EV to FCF

25.29

Earnings Yield

2.85%

FCF Yield

4.51%

DIVIDEND

Yield

2.65%

Annual Payout

$3.36

Payout Ratio

92.12%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.61

Next Year EPS Growth Estimate

$9.94

Next Year Revenue Growth Estimate

$74.21B

Return on Equity (ROE)

17.93%

FREE CASH FLOW

Operating Margin

27.59%

Debt-to-Equity

0.96

Piotroski F-Score

6

Altman Z-Score

3.96

Return on Invested Capital (ROIC)

17.79%

Current Ratio

1.30

Quick Ratio

1.06

Net Debt to EBITDA

2.33

Interest Coverage

17.35

Gross Profit margin

75.91%

FCF PER SHARE

$5.71

REVENUE PER SHARE

$26.53

Gainseekers Quantitative Analysis

Summary

Merck & Co., Inc. is trading at a significant discount relative to its DCF value, suggesting a potential mispricing by the market. The Forward P/E of 12.90 indicates a more attractive valuation compared to its current P/E, hinting at expected earnings growth. With an Altman Z-score of 3.95, the company is financially stable, reducing bankruptcy risk. However, the Earnings Yield of 2.81% is modest, reflecting a premium valuation. Overall, Merck’s financial health appears robust, but the market may not fully appreciate its intrinsic value.

AI Exposure / Tech Reliance

In the healthcare sector, Merck is well-positioned to leverage AI for drug discovery and personalized medicine, enhancing its R&D efficiency. The industry's shift towards digital health solutions could further bolster Merck's innovation pipeline. As a major player, Merck's adaptability to tech advancements is crucial for maintaining its competitive edge.

The Bull Case

For value and GARP investors, Merck presents a compelling opportunity. The ROIC of 17.79% showcases strong capital efficiency, while a Piotroski F-Score of 6 indicates solid financial health. Despite a modest FCF Yield of 4.45%, the company's robust operating margin of 27.59% highlights its pricing power. These metrics suggest Merck's ability to generate consistent cash flow and sustain growth, making it an attractive investment.

The Bear Case

Despite its strengths, Merck faces structural risks. The Price/Book ratio of 6.92 and Price/Sales of 4.84 suggest the stock is trading at a high premium. Additionally, the stock's proximity to its 52-week high raises concerns about technical overextension. While the debt levels are manageable, the high payout ratio of 92.12% limits reinvestment potential, posing a risk to future growth.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$134.93

Institutional Ownership %

1-Year Beta

0.21

Insider Buying % (6 Mo)

Distance to 52-Week High

2.77%

Distance to 52-Week Low

39.53%

EARNINGS SURPRISE %

12.93%

50-DAY SMA

$117.09

200-DAY SMA

$107.46

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.