MRK

Merck & Co., Inc.

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Healthcare

industry

Drug Manufacturers - General

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/04/2026

Business Summary

Merck & Co., Inc. operates as a healthcare company worldwide. It operates through two segments, Pharmaceutical and Animal Health. The Pharmaceutical segment offers human health pharmaceutical products in the areas of oncology, hospital acute care, immunology, neuroscience, virology, cardiovascular, and diabetes, as well as vaccine products, such as preventive pediatric, adolescent, and adult vaccines. The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, and health management solutions and services, as well as digitally connected identification, traceability, and monitoring products. It serves drug wholesalers and retailers, hospitals, and government agencies; managed health care providers, such as health maintenance organizations, pharmacy benefit managers, and other institutions; and physicians and physician distributors, veterinarians, and animal producers. The company has collaborations with AstraZeneca PLC; Bayer AG; Eisai Co., Ltd.; Ridgeback Biotherapeutics; and Gilead Sciences, Inc. to jointly develop and commercialize long-acting treatments in HIV. Merck & Co., Inc. was founded in 1891 and is headquartered in Kenilworth, New Jersey.

 


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VALUATION

P/E

31.16

Market Cap ($M USD)

$278.15B

Forward P/E

11.12

PEG

0.06

PRICE TO SALES

4.24

PRICE TO BOOK

6.07

EV / EBITDA

14.19

5-Year Average P/E

Free Cash Flow Yield

5.07%

DCF Value

$235.63

Graham Number

$38.85

Price to FCF

19.71

EV to FCF

22.82

Earnings Yield

3.21%

FCF Yield

5.07%

DIVIDEND

Yield

2.95%

Annual Payout

$3.32

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

$10.12

Next Year Revenue Growth Estimate

$7.44T

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

3.80

Return on Invested Capital (ROIC)

17.79%

Current Ratio

1.30

Quick Ratio

1.06

Net Debt to EBITDA

1.93

Interest Coverage

17.35

Gross Profit margin

75.91%

FCF PER SHARE

$5.71

REVENUE PER SHARE

$26.53

Analyze MRK on TradingView

Gainseekers Quantitative Analysis

Summary

The market appears to be significantly undervaluing MRK relative to its intrinsic worth. With a DCF value of 235.63, the stock traded well below this estimate, suggesting a potential mispricing opportunity. The Forward P/E of 11.00 indicates expectations of robust earnings growth, aligning with the impressive EPS estimate for next year. The Altman Z-score of 3.77 reflects financial stability, while the earnings yield of 3.25% suggests a solid return on investment. Overall, MRK’s valuation metrics point to a compelling case for value investors.

AI Exposure / Tech Reliance

As a major player in the healthcare sector, MRK is strategically positioned to leverage AI and tech advancements in drug development and personalized medicine. The industry’s ongoing digital transformation offers MRK opportunities to enhance R&D efficiency and streamline operations. This adaptability is crucial for maintaining competitive advantage in a rapidly evolving landscape.

The Bull Case

For the value-driven investor, MRK presents a compelling opportunity. The company boasts a strong ROIC of 17.79%, indicating efficient capital allocation and robust profitability. Its operating margin of 27.59% underscores significant pricing power, while a Piotroski F-Score of 6 suggests solid financial health. Despite a modest FCF yield of 5.13%, MRK's ability to generate consistent free cash flow highlights its operational resilience and potential for future growth.

The Bear Case

Despite its strengths, MRK is not without risks. The Price/Book ratio of 6.00 and Price/Sales ratio of 4.19 suggest a premium valuation, potentially limiting upside. The high payout ratio of 92.12% raises concerns about dividend sustainability, especially if earnings falter. Additionally, trading just 12.35% below its 52-week high, the stock may be technically overextended, posing a risk of near-term correction.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$129.31

Institutional Ownership %

1-Year Beta

0.20

Insider Buying % (6 Mo)

Distance to 52-Week High

11.12%

Distance to 52-Week Low

34.90%

EARNINGS SURPRISE %

12.93%

50-DAY SMA

$116.57

200-DAY SMA

$100.68

⚠️ 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.