MRK Merck & Co., Inc. - Fundamental Analysis
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MRK Stock | Fundamental Analysis & Investment Insights
NYSE
Healthcare
Drug Manufacturers - General
Current Price
Live
$108.83
Analyst Target
$113.48
+4.3%
Upside
52W High
$112.9
52W Low
$73.31
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$271.83B
P/E
14.4
ROE
39.5%
Profit margin
29.6%
Debt/Equity
0.8
Dividend yield
3.06%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals a weak Piotroski F-Score of 3/9, indicating poor financial health based on fundamental signals, while the absence of an Altman Z-Score prevents a full distress risk assessment. Despite this, Merck demonstrates strong profitability with a 39.49% ROE, 40.80% operating margin, and robust earnings growth of 87% YoY. The stock trades at a reasonable P/E of 14.40 compared to sector peers, supported by a solid 3.06% dividend yield and a 42.86% payout ratio, though insider selling and mixed technical trends temper optimism. Analysts recommend a 'buy' with a $113.48 target, implying modest upside from the current $108.83 price.
Key Strengths
Exceptional profitability metrics: 39.49% ROE, 40.80% operating margin, and 77.85% gross margin outperform sector averages
Strong year-over-year earnings growth of 87.00%, with consistent quarterly beats over the past two years
Attractive valuation relative to peers: P/E of 14.40 vs. sector average of 249.85
Sustainable dividend profile: 3.06% yield with a conservative 42.86% payout ratio
Solid balance sheet: Current ratio of 1.66 and quick ratio of 1.09 indicate adequate short-term liquidity
Key Risks
Weak Piotroski F-Score of 3/9 suggests deteriorating financial health across earnings, leverage, and operating efficiency
Absence of Altman Z-Score limits ability to assess bankruptcy risk; requires further financial data
Insider selling activity: $1.34M in sales over last 6 months with no buys, signaling bearish sentiment from executives
Low technical trend score of 10/100 indicates weakening price momentum near term
Revenue growth of only 3.70% YoY is below sector average of 9.80%, raising concerns about long-term top-line expansion
AI Fair Value Estimate
Based on comprehensive analysis
$113.48
+4.3% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
63
Strong
78
62
58
45
70
AI Verdict
Cautiously optimistic with structural concerns
Key drivers: High profitability and earnings growth, Low P/E relative to sector, Dividend sustainability, Weak Piotroski score, Bearish insider activity
Confidence
75%
Value
78/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 14.40 well below sector average of 249.85
- Forward P/E of 15.90 remains reasonable
- Current price ($108.83) below analyst target ($113.48)
Watchpoints
- Price/Book of 5.22 is elevated
- No PEG ratio available limits growth-adjusted valuation
Future
62/100
Ref Growth rates
Positives
- 87.00% YoY earnings growth
- 83.20% Q/Q earnings growth
- Consistent EPS surprise trend (avg +7.29% over last 4 quarters)
Watchpoints
- Revenue growth of 3.70% YoY lags sector average
- No Q/Q revenue data available
Past
58/100
Ref Historical trends
Positives
- 20 of last 25 quarters beat EPS estimates
- Long-term 5Y return of +60.7% outperforms market
Watchpoints
- Recent 1W price change of -1.5%
- Mixed performance in 2021 with three negative EPS surprises
Health
45/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Debt/Equity of 0.80 is manageable
- Current ratio of 1.66 supports short-term obligations
Watchpoints
- Piotroski F-Score of 3/9 indicates financial weakness
- Altman Z-Score unavailable limits distress risk analysis
Dividend
70/100
Ref Yield, Payout
Positives
- 3.06% dividend yield above market average
- 42.86% payout ratio is sustainable
- Dividend Strength score of 50/100 suggests moderate reliability
Watchpoints
- 5-year average yield unavailable
- No ex-dividend date provided
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$108.83
Analyst Target
$113.48
Upside/Downside
+4.3%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for MRK and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
MRK
Merck & Co., Inc.
Primary
|
+60.7% | +8.0% | +12.1% | +38.6% | +9.7% | -1.5% |
|
AZN
AstraZeneca PLC
Peer
|
+92.9% | +49.4% | +38.4% | +28.8% | +0.5% | -1.5% |
|
UNH
UnitedHealth Group Incorporated
Peer
|
+2.0% | -27.9% | -33.6% | +18.6% | -0.2% | -3.8% |
|
TMO
Thermo Fisher Scientific Inc.
Peer
|
+23.6% | +6.2% | +10.5% | +49.4% | +10.0% | -0.0% |
|
AMGN
Amgen Inc.
Peer
|
+81.6% | +74.5% | +20.8% | +34.4% | +0.6% | -0.9% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
14.4
Forward P/E
15.9
PEG Ratio
N/A
P/B Ratio
5.22
P/S Ratio
4.23
EV/Revenue
4.57
EV/EBITDA
9.3
Market Cap
$271.83B
Profitability
Profit margins and return metrics
Profit Margin
29.63%
Operating Margin
40.8%
Gross Margin
77.85%
ROE
39.48%
ROA
13.76%
Growth
Revenue and earnings growth rates
Revenue Growth
+3.7%
Earnings Growth
+87.0%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+83.2%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.8
Moderate
Current Ratio
1.66
Good
Quick Ratio
1.09
Good
Cash/Share
$7.34
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-03
$N/A
2025-10-30
$2.32
+12.8% surprise
2025-07-29
$2.13
+5.0% surprise
2025-04-24
$2.22
+4.0% surprise
Healthcare Sector Comparison
Comparing MRK against 147 companies in the Healthcare sector
(11 bullish, 53 neutral, 83 bearish)
P/E Ratio
14.4
This Stock
vs
164.49
Sector Avg
-91.2%
(Discount)
Return on Equity (ROE)
39.48%
This Stock
vs
-52.77%
Sector Avg
-174.8%
(Below Avg)
Profit Margin
29.63%
This Stock
vs
-20.75%
Sector Avg
-242.8%
(Weaker)
Debt to Equity
0.8
This Stock
vs
6.16
Sector Avg
-87.1%
(Less Debt)
Revenue Growth
3.7%
This Stock
vs
135.79%
Sector Avg
-97.3%
(Slower)
Current Ratio
1.66
This Stock
vs
3.36
Sector Avg
-50.6%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
MRK
Merck & Co., Inc.
|
NEUTRAL | $271.83B | 14.4 | 39.5% | 29.6% | $108.83 | |
|
AZN
AstraZeneca PLC
|
NEUTRAL | $288.2B | 30.48 | 21.7% | 16.2% | $92.95 | |
|
UNH
UnitedHealth Group Incorporated
|
NEUTRAL | $299.85B | 17.25 | 17.5% | 4.0% | $331.02 | |
|
TMO
Thermo Fisher Scientific Inc.
|
NEUTRAL | $232.46B | 35.76 | 13.1% | 15.0% | $618.72 | |
|
AMGN
Amgen Inc.
|
NEUTRAL | $197.41B | 25.7 | 106.1% | 21.0% | $366.21 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-10 | DOWNING CRISTAL N. | Officer | Sale | 7,085 | $616,395 |
| 2025-11-03 | WILLIAMS DAVID MICHAEL | Chief Technology Officer | Sale | 8,614 | $720,040 |
| 2025-08-04 | GUINDO CHIRFI | Officer | Option Exercise | 36,903 | $2,926,039 |
| 2025-08-04 | WILLIAMS DAVID MICHAEL | Chief Technology Officer | Option Exercise | 17,119 | $1,357,366 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
27 analysts
Wolfe Research
2026-01-08
Peer Perform
Outperform
UBS
2026-01-07
Buy
Buy
Citigroup
2026-01-07
Neutral
Neutral
BMO Capital
2025-12-18
Market Perform
Outperform
B of A Securities
2025-12-15
Buy
Buy
Morgan Stanley
2025-12-12
Equal-Weight
Equal-Weight
Scotiabank
2025-12-04
Sector Outperform
Sector Outperform
Goldman Sachs
2025-12-02
Buy
Buy
Wells Fargo
2025-11-24
Equal-Weight
Overweight
Deutsche Bank
2025-11-18
Hold
Hold
Past News Coverage
Recent headlines mentioning MRK from our newsroom.
Newest → oldest
No matching news yet.