MRK Stock Analysis: Merck KGaA | XETRA
Drug Manufacturers - Specialty & Generic | XETRA, Germany | Market Cap: 62.825m EUR | 12M Return: 35.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 53.1M
EPS Trend: -69.0%
Qual. Beats: -1
Rev. Trend: -35.8%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 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 KGaA is a German science and technology company headquartered in Darmstadt, founded in 1668 and controlled by the owner family through its parent E. Merck KG. Unlike most companies classified under Pharmaceuticals, it operates three distinct divisions: Life Science (reagents, lab instruments, bioprocessing consumables, and contract development/manufacturing services for biotech and pharma customers), Healthcare (prescription drugs and biopharmaceuticals in oncology, neurology, immunology, fertility, and rare diseases), and Electronics (specialty materials for semiconductor manufacturing, including photoresists, dielectric materials, etch chemistries, and OLED/liquid crystal materials). The company maintains a global footprint across Europe, the Americas, the Middle East, Africa, and Asia Pacific.
The three-pillar structure is a defining feature of the business model: the Life Science and Electronics segments generate significant revenue from industrial and manufacturing customers, reducing reliance on the pharmaceutical drug pipeline and exposing the group to semiconductor and biotech capex cycles in addition to healthcare demand. The long-running in-licensing agreement with Abbisko Therapeutics illustrates a common pharma strategy of supplementing internal R&D with externally sourced candidates, in this case for tenosynovial giant cell tumors.
- Electronics segment revenue accelerates on semiconductor materials demand
- Life Science bioprocessing benefits from biotech manufacturing growth
- Healthcare margins pressured by Rebif multiple sclerosis generic erosion
| Net Income: 2.53b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 0.43 > 1.0 |
| NWC/Revenue: 22.96% < 20% (prev 13.65%; Δ 9.31% < -1%) |
| CFO/TA 0.08 > 3% & CFO 4.19b > Net Income 2.53b |
| Net Debt (8.91b) to EBITDA (5.97b): 1.49 < 3 |
| Current Ratio: 1.51 > 1.5 & < 3 |
| Outstanding Shares: last quarter (434.8m) vs 12m ago -0.03% < -2% |
| Gross Margin: 58.53% > 18% (prev 59.21%; Δ -0.68% > 0.5%) |
| Asset Turnover: 40.91% > 50% (prev 43.17%; Δ -2.26% > 0%) |
| Interest Coverage Ratio: 8.49 > 6 (EBIT TTM 3.65b / Interest Expense TTM 430.0m) |
| A: 0.09 (Total Current Assets 14.2b - Total Current Liabilities 9.35b) / Total Assets 53.1b |
| B: 0.47 (Retained Earnings 24.7b / Total Assets 53.1b) |
| C: 0.07 (EBIT TTM 3.65b / Avg Total Assets 51.2b) |
| D: 1.28 (Book Value of Equity 29.7b / Total Liabilities 23.2b) |
| Altman-Z'' = 3.93 = AA |
| DSRI: 1.09 (Receivables 4.78b/4.47b, Revenue 21.0b/21.3b) |
| GMI: 1.01 (GM 59.21% / 58.53%) |
| AQI: 0.99 (AQ_t 0.54 / AQ_t-1 0.55) |
| SGI: 0.98 (Revenue 21.0b / 21.3b) |
| TATA: -0.03 (NI 2.53b - CFO 4.19b) / TA 53.1b) |
| Beneish M = -2.96 (Cap -4..+1) = A |
As of July 06, 2026, the stock is trading at EUR 145.65 with a total of 265,470 shares traded. Over the past week, the price has changed by +0.00%, over one month by +6.43%, over three months by +38.40% and over the past year by +35.87%.
Current recommended Stop Loss: 141.40 (which is 2.9% or 1.3 ATR below the current price).
Merck KGaA has no consensus analysts rating.
P/E Trailing = 24.7856
P/E Forward = 21.5054
P/S = 2.998
P/B = 2.1467
P/EG = 2.9076
Revenue TTM = 21.0b EUR
EBIT TTM = 3.65b EUR
EBITDA TTM = 5.97b EUR
Long Term Debt = 10.2b EUR (from longTermDebt, last fiscal year)
Short Term Debt = 1.24b EUR (from shortTermDebt, last quarter)
Debt = 12.7b EUR (from shortLongTermDebtTotal, last quarter) + Leases 648.0m
Net Debt = 8.91b EUR (calculated: Debt 12.7b - CCE 3.77b)
Enterprise Value = 71.7b EUR (62.8b + Debt 12.7b - CCE 3.77b)
Interest Coverage Ratio = 8.49 (Ebit TTM 3.65b / Interest Expense TTM 430.0m)
EV/FCF = 29.68x (Enterprise Value 71.7b / FCF TTM 2.42b)
FCF Yield = 3.37% (FCF TTM 2.42b / Enterprise Value 71.7b)
FCF Margin = 11.53% (FCF TTM 2.42b / Revenue TTM 21.0b)
Net Margin = 12.09% (Net Income TTM 2.53b / Revenue TTM 21.0b)
Gross Margin = 58.53% ((Revenue TTM 21.0b - Cost of Revenue TTM 8.69b) / Revenue TTM)
Gross Margin QoQ = 59.70% (prev 56.41%)
Tobins Q-Ratio = 1.35 (Enterprise Value 71.7b / Total Assets 53.1b)
Interest Expense / Debt = 3.39% (Interest Expense 430.0m / Debt 12.7b)
Taxrate = 20.96% (675.0m / 3.22b)
NOPAT = 2.89b (EBIT 3.65b * (1 - 20.96%))
Current Ratio = 1.51 (Total Current Assets 14.2b / Total Current Liabilities 9.35b)
Debt / Equity = 0.43 (Debt 12.7b / totalStockholderEquity, last quarter 29.7b)
Debt / EBITDA = 1.49 (Net Debt 8.91b / EBITDA 5.97b)
Debt / FCF = 3.69 (Net Debt 8.91b / FCF TTM 2.42b)
Total Stockholder Equity = 28.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.95% (Net Income 2.53b / Total Assets 53.1b)
RoE = 8.77% (Net Income TTM 2.53b / Total Stockholder Equity 28.9b)
RoCE = 9.34% (EBIT 3.65b / Capital Employed (Equity 28.9b + L.T.Debt 10.2b))
RoIC = 6.57% (NOPAT 2.89b / Invested Capital 43.9b)
WACC = 6.90% (E(62.8b)/V(75.5b) * Re(7.75%) + D(12.7b)/V(75.5b) * Rd(3.39%) * (1-Tc(0.21)))
Discount Rate = 7.75% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 12.17 | Cagr: 0.0%
[DCF] Terminal Value 77.97% ; FCFF base≈2.27b ; Y1≈2.60b ; Y5≈3.82b
[DCF] Fair Price = 376.1 (EV 57.5b - Net Debt 8.91b = Equity 48.6b / Shares 129.2m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -68.97 | EPS CAGR: -3.73% | SUE: -2.01 | # QB: -1
Revenue Correlation: -35.81 | Revenue CAGR: -0.62% | SUE: 0.67 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.00 | Chg30d=+0.00% | Revisions=-50% | Analysts=3
EPS next Quarter (2026-09-30): EPS=2.04 | Chg30d=+0.00% | Revisions=-17% | Analysts=3
EPS current Year (2026-12-31): EPS=8.00 | Chg30d=+0.18% | Revisions=+71% | GrowthEPS=-4.1% | GrowthRev=-0.3%
EPS next Year (2027-12-31): EPS=8.65 | Chg30d=-0.41% | Revisions=+12% | GrowthEPS=+8.2% | GrowthRev=+4.7%
[Analyst] Revisions Ratio: +27% (up=22, down=12)