Stock Analysis
Merck & Co., Inc.MRK
P/E 113.48×· not meaningful — TTM earnings temporarily depressed
Sector: Healthcare · Industry: Drug Manufacturers - General
AnalystsStrong Buy36 analystsPrice is 86% of the way from the year's low to its high.
Cash covers 30% of debt · FY 2025.
PMP Verdict
Mixed fundamentals, expensive valuation
Strengths
- Financial Health80
- Growth61
Risks
- Valuation36
- Profitability43
Mixed fundamentals at a demanding price.
Bull Case
- ✓Altman Z 4.5 — safe-zone balance sheet
- ✓Interest coverage 22.7× — debt well covered
What's happening with MRK
Profile
Strong moat and financial health; valuation and profitability lag behind.
How is each axis scored?
- Valuation36/100 · Weak
- P/E vs own history (93th pct)0/25
- FCF yield (4.5%)12/25
- P/S (5.4x)12/25
- EV/EBIT (24.0x)12/25
- Growth61/100 · Moderate
- Revenue CAGR (7.5%)12/25
- Net income CAGR (8.8%)12/25
- EPS CAGR 5Y (9.1%)12/25
- Fwd implied growth (475.3%)25/25
- Profitability43/100 · Weak
- ROIC (14.8%)12/25
- ROE (6.0%)5/25
- Net margin (4.8%)6/25
- Operating margin (24.7%)20/25
- Financial Health80/100 · Strong
- Altman Z (4.46)25/25
- Current ratio (1.54)18/25
- Interest coverage (22.7x)25/25
- Net cash / debt (D/A 25%)12/25
- Quality50/100 · Moderate
- Piotroski F (4/9)10/25
- Beneish M (-2.30)20/25
- FCF conversion (n/a)0/25
- Margin stability (σ 7.7%)20/25
- Moat82/100 · Strong
- ROIC >12% years (8/10 yrs)20/25
- Median gross margin (70.3%)25/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 0.6%)12/25
About Merck & Co., Inc.
Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. Show more
In cancer, the firm's immuno-oncology platform, led by Keytruda, is a major contributor to overall sales. The company also has a substantial vaccine business aimed at preventing pediatric diseases, as well as Gardasil for human papillomavirus. Additionally, Merck sells animal health-related drugs. From a geographical perspective, 53% of the company's 2025 sales were generated from US human health (pharmaceuticals and vaccines).
Headquarters: RAHWAY, NJ · Employees: 75,000 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
36DP/E (TTM)113xC
Grade C: DistortedTTM earnings are temporarily depressed — this multiple overstates expensiveness. Forward P/E is a better guide — vs own 5Y history: 10.6x–146.8x · 93rd pct
P/FCF23.0xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield4.5%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 2.3%–9.2% · 37th pct
P/S (TTM)5.38xC
Grade C: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 2.9x–5.8x · 94th pct
EV/EBIT24.0xC
Grade C: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 10.5x–93.9x · 63rd pct
EV/Sales6.3xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E19.6xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio6.81xC
Grade C: ExpensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio17.81D
Grade D: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield2.24%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio44.8%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
43D+ROIC14.8%C
Grade C: AverageNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE6.0%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA2.4%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin4.8%D
Grade D: LowNet Income / Revenue
Operating Margin24.7%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin73.0%A
Grade A: PremiumGross Profit / Revenue
FCF Margin24.1%A
Grade A: HighFCF / Revenue
True FCF Margin22.8%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
61BRevenue CAGR7.5%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR8.8%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)9.1%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth475.3%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-2.9%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income28.1%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue1.3%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
80AAltman Z-Score4.46A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.54xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio1.10xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage22.7xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment2.2yA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT2.1xC
Grade C: MedLeverage. <2x Low, >4x High
Debt/Equity0.94xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.30xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
50CPiotroski F-Score4/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.30A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion—
FCF / Net Income
Margin Stability7.7%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue5.9%C
Grade C: AverageTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.51xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Seidman Christine E Filed | Seidman Christine E | Grant / award | +56 | |
Karsanbhai Surendralal Lanca Filed | Karsanbhai Surendralal Lanca | Grant / award | +112 | |
Coe Mary Ellen Filed | Coe Mary Ellen | Grant / award | +206 | |
Guindo Chirfi Filed | Guindo Chirfi | SellOpen market sale | -10000 | |
Zachary Jennifer Filed | Zachary Jennifer | Option exercise | -13433 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Zachary Jennifer Filed | Zachary Jennifer | Option exercise | -41494 | |
Zachary Jennifer Filed | Zachary Jennifer | SellOpen market sale | -80315 | |
Zachary Jennifer Filed | Zachary Jennifer | Option exercise | +13.4K |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
82AROIC >12% Years8/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)70.3%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor0.6%C
Grade C: ModerateWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$1.29
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$2.89
Cash & short-term investments per share (Finnhub)
Book Value / Share$16.99
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$49.34B
Total debt obligations (short + long term)
Cash & Equiv.$14.56B
Cash and short-term investments
Net Debt$34.77B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$52.61B
Shareholders' equity (book value)
Asset / Liability1.62xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$358.37B
Current Market Capitalization
Beta0.12B
Grade B: DefensivePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Merck & Co., Inc. (MRK)
MRK is up 0.52% at the last close. Piotroski F-Score of 4/9 indicates mixed fundamentals for Merck & Co., Inc.. Altman Z-Score of 4.46 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.30 suggests a low likelihood of earnings manipulation.
- Merck & Co., Inc. converts about 24% of revenue into free cash flow — strong cash generation.
- Takes ~2.2 years to repay net debt from free cash flow.
- The stock currently yields 2.2% in dividends.
See how MRK ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all MRK moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 14 | Regular | 147.20 | +3.68% | 2.44 |
| Oct 14 | After-hours | 148.49 | +4.59% | 3.02 |
| Oct 9 | After-hours | 146.33 | +2.77% | 2.07 |
| Oct 5 | Regular | 139.70 | -3.19% | -2.62 |
| Oct 5 | After-hours | 139.57 | -3.28% | -2.71 |
Frequently Asked Questions about MRK
What is the current Merck & Co., Inc. (MRK) stock price?
MRK is trading at $145.95 at the last market close, up 0.52% on the session. PreMarketPrice tracks MRK pre-market, intraday and after-hours prices.
Is MRK stock a buy right now?
PreMarketPrice's quantitative model rates Merck & Co., Inc.'s financial health at 80/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is MRK stock overvalued?
Merck & Co., Inc. trades at a trailing P/E of 112.9 and our valuation score rates it 36/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Merck & Co., Inc. report earnings?
No confirmed earnings date is currently scheduled for MRK. The Earnings section lists recent reports and updates as dates are announced.
What sector does Merck & Co., Inc. operate in?
Merck & Co., Inc. operates in the Healthcare sector, within the Drug Manufacturers - General industry. The Related Stocks section lists sector peers for comparison.
What does Merck & Co., Inc. do?
Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections.
About Merck & Co., Inc. (MRK) Stock
Merck & Co., Inc. (MRK) is a US-listed stock operating in the Healthcare sector, specifically the Drug Manufacturers - General industry. As of the latest update, Merck & Co., Inc. is trading at $145.95, up 0.52% on the day with a market capitalization of $358.4 billion. The financial health score for MRK is 80/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for MRK stock.
MRK Stock Analysis & Key Metrics
On PreMarketPrice, you can track Merck & Co., Inc. (MRK) across multiple dimensions:
- Pre-market price & movement: Real-time MRK stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for MRK with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Merck & Co., Inc. across multiple reporting periods.
- Financial health score: A composite score of 80/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for MRK.
- Sector peers: Compare MRK against 6 other healthcare stocks on key financial metrics.
Is MRK a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Merck & Co., Inc. (MRK) as an investment. The financial health score of 80/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Merck & Co., Inc. (MRK) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.