Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. In cancer, the firm's immuno-oncology platform, led by Keytruda, is a major contributor to overall sales.
It is a $361B healthcare company. Revenue grew 4.6% over the last year, it keeps 5¢ of every dollar of sales as profit, and its net debt equals ~2.2 years of free cash flow. It trades at 113.2× earnings — near the highest of its own history.
- Website
- merck.com
- Location
- Rahway, NJ
- Employees
- 75 000
- Sector
- Healthcare
- Founded
- 1891
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong moat; Valuation, Profitability and Health lag behind.
Valuation24
- P/E vs own history93th pct · 0/25
- FCF yield4.4% · 12/25
- P/S5.4x · 12/25
- EV/EBITDA42.4x · 0/25
Growth74
- Revenue CAGR7.5% · 12/25
- Net income CAGR8.8% · 12/25
- EPS CAGR ~5Y21.2% · 25/25
- Fwd implied growth476.6% · 25/25
Profitability43
- ROIC20.9% · 20/25
- ROE6.6% · 5/25
- Net margin4.8% · 6/25
- Operating margin9.6% · 12/25
Health49
- Altman Zn/a · 0/25
- Current ratio1.32 · 12/25
- Interest coverage22.7x · 25/25
- Net cash / debtD/A 25% · 12/25
Quality50
- Piotroski F4/9 · 10/25
- Beneish M-2.30 · 20/25
- FCF conversionn/a · 0/25
- Margin stabilityσ 7.7% · 20/25
Moat82
- ROIC >12% years8/10 yrs · 20/25
- Median gross margin70.3% · 25/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 0.6% · 12/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2025FinancialBest year on record$18.3B net income
- FY2022FinancialRevenue crossed $50B$59.3B for the year
- 2020AcquisitionMerck acquired ArQule, developer of ARQ 531, an oral Bruton's tyrosine kinase (BTK) inhibitor, for…
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $10B$39.8B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2016AcquisitionThe company acquired Afferent Pharmaceuticals, developer of a candidate used to block P2RX3 receptors,…
- 2015AcquisitionMerck acquired Cubist Pharmaceuticals for $102 per share in cash or about $9.5 billion in total
- 2014AcquisitionMerck acquired Idenix Pharmaceuticals for $3.85 billion
- 2009AcquisitionMerck & Co. completed a merger with Schering-Plough in a US$41 billion deal
- 1993AcquisitionMerck & Co. acquired Medco Containment Services for $6 billion
- 1979ProductMerck scientists developed lovastatin (Mevacor), the first drug of the statin class
- 1967ProductMaurice Hilleman, a scientist at Merck, developed the first mumps vaccine in 1967, the first rubella vaccine in 1969
- 1953AcquisitionMerck & Co. merged with Philadelphia-based Sharp & Dohme, Inc., becoming the largest U.S
- 1891FoundedMerck & Co. was established as the American affiliate of the Merck Group, founded by the Merck family
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (77.3%)
- Strong cash conversion — FCF is 24.1% of revenue
- Interest covered 22.7× by operating earnings
- High returns on invested capital (ROIC 20.9%)
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+4.6% YoY
- Profitable — makes more than it spends$3.17B TTM
- Profit growing — earnings are higher than last year+8.4% YoY
- Generates cash — cash left after running and investing$16.1B TTM
- Debt under control — could handle its obligations~2.2y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$361B market cap
- Not printing shares — share count not ballooning — you keep your slice-1.4% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distresshealth score 37/100
- Pays a dividend — returns cash to shareholdersyield 2.31%
- Valuation not extreme — price not wildly above earningsP/E 113.2
Peer comparisonMerck & Co., Inc. vs 6 largest healthcare peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| MRK this company | $361.0B | 113.2 | +4.6% | 4.8% | Mixed |
| LLY Eli Lilly & Co. | $1.0T | 41.6 | +49.6% | 33.5% | Solid |
| JNJ Johnson & Johnson | $630.9B | 29.9 | +8.1% | 21.5% | Mixed |
| ABBV Abbvie Inc. | $488.5B | 77.4 | +10.4% | 9.8% | Mixed |
| UNH UNITEDHEALTH GROUP INCORPORATED (Delaware) | $340.7B | 24.1 | +6.5% | 3.1% | Mixed |
| NVS Novartis AG | $273.2B | 20.3 | +9.6% | 24.7% | Solid |
| AZN AstraZeneca PLC | $246.9B | 23.4 | +8.6% | 17.4% | Solid |
Head-to-head: MRK vs LLY · MRK vs JNJ · MRK vs ABBV
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/MRK
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of MRK on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $146.33 · market cap $361B.