Merck & Co., Inc. (MRK) Factsheet
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Merck & Co., Inc. (MRK) Stock Analysis
Analysis from 10-Q filed 2026-11-04. Data as of Q3 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 3.5%. FCF margin 21.9%. D/E 1.2x. Source: 10-Q filed 2026-11-04.
| Metric | Value | Context |
|---|---|---|
| ROIC | 3.5% | Below expectations |
| FCF Margin | 21.9% | Strong cash generation |
| Debt/Equity | 1.2x | Moderate leverage |
ROIC 3.5% — Top 50% of sector peers. FCF margin 21.9% — Top 25%.
Explore Merck & Co., Inc.: Earnings History | Overview
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for MRK: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_section, get_metric_history, compare_companies, screen_filing_signals.
Profitability: Merck & Co., Inc. earns 3.5% ROIC, Top 50% in Healthcare
ROIC TTM 3.5%, sector median -8.0%, Top 50%. DuPont: NOPAT margin 5.1% × asset turnover 0.5x. Gross margin 71.8%. Operating margin 9.2%. Source: 10-Q filed 2026-11-04.
| Metric | MRK | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 3.5% | Red flag | Above sector median of -8.0% |
| Return on Equity (ROE) | 5.2% | Warning | Moderate equity returns |
| Gross Margin | 71.8% | Excellent | Strong pricing power |
| Operating Margin | 9.2% | Adequate | Moderate operational efficiency |
Cash Flow: Merck & Co., Inc. generates $14.7B FCF at 21.9% margin, positive NaN/8 quarters
FCF TTM $14.7B. FCF margin 21.9%, Top 25%. OCF/Net income 7.6x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-11-04.
| Metric | MRK | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 21.9% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $14.7B | Good | Positive cash generation |
| OCF/Net Income | 7.6x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Merck & Co., Inc. at 1.2x leverage, 3.2x interest coverage
Debt/Equity 1.2x. Total debt $53.8B, cash & investments $9.7B. Interest coverage 3.2x. Source: 10-Q filed 2026-11-04.
| Metric | MRK | Rating | Context |
|---|---|---|---|
| Debt to Equity | 1.2x | Adequate | Moderate leverage |
| Net Cash Position | $-44.1B | Warning | Net debt position |
| Interest Coverage | 3.2x | Adequate | Monitor debt obligations |
Valuation: Merck & Co., Inc. trades at 147.7x earnings
P/E 147.7x. EV/Sales 6.0x. FCF yield 4.1%. Dividend yield 2.3%. Source: 10-Q filed 2026-11-04.
| Metric | MRK | Rating | Context |
|---|---|---|---|
| P/E Ratio | 147.7x | Warning | Premium valuation |
| EV/Sales | 6.0x | Adequate | Growth premium priced in |
| FCF Yield | 4.1% | Good | Lower cash yield |
| Dividend Yield | 2.3% | Adequate | Growth focus over income |
Capital Allocation: Merck & Co., Inc. returns 3.3% shareholder yield, reducing shares 0.7% YoY
Total shareholder yield 3.3% (div 2.3% + buyback 1.0%). Share count -0.7% YoY. Capital returned $12.0B TTM. Source: 10-Q filed 2026-11-04.
| Metric | MRK | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 3.3% | Good | Dividend + buyback yield combined |
| Buyback Yield | 1.0% | Adequate | Minimal buyback activity |
| Share Count Change (YoY) | -0.7% | Adequate | Net share reduction (accretive) |
| Total Capital Returned (TTM) | $12.0B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 3.5% | Top 50% | - |
| Free Cash Flow Margin | 21.9% | Top 25% | 6.7x above |
| Gross Margin | 71.8% | Top 50% | 1.1x above |
| Operating Margin | 9.2% | Top 50% | - |
| Return on Equity (ROE) | 5.2% | Top 50% | - |
| P/E Ratio | 147.7x | N/A | - |
Financial Scorecard
| Metric | MRK | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 3.5% | Red flag | Top 50% of sector (median: -8.0%) |
| Free Cash Flow Margin | 21.9% | Excellent | Top 25% of sector (median: 3.3%) |
| Gross Margin | 71.8% | Excellent | Top 50% of sector (median: 63.9%) |
| Debt to Equity Ratio | 119.8% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 147.7x | Warning | High expectations priced in |
| Free Cash Flow Yield | 4.1% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is Merck & Co., Inc.'s Return on Invested Capital (ROIC)?
Merck & Co., Inc. (MRK) has a trailing twelve-month Return on Invested Capital (ROIC) of 3.5%. The 8-quarter median ROIC is 20.2% with a declining trend. Sector median -8.0%. Source: 10-Q filed 2026-11-04.
Q: What is Merck & Co., Inc.'s Free Cash Flow Margin?
Merck & Co., Inc. (MRK) has a free cash flow margin of 21.9%, generating $14.7 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-11-04.
Q: What is Merck & Co., Inc.'s P/E ratio and how does it compare to peers?
Merck & Co., Inc. (MRK) trades at a P/E ratio of 147.7x, which is above the sector median of N/A. EV/Sales 6.0x. FCF yield 4.1%. Source: 10-Q filed 2026-11-04.
Q: Does Merck & Co., Inc. pay a dividend?
Merck & Co., Inc. (MRK) currently pays a dividend yield of 2.3%. Total shareholder yield (dividend + buybacks) 3.3%. Source: 10-Q filed 2026-11-04.
Q: How much debt does Merck & Co., Inc. have?
Merck & Co., Inc. (MRK) has a debt-to-equity ratio of 1.2x with total debt of $53.8 billion. Interest coverage 3.2x. Net debt $44.1 billion. Source: 10-Q filed 2026-11-04.
Q: What is Merck & Co., Inc.'s revenue and earnings growth?
Merck & Co., Inc. (MRK) grew revenue by 4.9% year-over-year. EPS -86.9% YoY. Source: 10-Q filed 2026-11-04.
Q: Is Merck & Co., Inc. buying back stock?
Merck & Co., Inc. (MRK) repurchased $3.5 billion of stock over the trailing twelve months. This represents a buyback yield of 1.0%. Share count -0.7% YoY. Source: 10-Q filed 2026-11-04.
Q: How does Merck & Co., Inc. compare to competitors in Healthcare?
Compared to other companies in Healthcare, Merck & Co., Inc. (MRK) shows: ROIC 3.5%, sector median -8.0% (Top 50%). FCF margin 21.9%, sector median 3.3% (Top 25%). Gross margin 71.8%, 7.9pp above sector median. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.
Q: What warning signs should I watch for with Merck & Co., Inc.?
Quantitative warning flags for Merck & Co., Inc. (MRK): 1) ROIC declining -20.2% over 8 quarters. Source: 10-Q filed 2026-11-04.
Data Source: Data sourced from 10-Q filed 2026-11-04. TTM metrics as of Q3 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.
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