Merck & Co., Inc. (MRK) Factsheet
Merck & Co., Inc. (MRK) Stock Analysis
Analysis from 10-Q filed 2025-11-05. Data as of Q4 2025.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 21.7%. FCF margin 19.0%. D/E 0.9x. Source: 10-Q filed 2025-11-05.
| Metric | Value | Context |
|---|---|---|
| ROIC | 21.7% | Above industry average |
| FCF Margin | 19.0% | Strong cash generation |
| Debt/Equity | 0.9x | Moderate leverage |
ROIC 21.7% — Top 25% of sector peers. FCF margin 19.0% — Top 5%.
Explore Merck & Co., Inc.: Earnings History | Filings | ROIC Analysis
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_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: Merck & Co., Inc. earns 21.7% ROIC, Top 25% in Healthcare
ROIC TTM 21.7%, sector median -2.6%, Top 25%. DuPont: NOPAT margin 29.5% × asset turnover 0.5x. Gross margin 74.8%. Operating margin 34.0%. Source: 10-Q filed 2025-11-05.
| Metric | MRK | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 21.7% | Excellent | Above sector median of -2.6% |
| Return on Equity (ROE) | 36.8% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 74.8% | Excellent | Strong pricing power |
| Operating Margin | 34.0% | Excellent | Efficient operations |
Cash Flow: Merck & Co., Inc. generates $12.4B FCF at 19.0% margin, positive NaN/8 quarters
FCF TTM $12.4B. FCF margin 19.0%, Top 5%. OCF/Net income 0.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-05.
| Metric | MRK | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 19.0% | Good | Excellent cash conversion |
| Free Cash Flow (TTM) | $12.4B | Good | Positive cash generation |
| OCF/Net Income | 0.9x | Good | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Merck & Co., Inc. at 0.9x leverage
Debt/Equity 0.9x. Total debt $49.3B, cash & investments $14.7B. Source: 10-Q filed 2025-11-05.
| Metric | MRK | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.9x | Adequate | Moderate leverage |
| Net Cash Position | $-34.6B | Warning | Net debt position |
Valuation: Merck & Co., Inc. trades at 14.4x earnings
P/E 14.4x. EV/Sales 4.5x. FCF yield 4.7%. Dividend yield 3.1%. Source: 10-Q filed 2025-11-05.
| Metric | MRK | Rating | Context |
|---|---|---|---|
| P/E Ratio | 14.4x | Adequate | Reasonable valuation |
| EV/Sales | 4.5x | Good | Growth premium priced in |
| FCF Yield | 4.7% | Good | Lower cash yield |
| Dividend Yield | 3.1% | Adequate | Meaningful income |
Capital Allocation: Merck & Co., Inc. returns 5.0% shareholder yield
Total shareholder yield 5.0% (div 3.1% + buyback 1.9%). Capital returned $13.3B TTM. Source: 10-Q filed 2025-11-05.
| Metric | MRK | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 5.0% | Good | Dividend + buyback yield combined |
| Buyback Yield | 1.9% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $13.3B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 21.7% | Top 25% | - |
| Free Cash Flow Margin | 19.0% | Top 5% | - |
| Gross Margin | 74.8% | Top 50% | 1.2x above |
| Operating Margin | 34.0% | Top 25% | 12.7x above |
| Return on Equity (ROE) | 36.8% | Top 25% | - |
| P/E Ratio | 14.4x | N/A | - |
Financial Scorecard
| Metric | MRK | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 21.7% | Excellent | Top 25% of sector (median: -2.6%) |
| Free Cash Flow Margin | 19.0% | Good | Top 5% of sector (median: 0.0%) |
| Gross Margin | 74.8% | Excellent | Top 50% of sector (median: 63.8%) |
| Debt to Equity Ratio | 93.8% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 14.4x | Adequate | Attractively valued |
| Free Cash Flow Yield | 4.7% | 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 21.7%. Sector median -2.6%. Source: 10-Q filed 2025-11-05.
Q: What is Merck & Co., Inc.'s Free Cash Flow Margin?
Merck & Co., Inc. (MRK) has a free cash flow margin of 19.0%, generating $12.4 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-05.
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 14.4x, which is above the sector median of N/A. EV/Sales 4.5x. FCF yield 4.7%. Source: 10-Q filed 2025-11-05.
Q: Does Merck & Co., Inc. pay a dividend?
Merck & Co., Inc. (MRK) currently pays a dividend yield of 3.1%. Total shareholder yield (dividend + buybacks) 5.0%. Source: 10-Q filed 2025-11-05.
Q: How much debt does Merck & Co., Inc. have?
Merck & Co., Inc. (MRK) has a debt-to-equity ratio of 0.9x with total debt of $49.3 billion. Net debt $34.6 billion. Source: 10-Q filed 2025-11-05.
Q: What is Merck & Co., Inc.'s revenue and earnings growth?
Merck & Co., Inc. (MRK) grew revenue by 1.3% year-over-year. EPS +8.3% YoY. Source: 10-Q filed 2025-11-05.
Q: Is Merck & Co., Inc. buying back stock?
Merck & Co., Inc. (MRK) repurchased $5.1 billion of stock over the trailing twelve months. This represents a buyback yield of 1.9%. Source: 10-Q filed 2025-11-05.
Q: How does Merck & Co., Inc. compare to competitors in Healthcare?
Compared to other companies in Healthcare, Merck & Co., Inc. (MRK) shows: ROIC 21.7%, sector median -2.6% (Top 25%). FCF margin 19.0%, sector median 0.0% (Top 5%). Gross margin 74.8%, 11.0pp 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 -5.7% over 8 quarters. Source: 10-Q filed 2025-11-05.
Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q4 2025.
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.