MRK

Merck & Co Inc

Exchange: NYSESector: HealthcareIndustry: Drug Manufacturers - General

At Merck, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people and communities.

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A mega-cap stock valued at $284B.

Current Price

$114.62

+1.53%

GoodMoat Value

$189.57

65.4% undervalued

Profile

Valuation (TTM)

Market Cap$284.49B

P/E15.59

EV$321.89B

P/B5.41

Shares Out2.48B

P/Sales4.38

Revenue$65.01B

EV/EBITDA11.30

Merck & Co Inc (MRK) Financial Statements

GoodMoat Analysis

Based on data as of March 26, 2026

Merck exhibits strong profitability and a healthy balance sheet, with robust ROE and operating margins. However, its revenue growth is modest and free cash flow generation, while positive, is not at the high-conversion levels typically sought for a high-quality growth compounder.

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Merck's financial quality is a mix of strong profitability metrics and moderate growth indicators. The company demonstrates high profitability with an operating margin of 32.6% and a remarkable return on equity of 34.7%, which far exceeds the framework's 15-20% high-quality threshold for ROIC/ROE. This indicates efficient use of shareholder capital. The balance sheet is manageable with a debt-to-equity ratio of 0.94, which is below the framework's cautionary level of 1.0x Debt/EBITDA, suggesting a reasonable capital structure. Revenue growth of 5.0% YoY is consistent but modest, falling short of the double-digit, sustainable growth target for a high-quality growth company. Free cash flow generation is positive with a 4.2% FCF yield, but this implies a conversion rate from net income that is below the >90% benchmark for high-quality cash generators. The profit margin of 28.1% is strong. Overall, Merck scores well on profitability and balance sheet health but shows weaker signals on revenue growth trajectory and premium free cash flow conversion, positioning it more as a stable, profitable entity rather than a high-growth compounder under this framework.

MRK Financial Data

EBITDA$28.25B

Revenue (TTM)$65.01B

Gross Profit (TTM)$48.63B

Gross Margin—

Operating Margin32.64%

ROE34.70%

ROA13.34%

Debt/Equity0.94

Current Ratio1.54

FCF$12.36B

FCF Yield4.34%

Piotroski F-Score—

Rev/Share (TTM)$26.19

50-Day MA$118.36

200-Day MA$97.87

Shares Outstanding2.48B

MRK Computed Insights

FCF$12.36B

FCF Growth Rate3.47%

EPS Growth (CAGR)10.84%

WACC10.00%

Income Statement

Balance Sheet

Cash Flow Statement

MRK Financial Statements & Data

Merck & Co Inc (MRK) financial data including income statement, balance sheet, and cash flow statement. This page provides a comprehensive view of Merck & Co Inc's financial performance and position as a Healthcare company.

Trailing twelve-month (TTM) revenue is $65.01B. Gross profit (TTM) is $48.63B. EBITDA is $28.25B. Earnings per share (EPS) is $7.28. The P/E ratio is 15.59. Market capitalization is $284.49B.

Free cash flow (FCF) is $12.36B. FCF growth rate is 3.47%. EPS growth CAGR is 10.84%. Weighted average cost of capital (WACC) is 10.00%.

Historical revenue data covers 7 years from FY19 to FY25. Net income history spans 7 years. Free cash flow and capital expenditure data spans 7 years. GoodMoat displays interactive charts for revenue, net income, FCF vs CAPEX, and cash-to-debt ratios to help investors identify financial trends.

Use Merck & Co Inc's financial data to assess the company's earnings quality, balance sheet health, and cash generation. Compare key metrics across periods to identify trends before making investment decisions with GoodMoat's valuation tools.