MRK
Merck & Co.
$119.60
▲ 3.6%Updated Today 5:06 AM ET
▲ Up 43.6% over the last 12 months
Market Cap
$295.39B
P/E
32.95x
Forward P/E (est.)
47.07x
ROE
17.9%
Revenue Growth
2.9%
EPS Growth
-48.3%
Profit Margin
13.6%
FCF Yield
2.9%
Debt / Equity
0.94x
ROIC
—
Interest Coverage
—
Current Ratio
1.3x
Dividend Yield
3.0%
Implied Growth (rev. DCF)
4.6%
Rating Score
40/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what MRK's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. MRK trades near $119.60, above its 50-day average ($115.51) and 200-day average ($105.72). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 58 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. MRK's is $3.35 (~2.8% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month MRK found buyers near $111.57 (support) and sellers near $123.46 (resistance); its 52-week range is $76.66–$125.14. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.9× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
Merck & Co. (MRK) is a mega-cap company in the Pharmaceuticals industry, part of the Health Care sector of the S&P 500, with a market value around $295.39B.
In its latest reported year it generated about $65.01B in revenue and $18.25B in net profit.
Our model rates MRK Weak (40/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
7.5%
Revenue moved from $48.70B in 2021 to $65.01B in 2025, a 7.5% compound annual growth rate. The most recent year was roughly flat (2.9%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
78.1%
Operating Margin
18.2%
Net Margin
28.1%
ROE
17.9%
Merck & Co. keeps about 13.6% of each sales dollar as net profit, with a 78.1% gross margin and 18.2% operating margin. Return on equity is 17.9%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$18.10B
Net Debt
$12.77B
Net Debt / EBITDA
—
Debt / Equity
0.94x
Leverage: debt-to-equity is 0.9x, with a current ratio of 1.3x. That is a moderate, manageable debt load for most businesses. It carries roughly $18.10B of total debt against $5.33B of cash.
Operating CF
$16.47B
Free Cash Flow
$12.36B
FCF Margin
19.0%
In the latest year Merck & Co. produced about $16.47B of operating cash flow and $12.36B of free cash flow after capital spending. That is a free-cash-flow yield of about 2.9% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
32.95x
P/S
4.36x
P/B
5.16x
EV / EBITDA
—
MRK trades at 33.0x trailing earnings (about 47.1x on estimated forward earnings), 4.4x sales, and 5.2x book value. Reverse-engineering today's price implies the market expects roughly 4.6% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How MRK stacks up against its Health Care peers — valuation, profitability, and growth versus the sector median.
In the Health Care sector (59 S&P 500 companies), MRK ranks #48 of 59 by our overall rating. It trades at a premium versus the sector on earnings (33x P/E vs. 25.5x median) with a higher return on equity (17.9% vs. 14.9%) and slower revenue growth (2.9% vs. 7.9%).
P/E vs sector
33x
median 25.5x
ROE vs sector
17.9%
median 14.9%
Growth vs sector
2.9%
median 7.9%
Sector rank
#48
of 59 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Health Care companies by sub-industry and size. Sector median is across all 59 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$170.88 – $281.95
vs. $119.60 today · expected CAGR 7% – 19%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $66.96B | $68.97B | $71.04B | $73.17B | $75.37B |
| Net income | $18.75B | $19.31B | $19.89B | $20.49B | $21.10B |
| EPS | $7.59 | $7.82 | $8.05 | $8.30 | $8.54 |
| Share price (low) | $151.83 | $156.38 | $161.07 | $165.90 | $170.88 |
| Share price (high) | $250.51 | $258.03 | $265.77 | $273.74 | $281.95 |
| CAGR (low–high) | 27% / 109% | 14% / 47% | 10% / 30% | 9% / 23% | 7% / 19% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for MRK:
- Strong return on equity (17.9%) shows capital is put to work well.
- Pays a 3.0% dividend on top of any price gains.
The case against MRK:
- Revenue growth is slow (2.9%), limiting the upside engine.
- Our model's overall read is Weak (40/100).
Valuation risk — at 33.0x earnings, disappointing results could compress the multiple.
Growth risk — sluggish revenue (2.9%) leaves little margin for execution missteps.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen weakly: Merck & Co. is a mega-cap health care business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 33.0x earnings, which our model scores Weak (40/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
MRK — frequently asked questions
Is MRK a good stock to buy?
We don't give buy or sell advice. Our model rates Merck & Co. Weak (40/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is MRK's rating on The Stocks School?
Merck & Co. currently scores 40/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does MRK's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Merck & Co.'s SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for MRK calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this MRK analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell MRK. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.