A Business at a Glance
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Merck & Co., Inc.
MRK
$328.6B
Mkt Cap
$131.07
+0.45%
Merck & Co., Inc. (MRK) has a current P/E ratio of 18.0, compared to its historical median P/E of 19.7. The stock is currently considered Fair based on its historical valuation range.
Merck & Co., Inc. (MRK) has a 5-year average return on invested capital (ROIC) of 20.3%. This indicates strong capital allocation and a potential competitive advantage.
Merck & Co., Inc. (MRK) has a market capitalization of $468.9B. It is classified as a mega-cap stock.
Yes, Merck & Co., Inc. (MRK) pays a dividend with a trailing twelve-month yield of 1.76%. The company also returns capital through share buybacks, with a buyback yield of 1.02%.
Based on historical P/E analysis, Merck & Co., Inc. (MRK) appears fair. The current P/E of 18.0 is 9% below its historical median of 19.7. The estimated fair value CAGR (P/E method) is 5.2%.
Merck & Co., Inc. (MRK) operates in the Pharmaceutical Preparations industry, within the Healthcare sector.
Merck & Co., Inc. (MRK) reported annual revenue of $65.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
Merck & Co., Inc. is a global healthcare company operating through two reportable segments: Pharmaceutical and Animal Health. The Pharmaceutical segment comprises human health pharmaceutical products—therapeutic and preventive agents sold primarily by prescription through drug wholesalers, retailers, hospitals, government agencies, and managed care providers—and human health vaccines sold to physicians, wholesalers, distributors, and government entities. The Animal Health segment discovers, develops, manufactures and markets veterinary pharmaceuticals, vaccines, health management solutions, and digitally connected identification, traceability and monitoring products for livestock and companion animals, sold to veterinarians, distributors, animal producers, farmers and pet owners. The company's pharmaceutical portfolio spans oncology (including Keytruda, a PD-1 inhibitor with multiple approved indications), vaccines (including Gardasil for HPV prevention and pneumococcal vaccines), cardiometabolic and respiratory therapies (including Winrevair for pulmonary arterial hypertension), hospital acute care products, virology treatments, and diabetes medications. Animal Health comprises livestock products (antibiotics, vaccines, fertility management, and production efficiency products) and companion animal products (parasitic control and dermatology treatments). The business model relies on prescription-based distribution for pharmaceuticals and direct sales to veterinary and agricultural channels for animal health, with revenue generation through product sales and alliance revenue from collaborative arrangements. Merck's competitive positioning is anchored in its diversified, innovative pipeline spanning multiple therapeutic areas and its established market presence across global geographies.
【Pipeline transformation driving growth】 Management expects the company to enter a particularly robust period of phase III data readouts from novel candidates over the next 18 months, with an even richer array of readouts anticipated in 2027, including results for sac-TMT and other important programs. The portfolio is undergoing meaningful transformation toward a rapidly expanding and diversified set of growth drivers, with potential commercial opportunity of over $70 billion by the mid-2030s from 20-plus anticipated new growth drivers alone. In Animal Health, management has high expectations for long-term growth driven by new and ongoing product launches, with the business expected to more than double out to the mid-2030s. The company is making significant investments in manufacturing in the United States and accelerating transformation related to artificial intelligence, while remaining focused on science-led, disciplined and value-enhancing business development to support sustainable long-term growth.
| Metric | Target | Period |
|---|---|---|
| Revenue | $65.8 billion–$67 billion | FY2026 |
| EPS | $5.04–$5.16 | FY2026 |
Revenue (FY2026): “We now expect revenue to be between $65.8 billion-$67 billion, representing growth of 1%-3%, including a positive impact from foreign exchange of approximately 1 percentage point using mid-April rates.”
EPS (FY2026): “Taken together, we expect EPS of $5.04-$5.16, including a positive impact from foreign exchange of approximately $0.10 using mid-April rates.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 65.8B | 65.0B | 64.2B | 60.1B | 59.3B | 48.7B |
| Net Income | 8.9B | 18.3B | 17.1B | 365M | 14.5B | 13.0B |
| EPS | $2.50 | $7.28 | $6.74 | $0.14 | $5.71 | $5.14 |
| Free Cash Flow | 14.1B | 12.4B | 18.1B | 9.1B | 14.7B | 8.7B |
| ROIC | 0.0% | 22.9% | 25.6% | 2.8% | 24.9% | 25.3% |
| Gross Margin | - | 74.8% | 76.3% | 73.2% | 70.6% | 72.0% |
| Debt/Equity | 1.09 | 1.07 | 0.95 | 0.96 | 0.69 | 0.80 |
| Dividends/Share | $2.30 | $3.28 | $3.12 | $2.96 | $2.80 | $2.64 |
| Operating Income | 0 | 22.4B | 21.2B | 3.0B | 17.4B | 15.4B |
| Operating Margin | 0.0% | 34.5% | 33.0% | 5.0% | 29.3% | 31.6% |
| ROE | 19.5% | 36.9% | 40.8% | 0.9% | 34.5% | 41.1% |
| Shares Outstanding | 3,577M | 2,507M | 2,540M | 2,607M | 2,543M | 2,539M |
Merck & Co., Inc. passes 7 of 9 quality checks, indicating strong fundamentals.
Merck & Co., Inc. trades at 18.0x trailing earnings, compared to its 15-year median P/E of 19.7x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 26.6x vs a median of 19.1x. The company's 5-year average ROIC is 20.3% with a gross margin of 73.4%. Total shareholder yield (dividends + buybacks) is 2.8%. At current prices, the estimated annualized return to fair value is +12.0%.
Merck & Co., Inc. (MRK) has a net profit margin of 28.1%. This is a strong margin indicating high profitability.
Merck & Co., Inc. (MRK) generated $12.4 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Merck & Co., Inc. (MRK) has a debt-to-equity ratio of 1.07. This indicates moderate leverage.
Merck & Co., Inc. (MRK) reported earnings per share (EPS) of $7.28 in its most recent fiscal year.
Merck & Co., Inc. (MRK) has a return on equity (ROE) of 36.9%. This indicates the company generates strong returns for shareholders.
Merck & Co., Inc. (MRK) has a 5-year average gross margin of 73.4%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for Merck & Co., Inc. (MRK), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Merck & Co., Inc. (MRK) has a book value per share of $20.98, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the company to enter a particularly robust period of phase III data readouts from novel candidates over the next 18 months, with an even richer array of readouts anticipated in 2027, including results for sac-TMT and other important programs. The portfolio is undergoing meaningful transformation toward a rapidly expanding and diversified set of growth drivers, with potential commercial opportunity of over $70 billion by the mid-2030s from 20-plus anticipated new growth drivers alone. In Animal Health, management has high expectations for long-term growth driven by new and ongoing product launches, with the business expected to more than double out to the mid-2030s. The company is making significant investments in manufacturing in the United States and accelerating transformation related to artificial intelligence, while remaining focused on science-led, disciplined and value-enhancing business development to support sustainable long-term growth.
Based on recent SEC filings and earnings calls, Merck & Co., Inc. (MRK) has provided the following forward guidance: Revenue: $65.8 billion–$67 billion (FY2026); EPS: $5.04–$5.16 (FY2026).