Merck & Company (MRK) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Merck & Company

NYSE•Healthcare•Drug Manufacturers - General

$145.93-1.22(-0.01%)Market open

Market Cap

$362.65B

P/E

114.3x

P/S

5.4x

P/B

8.6x

Merck & Co., Inc. operates as a healthcare company worldwide. It offers human health pharmaceutical for various areas under the Keytruda, Keytruda Qlex, Welireg, Gardasil, ProQuad, M-M-R II, Varivax, Vaxneuvance, Capvaxive, RotaTeq, Pneumovax 23, Bridion, Prevymis, Dificid, Zerbaxa, Winrevair, Adempas/ Verquvo, Ohtuvayre, Lagevrio, Isentress/Isentress HD, Delstrigo, Pifeltro, Belsomra, Januvia, and Janumet brands. The company also provides veterinary pharmaceuticals, vaccines and health management solutions and services, such as livestock products under the Nuflor, Bovilis/Vista, Bovilis Cryptium, Banamine, Estrumate, Matrix, Resflor, Zuprevo, Revalor, Safe-Guard, M+Pac, Porcilis, Circumvent, Nobilis/Innovax, Paracox and Coccivac, Exzolt, Slice, Imvixa, Clynav, Aquavac/Norvax, Aquaflor, Flexolt brands; Allflex Livestock Intelligence solutions; and companion animal products under the Bravecto One-Month, Bravecto Injectable/Quantum, Bravecto TriUNO, Bravecto Plus, Sentinel Spectrum, Sentinel Flavor Tabs, Numelvi, Optimmune, Nobivac NXT, GilvetMab, Otomax, Mometamax, Mometamax Ultra, Posatex, Caninsulin/Vetsulin, Panacur, Safeguard, Regumate, Prestige, Scalibor/Exspot, Sure Petcare, and Home Again brands. It has development and commercialization agreement for three of Daiichi Sankyo's deruxtecan ADC candidates; AstraZeneca PLC to co-development and co-commercialize AstraZeneca's Lynparza products for multiple cancer types; licensed to develop, manufacture and commercialize LM-299, a novel investigational PD-1/VEGF bispecific antibody from LaNova; and collaboration agreement with Eisai Co., Ltd., Bayer AG, and Ridgeback Biotherapeutics LP, as well Moderna, Inc. Merck & Co., Inc. has strategic collaboration with Infinimmune, Inc. to discover and develop antibodies against multiple therapeutic targets. The company was founded in 1891 and is headquartered in Rahway, New Jersey.

How this company scores

AverageMetricSide Score: 50/100

Strongest: Cash & Earnings Quality (19/25); weakest: Balance Sheet & Red Flags (9/25).

Profitability11/25

Growth11/25

Balance Sheet & Red Flags9/25

Cash & Earnings Quality19/25

Strengths

Consistent free cash flowConsistent growthImproving marginsNo share dilution

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 114.3x5y range 10.3x – 756.9x

Currently above its 20-quarter median.

P/S · 5.4x5y range 3.1x – 5.4x

Currently above its 20-quarter median.

P/B · 8.6x5y range 3.8x – 8.6x

Currently above its 20-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 69.5% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Red Flag

FCF consistently trails net income (avg 0.2x) — earnings may be inflated by non-cash items or aggressive accounting.

Leverage Risk

Watch

Debt-to-equity has risen 75.7% recently — increasing financial risk even if the current ratio is manageable.

Price & Volume

Market Cap $362.65B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $66.57B
Q. Revenue: $16.61B
TTM EBITDA: $15.37B
TTM Op. Income: $6.38B
Q. Op. Income: $-584.00M
TTM Net Income: $3.17B
Q. Net Income: $-1.33B
EPS: $-0.54
Shares Out.: $2.47B

$66.57B in TTM revenue grew 4.6% YoY, reaching $16.61B last quarter. TTM EBITDA of $15.37B and TTM operating income of $6.38B show growth is flowing through to the bottom line. TTM net income of $3.17B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 4 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 73.5%
EBITDA Margin: 6.0%
Op. Margin: -3.5%
Net Margin: -8.0%

Op. margin of -3.5% is down 35.1% YoY — costs are rising relative to revenue. Net margin at -8.0% and gross margin of 73.5% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 111% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 114.3x
P/S Ratio: 5.4x
P/B Ratio: 8.6x

At 114.3x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 5.4x and P/B of 8.6x provide additional context. P/E sits above typical market levels while revenue growth is below 5%. Across the last 8 quarters, P/E has risen for 3 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $129.80B
Cash: $6.85B
Long-Term Debt: $51.08B
Book Value: $41.98B
D/E Ratio: 1.2
Debt/EBITDA: 51.1

With $129.80B in assets and $51.08B in long-term debt, D/E is 1.2and book value is $41.98B — moderate leverage. Across the last 8 quarters, debt/equity has risen for 5 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $5.37B
TTM Free Cash Flow: $16.06B
FCF Margin: 24.1%
FCF / Net Income: 5.1

TTM FCF of $16.06B on $5.37B in operating cash flow. The FCF / Net Income ratio of 5.1x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.