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Merck (MRK) Stock Analysis

This is a peer-relative look at Merck (MRK): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Pharmaceuticals, Biotechnology & Life Sciences peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Merck (MRK)
Profile ItemMRK
NameMerck & Co., Inc.
Country/RegionUnited States
GICS SectorHealth Care
GICS Industry GroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
GICS Sub-IndustryPharmaceuticals
Market Capitalization370.89 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJanuary 2, 1962
Security TypeCommon Stock

Price Performance

Cumulative Growth

MRK
GSPC
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Merck (MRK) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Merck (MRK) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Merck (MRK) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Merck (MRK) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: MRKIndustry group median
Total Return (1Y)84.84%48.26%
Total Return (3Y, Annualized)14.50%12.46%
Total Return (5Y, Annualized)17.86%-4.88%

Risk Profile

Drawdown History

MRK
GSPC
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Merck (MRK) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Merck (MRK) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Merck (MRK) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: MRKIndustry group median
Volatility (1Y, Annualized)30.44%67.21%
Beta (5Y)0.200.93
Max Drawdown (5Y)-43.44%-82.64%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. MRK is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Merck (MRK) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: MRKIndustry group median
Sharpe Ratio (1Y)2.650.78
Sortino Ratio (1Y)5.061.30

Profitability

ROE (TTM)

Merck (MRK) posts ROE of 6.96%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

6.96%

Group distribution
Max
102.29%
MRK
6.96%
Q3
3.16%
Median
-32.34%
Q1
-64.79%
Min
-157.61%
Largest peers
LLY
102.29%
AMGN
91.47%
NVS
30.35%
JNJ
25.74%
AZN
21.97%
MRK
6.96%
ABBV
--
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Where Merck (MRK) stands on ROE within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Merck (MRK) keeps 4.77% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

4.77%

Group distribution
Max
12.02%
MRK
4.77%
Q3
2.44%
Median
0.00%
Q1
-4.89%
Min
-13.51%
Largest peers
LLY
33.53%
AMGN
22.95%
NVS
22.50%
JNJ
21.48%
AZN
17.02%
ABBV
9.80%
MRK
4.77%
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Where Merck (MRK) stands on net margin within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Merck (MRK) has negative operating margin of -0.24%. Core operations were loss-making before interest and taxes over the trailing period.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

-0.24%

Group distribution
Max
76.04%
Q3
10.45%
Median
0.00%
MRK
-0.24%
Q1
-120.32%
Min
-308.66%
Largest peers
LLY
54.22%
ABBV
40.04%
AMGN
35.55%
NVS
34.62%
JNJ
29.19%
AZN
23.46%
MRK
-0.24%
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Where Merck (MRK) stands on operating margin within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Merck (MRK) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: MRKIndustry group median
ROE (TTM)6.96%-32.34%
ROA (TTM)11.87%-14.69%
Net Margin (TTM)4.77%0.00%
Operating Margin (TTM)-0.24%0.00%
Gross Margin (TTM)75.90%33.96%

Growth

Revenue Growth

Merck (MRK) grew revenue 1.31%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Merck (MRK): Revenue Growth across different time periods, set against Pharmaceuticals, Biotechnology & Life Sciences industry-group medians.

EPS Growth

Merck (MRK) grew earnings per share 8.01%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Merck (MRK): EPS Growth across different time periods, set against Pharmaceuticals, Biotechnology & Life Sciences industry-group medians.

Growth Metrics

Merck (MRK) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: MRKIndustry group median
Revenue Growth (YoY)1.31%10.61%
Revenue Growth (3Y CAGR)3.12%10.96%
EPS Growth (YoY)8.01%3.16%
EPS Growth (3Y CAGR)8.43%3.62%

Financial Strength

Current Ratio (MRQ)

Merck (MRK) has current ratio of 1.32, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.32

Group distribution
Max
26.10
Q3
12.34
Median
5.72
Q1
2.80
MRK
1.32
Min
0.10
Largest peers
AMGN
1.37
LLY
1.36
MRK
1.32
JNJ
1.09
AZN
0.89
NVS
0.86
ABBV
0.81
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Where Merck (MRK) stands on current ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Merck (MRK) has debt-to-equity ratio of 1.28, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.28

Group distribution
Max
1.56
MRK
1.28
Q3
0.64
Median
0.14
Q1
0.02
Min
0.00
Largest peers
AMGN
4.90
LLY
1.62
MRK
1.28
NVS
1.17
AZN
0.64
JNJ
0.58
ABBV
--
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Where Merck (MRK) stands on debt-to-equity ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Merck (MRK) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: MRKIndustry group median
Current Ratio (MRQ)1.325.72
Debt / Equity (MRQ)1.280.14
Net Debt / EBITDA1.621.15

Dividends

Dividend Yield (TTM)

Merck (MRK) has dividend yield of 2.18%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.18%

Group distribution
MRK
2.18%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
NVS
2.86%
ABBV
2.62%
AMGN
2.21%
MRK
2.18%
AZN
1.96%
JNJ
1.88%
LLY
0.56%
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Where Merck (MRK) stands on dividend yield within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Merck (MRK) has payout ratio of 268.80%, meaning dividends exceeded current-period earnings. The gap would need to be covered by cash, retained earnings, financing, or other sources, so earnings alone do not support the payout.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

268.80%

Group distribution
MRK
268.80%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
MRK
268.80%
ABBV
190.40%
NVS
71.60%
AMGN
60.87%
JNJ
60.79%
AZN
47.41%
LLY
21.69%
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Where Merck (MRK) stands on payout ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Merck (MRK) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: MRKIndustry group median
Dividend Yield (TTM)2.18%0.00%
Dividend Payout Ratio (TTM)268.80%0.00%

Valuation

P/E Ratio (TTM)

Merck (MRK) trades at P/E ratio of 120.26, above the peer range for its industry. The market is paying unusually heavily for TTM earnings relative to comparable companies.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

120.26

Group distribution
MRK
120.26
Max
83.73
Q3
44.68
Median
28.50
Q1
15.51
Min
0.14
Largest peers
MRK
120.26
ABBV
72.45
LLY
38.61
JNJ
31.97
AMGN
27.17
AZN
24.32
NVS
24.17
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Where Merck (MRK) stands on P/E ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Merck (MRK) trades at 5.57 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

5.57

Group distribution
Max
65.27
Q3
29.50
Median
7.31
MRK
5.57
Q1
3.49
Min
0.01
Largest peers
LLY
12.86
ABBV
7.04
JNJ
6.77
AMGN
6.21
MRK
5.57
NVS
5.36
AZN
4.11
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Where Merck (MRK) stands on P/S ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Merck (MRK) trades at 8.85 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

MRK

Pharmaceuticals, Biotechnology & Life Sciences industry group

8.85

Group distribution
Max
15.46
MRK
8.85
Q3
7.32
Median
4.02
Q1
1.90
Min
-5.81
Largest peers
LLY
30.24
AMGN
20.22
MRK
8.85
JNJ
7.80
NVS
7.32
AZN
5.02
ABBV
-76.35
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Where Merck (MRK) stands on P/B ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Merck (MRK) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: MRKIndustry group median
P/E Ratio (TTM)120.2628.50
P/S Ratio (TTM)5.577.31
P/B Ratio (MRQ)8.854.02
Free Cash Flow Yield (TTM)4.09%-1.84%