# Merck & Company Inc. Common Stock (new) (MRK) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Healthcare / Pharmaceuticals. Price $150.33, market value $370.9 billion.

## Valuation
- **P/E (trailing): 120.3×** (5-yr avg 155.8×, 3-yr avg 249.4×). Merck & Company Inc. Common Stock (new) trades at 120.3× trailing earnings, well below its own five-year average of 155.8×: cheap by its own standards. The Healthcare median in the September 2026 study was 28.5×. Forward P/E is 15.7×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.97**. A PEG of 1.97 is in the range usually read as fairly priced for its growth.
- **Price / sales: 5.6×**. Each dollar of revenue is priced at 5.6×.
- **Price / book: 8.9×**. The shares trade at 8.9× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 4.3%** (5-yr avg 5.4%). Free cash flow equals 4.3% of the market value, in line with its five-year average of 5.4%.
- **Earnings yield: 0.8%**. The inverse of the P/E: 0.8% of the price is earned each year.

## Profitability
- **Net margin: 28.1%**. 28.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 34.7%**. 34.7% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on assets: 2.3%**. Each dollar of assets produces 2.3% of profit.

## Growth
- **Revenue growth (1 yr): 1.3%** (3-yr 3.1%/yr, 5-yr 9.4%/yr). Revenue grew 1.3% over the last year, against 9.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 8.0%** (3-yr 8.4%/yr, 5-yr 21.2%/yr). Earnings per share rose 8.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -5.6%/yr**. Free cash flow has compounded at -5.6% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.94**. Debt is 0.94 times equity, moderate leverage.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend yield: 2.26%** ($3.32 per share, trailing). Merck & Company Inc. Common Stock (new) yields 2.26%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 45%** (52% of free cash flow). 45% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 21**. 21 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 6.7%/yr** (1-yr 5.1%). The dividend has grown 6.7% a year over five years.

## Analyst view
- **Analyst consensus: buy** (26 analysts). 26 analysts cover Merck & Company Inc. Common Stock (new); the consensus is buy, with an average price target of $149.50 (-1% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 84.8%** (YTD 44.9%, 3-mo 25.4%). The shares are up 84.8% over twelve months including dividends.
- **From 52-week high: -4.2%** (93.8% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 62**. An RSI of 62 is neutral.
- **Beta (1 yr): 0.17** (volatility 30%). Beta of 0.17 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MRK · Page: https://foliofundamentals.com/stocks/mrk

Not investment advice.