# Merck CDR (CAD Hedged) (MRK.TO) fundamentals

Data as of 2026-11-04. TSX, Canada. Sector: Healthcare / Pharmaceuticals. Price C$32.08, market value C$489.9 billion.

## Valuation
- **P/E (trailing): 145.8×**. Merck CDR (CAD Hedged) trades at 145.8× trailing earnings. The Healthcare median in the September 2026 study was 28.5×.
- **Price / sales: 7.4×**. Each dollar of revenue is priced at 7.4×.
- **Price / book: 10.8×**. The shares trade at 10.8× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 36.4×**. Enterprise value is 36.4× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 3.3%**. Free cash flow equals 3.3% of the market value.
- **Earnings yield: 0.7%**. The inverse of the P/E: 0.7% of the price is earned each year.

## Profitability
- **Gross margin: 73.0%**. Merck CDR (CAD Hedged) keeps 73.0% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 10.5%**. 10.5% of revenue is left after running the business.
- **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 invested capital: 4.3%**. Return on all capital, debt included, is 4.3%: close to or below the cost of capital, so growth may not create value.
- **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). Revenue grew 1.3% over the last year.
- **EPS growth (1 yr): 8.0%** (3-yr 8.4%/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.
- **Net debt / EBITDA: 2.4×**. It would take 2.4 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 4.0×**. Operating profit covers interest 4.0× over, a safe margin.
- **Current ratio: 1.54** (quick 1.30). Current assets cover the next year's liabilities 1.54 times.
- **Altman Z-score: 5.29**. A Z-score of 5.29 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Merck CDR (CAD Hedged) does not currently pay a dividend, but it returned 0.9% of its market value through buybacks over the last year.

## Price and momentum
- **From 52-week high: -8.1%** (32.7% above the low). Trading 8% below 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): 56**. An RSI of 56 is neutral.
- **Beta (1 yr): 0.20** (volatility 31%). Beta of 0.20 against the S&P/TSX Composite: the shares move much less than the market.

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

Not investment advice.