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Merck KGaA (DE:MRK)
XETRA:MRK
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Merck KGaA (MRK) AI Stock Analysis

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DE:MRK

Merck KGaA

(XETRA:MRK)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
€154.00
▲(29.96% Upside)
Action:Upgraded
Date:05/16/26
The score is driven primarily by solid financial quality (strong margins and moderate leverage) tempered by weaker recent revenue/return trends and only moderate cash conversion. Technicals are supportive with an established uptrend and positive momentum, while valuation is reasonable but not especially cheap and the dividend yield is modest.
Positive Factors
Durable profitability and margins
Merck’s high gross and operating margins indicate sustained pricing power and efficient cost structure across businesses. Durable margins support steady cash generation and the ability to fund R&D and capital needs, cushioning the company through revenue volatility over coming months.
Negative Factors
Weak top-line growth
Flattening and recent declines in revenue erode operating leverage and may force tougher cost or pricing decisions. If top-line softness persists, it will reduce absolute profitability, limit reinvestment capacity and heighten execution risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable profitability and margins
Merck’s high gross and operating margins indicate sustained pricing power and efficient cost structure across businesses. Durable margins support steady cash generation and the ability to fund R&D and capital needs, cushioning the company through revenue volatility over coming months.
Read all positive factors

Merck KGaA (MRK) vs. iShares MSCI Germany ETF (EWG)

Merck KGaA Business Overview & Revenue Model

Company Description
Merck KGaA is a German science and technology company with operations divided into three core segments: Life Science, Healthcare, and Electronics. The Life Science division supplies essential tools, chemicals, and equipment to academic research in...
How the Company Makes Money
Merck KGaA generates revenue primarily by selling products and services across its three business sectors. In Healthcare, it earns money from the sale of pharmaceutical products (including certain brands marketed by the company and, in some geogra...

Merck KGaA Financial Statement Overview

Summary
Fundamentals are solid with strong, durable margins and manageable leverage, but near-term revenue momentum is weaker (flat in 2025 and sharply down in TTM as provided) and returns have cooled versus 2021–2022 highs. Cash flow is positive with recent FCF improvement, though cash conversion is only moderate.
Income Statement
71
Positive
Balance Sheet
74
Positive
Cash Flow
62
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue20.96B21.10B21.16B20.99B22.23B19.69B
Gross Profit12.27B11.89B11.95B11.67B12.84B11.60B
EBITDA5.97B5.45B5.55B5.52B6.28B5.88B
Net Income2.53B2.61B2.78B2.82B3.33B3.06B
Balance Sheet
Total Assets53.07B52.10B51.57B48.49B48.53B45.36B
Cash, Cash Equivalents and Short-Term Investments3.77B2.92B2.71B2.41B1.64B1.62B
Total Debt12.04B11.97B10.27B9.94B10.40B10.77B
Total Liabilities23.25B23.44B21.58B21.74B22.52B23.95B
Stockholders Equity29.74B28.59B29.91B26.68B25.93B21.34B
Cash Flow
Free Cash Flow2.42B2.35B2.40B1.76B2.45B3.19B
Operating Cash Flow4.19B3.93B4.59B3.78B4.26B4.62B
Investing Cash Flow-4.60B-4.26B-3.05B-1.89B-2.74B-1.58B
Financing Cash Flow2.17B628.00M-985.00M-1.73B-1.55B-2.50B

Merck KGaA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price118.50
Price Trends
50DMA
131.24
Positive
100DMA
121.51
Positive
200DMA
119.27
Positive
Market Momentum
MACD
2.86
Positive
RSI
53.39
Neutral
STOCH
11.87
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:MRK, the sentiment is Positive. The current price of 118.5 is below the 20-day moving average (MA) of 139.94, below the 50-day MA of 131.24, and below the 200-day MA of 119.27, indicating a neutral trend. The MACD of 2.86 indicates Positive momentum. The RSI at 53.39 is Neutral, neither overbought nor oversold. The STOCH value of 11.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:MRK.

Merck KGaA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
€60.74B24.008.77%1.82%-1.69%-10.15%
68
Neutral
€2.25B16.9121.44%2.34%-1.36%39.24%
63
Neutral
€23.73B16.007.76%2.05%4.22%248.36%
62
Neutral
€38.60B18.5011.59%2.13%-0.33%0.15%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
€15.12B102.986.05%0.39%3.20%70.35%
46
Neutral
€878.70M-4.55-24.55%-5.48%6.43%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:MRK
Merck KGaA
139.70
32.01
29.72%
DE:EVT
Evotec
4.95
-2.16
-30.38%
DE:FRE
Fresenius SE & Co. KGaA
42.57
1.73
4.23%
DE:SRT
Sartorius
195.60
25.74
15.15%
DE:DMP
Dermapharm Holding SE
45.50
11.69
34.56%
DE:SHL
Siemens Healthineers AG
34.59
-10.32
-22.98%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 16, 2026