Merck KGaA (MRK.DE) stock analysis

In our weekly check, Merck KGaA is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 7, red flags: 2.

About Merck KGaA

Merck KGaA is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in Germany, listed on XETRA as MRK.DE.

What our checks show for MRK.DE

Red flags

• The net margin fell by 4.3 points over 5 years, to 11.2%: the company keeps less of each sale as profit.
• Revenue fell 1.7% a year over the last 3 years.

Warning signs

• Analysts expect only about 4.9% a year of growth in revenue.
• Earnings per share fell 10.7% a year over the last 3 years.
• Net profit fell 10.7% a year over the last 3 years.
• The stock has fallen as much as 55% from a peak. Would you have held through that?
• The stock is still below its previous peak.
• Thinly traded (about 267 thousand shares a day): buying and selling can move the price.
• Return on capital (ROCE) is only 9.3%.

Strengths

• Operating profit covers interest 8.5 times over.
• Operating cash flow is 1.78x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 26.8% a year over the next years.
• Analysts expect the net margin to improve by 6.8 points from today's 11.2%.
• Free cash flow is 12.5% of revenue: cash for dividends, buybacks or growth.
• The dividend takes 44% of profit: there is a cushion.

Next earnings report: 2026-11-12

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Questions

What grade does Merck KGaA (MRK.DE) have?

In our weekly check, Merck KGaA is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 7, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of MRK.DE stock?

This week's biggest flags for Merck KGaA: Margins falling, Weak revenue growth, Weak revenue forecast. In total 9 of 25 checks show a warning or a red flag.

What does Merck KGaA do?

Merck KGaA is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in Germany, listed on XETRA as MRK.DE.

When does Merck KGaA report earnings next?

The next earnings report is expected on 2026-11-12. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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