Price as of close on Nov 3, 2026 · Financials updated Oct 10, 2026
Basics
Sector
Healthcare
Industry
Drug Manufacturers - General
Country
United States
Market cap
356.9B USD
Enterprise value
406.8B USD
Full-time employees
73,000
Overall health
Drawback:growing more slowly than most peersgrowing more slowly than peers
Drawback:higher risk than most peers: less short-term liquidity (current ratio 1.32 vs a peer median of 2.59) and more debt relative to equity (1.29× vs a peer median of 0.22×)higher risk: less liquidity (current ratio 1.32 vs peers 2.59) and more debt vs equity (1.29× vs peers 0.22×)
About average: profitability and valuation
Ranks #874 of 1,157 healthcare companies (bottom 25%)
Merck's reported profit rose 26% since 2022, but the cash its operations generate changed −14%. When profit and cash diverge like this, it's worth understanding why (for example, customers paying more slowly or gains that aren't cash).Merck's reported profit rose 26% since 2022, but the cash its operations generate changed −14%. When profit and cash diverge like this, it's worth understanding why.
Borrowing rising faster than profit.Since 2022 (an unusually strong year for operating profit): debt +61%, operating profit +18%.Since 2022: debt +61%, operating profit +18%.
Merck's debt grew 61% since 2022 while operating profit changed +18%.
Cash flow well above reported profit. Free cash flow is 5.1× reported profit.
Free cash flow is 5.1× reported profit. Large non-cash charges, such as depreciation, amortization or stock-based pay, reduce reported profit without using cash.
Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $41.5B in 2020 to $65.0B in 2025.
Merck's fiscal-year revenue rose in each of the five years to 2025, from $41.5B to $65.0B.
Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.
Questions investors ask about Merck
Is Merck getting weaker?
Its latest SEC filing (Aug 7, 2026) got weaker in some ways: operating margin fell 8.6 points to 9.6%. Its overall score is unchanged at 37/100 since Oct 28, 2026.
How is Merck valued vs its peers?
Priced about in line with its peers. Valuation scores 54/100 against 1,393 healthcare peers.EBITDA yield 7.2% vs a peer median of 4.0% (stronger than 70% of peers).EBITDA yield 7.2% vs peers 4.0% (stronger than 70% of peers).
Is Merck growing?
More slowly than most of its peers. Growth scores 20/100 against 1,393 healthcare peers.Earnings per share growth -80.4% vs a peer median of 9.8% (weaker than 100% of peers).Earnings per share growth -80.4% vs peers 9.8% (weaker than 100% of peers).
How profitable is Merck?
About as profitable as its peers. Profitability scores 55/100 against 1,393 healthcare peers.
How risky is Merck?
Higher risk relative to 1,393 healthcare peers, judged on debt, liquidity and share-price swings.Beta 0.22 vs a peer median of 0.63 (stronger than 88% of peers).Beta 0.22 vs peers 0.63 (stronger than 88% of peers).Debt / equity 1.29× vs a peer median of 0.22× (weaker than 86% of peers).Debt / equity 1.29× vs peers 0.22× (weaker than 86% of peers). A relative measure, not a bankruptcy probability.
Latest filing: what changed
Quarter ended Jun 30, 2026 · filed Aug 7, 2026 · compared with the quarter ended Mar 31, 2026
Got weaker
Operating margin fell 8.6 points to 9.6%
Previous quarter
Latest quarter
Change
Revenue (12 months)
65.8B USD
66.6B USD
+1.2%
Net income (12 months)
8.9B USD
3.2B USD
−64.5%
Operating margin
18.2%
9.6%
−8.6 pts
Free cash flow (12 months)
14.1B USD
16.1B USD
+13.8%
Debt
49.1B USD
53.9B USD
+9.8%
Cash
5.3B USD
6.8B USD
+28.6%
Shares outstanding
2.47B
2.47B
−0.1%
From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.
Industry valuation context
Sector: Healthcare · 301 companies
Valuations in Healthcare are within their usual range since 2016.
52% of months since 2016 were valued lower than now.
19% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +8% and earnings +24% (medians): earnings grew faster than prices.
Median price-to-sales is +63% vs the whole market, against a usual +119%.
2016Shaded: most expensive fifth of its range2026
Shown for Healthcare: too few Drug Manufacturers - General companies have a long enough history of their own.
Earnings-based measures are left out for now because many companies in Healthcare are losing money.
Describes valuations since 2016; it does not predict prices. US companies worth $1B+, from SEC filings and month-end prices, as of Aug 2026. Today's companies and industry labels are used throughout. Measured on sales and free cash flow yields. How this works
Financials
Fiscal years from SEC annual filings · change vs the prior year
Key ratios
FY 2021
FY 2022
FY 2023
FY 2024
FY 2025
Change
Gross margin
72.0%
70.6%
73.2%
76.3%
74.8%
▼ 1.5 pts
Operating margin
25.7%
30.3%
3.9%
31.0%
32.6%
▲ 1.6 pts
Net margin
26.8%
24.5%
0.6%
26.7%
28.1%
▲ 1.4 pts
Return on assets (ROA)
12.3%
13.3%
0.3%
14.6%
13.3%
▼ 1.3 pts
Return on equity (ROE)
34.2%
31.6%
1.0%
37.0%
34.7%
▼ 2.3 pts
Free cash flow margin
17.8%
24.8%
15.2%
28.2%
19.0%
▼ 9.2 pts
Current ratio
1.27×
1.47×
1.25×
1.36×
1.54×
▲ 13%
Quick ratio
1.02×
1.23×
1.00×
1.15×
1.30×
▲ 13%
Debt to equity
0.87×
0.67×
0.93×
0.80×
0.94×
▲ 17%
Interest coverage
15.56×
18.65×
2.05×
15.67×
15.64×
▼ 0.2%
MRK price history
Price history is added with the daily price update and will appear after the next one.