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Merck & Co., Inc. (MRK) 10-Year Financial Performance & Capital Metrics

MRK • • Industrial / General
HealthcareLarge PharmaBroad-Based Pharmaceutical GiantsGlobal Pharma Diversified Leaders
AboutMerck & Co., Inc. operates as a healthcare company worldwide. It operates through two segments, Pharmaceutical and Animal Health. The Pharmaceutical segment offers human health pharmaceutical products in the areas of oncology, hospital acute care, immunology, neuroscience, virology, cardiovascular, and diabetes, as well as vaccine products, such as preventive pediatric, adolescent, and adult vaccines. The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, and health management solutions and services, as well as digitally connected identification, traceability, and monitoring products. It serves drug wholesalers and retailers, hospitals, and government agencies; managed health care providers, such as health maintenance organizations, pharmacy benefit managers, and other institutions; and physicians and physician distributors, veterinarians, and animal producers. The company has collaborations with AstraZeneca PLC; Bayer AG; Eisai Co., Ltd.; Ridgeback Biotherapeutics; and Gilead Sciences, Inc. to jointly develop and commercialize long-acting treatments in HIV. Merck & Co., Inc. was founded in 1891 and is headquartered in Kenilworth, New Jersey.Show more
  • Revenue $64.17B +6.7%
  • EBITDA $24.72B +262.1%
  • Net Income $17.12B +4589.6%
  • EPS (Diluted) 6.74 +4714.3%
  • Gross Margin 76.32% +4.3%
  • EBITDA Margin 38.52% +239.3%
  • Operating Margin 31.51% +541.3%
  • Net Margin 26.68% +4293.2%
  • ROE 40.75% +4572.3%
  • ROIC 21.91% +554.6%
  • Debt/Equity 0.83 -14.4%
  • Interest Coverage 15.91 +517.2%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓Excellent 3Y average ROE of 25.4%
  • ✓Strong Piotroski F-Score: 8/9
  • ✓FCF machine: 28.2% free cash flow margin
  • ✓13 consecutive years of dividend growth
  • ✓High quality earnings: Operating CF exceeds net income
  • ✓Strong 5Y sales CAGR of 10.4%

✗Weaknesses

No significant weaknesses identified

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y4.27%
5Y10.4%
3Y9.63%
TTM1.68%

Profit (Net Income) CAGR

10Y3.68%
5Y11.7%
3Y9.47%
TTM56.68%

EPS CAGR

10Y5.17%
5Y12.03%
3Y9.45%
TTM58.7%

ROCE

10Y Avg12.82%
5Y Avg15.23%
3Y Avg16.44%
Latest23.84%

Peer Comparison

Global Pharma Diversified Leaders
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Size & Scale
Valuation
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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
AZNAstraZeneca PLC293.03B94.5183.6418.04%16.17%20.45%2.48%0.74
GSKGSK plc100.65B49.9040.243.46%17.08%25.91%3.55%1.30
JNJJohnson & Johnson514.75B213.6536.904.3%27.26%31.69%3.85%0.53
NVSNovartis AG271.72B141.6124.1210.85%25.53%32.16%5.08%0.71
SNYSanofi114.36B47.2021.556.41%21.16%12.99%5.15%0.23
PFEPfizer Inc.143B25.1517.846.84%15.64%10.55%6.88%0.76
MRKMerck & Co., Inc.268.7B108.2616.066.74%29.63%36.67%6.73%0.83

Profit & Loss

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Sales/Revenue+39.5B39.81B40.12B42.29B39.12B41.52B48.7B59.28B60.12B64.17B
Revenue Growth %-0.06%0.01%0.01%0.05%-0.08%0.06%0.17%0.22%0.01%0.07%
Cost of Goods Sold+14.93B14.03B12.91B13.51B12.02B13.62B13.63B17.41B16.13B15.19B
COGS % of Revenue0.38%0.35%0.32%0.32%0.31%0.33%0.28%0.29%0.27%0.24%
Gross Profit+24.56B25.78B27.21B28.79B27.11B27.9B35.08B41.87B43.99B48.98B
Gross Margin %0.62%0.65%0.68%0.68%0.69%0.67%0.72%0.71%0.73%0.76%
Gross Profit Growth %-0.04%0.05%0.06%0.06%-0.06%0.03%0.26%0.19%0.05%0.11%
Operating Expenses+17.02B20.28B20.41B19.85B19.18B22.35B21.88B23.59B41.03B28.75B
OpEx % of Revenue0.43%0.51%0.51%0.47%0.49%0.54%0.45%0.4%0.68%0.45%
Selling, General & Admin10.31B10.02B10.07B10.1B9.46B8.57B9.4B9.67B9.88B10.1B
SG&A % of Revenue0.26%0.25%0.25%0.24%0.24%0.21%0.19%0.16%0.16%0.16%
Research & Development6.7B10.26B10.34B9.75B9.72B13.4B12.24B13.55B30.53B17.94B
R&D % of Revenue0.17%0.26%0.26%0.23%0.25%0.32%0.25%0.23%0.51%0.28%
Other Operating Expenses00000386M231M373M620M716M
Operating Income+7.55B5.5B6.8B8.93B7.93B5.55B13.2B18.28B2.95B20.22B
Operating Margin %0.19%0.14%0.17%0.21%0.2%0.13%0.27%0.31%0.05%0.32%
Operating Income Growth %0.13%-0.27%0.24%0.31%-0.11%-0.3%1.38%0.39%-0.84%5.85%
EBITDA+13.92B10.97B11.47B13.45B11.24B9.03B16.41B22.19B6.83B24.72B
EBITDA Margin %0.35%0.28%0.29%0.32%0.29%0.22%0.34%0.37%0.11%0.39%
EBITDA Growth %0.04%-0.21%0.05%0.17%-0.16%-0.2%0.82%0.35%-0.69%2.62%
D&A (Non-Cash Add-back)6.38B5.47B4.68B4.52B3.31B3.49B3.21B3.91B3.87B4.5B
EBIT6.07B5.35B7.28B9.47B8.06B6.69B14.69B17.41B3.04B21.21B
Net Interest Income+-383M-365M-369M-429M-619M-772M-770M-805M-781M-856M
Interest Income289M328M385M343M274M59M36M157M365M415M
Interest Expense672M693M754M772M893M831M806M962M1.15B1.27B
Other Income/Expense-2.15B-840M-276M-230M-755M315M680M-1.84B-1.06B-285M
Pretax Income+5.4B4.66B6.52B8.7B7.17B5.86B13.88B16.44B1.89B19.94B
Pretax Margin %0.14%0.12%0.16%0.21%0.18%0.14%0.28%0.28%0.03%0.31%
Income Tax+942M718M4.1B2.51B1.56B1.34B1.52B1.92B1.51B2.8B
Effective Tax Rate %0.82%0.84%0.37%0.71%1.37%1.21%0.94%0.88%0.19%0.86%
Net Income+4.44B3.92B2.39B6.22B9.84B7.07B13.05B14.52B365M17.12B
Net Margin %0.11%0.1%0.06%0.15%0.25%0.17%0.27%0.24%0.01%0.27%
Net Income Growth %-0.63%-0.12%-0.39%1.6%0.58%-0.28%0.85%0.11%-0.97%45.9%
Net Income (Continuing)4.46B3.94B2.42B6.19B5.61B4.52B12.36B14.53B377M17.13B
Discontinued Operations00004.15B2.55B704M000
Minority Interest91M220M233M181M94M87M73M67M54M59M
EPS (Diluted)+1.562.040.932.323.822.785.145.710.146.74
EPS Growth %-0.62%0.31%-0.54%1.49%0.65%-0.27%0.85%0.11%-0.98%47.14%
EPS (Basic)1.602.070.952.403.842.795.165.730.146.76
Diluted Shares Outstanding2.84B2.79B2.75B2.68B2.58B2.54B2.54B2.54B2.55B2.54B
Basic Shares Outstanding2.78B2.75B2.7B2.59B2.56B2.53B2.53B2.53B2.61B2.53B
Dividend Payout Ratio1.15%1.31%2.16%0.83%0.58%0.88%0.51%0.48%20.4%0.46%

Balance Sheet

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Total Current Assets+29.75B30.61B24.77B25.88B27.48B27.76B30.27B35.72B32.17B38.78B
Cash & Short-Term Investments13.43B14.34B8.5B8.86B10.45B8.05B8.1B13.19B7.09B13.69B
Cash Only8.52B6.51B6.09B7.96B9.68B8.05B8.1B12.69B6.84B13.24B
Short-Term Investments4.9B7.83B2.41B899M774M00498M252M447M
Accounts Receivable6.48B7.02B6.87B7.07B6.78B6.8B9.23B9.45B10.35B10.28B
Days Sales Outstanding59.9264.3562.5361.0263.2459.8169.1758.1862.8458.46
Inventory4.7B4.87B5.1B5.44B5.98B5.55B5.95B5.91B6.36B6.11B
Days Inventory Outstanding114.87126.59144.06146.98181.59148.86159.46123.92143.91146.76
Other Current Assets5.14B4.39B4.3B4.5B4.28B7.36B6.99B7.17B8.37B8.71B
Total Non-Current Assets+71.93B64.76B63.11B56.76B56.91B63.82B75.43B73.44B74.51B78.32B
Property, Plant & Equipment12.51B12.03B12.44B13.29B15.05B17B19.28B21.42B23.05B23.78B
Fixed Asset Turnover3.16x3.31x3.23x3.18x2.60x2.44x2.53x2.77x2.61x2.70x
Goodwill17.72B18.16B18.28B18.25B19.43B18.88B21.26B21.2B21.2B21.67B
Intangible Assets22.6B17.3B14.18B13.1B14.2B14.1B22.93B20.27B18.01B16.37B
Long-Term Investments13.04B11.42B12.13B6.23B1.47B785M370M1.01B252M463M
Other Non-Current Assets6.05B5.85B6.08B5.88B6.77B13.06B11.58B9.53B12B16.04B
Total Assets+101.68B95.38B87.87B82.64B84.4B91.59B105.69B109.16B106.67B117.11B
Asset Turnover0.39x0.42x0.46x0.51x0.46x0.45x0.46x0.54x0.56x0.55x
Asset Growth %0.04%-0.06%-0.08%-0.06%0.02%0.09%0.15%0.03%-0.02%0.1%
Total Current Liabilities+19.2B17.2B18.61B22.21B22.22B27.33B23.87B24.24B25.69B28.42B
Accounts Payable2.53B2.81B3.1B3.32B3.74B4.33B4.61B4.26B3.92B4.08B
Days Payables Outstanding61.9173.0387.6989.65113.55115.98123.4689.3988.7797.99
Short-Term Debt2.58B568M3.06B5.31B3.61B6.43B2.41B1.95B1.37B2.65B
Deferred Revenue (Current)0000000000
Other Current Liabilities00000795M-304M-281M-285M-282M
Current Ratio1.55x1.78x1.33x1.17x1.24x1.02x1.27x1.47x1.25x1.36x
Quick Ratio1.30x1.50x1.06x0.92x0.97x0.81x1.02x1.23x1.00x1.15x
Cash Conversion Cycle112.88117.92118.89118.36131.2892.69105.1792.71117.97107.23
Total Non-Current Liabilities+37.71B37.87B34.69B33.55B36.18B38.86B43.56B38.86B43.35B42.31B
Long-Term Debt23.83B24.27B21.35B19.81B22.74B25.36B30.69B28.75B33.68B34.46B
Capital Lease Obligations0000768M1.33B1.23B1.01B928M877M
Deferred Tax Liabilities6.54B5.08B2.22B1.7B1.47B1B3.44B1.79B871M1.39B
Other Non-Current Liabilities7.34B8.51B11.12B12.04B11.2B11.16B8.21B7.31B7.86B5.59B
Total Liabilities56.91B55.07B53.3B55.76B58.4B66.18B67.44B63.1B69.04B70.73B
Total Debt+26.41B24.84B24.41B25.11B27.35B33.42B34.63B31.98B36.27B38.27B
Net Debt17.89B18.33B18.32B17.15B17.68B25.37B26.54B19.29B29.43B25.03B
Debt / Equity0.59x0.62x0.71x0.93x1.05x1.32x0.91x0.69x0.96x0.83x
Debt / EBITDA1.90x2.26x2.13x1.87x2.43x3.70x2.11x1.44x5.31x1.55x
Net Debt / EBITDA1.28x1.67x1.60x1.28x1.57x2.81x1.62x0.87x4.31x1.01x
Interest Coverage11.23x7.94x9.01x11.57x8.88x6.68x16.38x19.00x2.58x15.91x
Total Equity+44.77B40.31B34.57B26.88B26B25.4B38.26B46.06B37.63B46.37B
Equity Growth %-0.08%-0.1%-0.14%-0.22%-0.03%-0.02%0.51%0.2%-0.18%0.23%
Book Value per Share15.7614.4612.5810.0310.0810.0015.0718.1214.7818.25
Total Shareholders' Equity44.68B40.09B34.34B26.7B25.91B25.32B38.18B45.99B37.58B46.31B
Common Stock1.79B1.79B1.79B1.79B1.79B1.79B1.79B1.79B1.79B1.79B
Retained Earnings45.35B44.13B41.35B42.58B46.6B47.36B53.7B61.08B53.9B63.07B
Treasury Stock-38.53B-40.55B-43.79B-50.93B-55.95B-56.79B-57.11B-56.49B-57.45B-58.3B
Accumulated OCI-4.15B-5.23B-4.91B-5.54B-6.19B-6.63B-4.43B-4.77B-5.16B-4.95B
Minority Interest91M220M233M181M94M87M73M67M54M59M

Cash Flow

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Cash from Operations+12.42B10.38B6.45B10.92B13.44B10.25B14.11B19.09B13.01B21.47B
Operating CF Margin %0.31%0.26%0.16%0.26%0.34%0.25%0.29%0.32%0.22%0.33%
Operating CF Growth %0.58%-0.16%-0.38%0.69%0.23%-0.24%0.38%0.35%-0.32%0.65%
Net Income4.46B3.94B2.42B6.19B9.78B7.08B12.36B14.53B365M17.13B
Depreciation & Amortization6.38B5.44B4.64B4.52B3.65B3.63B3.21B3.91B3.87B4.5B
Stock-Based Compensation299M300M312M348M417M441M479M541M645M761M
Deferred Taxes-764M-1.52B-2.62B-509M-556M-668M187M-1.57B-1.9B-1.25B
Other Non-Cash Items2.32B4.82B6.72B1.92B2.22B4.36B1.71B4.47B12.23B3.99B
Working Capital Changes-268M-2.6B-5.02B-1.55B-2.07B-4.59B-3.84B-2.78B-2.21B-3.67B
Change in Receivables-480M-619M297M-418M294M-1B-2.03B-644M-1.15B-244M
Change in Inventory805M206M-145M-911M-508M-855M-674M-161M-816M-835M
Change in Payables-37M278M254M230M399M724M405M-289M-380M182M
Cash from Investing+-4.76B-3.21B2.68B4.31B-2.63B-9.44B-16.55B-4.96B-14.08B-7.73B
Capital Expenditures-1.28B-1.61B-1.89B-2.62B-3.47B-4.68B-4.45B-4.39B-3.86B-3.37B
CapEx % of Revenue0.03%0.04%0.05%0.06%0.09%0.11%0.09%0.07%0.06%0.05%
Acquisitions----------
Investments----------
Other Investing221M482M38M102M378M130M-225M32M1.11B-127M
Cash from Financing+-5.39B-9.04B-10.01B-13.16B-8.86B-2.83B2.59B-9.12B-4.81B-7.03B
Debt Issued (Net)----------
Equity Issued (Net)----------
Dividends Paid-5.12B-5.12B-5.17B-5.17B-5.7B-6.21B-6.61B-7.01B-7.45B-7.84B
Share Repurchases----------
Other Financing424M821M304M266M366M-347M8.41B-240M-203M-195M
Net Change in Cash----------
Free Cash Flow+11.14B8.76B4.56B8.31B9.97B5.57B9.66B14.71B9.14B18.1B
FCF Margin %0.28%0.22%0.11%0.2%0.25%0.13%0.2%0.25%0.15%0.28%
FCF Growth %1.01%-0.21%-0.48%0.82%0.2%-0.44%0.73%0.52%-0.38%0.98%
FCF per Share3.923.141.663.103.862.193.815.793.597.12
FCF Conversion (FCF/Net Income)2.80x2.65x2.69x1.76x1.37x1.45x1.08x1.32x35.63x1.25x
Interest Paid0000000000
Taxes Paid0000000000

Key Ratios

Metric2015201620172018201920202021202220232024
Return on Equity (ROE)9.5%9.22%6.39%20.24%37.23%27.5%41%34.44%0.87%40.75%
Return on Invested Capital (ROIC)9.03%6.8%9.14%13.82%13.56%8.81%17.13%21.07%3.35%21.91%
Gross Margin62.19%64.75%67.82%68.06%69.28%67.2%72.02%70.63%73.17%76.32%
Net Margin11.25%9.85%5.97%14.71%25.16%17.02%26.79%24.49%0.61%26.68%
Debt / Equity0.59x0.62x0.71x0.93x1.05x1.32x0.91x0.69x0.96x0.83x
Interest Coverage11.23x7.94x9.01x11.57x8.88x6.68x16.38x19.00x2.58x15.91x
FCF Conversion2.80x2.65x2.69x1.76x1.37x1.45x1.08x1.32x35.63x1.25x
Revenue Growth-6.48%0.78%0.79%5.41%-7.5%6.13%17.31%21.72%1.4%6.74%

Revenue by Segment

2015201620172018201920202021202220232024
Pharmaceutical segment34.78B35.15B35.39B37.69B41.75B43.02B42.75B52.01B53.58B57.4B
Pharmaceutical segment Growth-1.06%0.68%6.50%10.78%3.04%-0.62%21.64%3.03%7.12%
Animal Health segment---4.21B4.39B4.7B5.57B5.55B5.63B5.88B
Animal Health segment Growth----4.30%7.06%18.39%-0.32%1.35%4.48%
Others4.72B4.66B4.73B393M696M23M382M1.73B907M891M
Others Growth--1.27%1.63%-91.69%77.10%-96.70%1560.87%352.36%-47.51%-1.76%

Revenue by Geography

2015201620172018201920202021202220232024
UNITED STATES17.52B18.48B17.42B18.21B20.32B21.03B22.43B27.21B-32.28B
UNITED STATES Growth-5.47%-5.70%4.52%11.60%3.45%6.65%21.32%--
EMEA10.68B10.95B11.48B12.21B12.71B13.6B13.34B14.49B-14.04B
EMEA Growth-2.58%4.79%6.40%4.04%7.03%-1.90%8.64%--
CHINA---2.18B3.21B3.62B4.38B5.19B-5.49B
CHINA Growth----46.84%13.00%20.81%18.57%--
Latin America2.82B2.15B2.34B2.42B2.47B2.27B2.21B2.58B-3.46B
Latin America Growth--23.66%8.54%3.25%2.24%-7.90%-2.99%17.04%--
JAPAN2.67B2.85B3.12B3.21B3.58B3.38B2.73B3.63B-3.28B
JAPAN Growth-6.47%9.70%2.88%11.55%-5.78%-19.25%33.13%--
Asia Pacific3.82B3.92B4.34B2.91B2.94B2.86B2.41B3.61B-3.06B
Asia Pacific Growth-2.57%10.69%-32.93%1.17%-2.68%-15.96%50.15%--
International1.99B1.46B1.42B1.15B1.61B1.23B1.22B2.57B-2.56B
International Growth--26.64%-2.40%-19.20%39.77%-23.47%-0.65%110.32%--
Pharmaceutical segment--------53.58B-
Pharmaceutical segment Growth----------
Animal Health segment--------5.63B-
Animal Health segment Growth----------
Others--------907M-
Others Growth----------

Frequently Asked Questions

Valuation & Price

Merck & Co., Inc. (MRK) has a price-to-earnings (P/E) ratio of 16.1x. This is roughly in line with market averages.

Growth & Financials

Merck & Co., Inc. (MRK) reported $64.23B in revenue for fiscal year 2024. This represents a 34% increase from $48.05B in 2011.

Merck & Co., Inc. (MRK) grew revenue by 6.7% over the past year. This is steady growth.

Yes, Merck & Co., Inc. (MRK) is profitable, generating $19.03B in net income for fiscal year 2024 (26.7% net margin).

Dividend & Returns

Yes, Merck & Co., Inc. (MRK) pays a dividend with a yield of 2.85%. This makes it attractive for income-focused investors.

Merck & Co., Inc. (MRK) has a return on equity (ROE) of 40.8%. This is excellent, indicating efficient use of shareholder capital.

Merck & Co., Inc. (MRK) generated $13.05B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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