Stock MarketROI
Closed
MRK

MRKMerck & Co., Inc.

NYSE

Healthcare · Drug Manufacturers - General

$119.60+3.57%
Mkt Cap: $295.39BDY: 2.84%

Merck & Co., Inc. (MRK) stock trades at $119.60, up 3.57% on the day. With a market capitalization of $295.39 billion, MRK is a mega-cap healthcare stock. It trades at a price-to-earnings (P/E) ratio of 33.7, a forward P/E of 12.5 and earnings per share (EPS) of $3.55. Over the most recent period the company reported 5% year-over-year revenue growth and a net profit margin of 13.6%. Below you'll find MRK's full fundamentals, fair-value estimates, dividend history, earnings and our buy, hold or avoid verdict for 2026.

Price & Performance

Performance

Analysis & Verdict

Merck & Co., Inc. (MRK) Stock Analysis 2026

Rule-based · Updated daily · Not financial advice

Merck & Co., Inc. (MRK) operates in the Drug Manufacturers - General space within the Healthcare sector. With a market cap of $295.4B, it qualifies as a large-cap company. Growth is moderate and the business remains profitable, offering a balanced risk/reward profile compared to high-multiple peers.

Bull Case5
  • Forward P/E (12.5×) is lower than trailing P/E (33.7×) — analysts expect earnings to improve
  • Healthy profit margin of 13.6%
  • ROE of 18.9% shows management efficiently converts equity into profit
  • Dividend yield of 2.84% provides consistent income on top of price appreciation
  • Low beta of 0.22 — less volatile than the market, suitable for conservative portfolios
Bear Case3
  • P/E of 33.7× is above average — valuation requires continued strong growth to justify
  • High debt-to-equity of 106.94× increases financial risk, especially with elevated interest rates
  • Price is near its 52-week high — limited near-term upside, higher pullback risk

Verdict

Buy / Hold

More positives than negatives. Fundamentals support holding while monitoring key risks.

AI Insight

Powered by Claude

AI-generated analysis for informational purposes only. Not financial advice.

Fair Value Estimates

Current price: $119.60

Graham Number

√(22.5 × EPS × Book Value)

$38.52

-67.8% downside

Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.

Bazin Ceiling Price

Avg. Annual DPS (5Y) ÷ 6%

$49.23

-58.8% downside

Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.

These are simplified estimates. Not financial advice.

Buy & Hold Checklist

Quality criteria for long-term holding

8/10

89% score

Pays dividends

15Y hist.

15+ years of dividend history

Dividend consistency (5Y+)

15 yrs

Uninterrupted dividend payments for at least 5 years

ROE above 10%

18.9%

Return on equity — measures how efficiently capital is used

Positive profit margin

13.6%

Net profit margin must be positive — company earns more than it spends

Revenue growth (annual)

+4.9%

Annual revenue must be growing compared to the prior year

Earnings growth (annual)

Annual earnings must be growing compared to the prior year

Debt/Equity below 2×

106.94×

Low financial leverage reduces risk of distress

Current ratio above 1

1.30×

Short-term assets must cover short-term liabilities

Daily liquidity above $5M

$1.2B/day

High trading volume ensures easy entry and exit

Dividend yield above 0%

2.84%

Stock must distribute income to shareholders

Financials

Revenue & Results

Key Statistics

Market Cap$295.39B
P/E Ratio33.69
Forward P/E12.51
P/B Ratio
PEG Ratio5.37

Earnings

Next Earnings

Aug 4, 2026

41

days

EPS (TTM)

$3.55

P/E (TTM)

33.7

Fwd P/E

12.5

SEC Filings & Reported Financials

Earnings History

SEC EDGAR · official filings

SEC filings

SEC Filings

Official EDGAR documents

All filings

Insider Transactions

SEC Form 4 · officers, directors & 10% owners

Dividends & Income

Dividends

Current DY

2.84%

5Y Avg Annual

$2.7720

Last Payment

$0.8500

Ex-Date

06/15/2026

Annual dividends paid per share

2011
2019
2026
Ex-DatePaymentAmountEst. DY
Latest06/15/2026
07/08/2026$0.85002.84%
03/16/2026
04/08/2026$0.85002.84%
12/15/2025
01/07/2026$0.85002.84%
09/15/2025
10/08/2025$0.81002.71%
06/16/2025
07/09/2025$0.81002.71%
03/17/2025
04/09/2025$0.81002.71%
12/16/2024
01/08/2025$0.81002.71%
09/16/2024
10/09/2024$0.77002.58%

Magic Number

Shares needed to self-fund your next purchase

$119.60

Price

÷

$0.8500

Last div. (quarterly)

=

141

shares

Own 141 MRK shares ($16,863.60) and each quarterly dividend pays for 1 new share — the snowball runs on its own.

Investment target

$16,863.60

New shares / year

+4 shares

Tools & Simulators

If You Had Invested…

Hypothetical return based on historical prices

$

* Dividend reinvestment calculated at ex-date price. For informational purposes only.

Discover

Related Assets

Healthcare

Related Articles

About Merck & Co., Inc.

Merck & Co., Inc. operates as a healthcare company worldwide. It offers human health pharmaceutical for various areas under the Keytruda, Keytruda Qlex, Welireg, Gardasil, ProQuad, M-M-R II, Varivax, Vaxneuvance, Capvaxive, RotaTeq, Pneumovax 23, Bridion, Prevymis, Dificid, Zerbaxa, Winrevair, Adempas/ Verquvo, Ohtuvayre, Lagevrio, Isentress/Isentress HD, Delstrigo, Pifeltro, Belsomra, Januvia, and Janumet brands. The company also provides veterinary pharmaceuticals, vaccines and health management solutions and services, such as livestock products under the Nuflor, Bovilis/Vista, Bovilis Cryptium, Banamine, Estrumate, Matrix, Resflor, Zuprevo, Revalor, Safe-Guard, M+Pac, Porcilis, Circumvent, Nobilis/Innovax, Paracox and Coccivac, Exzolt, Slice, Imvixa, Clynav, Aquavac/Norvax, Aquaflor, Flexolt brands; Allflex Livestock Intelligence solutions; and companion animal products under the Bravecto One-Month, Bravecto Injectable/Quantum, Bravecto TriUNO, Bravecto Plus, Sentinel Spectrum, Sentinel Flavor Tabs, Numelvi, Optimmune, Nobivac NXT, GilvetMab, Otomax, Mometamax, Mometamax Ultra, Posatex, Caninsulin/Vetsulin, Panacur, Safeguard, Regumate, Prestige, Scalibor/Exspot, Sure Petcare, and Home Again brands. It has development and commercialization agreement for three of Daiichi Sankyo's deruxtecan ADC candidates; AstraZeneca PLC to co-development and co-commercialize AstraZeneca's Lynparza products for multiple cancer types; licensed to develop, manufacture and commercialize LM-299, a novel investigational PD-1/VEGF bispecific antibody from LaNova; and collaboration agreement with Eisai Co., Ltd., Bayer AG, and Ridgeback Biotherapeutics LP, as well Moderna, Inc. Merck & Co., Inc. has strategic collaboration with Infinimmune, Inc. to discover and develop antibodies against multiple therapeutic targets. The company was founded in 1891 and is headquartered in Rahway, New Jersey.

Sector

Healthcare

Industry

Drug Manufacturers - General

Location

Rahway, United States

Employees

73,000

Listed on NYSE

MRK — Frequently Asked Questions

Is Merck & Co., Inc. (MRK) a good stock to buy in 2026?

Merck & Co., Inc. (MRK) shows strengths such as a 19% return on equity, while risks include high leverage (debt/equity of 106.9). Whether MRK is a good buy in 2026 depends on your time horizon and risk tolerance — review the full bull case, bear case and fair-value estimates above. This is informational analysis, not financial advice.

What is MRK's stock price today?

Merck & Co., Inc. (MRK) trades at $119.60, up 3.57% on the session. Prices on this page update throughout the trading day.

Does MRK pay a dividend?

Yes. Merck & Co., Inc. pays an annual dividend of $3.40 per share, a dividend yield of 2.84%. The most recent ex-dividend date was June 15, 2026. Its payout ratio is about 94% of earnings.

Is MRK overvalued?

With a P/E ratio of 33.7×, MRK is valued above the broad-market average for the healthcare sector. Its PEG ratio is 5.37. See the Fair Value Estimates section above for Graham Number and dividend-based price targets.

What is MRK's market cap?

Merck & Co., Inc. (MRK) has a market capitalization of $295.39 billion, classifying it as a mega-cap stock in the Healthcare sector.

Disclaimer: This page — including any buy/hold/avoid view, fair value or price estimate — is generated from market data for informational and educational purposes only and does not constitute financial, investment or trading advice. Data may be delayed or inaccurate. Always do your own research and consult a licensed financial advisor before making any investment decision.