Merck & Co., Inc. · Drugmakers

MRK

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The short version

A high-quality, profitable business with steady sales. Institutions are adding.

Going well

Profitable every year for 10 years
Brings in more cash than it spends
High return on equity: 37%

Money moves

No insider buying or selling in the last 30 days
Institutions added 2.7% to their holdings in the quarter ending June 2026 (1773 bought, 1588 sold)
Held by Ray Dalio (Bridgewater)

Facts from SEC filings, not a recommendation.

What the price means

Price as of Oct 26

$140.61-3.2% that day

Company value: $346.9B; Share price times all shares
Price vs profit (P/E): 111.6x; You pay about $112 for each $1 of yearly profit
Price vs sales: 5.2x; Company value is 5.2 times a year of sales
Dividend yield: 2.3%; Yearly dividend as a share of today's price
Cash vs value: 2%; Cash as a share of company value
Debt vs value: 14%; Debt as a share of company value

From MRK's last IEX trade and its SEC filings (profits and sales over the last four quarters). A starting point for research, not a verdict.

The business over time

Last 12 quarters, from SEC filings

Sales, Jun '26

$16.6B+5.1% vs a year earlier

Sep '23Tap a barJun '26

Last 12 months: $66.6B, up 4.6% from the 12 months before. Over 5 years, sales grew about 9.4% a year.

What the price assumes

Your guesses, our math

Move the sliders to your own view of MRK. Starting points are the company's recent numbers.

Sales growth+5% a yearRecently: +4.6% a yearProfit margin5%Last 12 months: 4.8%P/E at the end40xToday: 111.6x. Many steady companies trade at 12x to 25xShare count change0% a yearBelow zero means buybacks; above zero means new shares (dilution)

Sales in 5 years$85.0B

Profit in 5 years$4.2B

Price these guesses point to$68.87-51% vs $140.61 todayAbout -13% a year, before dividends

What today's price needs: with a 5% margin and a 40x P/E, sales would have to grow about 21% a year for 5 years just to match today's price.

Simple math on your guesses, not a forecast or a price target. Real results depend on many things these sliders leave out.

Price

Price chart by TradingView.

Business quality

The checklist Warren Buffett-style investors use. Annual numbers for 2025.

5/6Strong

PassReturn on equity 15%+Earns a lot on the money owners have in the business.36.9%
MissDebt under half of equityNot relying on borrowed money.0.93x equity
PassNet margin 10%+Keeps at least 10 cents of profit from each dollar of sales.28.1%
PassProfitable every yearSteady profits, not one good year.10 of 10 years
PassFree cash flow positiveBrings in more cash than it spends to run and grow.$12.4B
PassShare count not growingNot diluting owners. Falling means buybacks.-1.4% in 3 years

Revenue: $65.0B; +1.3% vs prior year
5-year growth: +9.4%/yr; revenue, per year
Total debt: $49.0B; 0.93x equity
Current ratio: 1.54x; short-term assets / bills due

From annual reports filed with the SEC. Not in this company's SEC data, so not scored: gross margin 40%+. A checklist is a starting point for research, not a verdict.