Rankings Pharma & medtech Merck KGaA
Merck KGaA
60
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- ROIC−4
- Quality of growth−4
- Patent loss (Mavenclad)−4
Strengths
- Raised guidance and momentum+3
- Diversified business+1
How the score is built
From 100 to 60, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 148.30 EUR
- Median analyst target
- 155.50 EUR
- Upside to median
- +4.9%
- Analysts
- 14
- Target range
- 135.00 – 179.00 EUR
- 52-week change
- +30%
- P/E (trailing)
- 27.2
- Forward P/E
- 17.6
- PEG
- 2.45
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 4 findings−12 of −30
- −4ROICROIC 7.6% TTM vs WACC 7.7% – down from 12.0% in 2022 and 11.6% in 2021; ROE only 8.1%. The acquisitions (most recently SpringWorks) have not yet lifted the return.
- −4Quality of growthRevenue is EUR 21.1bn TTM vs 22.2bn in 2022, and reported EPS has fallen from 7.65 to EUR 5.45; guidance for 2026 is only 1–3% organic growth.
- −3Future pipelineThe new CEO is leaning towards acquisitions because the early and mid-stage pharma pipeline is thin; Healthcare fell 3.4% organically in Q2, and Bavencio faces tough competition.
- −1Capital allocationCash acquisitions of EUR 2.9bn in 2025 (SpringWorks); net debt is EUR 9.2bn (1.5 × EBITDA pre), and no shares are bought back.
Price
Today's multiples against the company's own history and its peers. · 3 findings−8 of −35
- −3Multiples vs own historyForward P/E 16.0 vs 14.8–24.9 in 2021–2025 and EV/EBITDA 12.4 vs 11.0–18.7 – mid-to-low part of the range, but the stock has risen 30% in a year, and the multiples have been lifted from the bottom in 2024–2025 (14.8–14.9).
- −2PeersForward P/E 16.0 vs 10.9 for Bayer and about 8 for Sanofi on the pharma side, but 25.8 for Thermo Fisher and 64 for Sartorius in life science; as a whole no clear discount.
- −3Absolute price levelFCF yield 4.5% (P/FCF 22.1), earnings yield 3.9% and dividend yield 1.6%.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−11 of −35
- −4Patent loss (Mavenclad)US dose patents on the MS drug Mavenclad were found invalid, and Merck now assumes zero US Mavenclad sales from August; Healthcare is expected at −4 to −2% organic in 2026.
- −3Governance and controlThe family owns about 70% of the capital via E. Merck KG; only 129 of 435m share equivalents are listed, and the KGaA structure gives minority shareholders very little influence.
- −2Management changeKai Beckmann became CEO on 1 May 2026 after Belén Garijo moved to Sanofi; he signals acquisitions to fill the pipeline, which raises the risk of expensive deals.
- −2Chip cycle and tariffsElectronics (Semiconductor Solutions +17% in Q2) follows the semiconductor cycle, and Life Science guidance includes about EUR 40m of headwind from tariff refunds to customers.
Plus
Only documented strengths. · 2 findings+4 of +15
- +3Raised guidance and momentumOrganic growth of 4.1% in Q2 with Process Solutions +15%; EBITDA pre +9.4% and margin 29.4%; 2026 guidance raised to 1–3% organic and EBITDA pre EUR 5.9–6.3bn, Electronics to 6–9%.
- +1Diversified businessThree legs (life science, pharma, electronics) with different cycles dampen the risk; gross margin 59% and EBITDA margin 26%.
Caveats
What the score does not capture, or where the data is weak.
Conglomerate: Life Science (about 45%), Healthcare (about 40%) and Electronics (about 15%); placed under 'Medicine & medtech'. Electronics (semiconductor materials) follows the chip cycle but is under a fifth of sales, so cyclical = no. Market cap EUR 60.2bn includes the family's about 70% via E. Merck KG; only 129m shares are listed. Reported EPS (5.45) is depressed by amortisation on acquisitions – EPS pre guidance is EUR 7.90–8.60. Insider trades and news from September 2026 have not been examined (web limit reached). Q3 report 12 Nov 2026.
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