Reading the tape
NYSE: MRK
Merck & Co., Inc.
Healthcare · Drug Manufacturers - General
Market Cap
$275.09B
52w High
$125.14
52w Low
$73.31
P/E
30.82
Volume
5.70M
Outstanding Shares
2.47B
Price vs Fundamentals
Why The Stock Is Moving
Mixed / unclearLow confidence
1Y Price: 43.44%Revenue (TTM): 2.47%FCF (TTM): -17.16%P/FCF: 30th pct
What changed
The stock rose 43.44% over the last year. Revenue grew 2.47% over the trailing twelve months. Operating margin moved from 33.07% to 27.59%. Free cash flow declined 17.16% over the trailing twelve months.
What the market seems to be pricing
The stock has moved higher against modestly weakening underlying metrics. The operating data does not yet tell a clear story — the move may reflect sentiment, sector rotation, or macro factors rather than company-specific earnings power.
What would invalidate this read
Operating margin currently stands at 27.59%. A decisive move in revenue — currently up 2.47% — would be the clearest signal to resolve the ambiguity.
Company profile
Merck & Co., Inc. operates as a healthcare company worldwide.
CEORobert Davis
SectorHealthcare
IndustryDrug Manufacturers - General
Employees73,000
IPO dateJan 13, 1978
Valuation
Forward P/E—
EV/EBITDA10.21
Enterprise value$299.33B
Stock splits
Jun 3, 2021↑ Forward
Every 125 shares became 131
Feb 17, 1999↑ Forward
Every 1 shares became 2
May 26, 1992↑ Forward
Every 1 shares became 3
May 26, 1988↑ Forward
Every 1 shares became 3
May 27, 1986↑ Forward
Every 1 shares became 2
Jun 1, 1972↑ Forward
Every 1 shares became 2
May 27, 1964↑ Forward
Every 1 shares became 3
Profitability & growth
Revenue growth4.27%
Gross margin75.91%▼5.70%vs FY2024
Operating margin27.59%▲14.79%vs FY2024
ROE34.7%▼6.11%vs FY2024
Analyst consensus
RatingBuy
Target price$129.31▲16.10%
25
Buy
11
Hold
1
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Aug 4, 2026
Q3 FY26 · EPS est $2.09 · Revenue est $16.37B
View
Dividends
$3.32/shareQuarterlyDividend Achiever · 21yrStretchedMRK pays a dividend with a 2.98% dividend yield, 21 consecutive years of growth, growing at 6.75% annually, covered 1.5× by free cash flow.
Dividend Yield
2.98%
Annual Div / Share
$3.32
5yr CAGR
+6.75%
Doubles every ~10.6yr
Payout Ratio
92.12%
Stretched
Dividend Growth Rate
3yr CAGR
+5.42%
5yr CAGR
+6.75%
10yr CAGR
+6.62%
Dividend Safety
5/10Stretched
Dividend History
Annual dividends paid per share
YearAnnual DivYoY
2025$3.28+5.1%
2024$3.12+5.4%
2023$2.96+5.7%
2022$2.80+7.3%
2021$2.61+10.3%
2020$2.37+9.7%
2019$2.16+13.6%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$30/yr
$2/mo
In 5 yrs
$41/yr+39%
$3/mo
In 10 yrs
$57/yr+92%
$5/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$30/yr $2/mo | $41/yr+39% $3/mo | $57/yr+92% $5/mo |
Yield-on-cost grows from 2.98% → 5.73% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
MRK has raised its dividend for 21 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Well-covered by free cash flow
The dividend is covered 1.5× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Strong dividend growth rate
The 5-year CAGR of 6.75% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
High payout ratio
With 92.12% of earnings paid as dividends, there is limited retained earnings for reinvestment — and a dividend cut becomes more likely if earnings decline.