MRKMerck & Co.
Is the business good?
The checks split: 4 of 9 health tests passed and returns not propped up by debt.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 25% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MRK?
Merck & Co. keeps 4.8% of every revenue dollar as profit after everything, against 13% for the median Drug Manufacturers - General name.
Net margin · Drug Manufacturers - General median 13% · 12 months to Q2 2026
- Share count, year on year
- −1.7%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 46%
R&D as % of revenue
- Gross margin
- 73%
Gross margin
Details›
- Gross margin12 months to Q2 2026
- 73%
- Net margin12 months to Q2 2026
- 4.8%
- Free cash flow margin
- 24%
- R&D as % of revenue
- 46%
- Revenue, trailing twelve months
- $66.6B
- Free cash flow, trailing twelve months
- $16.1B
- Net income, trailing twelve months
- $3.17B
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from MRK and who it buys from, as the companies report it.
- MCKMcKesson Corporation
Named in MRK’s FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; MRK’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported. A link without a share is named in one of the two companies’ annual reports, without a figure.
Drug Manufacturers, General
The closest names by size in the same industry