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Merck KGaA Sponsored ADR
(OTC:MKKGY)
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Rating:67Neutral
Price Target:
$34.00
▲(4.29% Upside)
Action:Reiterated
Date:08/19/26
MKKGY scores above average primarily on solid underlying financial strength (strong margins, moderate leverage, positive free cash flow) and a constructive earnings update with raised 2026 guidance. The score is held back by weaker near-term technical posture (below 20/50-day averages with subdued momentum), middling valuation (P/E ~25 with a modest ~1.62% yield), and financial quality watch-items including reduced net margin/ROE and weaker cash conversion.
Positive Factors
Diversified Science and Technology Portfolio
Exposure to three science-driven markets reduces dependence on any single product cycle. Life Science and Electronics also provide industrial and research demand alongside Healthcare, supporting resilience and multiple avenues for innovation-led growth.
Negative Factors
Healthcare Portfolio and Patent-Related Pressure
Healthcare weakness can persist beyond a single quarter because it reflects product-market dynamics, competition, and eventual loss of exclusivity. MAVENCLAD uncertainty and generic risk may constrain revenue, mix, and segment profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Science and Technology Portfolio
Exposure to three science-driven markets reduces dependence on any single product cycle. Life Science and Electronics also provide industrial and research demand alongside Healthcare, supporting resilience and multiple avenues for innovation-led growth.
Read all positive factors
Merck KGaA Sponsored ADR (MKKGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.71B
Dividend Yield1.62%
Average Volume (3M)15.78K
Price to Earnings (P/E)24.9
Beta (1Y)0.56
Revenue Growth6.81%
EPS Growth-11.14%
CountryUS
Employees62,461
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.08
Shares Outstanding646,211,240
10 Day Avg. Volume17,091
30 Day Avg. Volume15,784
Financial Highlights & Ratios
PEG Ratio-2.06
Price to Book (P/B)1.86
Price to Sales (P/S)2.62
P/FCF Ratio23.53
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.95
Revenue Forecast (FY)$24.82B
Merck KGaA Sponsored ADR Business Overview & Revenue Model
Company Description
Merck KGaA is a leading German science and technology enterprise. Its business operations are strategically organized into three core divisions: Life Science, Healthcare, and Electronics. The Life Science segment provides an extensive portfolio of...
How the Company Makes Money
Merck KGaA makes money primarily by selling products and services across three business areas. (1) Life Science: The company generates revenue from selling laboratory and production materials, equipment, and services to academic researchers, biote...
Merck KGaA Sponsored ADR Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive tone: the company delivered accelerating organic growth, strong margin expansion, notable outperformance in Life Science (Process Solutions) and Electronics (Semiconductor Solutions), upgraded full-year guidance, and announced a strategically accretive Bio‑Techne acquisition. These positives are moderated by clear near-term challenges in Healthcare (notably MAVENCLAD and Specialty Care), dependency on temporary Process Solutions tailwinds that may normalize and possibly create 2027 headwinds, some one-off project contributions in Electronics, and increased leverage from recent and pending transactions. On balance, operational momentum and upgraded guidance outweigh the listed risks in the near term.Positive Updates
Group Revenue and Organic Growth Acceleration
Reported net sales increased 3.4% year-over-year to EUR 5.434 billion in Q2 '26; organic sales growth accelerated to 4.1% driven by Life Science and Electronics.
Negative Updates
Healthcare Organic Sales Decline and Specialty Care Pressure
Healthcare reported sales rose 2.4% to EUR 2.2 billion but organic sales declined 3.4% in Q2; Specialty Care declined ~6% organically, primarily reflecting U.S. MAVENCLAD market impact and continued competition for BAVENCIO.
Read all updates
Q2-2026 Updates
Positive
Negative
Group Revenue and Organic Growth Acceleration
Reported net sales increased 3.4% year-over-year to EUR 5.434 billion in Q2 '26; organic sales growth accelerated to 4.1% driven by Life Science and Electronics.
Read all positive updates
Company Guidance
Merck raised its 2026 guidance: group organic net‑sales growth is now expected at +1% to +3% (vs 0%–3% prior), with FX headwinds eased to −2% to 0% (previously −3% to −1%), implying group net sales of about EUR 21.0–21.8bn (midpoint equals prior top end of EUR 20.4–21.4bn); EBITDA pre is lifted to EUR 5.9–6.3bn (vs EUR 5.7–6.1bn) with organic EBITDA‑pre development of 0%–3% (vs −2%–+2%), and EPS pre is guided to EUR 7.90–8.60 (vs EUR 7.50–8.20, ~+5%). By division: Life Science organic sales now +5%–7% (lower bound raised from 4%) with a potential tariff‑refund headwind of ~EUR 40m, Life Science EBITDA‑pre organic +5%–8% (EBITDA‑pre ~EUR 2.6–2.8bn); Healthcare organic sales −4% to −2% (improved from −6% to −3%) with Healthcare EBITDA‑pre ~EUR 2.8–3.0bn and the OGSIVEO/GOMEKLI portfolio effect limited to H1 at +2.4% (EUR 207m, recognized as organic from July 1); Electronics organic sales +6%–9% (vs 3%–7% prior) with a Surface Solutions divestment headwind of −EUR 245m and Electronics EBITDA‑pre around EUR 1.0bn (organic EBITDA‑pre growth range moved to 25%–29% from 21%–27%).Merck KGaA Sponsored ADR Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.18B | 20.27B | 21.16B | 20.99B | 22.23B | 19.69B |
| Gross Profit | 12.43B | 11.42B | 12.48B | 12.39B | 13.71B | 12.34B |
| EBITDA | 6.61B | 5.71B | 5.96B | 5.68B | 6.28B | 5.88B |
| Net Income | 2.38B | 2.51B | 2.78B | 2.82B | 3.33B | 3.06B |
Balance Sheet | ||||||
| Total Assets | 52.67B | 52.08B | 51.57B | 48.49B | 48.53B | 45.36B |
| Cash, Cash Equivalents and Short-Term Investments | 1.95B | 2.92B | 2.71B | 2.41B | 1.64B | 1.62B |
| Total Debt | 12.30B | 11.96B | 10.27B | 9.86B | 10.40B | 10.77B |
| Total Liabilities | 22.39B | 23.43B | 21.58B | 21.74B | 22.52B | 23.95B |
| Stockholders Equity | 30.16B | 28.58B | 29.91B | 26.68B | 25.93B | 21.34B |
Cash Flow | ||||||
| Free Cash Flow | 2.53B | 2.26B | 2.40B | 1.76B | 2.45B | 3.19B |
| Operating Cash Flow | 4.21B | 3.78B | 4.59B | 3.78B | 4.26B | 4.62B |
| Investing Cash Flow | -5.07B | -4.09B | -3.05B | -1.89B | -2.74B | -1.58B |
| Financing Cash Flow | 1.64B | 603.21M | -985.00M | -1.73B | -1.55B | -2.50B |
Merck KGaA Sponsored ADR Technical Analysis
Neutral
32.60
Price Trends
32.35
Negative
30.56
Positive
28.99
Positive
Market Momentum
-0.04
Positive
39.72
Neutral
20.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKKGY, the sentiment is Neutral. The current price of 32.6 is above the 20-day moving average (MA) of 32.23, above the 50-day MA of 32.35, and above the 200-day MA of 28.99, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 39.72 is Neutral, neither overbought nor oversold. The STOCH value of 20.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MKKGY.
Merck KGaA Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $10.19B | 28.98 | 8.88% | 0.70% | -6.76% | -44.35% | |
67 Neutral | $68.71B | 24.93 | 8.08% | 1.62% | 6.81% | -11.14% | |
67 Neutral | $42.03B | 19.45 | 9.89% | 1.29% | 4.99% | 12.37% | |
60 Neutral | $59.91B | 50.37 | 2.40% | 3.42% | -0.14% | -208.74% | |
59 Neutral | $19.39B | -46.89 | -2.79% | 2.84% | 4.92% | 87.81% | |
58 Neutral | $42.42B | 57.81 | 9.18% | 5.80% | 4.33% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
MKKGY
Merck KGaA Sponsored ADR
31.56
5.85
22.75%
RDY
Dr Reddy's Laboratories
11.97
-2.21
-15.60%
VTRS
Viatris
16.88
6.76
66.78%
TEVA
Teva Pharmaceutical
36.36
17.06
88.39%
TAK
Takeda Pharmaceutical Company
18.45
3.18
20.83%
HLN
Haleon PLC Sponsored ADR
9.60
0.04
0.45%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.