Merck KGaA Sponsored ADR (MKKGY)
OTHER OTC:MKKGY
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Merck KGaA Sponsored ADR
(OTC:MKKGY)
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Rating:67Neutral
Price Target:
$34.00
▲(14.09% Upside)
Action:Reiterated
Date:05/19/26
The score is driven primarily by stable financial fundamentals but weakening top-line growth, alongside a constructive earnings update with upgraded 2026 guidance and strong Life Science performance. Technicals are supportive but tempered by near-overbought stochastic readings, while valuation is reasonable with a modest dividend yield.
Positive Factors
Life Science growth and recurring demand
Sustained double-digit Process Solutions growth and +8.3% Life Science organic sales reflect durable demand for lab consumables and bioprocessing systems. Recurring consumables and a book-to-bill above 1 support predictable revenue streams and long-term margin resilience in this segment.
Negative Factors
Healthcare franchise pressure
Generic entry for a key product reduces volumes and pricing in Healthcare, pressuring segment sales and margins. Given Healthcare's R&D intensity and reliance on blockbusters, sustained generic erosion can materially lower long-term earnings and require higher reinvestment to rebuild growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Life Science growth and recurring demand
Sustained double-digit Process Solutions growth and +8.3% Life Science organic sales reflect durable demand for lab consumables and bioprocessing systems. Recurring consumables and a book-to-bill above 1 support predictable revenue streams and long-term margin resilience in this segment.
Read all positive factors
Merck KGaA Sponsored ADR (MKKGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.96B
Dividend Yield1.77%
Average Volume (3M)19.41K
Price to Earnings (P/E)23.6
Beta (1Y)0.60
Revenue Growth6.13%
EPS Growth-3.04%
CountryUS
Employees59,020
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.15
Shares Outstanding646,211,240
10 Day Avg. Volume0
30 Day Avg. Volume19,407
Financial Highlights & Ratios
PEG Ratio-2.05
Price to Book (P/B)1.86
Price to Sales (P/S)2.62
P/FCF Ratio23.53
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue3.17
Enterprise Value/Gross Profit5.41
Enterprise Value/Ebitda10.65
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.86
Revenue Forecast (FY)$24.56B
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 its three operating segments: (1) Life Science: Revenue is generated from selling laboratory consumables and equipment, chemicals and reagents, and bioprocessing products (su...
Merck KGaA Sponsored ADR Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call paints a generally constructive picture: organic performance and profitability improved (notably in Life Science and semiconductor materials), operating cash flow and net debt improved, and management upgraded full‑year guidance. However, reported results were weighed down by FX and portfolio effects, Healthcare faces meaningful product‑specific pressures (Mavenclad generics) and EPS was notably lower year‑on‑year. Electronics profitability was also boosted by one‑offs. On balance the positives (organic growth, upgraded guidance, strong cash flow and strategic clarity/M&A execution) outweigh the negatives, though there are clear near‑term risks from FX, healthcare headwinds and some Q1 phasing effects.Positive Updates
Group Organic Growth and Profitability Improvement
Organic group sales grew ~+2.9% (reported as ~+3% by management) and organic EBITDA pre increased ~+5%–+5.3% year‑on‑year. Underlying EBITDA pre margin improved ~70 basis points to 29.8%.
Negative Updates
Reported Sales and FX/Portfolio Headwinds
Reported net sales fell -2.8% to EUR 5.134 billion, driven by significant FX headwinds (noted FX drag on EBITDA pre of ~‑5.7% in Q1 and segment FX impacts such as -7.5% in Electronics) and negative portfolio effects (e.g., Surface Solutions divestment ~‑10.6% impact in Electronics).
Read all updates
Q1-2026 Updates
Positive
Negative
Group Organic Growth and Profitability Improvement
Organic group sales grew ~+2.9% (reported as ~+3% by management) and organic EBITDA pre increased ~+5%–+5.3% year‑on‑year. Underlying EBITDA pre margin improved ~70 basis points to 29.8%.
Read all positive updates
Company Guidance
Merck upgraded its 2026 guidance to group sales of EUR 20.4–21.4 billion and EBITDA pre of EUR 5.7–6.1 billion, implying organic group sales growth of 0% to +3% (up from -1% to +2%) and group EBITDA‑pre organic growth of -2% to +2% (up from -4% to +1%); expected FX headwinds were narrowed to -3% to -1% on sales (vs. -4% to -2%) and -5% to -2% on EBITDA pre (vs. -7% to -3%), and EPS pre was raised to EUR 7.50–8.20 (from EUR 7.10–8.00). By segment, Life Science sales guidance was increased to +4% to +7% (from +3%–+6%) with EBITDA‑pre organic growth of +4% to +8% (from +2%–+6%), Healthcare was revised to -6% to -3% organic sales with EBITDA‑pre now guided to -12% to -8% (vs. -14%–-10%), and Electronics guidance was confirmed; management cited stronger Process Solutions momentum, continued Mavenclad headwinds in the U.S., easing FX impact, reaffirmed its midterm targets, and signaled Healthcare R&D-to-sales moving toward ~25% with Healthcare EBITDA‑pre maintained north of 30% in the midterm.Merck KGaA Sponsored ADR Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.91B | 20.27B | 21.16B | 20.99B | 22.23B | 19.69B |
| Gross Profit | 12.24B | 11.42B | 12.48B | 12.39B | 13.71B | 12.34B |
| EBITDA | 6.22B | 5.71B | 5.96B | 5.68B | 6.28B | 5.88B |
| Net Income | 2.53B | 2.51B | 2.78B | 2.82B | 3.33B | 3.06B |
Balance Sheet | ||||||
| Total Assets | 53.07B | 52.08B | 51.57B | 48.49B | 48.53B | 45.36B |
| Cash, Cash Equivalents and Short-Term Investments | 3.77B | 2.74B | 2.71B | 2.41B | 1.64B | 1.62B |
| Total Debt | 12.05B | 11.96B | 10.27B | 9.86B | 10.40B | 10.77B |
| Total Liabilities | 23.25B | 23.43B | 21.58B | 21.74B | 22.52B | 23.95B |
| Stockholders Equity | 29.74B | 28.58B | 29.91B | 26.68B | 25.93B | 21.34B |
Cash Flow | ||||||
| Free Cash Flow | 2.30B | 2.26B | 2.40B | 1.76B | 2.45B | 3.19B |
| Operating Cash Flow | 4.16B | 3.78B | 4.59B | 3.78B | 4.26B | 4.62B |
| Investing Cash Flow | -4.61B | -4.09B | -3.05B | -1.89B | -2.74B | -1.58B |
| Financing Cash Flow | 2.19B | 603.21M | -985.00M | -1.73B | -1.55B | -2.50B |
Merck KGaA Sponsored ADR Technical Analysis
Positive
29.80
Price Trends
27.33
Positive
27.57
Positive
27.03
Positive
Market Momentum
1.32
Negative
70.95
Negative
79.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKKGY, the sentiment is Positive. The current price of 29.8 is above the 20-day moving average (MA) of 29.42, above the 50-day MA of 27.33, and above the 200-day MA of 27.03, indicating a bullish trend. The MACD of 1.32 indicates Negative momentum. The RSI at 70.95 is Negative, neither overbought nor oversold. The STOCH value of 79.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MKKGY.
Merck KGaA Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $68.96B | 23.59 | 8.77% | 1.77% | 6.13% | -3.04% | |
67 Neutral | $11.15B | 24.82 | 11.76% | 0.64% | -1.06% | -26.71% | |
66 Neutral | $39.02B | 28.91 | 6.43% | 1.74% | 1.30% | 21.31% | |
62 Neutral | $49.97B | 41.08 | 2.61% | 3.86% | -0.47% | 83.79% | |
61 Neutral | $18.55B | -62.08 | -1.97% | 3.99% | 2.14% | 91.93% | |
61 Neutral | $40.52B | 25.47 | 20.79% | ― | 5.76% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
MKKGY
Merck KGaA Sponsored ADR
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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.