Merck KGaAXSWX:MER +4.03%83 Gross Margin % is 59.70% as of Mar. 2026, which is 4% below its 10-year median of 62.16. GuruFocus rates XSWX:MER with a GF Score™ of 83/100 and a GF Value™ of CHF125.76. The stock has 9 warning signs investors should review. Among 935 Drug Manufacturers companies, Merck KGaA ranks better than 65.99% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Merck KGaA's Gross Profit for the
three
months ended in Mar. 2026 was CHF2,790 Mil. Merck KGaA's Revenue for the
three
months ended in Mar. 2026 was CHF4,673 Mil. Therefore, Merck KGaA's Gross Margin % for the quarter that ended in Mar. 2026 was 59.70%.
Warning Sign:
Merck KGaA gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Merck KGaA's Gross Margin % or its related term are showing as below:
XSWX:MER'
s Gross Margin % Range Over the Past 10 Years
Min: 58.51 Med: 62.16 Max: 65.38
Current: 58.53
During the past 13 years, the highestGross Margin % of Merck KGaA was 65.38%. The lowest was 58.51%. And the median was 62.16%.
XSWX:MER's Gross Margin % is ranked better than 65.99% of 935
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs XSWX:MER: 58.53
Merck KGaA had a gross margin of 59.70% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Merck KGaA was -1.20% per year.
Merck KGaA (XSWX:MER) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Merck KGaA had a gross margin of 59.70% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Merck KGaA Gross Margin % Related Terms
Merck KGaA Gross Margin % Historical Data
* Premium members only.
The historical data trend for Merck KGaA's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:MER vs ZTS, UTHR, VTRS: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Merck KGaA Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Merck KGaA's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Merck KGaA (XSWX:MER) has a Gross Margin % of 59.70% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Merck KGaA and its competitors. This is near median its historical median of 62.16. Over the past decade, Merck KGaA's Gross Margin % has ranged from 58.51 to 65.38. According to the industry distribution chart, Merck KGaA ranks #318 out of 935 companies in the Drug Manufacturers industry, placing it in the top 34%.
Is Merck KGaA's Gross Margin % too high?
Merck KGaA's current Gross Margin % of 59.70% is near median its 10-year median of 62.16. Over the past 10 years, this metric has ranged from a low of 58.51 to a high of 65.38. The Drug Manufacturers industry median Gross Margin % is 48.54. Merck KGaA's value of 59.70% is 23% above this industry median. Based on the distribution chart, Merck KGaA ranks #318 out of 935 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Merck KGaA has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Merck KGaA's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Merck KGaA ranks #318 out of 935 companies for Gross Margin %. This puts Merck KGaA in the upper half of its industry. The industry median Gross Margin % is 48.54. Merck KGaA's value of 59.70% is 23% above this benchmark. Historically, Merck KGaA's own Gross Margin % has ranged from 58.51 to 65.38 over the past decade. While the company's 10-year median is 62.16 vs. the industry median of 48.54, Merck KGaA has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 935 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merck KGaA's current Gross Margin % of 59.70% is 23% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Merck KGaA and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck KGaA's current Gross Margin % is 59.70%, which is near median its own 10-year median of 62.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merck KGaA stock overvalued right now?
Merck KGaA (XSWX:MER) has a current Gross Margin % of 59.70%. The stock's GF Value™ is CHF125.76, compared to a current price of CHF130.30 — trading 3.6% above its estimated fair value. The current Gross Margin % is 59.70%, which is near median its 10-year median of 62.16 and 23% above the Drug Manufacturers industry median of 48.54. Merck KGaA's overall GF Score™ is 83/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Merck KGaA (XSWX:MER), the current Gross Margin % is 59.70% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Merck KGaA (XSWX:MER) Overvalued in 2026?
Based on GuruFocus' analysis, Merck KGaA stock appears to be overvalued.
The current stock price of CHF130.30 is trading 3.6% above its estimated GF Value™ of CHF125.76.
Key valuation signals for XSWX:MER:
Gross Margin %: 59.70% (near median its 10-year median of 62.16)
GF Value™: CHF125.76 vs. price of CHF130.30 (3.6% above fair value)
Industry Position: 23% above the Drug Manufacturers median (#318 of 935)
No single metric tells the full story. See the XSWX:MER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merck KGaA operates in three main segments: Life Science, Electronics, and Healthcare. The Life Science segment provides laboratory consumables and instruments to researchers in academia and applied fields, including the biopharmaceutical industry. The Electronics segment offers specialty materials to manufacture a variety of products, such as semiconductors and flat-screen televisions. In the healthcare segment, Merck develops, manufactures, and sells branded pharmaceuticals with significant therapeutic concentrations in oncology, multiple sclerosis, and fertility. In 1995, the E. Merck KG family publicly sold part of the company, resulting in the current 30% public ownership of the firm.
83GF Score
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