Merck KGaA (XSWX:MER) Moat Score: 7/10 (As of Jun. 29, 2026)


XSWX:MER Merck KGaA XSWX:MER
83 GF Score
Price CHF130.30
GF Value CHF125.76
! 9 Warning Signs
View Full Analysis

What is Merck KGaA Moat Score?

Merck KGaA XSWX:MER +4.03% 83 Moat Score is 7 as of Jun. 29, 2026. 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 1,030 Drug Manufacturers companies, Merck KGaA ranks better than 98.64% on this metric.

Merck KGaA has the Moat Score of 7, which implies that the company might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Merck KGaA has Wide Moat: Merck KGaA possesses a wide moat with durable competitive advantages from its valuable patents, strong brand, and significant R&D capabilities. Its market leadership in pharmaceuticals and chemicals is supported by regulatory barriers.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Merck KGaA might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Merck KGaA  (XSWX:MER) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Merck KGaA Moat Score Related Terms

XSWX:MER vs ZTS, UTHR, VTRS: Moat Score Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's Moat Score distribution charts can be found below:

* The bar in red indicates where Merck KGaA's Moat Score falls into.


XSWX:MER
83GF Score
Merck KGaA XSWX:MER
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis
Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 7 mean?
Merck KGaA (XSWX:MER) has a Moat Score of 7 as of Jun. 29, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Merck KGaA ranks #14 out of 1030 companies in the Drug Manufacturers industry, placing it in the top 1.4%.
Is Merck KGaA's Moat Score too high?
Merck KGaA's current Moat Score is 7. Based on the distribution chart, Merck KGaA ranks #14 out of 1030 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. 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 Moat Score compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Merck KGaA ranks #14 out of 1030 companies for Moat Score. This places Merck KGaA in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Drug Manufacturers company?
A good Moat Score depends on the Drug Manufacturers industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Merck KGaA's current Moat Score is 7. 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 Moat Score of 7. 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 Moat Score is 7. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Merck KGaA (XSWX:MER), the current Moat Score is 7 as of Jun. 29, 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:

  • Moat Score: 7
  • GF Value™: CHF125.76 vs. price of CHF130.30 (3.6% above fair value)
  • GF Score™: 83/100 with 9 warning signs

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 Business Description

Address Frankfurter Strasse 250, Darmstadt, HE, DEU, 64293
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

Get the complete analysis for XSWX:MER

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF130.30
Price
CHF125.76
GF Value