Merck KGaA (FRA:MRKC) Beneish M-Score: -2.69 (As of Jun. 25, 2026)


FRA:MRKC Merck KGaA FRA:MRKC
82 GF Score
Price €27.60
GF Value €27.71
Valuation Fairly Valued
! 9 Warning Signs
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What is Merck KGaA Beneish M-Score?

Merck KGaA FRA:MRKC +1.53% 82 Beneish M-Score is -2.69 as of Jun. 25, 2026. GuruFocus rates FRA:MRKC with a GF Score™ of 82/100 and a GF Value™ of €27.71 (Fairly Valued). The stock has 9 warning signs investors should review. Among 911 Drug Manufacturers companies, Merck KGaA ranks better than 67.62% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.69 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Merck KGaA's Beneish M-Score or its related term are showing as below:

FRA:MRKC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.69   Med: -2.54   Max: -2.13
Current: -2.69

During the past 13 years, the highest Beneish M-Score of Merck KGaA was -2.13. The lowest was -2.69. And the median was -2.54.

Merck KGaA Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Merck KGaA's Beneish M-Score 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.

Merck KGaA Beneish M-Score Chart

Merck KGaA Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.49 -2.46 -2.57 -2.65 -2.64

Merck KGaA Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.55 -2.57 -2.50 -2.64 -2.69

FRA:MRKC vs ZTS, UTHR, VTRS: Beneish M-Score Comparison

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

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

* The bar in red indicates where Merck KGaA's Beneish M-Score falls into.


FRA:MRKC
82GF Score
Merck KGaA FRA:MRKC
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Merck KGaA Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Merck KGaA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0097+0.528 * 1.0116+0.404 * 0.9906+0.892 * 0.9831+0.115 * 0.9549
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0428+4.679 * -0.031317-0.327 * 1.1385
=-2.69

* 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.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was €4,439 Mil.
Revenue was 5134 + 5249 + 5318 + 5255 = €20,956 Mil.
Gross Profit was 3065 + 2961 + 3213 + 3027 = €12,266 Mil.
Total Current Assets was €14,162 Mil.
Total Assets was €53,070 Mil.
Property, Plant and Equipment(Net PPE) was €10,044 Mil.
Depreciation, Depletion and Amortization(DDA) was €2,322 Mil.
Selling, General, & Admin. Expense(SGA) was €5,543 Mil.
Total Current Liabilities was €9,349 Mil.
Long-Term Debt & Capital Lease Obligation was €10,802 Mil.
Net Income was 659 + 319 + 902 + 652 = €2,532 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 818 + 1291 + 1518 + 567 = €4,194 Mil.
 Total Receivables was €4,472 Mil.
Revenue was 5280 + 5418 + 5266 + 5352 = €21,316 Mil.
Gross Profit was 3145 + 3099 + 3144 + 3233 = €12,621 Mil.
Total Current Assets was €12,412 Mil.
Total Assets was €49,373 Mil.
Property, Plant and Equipment(Net PPE) was €9,854 Mil.
Depreciation, Depletion and Amortization(DDA) was €2,153 Mil.
Selling, General, & Admin. Expense(SGA) was €5,407 Mil.
Total Current Liabilities was €9,502 Mil.
Long-Term Debt & Capital Lease Obligation was €6,964 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(4439 / 20956) / (4472 / 21316)
=0.211825 / 0.209795
=1.0097

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(12621 / 21316) / (12266 / 20956)
=0.59209 / 0.585322
=1.0116

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (14162 + 10044) / 53070) / (1 - (12412 + 9854) / 49373)
=0.543885 / 0.549025
=0.9906

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=20956 / 21316
=0.9831

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(2153 / (2153 + 9854)) / (2322 / (2322 + 10044))
=0.179312 / 0.187773
=0.9549

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(5543 / 20956) / (5407 / 21316)
=0.264507 / 0.253659
=1.0428

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((10802 + 9349) / 53070) / ((6964 + 9502) / 49373)
=0.379706 / 0.333502
=1.1385

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(2532 - 0 - 4194) / 53070
=-0.031317

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Merck KGaA has a M-score of -2.69 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.69 mean?
Merck KGaA (FRA:MRKC) has a Beneish M-Score of -2.69 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Merck KGaA and its competitors. According to the industry distribution chart, Merck KGaA ranks #295 out of 911 companies in the Drug Manufacturers industry, placing it in the top 32.4%.
Is Merck KGaA's Beneish M-Score too high?
Merck KGaA's current Beneish M-Score is -2.69. Based on the distribution chart, Merck KGaA ranks #295 out of 911 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Merck KGaA has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Merck KGaA's Beneish M-Score compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Merck KGaA ranks #295 out of 911 companies for Beneish M-Score. This puts Merck KGaA in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Drug Manufacturers company?
A good Beneish M-Score depends on the Drug Manufacturers industry context. However, Beneish M-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 Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Merck KGaA and its competitors. Merck KGaA's current Beneish M-Score is -2.69. 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?
Based on GuruFocus' analysis, Merck KGaA (FRA:MRKC) is currently considered Fairly Valued. The stock's GF Value™ is €27.71, compared to a current price of €27.60 — trading 0.4% below its estimated fair value. The current Beneish M-Score is -2.69. Merck KGaA's overall GF Score™ is 82/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Merck KGaA (FRA:MRKC), the current Beneish M-Score is -2.69 as of Jun. 25, 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 (FRA:MRKC) Overvalued in 2026?

Based on GuruFocus' analysis, Merck KGaA stock appears to be undervalued. The current stock price of €27.60 is trading 0.4% below its estimated GF Value™ of €27.71. GuruFocus considers Merck KGaA to be Fairly Valued.

Key valuation signals for FRA:MRKC:

  • Beneish M-Score: -2.69
  • GF Value™: €27.71 vs. price of €27.60 (0.4% below fair value)
  • GF Score™: 82/100 with 9 warning signs

No single metric tells the full story. See the FRA:MRKC 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.
82GF Score

Get the complete analysis for FRA:MRKC

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

€27.60
Price
€27.71
GF Value