MerckLIM:MRK 71 Net Margin % is -26.03% as of Mar. 2026. GuruFocus rates LIM:MRK with a GF Score™ of 71/100 and a GF Value™ of $117.83 (Fairly Valued). The stock has 7 warning signs investors should review. Among 956 Drug Manufacturers companies, Merck ranks better than 75.1% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Merck's Net Income for the
three
months ended in Mar. 2026 was $-4,240 Mil. Merck's Revenue for the
three
months ended in Mar. 2026 was $16,286 Mil. Therefore, Merck's net margin for the quarter that ended in Mar. 2026 was -26.03%.
The historical rank and industry rank for Merck's Net Margin % or its related term are showing as below:
LIM:MRK'
s Net Margin % Range Over the Past 10 Years
Min: 0.61 Med: 20.76 Max: 28.08
Current: 13.59
LIM:MRK's Net Margin % is ranked better than 75.1% of 956
companies
in the Drug Manufacturers industry
Industry Median: 5.56
vs LIM:MRK: 13.59
Merck (LIM:MRK) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Merck Net Margin % Related Terms
Merck Net Margin % Historical Data
* Premium members only.
The historical data trend for Merck's Net 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.
LIM:MRK vs ABBV, AMGN, GILD: Net Margin % Comparison
For the Drug Manufacturers - General subindustry, Merck's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck's Net Margin % distribution charts can be found below:
* The bar in red indicates where Merck's Net 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.
Merck (LIM:MRK) has a Net Margin % of -26.03% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Merck and its competitors. Over the past decade, Merck's Net Margin % has ranged from 0.61 to 28.08. According to the industry distribution chart, Merck ranks #238 out of 956 companies in the Drug Manufacturers industry, placing it in the top 24.9%.
Is Merck's Net Margin % too high?
Merck's current Net Margin % is -26.03%. Over the past 10 years, this metric has ranged from a low of 0.61 to a high of 28.08. Based on the distribution chart, Merck ranks #238 out of 956 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Merck has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Merck's Net Margin % compare to ABBV and AMGN?
According to the Drug Manufacturers industry distribution chart, Merck ranks #238 out of 956 companies for Net Margin %. This places Merck in the top 25% of its industry — outperforming the majority of peers. The industry median Net Margin % is 5.56. Historically, Merck's own Net Margin % has ranged from 0.61 to 28.08 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Drug Manufacturers company?
The median Net Margin % among Drug Manufacturers companies is 5.56, based on 956 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Merck and its competitors. For the Drug Manufacturers industry, the median Net Margin % is 5.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck's current Net Margin % is -26.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merck stock overvalued right now?
Based on GuruFocus' analysis, Merck (LIM:MRK) is currently considered Fairly Valued. The stock's GF Value™ is $117.83, compared to a current price of $120.00 — trading 1.8% above its estimated fair value. The current Net Margin % is -26.03%. Merck's overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Merck (LIM:MRK), the current Net Margin % is -26.03% 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 (LIM:MRK) Overvalued in 2026?
Based on GuruFocus' analysis, Merck stock appears to be overvalued.
The current stock price of $120.00 is trading 1.8% above its estimated GF Value™ of $117.83.
GuruFocus considers Merck to be Fairly Valued.
Key valuation signals for LIM:MRK:
Net Margin %: -26.03%
GF Value™: $117.83 vs. price of $120.00 (1.8% above fair value)
No single metric tells the full story. See the LIM:MRK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. Within cancer, the firm's immuno-oncology platform, led by Keytruda, is a major contributor to overall sales. The company also has a substantial vaccine business aimed at preventing pediatric diseases, as well as Gardasil for human papillomavirus. Additionally, Merck sells animal health-related drugs. From a geographical perspective, 47% of the company's sales are generated from US human health (pharmaceuticals and vaccines).
71GF Score
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