Merck KGaAXSWX:MER 82 Return-on-Tangible-Asset is 9.83% as of Mar. 2026, which is 20% below its 10-year median of 12.31. GuruFocus rates XSWX:MER with a GF Score™ of 82/100 and a GF Value™ of CHF128.27. The stock has 9 warning signs investors should review. Among 1,005 Drug Manufacturers companies, Merck KGaA ranks better than 78.21% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Merck KGaA's annualizedNet Income for the quarter that ended in Mar. 2026 was CHF2,399 Mil. Merck KGaA's average total tangible assets for the quarter that ended in Mar. 2026 was CHF24,397 Mil. Therefore, Merck KGaA's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 9.83%.
The historical rank and industry rank for Merck KGaA's Return-on-Tangible-Asset or its related term are showing as below:
XSWX:MER'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 7.91 Med: 12.31 Max: 22.79
Current: 9.93
During the past 13 years, Merck KGaA's highest Return-on-Tangible-Asset was 22.79%. The lowest was 7.91%. And the median was 12.31%.
XSWX:MER's Return-on-Tangible-Asset is ranked better than 78.21% of 1005
companies
in the Drug Manufacturers industry
Industry Median: 3.16
vs XSWX:MER: 9.93
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Merck KGaA Return-on-Tangible-Asset Related Terms
Merck KGaA Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Merck KGaA's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Merck KGaA's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 9.83% mean?
Merck KGaA (XSWX:MER) has a Return-on-Tangible-Asset of 9.83% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Merck KGaA and its competitors. This is 20% below median its historical median of 12.31. Over the past decade, Merck KGaA's Return-on-Tangible-Asset has ranged from 7.91 to 22.79. According to the industry distribution chart, Merck KGaA ranks #219 out of 1005 companies in the Drug Manufacturers industry, placing it in the top 21.8%.
Is Merck KGaA's Return-on-Tangible-Asset too high?
Merck KGaA's current Return-on-Tangible-Asset of 9.83% is 20% below median its 10-year median of 12.31. Over the past 10 years, this metric has ranged from a low of 7.91 to a high of 22.79. The Drug Manufacturers industry median Return-on-Tangible-Asset is 3.16. Merck KGaA's value of 9.83% is 211.1% above this industry median. Based on the distribution chart, Merck KGaA ranks #219 out of 1005 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 82/100, reflecting its overall financial health beyond just this single metric.
How does Merck KGaA's Return-on-Tangible-Asset compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Merck KGaA ranks #219 out of 1005 companies for Return-on-Tangible-Asset. This places Merck KGaA in the top 22% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.16. Merck KGaA's value of 9.83% is 211.1% above this benchmark. Historically, Merck KGaA's own Return-on-Tangible-Asset has ranged from 7.91 to 22.79 over the past decade. While the company's 10-year median is 12.31 vs. the industry median of 3.16, 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 Return-on-Tangible-Asset for a Drug Manufacturers company?
The median Return-on-Tangible-Asset among Drug Manufacturers companies is 3.16, based on 1,005 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merck KGaA's current Return-on-Tangible-Asset of 9.83% is 211.1% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Merck KGaA and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Asset is 3.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck KGaA's current Return-on-Tangible-Asset is 9.83%, which is 20% below median its own 10-year median of 12.31. 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 Return-on-Tangible-Asset of 9.83%. The stock's GF Value™ is CHF128.27, compared to a current price of CHF132.80 — trading 3.5% above its estimated fair value. The current Return-on-Tangible-Asset is 9.83%, which is 20% below median its 10-year median of 12.31 and 211.1% above the Drug Manufacturers industry median of 3.16. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Merck KGaA (XSWX:MER), the current Return-on-Tangible-Asset is 9.83% 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 CHF132.80 is trading 3.5% above its estimated GF Value™ of CHF128.27.
Key valuation signals for XSWX:MER:
Return-on-Tangible-Asset: 9.83% (20% below median its 10-year median of 12.31)
GF Value™: CHF128.27 vs. price of CHF132.80 (3.5% above fair value)
Industry Position: 211.1% above the Drug Manufacturers median (#219 of 1005)
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.
82GF Score
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