10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
Merck KGaA's 10-Year ROIIC % for the quarter that ended in Dec. 2025 was 17.81%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Merck KGaA's 10-Year ROIIC % or its related term are showing as below:
XSWX:MER's 10-Year ROIIC % is ranked better than 75.2% of 859
companies
in the Drug Manufacturers industry
Industry Median: 4.44
vs XSWX:MER: 17.81
Merck KGaA (XSWX:MER) 10-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Merck KGaA 10-Year ROIIC % Related Terms
Merck KGaA 10-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Merck KGaA's 10-Year ROIIC % 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: 10-Year ROIIC % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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 10-Year ROIIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Merck KGaA's 10-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Merck KGaA (XSWX:MER) has a 10-Year ROIIC % of 17.81 as of Dec. 2025. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Merck KGaA and its competitors. According to the industry distribution chart, Merck KGaA ranks #213 out of 859 companies in the Drug Manufacturers industry, placing it in the top 24.8%.
Is Merck KGaA's 10-Year ROIIC % too high?
Merck KGaA's current 10-Year ROIIC % is 17.81. The Drug Manufacturers industry median 10-Year ROIIC % is 4.44. Merck KGaA's value of 17.81 is 301.1% above this industry median. Based on the distribution chart, Merck KGaA ranks #213 out of 859 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 10-Year ROIIC % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Merck KGaA ranks #213 out of 859 companies for 10-Year ROIIC %. This places Merck KGaA in the top 25% of its industry — outperforming the majority of peers. The industry median 10-Year ROIIC % is 4.44. Merck KGaA's value of 17.81 is 301.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year ROIIC % for a Drug Manufacturers company?
The median 10-Year ROIIC % among Drug Manufacturers companies is 4.44, based on 859 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merck KGaA's current 10-Year ROIIC % of 17.81 is 301.1% 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 10-Year ROIIC % mean?
A high 10-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Merck KGaA and its competitors. For the Drug Manufacturers industry, the median 10-Year ROIIC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck KGaA's current 10-Year ROIIC % is 17.81. 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 10-Year ROIIC % of 17.81. 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 10-Year ROIIC % is 17.81 and 301.1% above the Drug Manufacturers industry median of 4.44. 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 10-Year ROIIC % calculated?
10-Year ROIIC % is calculated from a company's financial statements. For Merck KGaA (XSWX:MER), the current 10-Year ROIIC % is 17.81 as of Dec. 2025. 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:
10-Year ROIIC %: 17.81
GF Value™: CHF128.27 vs. price of CHF132.80 (3.5% above fair value)
Industry Position: 301.1% above the Drug Manufacturers median (#213 of 859)
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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