Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Merck KGaA's 3-Year RORE % for the quarter that ended in Mar. 2026 was -3.45%.
The industry rank for Merck KGaA's 3-Year RORE % or its related term are showing as below:
XSWX:MER's 3-Year RORE % is ranked worse than 55.89% of 934
companies
in the Drug Manufacturers industry
Industry Median: 3.075
vs XSWX:MER: -3.45
Merck KGaA (XSWX:MER) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Merck KGaA 3-Year RORE % Related Terms
Merck KGaA 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Merck KGaA's 3-Year RORE % 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: 3-Year RORE % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Merck KGaA's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Merck KGaA (XSWX:MER) has a 3-Year RORE % of -3.45 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Merck KGaA and its competitors. According to the industry distribution chart, Merck KGaA ranks #522 out of 934 companies in the Drug Manufacturers industry, placing it in the top 55.9%.
Is Merck KGaA's 3-Year RORE % too high?
Merck KGaA's current 3-Year RORE % is -3.45. Based on the distribution chart, Merck KGaA ranks #522 out of 934 companies in the Drug Manufacturers industry, which is below the industry midpoint. 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 3-Year RORE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Merck KGaA ranks #522 out of 934 companies for 3-Year RORE %. This places Merck KGaA in the lower half of its industry. The industry median 3-Year RORE % is 3.08. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Drug Manufacturers company?
The median 3-Year RORE % among Drug Manufacturers companies is 3.08, based on 934 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Merck KGaA and its competitors. For the Drug Manufacturers industry, the median 3-Year RORE % is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck KGaA's current 3-Year RORE % is -3.45. 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 3-Year RORE % of -3.45. The stock's GF Value™ is CHF125.76, compared to a current price of CHF132.80 — trading 5.6% above its estimated fair value. The current 3-Year RORE % is -3.45. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Merck KGaA (XSWX:MER), the current 3-Year RORE % is -3.45 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 5.6% above its estimated GF Value™ of CHF125.76.
Key valuation signals for XSWX:MER:
3-Year RORE %: -3.45
GF Value™: CHF125.76 vs. price of CHF132.80 (5.6% above fair value)
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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