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Reasonable growth and debt and a high ROIC for MARSH & MCLENNAN COS (NYSE:MMC).

By Mill Chart

Last update: Feb 26, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if MARSH & MCLENNAN COS (NYSE:MMC) is suited for quality investing. Investors should of course do their own research, but we spotted MARSH & MCLENNAN COS showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

  • MARSH & MCLENNAN COS has demonstrated significant revenue growth over the past 5 years, with a 8.75% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • The ROIC excluding cash and goodwill of MARSH & MCLENNAN COS stands at 82.21%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • With a Debt/Free Cash Flow Ratio of 3.52, MARSH & MCLENNAN COS exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • MARSH & MCLENNAN COS exhibits impressive Profit Quality (5-year) with a 112.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • MARSH & MCLENNAN COS has demonstrated consistent growth in EBIT over the past 5 years, with a strong 13.85%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • MARSH & MCLENNAN COS has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What is the full fundamental picture of NYSE:MMC telling us.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

MMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 140 industry peers in the Insurance industry. While MMC has a great profitability rating, there are some minor concerns on its financial health. MMC is quite expensive at the moment. It does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of MMC

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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