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Why quality investors should have a look at MARSH & MCLENNAN COS (NYSE:MMC).

By Mill Chart

Last update: Jun 21, 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.


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Some of the quality metrics of NYSE:MMC highlighted

  • MARSH & MCLENNAN COS has shown strong performance in revenue growth over the past 5 years, with a 8.75% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a robust ROIC excluding cash and goodwill at 57.7%, MARSH & MCLENNAN COS showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • The Debt/Free Cash Flow Ratio of MARSH & MCLENNAN COS stands at 3.47, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • With a favorable Profit Quality (5-year) ratio of 112.0%, MARSH & MCLENNAN COS showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • With a robust 5-year EBIT growth of 15.12%, MARSH & MCLENNAN COS showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • MARSH & MCLENNAN COS demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

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

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

MMC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 139 industry peers in the Insurance industry. MMC has an excellent profitability rating, but there are some minor concerns on its financial health. MMC is valied quite expensively at the moment, while it does show a decent growth rate.

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice. 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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