Should you consider NYSE:MMC for quality investing?

In this article we will dive into MARSH & MCLENNAN COS (NYSE:MMC) as a possible candidate for quality investing. Investors should always do their own research, but we noticed MARSH & MCLENNAN COS showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of MARSH & MCLENNAN COS

• 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.
• With a notable ROIC excluding cash and goodwill at 51.99%, MARSH & MCLENNAN COS demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• MARSH & MCLENNAN COS maintains a healthy Debt/Free Cash Flow Ratio of 3.73, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• 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.
• MARSH & MCLENNAN COS has experienced impressive EBIT growth over the past 5 years, with 15.12% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• 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.

Zooming in on the fundamentals.

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.

We assign a fundamental rating of 6 out of 10 to MMC. MMC was compared to 140 industry peers in the Insurance industry. While MMC has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, MMC is valued expensive at the moment.

Our latest full fundamental report of MMC contains the most current fundamental analsysis.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.