Should Quality Investors Include NYSE:MMC in Their Portfolio?

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.

Exploring Why NYSE:MMC Holds Appeal for Quality Investors.

• MARSH & MCLENNAN COS has achieved substantial revenue growth over the past 5 years, with a 8.75% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• MARSH & MCLENNAN COS demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 51.99% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• 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.
• 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 15.12%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• 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.

Fundamental Analysis Observations

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 141 industry peers in the Insurance industry. MMC scores excellent on profitability, but there are some minor concerns on its financial health. MMC is quite expensive at the moment. It does show a decent growth rate.

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

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.