MARSH & MCLENNAN COS (MMC) Stock Fundamental Analysis
USA - NYSE:MMC - US5717481023 - Common Stock
181.89 USD
+2.94 (+1.64%)
We assign a fundamental rating of 5 out of 10 to MMC. MMC was compared to 147 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.
1. Profitability
1.1 Basic Checks
MMC had positive earnings in the past year.
In the past year MMC had a positive cash flow from operations.
Each year in the past 5 years MMC has been profitable.
In the past 5 years MMC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MMC (7.02%) is better than 92.52% of its industry peers.
MMC has a better Return On Equity (27.24%) than 91.16% of its industry peers.
MMC has a Return On Invested Capital of 13.33%. This is amongst the best in the industry. MMC outperforms 97.28% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MMC is significantly above the industry average of 4.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.02% | ||
| ROE | 27.24% | ||
| ROIC | 13.33% |
ROA(3y)7.31%
ROA(5y)7.43%
ROE(3y)30.08%
ROE(5y)28.19%
ROIC(3y)13.69%
ROIC(5y)12.5%
1.3 Margins
MMC has a Profit Margin of 15.60%. This is amongst the best in the industry. MMC outperforms 80.27% of its industry peers.
MMC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 25.20%, MMC belongs to the best of the industry, outperforming 88.44% of the companies in the same industry.
In the last couple of years the Operating Margin of MMC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.2% | ||
| PM (TTM) | 15.6% | ||
| GM | N/A |
OM growth 3Y4.55%
OM growth 5Y7.02%
PM growth 3Y1.54%
PM growth 5Y9.67%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MMC is still creating some value.
MMC has about the same amout of shares outstanding than it did 1 year ago.
MMC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MMC is higher compared to a year ago.
2.2 Solvency
MMC has an Altman-Z score of 2.72. This is not the best score and indicates that MMC is in the grey zone with still only limited risk for bankruptcy at the moment.
MMC has a Altman-Z score of 2.72. This is amongst the best in the industry. MMC outperforms 91.84% of its industry peers.
The Debt to FCF ratio of MMC is 4.06, which is a neutral value as it means it would take MMC, 4.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MMC (4.06) is comparable to the rest of the industry.
MMC has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MMC (1.21) is worse than 89.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.71
WACC7.79%
2.3 Liquidity
MMC has a Current Ratio of 1.12. This is a normal value and indicates that MMC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.12, MMC belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that MMC should not have too much problems paying its short term obligations.
MMC has a Quick ratio of 1.12. This is amongst the best in the industry. MMC outperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.34% over the past year.
Measured over the past years, MMC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.56% on average per year.
Looking at the last year, MMC shows a quite strong growth in Revenue. The Revenue has grown by 10.47% in the last year.
Measured over the past years, MMC shows a small growth in Revenue. The Revenue has been growing by 7.99% on average per year.
EPS 1Y (TTM)10.34%
EPS 3Y12.5%
EPS 5Y13.56%
EPS Q2Q%13.5%
Revenue 1Y (TTM)10.47%
Revenue growth 3Y7.26%
Revenue growth 5Y7.99%
Sales Q2Q%11.48%
3.2 Future
Based on estimates for the next years, MMC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.82% on average per year.
MMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.03% yearly.
EPS Next Y10.2%
EPS Next 2Y8.93%
EPS Next 3Y8.92%
EPS Next 5Y9.82%
Revenue Next Year10.71%
Revenue Next 2Y7.84%
Revenue Next 3Y6.95%
Revenue Next 5Y6.03%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.15, MMC is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of MMC indicates a slightly more expensive valuation: MMC is more expensive than 70.07% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.07. MMC is valued slightly cheaper when compared to this.
MMC is valuated rather expensively with a Price/Forward Earnings ratio of 17.42.
MMC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MMC is more expensive than 67.35% of the companies in the same industry.
MMC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.15 | ||
| Fwd PE | 17.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMC is valued a bit more expensive than 60.54% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MMC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.47 | ||
| EV/EBITDA | 13.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MMC does not grow enough to justify the current Price/Earnings ratio.
MMC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.88
PEG (5Y)1.41
EPS Next 2Y8.93%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
MMC has a Yearly Dividend Yield of 1.96%.
Compared to an average industry Dividend Yield of 3.51, MMC has a dividend in line with its industry peers.
MMC's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
On average, the dividend of MMC grows each year by 11.74%, which is quite nice.
MMC has been paying a dividend for at least 10 years, so it has a reliable track record.
MMC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.74%
Div Incr Years15
Div Non Decr Years19
5.3 Sustainability
40.17% of the earnings are spent on dividend by MMC. This is a bit on the high side, but may be sustainable.
MMC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.17%
EPS Next 2Y8.93%
EPS Next 3Y8.92%
NYSE:MMC (11/21/2025, 2:18:04 PM)
181.89
+2.94 (+1.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners92.4%
Inst Owner Change-0.71%
Ins Owners0.06%
Ins Owner Change0.36%
Market Cap89.11B
Revenue(TTM)26.45B
Net Income(TTM)4.13B
Analysts67.69
Price Target222.43 (22.29%)
Short Float %1.17%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend3.08
Dividend Growth(5Y)11.74%
DP40.17%
Div Incr Years15
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.98%
Min EPS beat(2)1.3%
Max EPS beat(2)2.66%
EPS beat(4)4
Avg EPS beat(4)2.44%
Min EPS beat(4)0.36%
Max EPS beat(4)5.46%
EPS beat(8)6
Avg EPS beat(8)1.69%
EPS beat(12)10
Avg EPS beat(12)2.13%
EPS beat(16)14
Avg EPS beat(16)2.17%
Revenue beat(2)0
Avg Revenue beat(2)-0.42%
Min Revenue beat(2)-0.55%
Max Revenue beat(2)-0.29%
Revenue beat(4)1
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)1.03%
Revenue beat(8)2
Avg Revenue beat(8)-0.62%
Revenue beat(12)4
Avg Revenue beat(12)-0.51%
Revenue beat(16)5
Avg Revenue beat(16)-0.41%
PT rev (1m)-5.74%
PT rev (3m)-5.37%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-0.85%
EPS NY rev (1m)0.4%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.15 | ||
| Fwd PE | 17.42 | ||
| P/S | 3.37 | ||
| P/FCF | 18.47 | ||
| P/OCF | 17.52 | ||
| P/B | 5.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.88 |
EPS(TTM)9.5
EY5.22%
EPS(NY)10.44
Fwd EY5.74%
FCF(TTM)9.85
FCFY5.41%
OCF(TTM)10.38
OCFY5.71%
SpS54
BVpS30.93
TBVpS-27.49
PEG (NY)1.88
PEG (5Y)1.41
Graham Number81.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.02% | ||
| ROE | 27.24% | ||
| ROCE | 17.69% | ||
| ROIC | 13.33% | ||
| ROICexc | 14.28% | ||
| ROICexgc | 76.66% | ||
| OM | 25.2% | ||
| PM (TTM) | 15.6% | ||
| GM | N/A | ||
| FCFM | 18.24% |
ROA(3y)7.31%
ROA(5y)7.43%
ROE(3y)30.08%
ROE(5y)28.19%
ROIC(3y)13.69%
ROIC(5y)12.5%
ROICexc(3y)14.92%
ROICexc(5y)13.56%
ROICexgc(3y)71.76%
ROICexgc(5y)60.83%
ROCE(3y)18.16%
ROCE(5y)16.58%
ROICexgc growth 3Y14.51%
ROICexgc growth 5Y14.25%
ROICexc growth 3Y1.96%
ROICexc growth 5Y7.02%
OM growth 3Y4.55%
OM growth 5Y7.02%
PM growth 3Y1.54%
PM growth 5Y9.67%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 4.06 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 29.67% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 8.05 | ||
| Cash Conversion | 67.4% | ||
| Profit Quality | 116.91% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.72 |
F-Score4
WACC7.79%
ROIC/WACC1.71
Cap/Depr(3y)56.15%
Cap/Depr(5y)53.95%
Cap/Sales(3y)1.82%
Cap/Sales(5y)1.91%
Profit Quality(3y)99.4%
Profit Quality(5y)109.53%
High Growth Momentum
Growth
EPS 1Y (TTM)10.34%
EPS 3Y12.5%
EPS 5Y13.56%
EPS Q2Q%13.5%
EPS Next Y10.2%
EPS Next 2Y8.93%
EPS Next 3Y8.92%
EPS Next 5Y9.82%
Revenue 1Y (TTM)10.47%
Revenue growth 3Y7.26%
Revenue growth 5Y7.99%
Sales Q2Q%11.48%
Revenue Next Year10.71%
Revenue Next 2Y7.84%
Revenue Next 3Y6.95%
Revenue Next 5Y6.03%
EBIT growth 1Y9.39%
EBIT growth 3Y12.14%
EBIT growth 5Y15.58%
EBIT Next Year25.69%
EBIT Next 3Y13.16%
EBIT Next 5Y8.85%
FCF growth 1Y35.53%
FCF growth 3Y8.62%
FCF growth 5Y15.49%
OCF growth 1Y27.91%
OCF growth 3Y6.96%
OCF growth 5Y12.75%
MARSH & MCLENNAN COS / MMC FAQ
What is the fundamental rating for MMC stock?
ChartMill assigns a fundamental rating of 5 / 10 to MMC.
Can you provide the valuation status for MARSH & MCLENNAN COS?
ChartMill assigns a valuation rating of 2 / 10 to MARSH & MCLENNAN COS (MMC). This can be considered as Overvalued.
Can you provide the profitability details for MARSH & MCLENNAN COS?
MARSH & MCLENNAN COS (MMC) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for MMC stock?
The Price/Earnings (PE) ratio for MARSH & MCLENNAN COS (MMC) is 19.15 and the Price/Book (PB) ratio is 5.88.
How financially healthy is MARSH & MCLENNAN COS?
The financial health rating of MARSH & MCLENNAN COS (MMC) is 5 / 10.