MARSH & MCLENNAN COS (MMC) Stock Fundamental Analysis
NYSE:MMC • US5717481023
182.7 USD
-2.93 (-1.58%)
At close: Jan 13, 2026
182.7 USD
0 (0%)
After Hours: 1/13/2026, 8:04:00 PM
Taking everything into account, MMC scores 5 out of 10 in our fundamental rating. MMC was compared to 150 industry peers in the Insurance industry. MMC scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, MMC is valued expensive at the moment.
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.
- MMC had positive earnings in each of the past 5 years.
- In the past 5 years MMC always reported a positive cash flow from operatings.
1.2 Ratios
- MMC's Return On Assets of 7.02% is amongst the best of the industry. MMC outperforms 90.60% of its industry peers.
- With an excellent Return On Equity value of 27.24%, MMC belongs to the best of the industry, outperforming 93.29% of the companies in the same industry.
- MMC's Return On Invested Capital of 13.33% is amongst the best of the industry. MMC outperforms 95.97% of its industry peers.
- MMC had an Average Return On Invested Capital over the past 3 years of 13.69%. This is in line with the industry average of 15.13%.
| 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's Profit Margin of 15.60% is fine compared to the rest of the industry. MMC outperforms 79.87% 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 87.25% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MMC is creating some value.
- Compared to 1 year ago, MMC has about the same amount of shares outstanding.
- The number of shares outstanding for MMC has been reduced compared to 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 2.75. 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 better Altman-Z score (2.75) than 93.96% 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.
- MMC has a Debt to FCF ratio (4.06) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.21 is on the high side and indicates that MMC has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.21, MMC is doing worse than 88.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.69
WACC7.9%
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.
- MMC's Current ratio of 1.12 is amongst the best of the industry. MMC outperforms 81.88% of its industry peers.
- MMC has a Quick 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.
- MMC has a better Quick ratio (1.12) than 81.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
- MMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.34%, which is quite good.
- MMC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.56% yearly.
- The Revenue has grown by 10.47% in the past year. This is quite good.
- MMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.99% yearly.
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
- MMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.82% yearly.
- MMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.03% yearly.
EPS Next Y10.15%
EPS Next 2Y8.69%
EPS Next 3Y8.81%
EPS Next 5Y9.82%
Revenue Next Year10.68%
Revenue Next 2Y7.79%
Revenue Next 3Y6.92%
Revenue Next 5Y6.03%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 19.23, the valuation of MMC can be described as rather expensive.
- Based on the Price/Earnings ratio, MMC is valued a bit more expensive than 66.44% of the companies in the same industry.
- When comparing the Price/Earnings ratio of MMC to the average of the S&P500 Index (26.99), we can say MMC is valued slightly cheaper.
- A Price/Forward Earnings ratio of 17.57 indicates a rather expensive valuation of MMC.
- MMC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MMC is more expensive than 64.43% 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 28.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 17.57 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MMC is valued a bit more expensive than 60.40% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, MMC is valued a bit more expensive than 61.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.55 | ||
| EV/EBITDA | 14.12 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)1.42
EPS Next 2Y8.69%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
- MMC has a Yearly Dividend Yield of 1.94%.
- MMC's Dividend Yield is comparable with the industry average which is at 2.58.
- MMC's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.74%
Div Incr Years15
Div Non Decr Years19
5.3 Sustainability
- MMC pays out 40.17% of its income as dividend. 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 2Y8.69%
EPS Next 3Y8.81%
182.7
-2.93 (-1.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-16 2025-10-16/bmo
Earnings (Next)01-29 2026-01-29/bmo
Inst Owners91.61%
Inst Owner Change-1.18%
Ins Owners0.06%
Ins Owner Change0.02%
Market Cap89.51B
Revenue(TTM)26.45B
Net Income(TTM)4.13B
Analysts67.86
Price Target214.06 (17.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend3.08
Dividend Growth(5Y)11.74%
DP40.17%
Div Incr Years15
Div Non Decr Years19
Ex-DateN/A
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)-0.87%
PT rev (3m)-9.28%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 17.57 | ||
| P/S | 3.38 | ||
| P/FCF | 18.55 | ||
| P/OCF | 17.6 | ||
| P/B | 5.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.12 |
EPS(TTM)9.5
EY5.2%
EPS(NY)10.4
Fwd EY5.69%
FCF(TTM)9.85
FCFY5.39%
OCF(TTM)10.38
OCFY5.68%
SpS54
BVpS30.93
TBVpS-27.49
PEG (NY)1.89
PEG (5Y)1.42
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 | 2.75 |
F-Score4
WACC7.9%
ROIC/WACC1.69
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 Y10.15%
EPS Next 2Y8.69%
EPS Next 3Y8.81%
EPS Next 5Y9.82%
Revenue 1Y (TTM)10.47%
Revenue growth 3Y7.26%
Revenue growth 5Y7.99%
Sales Q2Q%11.48%
Revenue Next Year10.68%
Revenue Next 2Y7.79%
Revenue Next 3Y6.92%
Revenue Next 5Y6.03%
EBIT growth 1Y9.39%
EBIT growth 3Y12.14%
EBIT growth 5Y15.58%
EBIT Next Year24.26%
EBIT Next 3Y12.51%
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.
What is the valuation status of MARSH & MCLENNAN COS (MMC) stock?
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 7 / 10.
What is the earnings growth outlook for MARSH & MCLENNAN COS?
The Earnings per Share (EPS) of MARSH & MCLENNAN COS (MMC) is expected to grow by 10.15% in the next year.
Is the dividend of MARSH & MCLENNAN COS sustainable?
The dividend rating of MARSH & MCLENNAN COS (MMC) is 5 / 10 and the dividend payout ratio is 40.17%.