MARSH & MCLENNAN COS (MMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MMC - US5717481023 - Common Stock
181.37 USD
-0.65 (-0.36%)
MMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 147 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.
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.
In the past 5 years MMC has always been profitable.
In the past 5 years MMC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.02%, MMC belongs to the top of the industry, outperforming 91.16% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.24%, MMC belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
MMC has a Return On Invested Capital of 13.33%. This is amongst the best in the industry. MMC outperforms 96.60% 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 4.52%.
| 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 79.59% of its industry peers.
MMC's Profit Margin has improved in the last couple of years.
MMC has a Operating Margin of 25.20%. This is amongst the best in the industry. MMC outperforms 88.44% of its industry peers.
MMC's Operating Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, MMC has about the same amount of shares outstanding.
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
An Altman-Z score of 2.75 indicates that MMC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MMC has a Altman-Z score of 2.75. This is amongst the best in the industry. MMC outperforms 91.84% of its industry peers.
MMC has a debt to FCF ratio of 4.06. This is a neutral value as MMC would need 4.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.06, MMC is in line with its industry, outperforming 42.18% of the companies in the same industry.
A Debt/Equity ratio of 1.21 is on the high side and indicates that MMC has dependencies on debt financing.
MMC has a worse Debt to Equity ratio (1.21) than 89.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.72
WACC7.73%
2.3 Liquidity
A Current Ratio of 1.12 indicates that MMC should not have too much problems paying its short term obligations.
MMC's Current ratio of 1.12 is amongst the best of the industry. MMC outperforms 80.95% of its industry peers.
A Quick Ratio of 1.12 indicates that MMC should not have too much problems paying its short term obligations.
MMC's Quick ratio of 1.12 is amongst the best of 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
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.
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.
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.
The Revenue is expected to grow by 6.03% on average over the next years.
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
Based on the Price/Earnings ratio of 19.09, the valuation of MMC can be described as rather expensive.
MMC's Price/Earnings ratio is a bit more expensive when compared to the industry. MMC is more expensive than 70.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.98. MMC is valued slightly cheaper when compared to this.
MMC is valuated rather expensively with a Price/Forward Earnings ratio of 17.37.
MMC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MMC is more expensive than 68.03% of the companies in the same industry.
MMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 17.37 |
4.2 Price Multiples
60.54% of the companies in the same industry are cheaper than MMC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MMC is valued a bit more expensive than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.42 | ||
| EV/EBITDA | 14.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MMC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)1.41
EPS Next 2Y8.93%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
MMC has a Yearly Dividend Yield of 2.01%.
Compared to an average industry Dividend Yield of 3.46, MMC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, MMC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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 (11/26/2025, 11:21:02 AM)
181.37
-0.65 (-0.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners92.4%
Inst Owner Change-0.64%
Ins Owners0.06%
Ins Owner Change0.29%
Market Cap88.85B
Revenue(TTM)26.45B
Net Income(TTM)4.13B
Analysts67.69
Price Target218.4 (20.42%)
Short Float %1.17%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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)-7.45%
PT rev (3m)-7.45%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-1.05%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 17.37 | ||
| P/S | 3.36 | ||
| P/FCF | 18.42 | ||
| P/OCF | 17.47 | ||
| P/B | 5.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.08 |
EPS(TTM)9.5
EY5.24%
EPS(NY)10.44
Fwd EY5.76%
FCF(TTM)9.85
FCFY5.43%
OCF(TTM)10.38
OCFY5.73%
SpS54
BVpS30.93
TBVpS-27.49
PEG (NY)1.87
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 | 2.75 |
F-Score4
WACC7.73%
ROIC/WACC1.72
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 19.09 and the Price/Book (PB) ratio is 5.86.
How financially healthy is MARSH & MCLENNAN COS?
The financial health rating of MARSH & MCLENNAN COS (MMC) is 5 / 10.