MARSH & MCLENNAN COS (MMC) Fundamental Analysis & Valuation
NYSE:MMC • US5717481023
Current stock price
182.7 USD
-2.93 (-1.58%)
At close:
182.7 USD
0 (0%)
After Hours:
This MMC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. MMC Profitability Analysis
1.1 Basic Checks
- In the past year MMC was profitable.
- MMC had a positive operating cash flow in the past year.
- Each year in the past 5 years MMC has been profitable.
- MMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of MMC (7.02%) is better than 90.60% of its industry peers.
- The Return On Equity of MMC (27.24%) is better than 93.29% of its industry peers.
- MMC has a better Return On Invested Capital (13.33%) than 95.97% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MMC is above the industry average of 9.51%.
| 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.
- In the last couple of years the Profit Margin of MMC has grown nicely.
- MMC has a better Operating Margin (25.20%) than 87.25% 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. MMC Health Analysis
2.1 Basic Checks
- MMC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- MMC has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, MMC has less shares outstanding
- 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.
- With an excellent Altman-Z score value of 2.75, MMC belongs to the best of the industry, outperforming 93.96% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 4.06, MMC is in line with its industry, outperforming 42.95% 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's Debt to Equity ratio of 1.21 is on the low side compared to the rest of the industry. MMC is outperformed by 88.59% of its industry peers.
| 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.
- A Quick Ratio of 1.12 indicates that MMC should not have too much problems paying its short term obligations.
- The Quick ratio of MMC (1.12) is better than 81.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. MMC Growth Analysis
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.
- The Revenue has been growing slightly by 7.99% on average over the past years.
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
- The Earnings Per Share is expected to grow by 9.82% on average over the next years. This is quite good.
- The Revenue is expected to grow by 6.03% on average over the next years.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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. MMC Valuation Analysis
4.1 Price/Earnings Ratio
- MMC is valuated rather expensively with a Price/Earnings ratio of 19.23.
- 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 (27.95), we can say MMC is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 17.57, the valuation of MMC can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, MMC is valued a bit more expensive than the industry average as 64.43% of the companies are valued more cheaply.
- MMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 38.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 17.57 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MMC indicates a slightly more expensive valuation: MMC is more expensive than 60.40% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MMC indicates a slightly more expensive valuation: MMC is more expensive than 61.07% of the companies listed 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 an expensive valuation of the company.
- 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. MMC Dividend Analysis
5.1 Amount
- MMC has a Yearly Dividend Yield of 1.94%.
- Compared to an average industry Dividend Yield of 2.37, MMC has a dividend in line with its industry peers.
- 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 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
- 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%
MMC Fundamentals: All Metrics, Ratios and Statistics
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-1.16%
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 Number81.3101 (-55.5%)
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 Fundamental Analysis FAQ
What is the fundamental rating for MMC stock?
ChartMill assigns a fundamental rating of 5 / 10 to MMC.
What is the valuation status for MMC stock?
ChartMill assigns a valuation rating of 2 / 10 to MARSH & MCLENNAN COS (MMC). This can be considered as Overvalued.
What is the profitability of MMC stock?
MARSH & MCLENNAN COS (MMC) has a profitability rating of 7 / 10.
What is the financial health of MARSH & MCLENNAN COS (MMC) stock?
The financial health rating of MARSH & MCLENNAN COS (MMC) is 5 / 10.
What is the expected EPS growth for MARSH & MCLENNAN COS (MMC) stock?
The Earnings per Share (EPS) of MARSH & MCLENNAN COS (MMC) is expected to grow by 10.15% in the next year.