MARSH & MCLENNAN COS (MMC) Stock Fundamental Analysis
USA - NYSE:MMC - US5717481023 - Common Stock
180.05 USD
+3.47 (+1.97%)
180.05 USD
0 (0%)
Overall MMC gets a fundamental rating of 5 out of 10. We evaluated MMC against 146 industry peers in the Insurance industry. While MMC belongs to the best of the industry regarding profitability, 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.
MMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.02%, MMC belongs to the top of the industry, outperforming 93.15% of the companies in the same industry.
MMC's Return On Equity of 27.24% is amongst the best of the industry. MMC outperforms 92.47% of its industry peers.
With an excellent Return On Invested Capital value of 13.33%, MMC belongs to the best of the industry, outperforming 97.26% of the companies in the same industry.
MMC had an Average Return On Invested Capital over the past 3 years of 13.69%. This is significantly above the industry average of 4.53%.
| 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 82.88% 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 89.73% of the companies in the same industry.
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
MMC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for MMC remains at a similar level compared to 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 2.71. 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 2.71. This is amongst the best in the industry. MMC outperforms 92.47% 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.
With a Debt to FCF ratio value of 4.06, MMC perfoms like the industry average, outperforming 43.84% 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 90.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 2.71 |
ROIC/WACC1.71
WACC7.78%
2.3 Liquidity
A Current Ratio of 1.12 indicates that MMC should not have too much problems paying its short term obligations.
MMC has a better Current ratio (1.12) than 80.82% 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 80.82% 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.
MMC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.47%.
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
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.
Based on estimates for the next years, MMC will show a small growth in Revenue. The Revenue will grow by 6.03% on average per year.
EPS Next Y10.06%
EPS Next 2Y8.92%
EPS Next 3Y8.91%
EPS Next 5Y9.82%
Revenue Next Year10.79%
Revenue Next 2Y7.95%
Revenue Next 3Y7.05%
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.
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
A Price/Earnings ratio of 18.95 indicates a rather expensive valuation of MMC.
MMC's Price/Earnings ratio is a bit more expensive when compared to the industry. MMC is more expensive than 67.81% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, MMC is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.25, 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 66.44% of the companies in the same industry.
MMC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 17.25 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MMC.
The rest of the industry has a similar Price/Free Cash Flow ratio as MMC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.28 | ||
| EV/EBITDA | 13.72 |
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)1.4
EPS Next 2Y8.92%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.04%, MMC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.33, MMC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, MMC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
The dividend of MMC is nicely growing with an annual growth rate of 11.74%!
MMC has paid a dividend for at least 10 years, which is 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 2Y8.92%
EPS Next 3Y8.91%
180.05
+3.47 (+1.97%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners92.4%
Inst Owner Change-0.96%
Ins Owners0.06%
Ins Owner Change0.28%
Market Cap88.21B
Revenue(TTM)26.45B
Net Income(TTM)4.13B
Analysts67.69
Price Target222.43 (23.54%)
Short Float %1.19%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
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)-6.42%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-0.8%
EPS NY rev (1m)0.28%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 17.25 | ||
| P/S | 3.33 | ||
| P/FCF | 18.28 | ||
| P/OCF | 17.34 | ||
| P/B | 5.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.72 |
EPS(TTM)9.5
EY5.28%
EPS(NY)10.44
Fwd EY5.8%
FCF(TTM)9.85
FCFY5.47%
OCF(TTM)10.38
OCFY5.77%
SpS54
BVpS30.93
TBVpS-27.49
PEG (NY)1.88
PEG (5Y)1.4
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 | 2.71 |
F-Score4
WACC7.78%
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 Y10.06%
EPS Next 2Y8.92%
EPS Next 3Y8.91%
EPS Next 5Y9.82%
Revenue 1Y (TTM)10.47%
Revenue growth 3Y7.26%
Revenue growth 5Y7.99%
Sales Q2Q%11.48%
Revenue Next Year10.79%
Revenue Next 2Y7.95%
Revenue Next 3Y7.05%
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 3 / 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 18.95 and the Price/Book (PB) ratio is 5.82.
How financially healthy is MARSH & MCLENNAN COS?
The financial health rating of MARSH & MCLENNAN COS (MMC) is 5 / 10.