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.

7

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.
  • In the past 5 years MMC has always been profitable.
  • In the past 5 years MMC always reported a positive cash flow from operatings.
MMC Yearly Net Income VS EBIT VS OCF VS FCFMMC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

1.2 Ratios

  • MMC has a better Return On Assets (7.02%) than 90.60% of its industry peers.
  • Looking at the Return On Equity, with a value of 27.24%, MMC belongs to the top of the industry, outperforming 93.29% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 13.33%, MMC belongs to the best of the industry, outperforming 95.97% 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 above the industry average of 9.34%.
Industry RankSector 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%
MMC Yearly ROA, ROE, ROICMMC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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.
  • MMC has a better Operating Margin (25.20%) than 87.25% of its industry peers.
  • In the last couple of years the Operating Margin of MMC has grown nicely.
Industry RankSector 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
MMC Yearly Profit, Operating, Gross MarginsMMC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. MMC Health Analysis

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.
  • MMC has a worse debt/assets ratio than last year.
MMC Yearly Shares OutstandingMMC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
MMC Yearly Total Debt VS Total AssetsMMC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

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's Altman-Z score of 2.75 is amongst the best of the industry. MMC outperforms 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 of 4.06. This is comparable to the rest of the industry: MMC outperforms 42.95% of its industry peers.
  • MMC has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external 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 RankSector Rank
Debt/Equity 1.21
Debt/FCF 4.06
Altman-Z 2.75
ROIC/WACC1.69
WACC7.9%
MMC Yearly LT Debt VS Equity VS FCFMMC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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.
  • MMC has a better Quick ratio (1.12) than 81.88% of its industry peers.
Industry RankSector Rank
Current Ratio 1.12
Quick Ratio 1.12
MMC Yearly Current Assets VS Current LiabilitesMMC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. MMC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 10.34% over the past year.
  • 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.
  • 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

  • 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 Y10.15%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
MMC Yearly Revenue VS EstimatesMMC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B
MMC Yearly EPS VS EstimatesMMC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10

More info and screens

Find the best growth stocksShow best growing peers

2

4. MMC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 19.23, which indicates a rather expensive current valuation of MMC.
  • Based on the Price/Earnings ratio, MMC is valued a bit more expensive than the industry average as 66.44% of the companies are valued more cheaply.
  • MMC is valuated rather cheaply when we compare the Price/Earnings ratio to 25.61, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 17.57, MMC is valued on the expensive side.
  • 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 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.23
Fwd PE 17.57
MMC Price Earnings VS Forward Price EarningsMMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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.
  • 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 RankSector Rank
P/FCF 18.55
EV/EBITDA 14.12
MMC Per share dataMMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40

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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. MMC Dividend Analysis

5.1 Amount

  • MMC has a Yearly Dividend Yield of 1.94%.
  • Compared to an average industry Dividend Yield of 2.84, MMC has a dividend in line with its industry peers.
  • MMC's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector 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
MMC Yearly Dividends per shareMMC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

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.
  • The dividend of MMC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.17%
EPS Next 2Y8.69%
EPS Next 3Y8.81%
MMC Yearly Income VS Free CF VS DividendMMC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
MMC Dividend Payout.MMC Dividend Payout, showing the Payout Ratio.MMC Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

MMC Fundamentals: All Metrics, Ratios and Statistics

MARSH & MCLENNAN COS

NYSE:MMC (1/13/2026, 8:04:00 PM)

After market: 182.7 0 (0%)

182.7

-2.93 (-1.58%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-16
Earnings (Next)01-29
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 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%.