MARSH & MCLENNAN COS (MMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MMC - US5717481023 - Common Stock
181.555 USD
-0.26 (-0.15%)
MMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. MMC scores excellent on profitability, but there are some minor concerns on its financial health. MMC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MMC was profitable.
MMC had a positive operating cash flow in the past year.
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 has a Return On Assets of 7.02%. This is amongst the best in the industry. MMC outperforms 90.48% 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 93.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.33%, MMC belongs to the top of the industry, outperforming 95.92% 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 in line with the industry average of 14.89%.
| 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
Looking at the Profit Margin, with a value of 15.60%, MMC is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
MMC's Profit Margin has improved in the last couple of years.
MMC has a better Operating Margin (25.20%) than 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.
MMC has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for MMC has been reduced compared to 5 years ago.
MMC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.74 indicates that MMC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MMC's Altman-Z score of 2.74 is amongst the best of the industry. MMC outperforms 92.52% 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.
The Debt to FCF ratio of MMC (4.06) 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.
With a Debt to Equity ratio value of 1.21, MMC is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 2.74 |
ROIC/WACC1.71
WACC7.81%
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.
Looking at the Current ratio, with a value of 1.12, MMC belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that MMC should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.12, MMC belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
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.
MMC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.47%.
Measured over the past years, MMC shows a small growth in Revenue. The Revenue has been growing by 7.99% on average per year.
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.
MMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.03% yearly.
EPS Next Y10.19%
EPS Next 2Y8.77%
EPS Next 3Y8.86%
EPS Next 5Y9.82%
Revenue Next Year10.72%
Revenue Next 2Y7.83%
Revenue Next 3Y6.93%
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
Based on the Price/Earnings ratio of 19.11, the valuation of MMC can be described as rather expensive.
Based on the Price/Earnings ratio, MMC is valued a bit more expensive than the industry average as 68.03% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.49. MMC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.44, which indicates a rather expensive current valuation of MMC.
Based on the Price/Forward Earnings ratio, MMC is valued a bit more expensive than the industry average as 67.35% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, MMC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.11 | ||
| Fwd PE | 17.44 |
4.2 Price Multiples
61.22% of the companies in the same industry are cheaper than MMC, based on the Enterprise Value to EBITDA ratio.
63.27% of the companies in the same industry are cheaper than MMC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.43 | ||
| EV/EBITDA | 14.06 |
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)1.88
PEG (5Y)1.41
EPS Next 2Y8.77%
EPS Next 3Y8.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.97%, MMC has a reasonable but not impressive dividend return.
MMC's Dividend Yield is comparable with the industry average which is at 3.48.
MMC's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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
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 2Y8.77%
EPS Next 3Y8.86%
NYSE:MMC (12/8/2025, 3:50:02 PM)
181.555
-0.26 (-0.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners91.62%
Inst Owner Change-0.61%
Ins Owners0.06%
Ins Owner Change0.1%
Market Cap88.95B
Revenue(TTM)26.45B
Net Income(TTM)4.13B
Analysts67.41
Price Target215.95 (18.94%)
Short Float %1.11%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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)-2.91%
PT rev (3m)-8.49%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-0.79%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.11 | ||
| Fwd PE | 17.44 | ||
| P/S | 3.36 | ||
| P/FCF | 18.43 | ||
| P/OCF | 17.48 | ||
| P/B | 5.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.06 |
EPS(TTM)9.5
EY5.23%
EPS(NY)10.41
Fwd EY5.73%
FCF(TTM)9.85
FCFY5.42%
OCF(TTM)10.38
OCFY5.72%
SpS54
BVpS30.93
TBVpS-27.49
PEG (NY)1.88
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 | 2.74 |
F-Score4
WACC7.81%
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 Y10.19%
EPS Next 2Y8.77%
EPS Next 3Y8.86%
EPS Next 5Y9.82%
Revenue 1Y (TTM)10.47%
Revenue growth 3Y7.26%
Revenue growth 5Y7.99%
Sales Q2Q%11.48%
Revenue Next Year10.72%
Revenue Next 2Y7.83%
Revenue Next 3Y6.93%
Revenue Next 5Y6.03%
EBIT growth 1Y9.39%
EBIT growth 3Y12.14%
EBIT growth 5Y15.58%
EBIT Next Year24.64%
EBIT Next 3Y12.7%
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 7 / 10.
Can you provide the PE and PB ratios for MMC stock?
The Price/Earnings (PE) ratio for MARSH & MCLENNAN COS (MMC) is 19.11 and the Price/Book (PB) ratio is 5.87.
How financially healthy is MARSH & MCLENNAN COS?
The financial health rating of MARSH & MCLENNAN COS (MMC) is 5 / 10.