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
- MMC had positive earnings in the past year.
- MMC had a positive operating cash flow in the past year.
- 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
- The Return On Assets of MMC (7.02%) is better than 90.60% of its industry peers.
- MMC's Return On Equity of 27.24% is amongst the best of the industry. MMC outperforms 93.29% of its industry peers.
- MMC has a better Return On Invested Capital (13.33%) than 95.97% of its industry peers.
- MMC had an Average Return On Invested Capital over the past 3 years of 13.69%. This is above the industry average of 9.36%.
| 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 79.87% of the companies in the same industry.
- In the last couple of years the Profit Margin of MMC has grown nicely.
- Looking at the Operating Margin, with a value of 25.20%, MMC belongs to the top of the industry, outperforming 87.25% 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. 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.
- The number of shares outstanding for MMC remains at a similar level compared to 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 2.75 indicates that MMC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.75, MMC belongs to the top 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.
- MMC's Debt to FCF ratio of 4.06 is in line compared 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.69
WACC7.9%
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 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.
- Looking at the Quick ratio, with a value of 1.12, MMC belongs to the top of the industry, outperforming 81.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. MMC Growth Analysis
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.
- The Revenue has grown by 10.47% in the past year. This is quite good.
- 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
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. MMC Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 19.23, the valuation of MMC can be described as rather expensive.
- Based on the Price/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/Earnings ratio to 25.60, 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.
- The average S&P500 Price/Forward Earnings ratio is at 22.84. MMC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 17.57 |
4.2 Price Multiples
- MMC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MMC is more expensive than 60.40% of the companies in the same industry.
- MMC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. MMC is more expensive than 61.07% of the companies 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
- With a Yearly Dividend Yield of 1.94%, MMC has a reasonable but not impressive dividend return.
- MMC's Dividend Yield is comparable with the industry average which is at 2.50.
- MMC's Dividend Yield is comparable with the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
- The dividend of MMC is nicely growing with an annual growth rate of 11.74%!
- 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 2Y8.69%
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 Number81.31
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
WACC7.9%
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.