MARSH & MCLENNAN COS (MMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MMC - US5717481023 - Common Stock
182.675 USD
-2.95 (-1.59%)
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. MMC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
MMC had positive earnings in the past year.
MMC had a positive operating cash flow in the past year.
In the past 5 years MMC has always been profitable.
Each year in the past 5 years MMC had a positive operating cash flow.
1.2 Ratios
MMC has a Return On Assets of 7.02%. This is amongst the best in the industry. MMC outperforms 90.41% of its industry peers.
The Return On Equity of MMC (27.24%) is better than 93.15% of its industry peers.
MMC has a better Return On Invested Capital (13.33%) than 95.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MMC is in line with the industry average of 15.11%.
| 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 better Profit Margin (15.60%) than 79.45% of its industry peers.
MMC's Profit Margin has improved in the last couple of years.
The Operating Margin of MMC (25.20%) is better than 86.99% of its industry peers.
In the last couple of years the Operating Margin of MMC has grown nicely.
| 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.
Compared to 1 year ago, MMC has about the same amount of shares outstanding.
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
An Altman-Z score of 2.77 indicates that MMC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MMC has a better Altman-Z score (2.77) than 95.21% 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 41.78% 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.
With a Debt to Equity ratio value of 1.21, MMC is not doing good in the industry: 89.04% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.69
WACC7.87%
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 81.51% 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.
MMC has a better Quick ratio (1.12) than 81.51% 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.
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
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 Y10.18%
EPS Next 2Y8.77%
EPS Next 3Y8.9%
EPS Next 5Y9.82%
Revenue Next Year10.7%
Revenue Next 2Y7.81%
Revenue Next 3Y6.94%
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.
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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.23, which indicates a rather expensive current valuation of MMC.
Compared to the rest of the industry, the Price/Earnings ratio of MMC indicates a slightly more expensive valuation: MMC is more expensive than 66.44% of the companies listed in the same industry.
MMC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
A Price/Forward Earnings ratio of 17.55 indicates a rather expensive valuation of MMC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMC indicates a slightly more expensive valuation: MMC is more expensive than 66.44% of the companies listed in the same industry.
MMC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 17.55 |
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 61.64% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MMC is valued a bit more expensive than 61.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.55 | ||
| EV/EBITDA | 14.31 |
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 2Y8.77%
EPS Next 3Y8.9%
5. Dividend
5.1 Amount
MMC has a Yearly Dividend Yield of 1.93%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.42, MMC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, MMC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
5.2 History
On average, the dividend of MMC grows each year by 11.74%, which is quite nice.
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 2Y8.77%
EPS Next 3Y8.9%
NYSE:MMC (1/13/2026, 1:49:03 PM)
182.675
-2.95 (-1.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners91.61%
Inst Owner Change0.3%
Ins Owners0.06%
Ins Owner Change0.1%
Market Cap89.49B
Revenue(TTM)26.45B
Net Income(TTM)4.13B
Analysts67.86
Price Target215.43 (17.93%)
Short Float %1.07%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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)-0.24%
PT rev (3m)-8.71%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-0.71%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 17.55 | ||
| P/S | 3.38 | ||
| P/FCF | 18.55 | ||
| P/OCF | 17.59 | ||
| P/B | 5.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.31 |
EPS(TTM)9.5
EY5.2%
EPS(NY)10.41
Fwd EY5.7%
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 | 2.77 |
F-Score4
WACC7.87%
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 Y10.18%
EPS Next 2Y8.77%
EPS Next 3Y8.9%
EPS Next 5Y9.82%
Revenue 1Y (TTM)10.47%
Revenue growth 3Y7.26%
Revenue growth 5Y7.99%
Sales Q2Q%11.48%
Revenue Next Year10.7%
Revenue Next 2Y7.81%
Revenue Next 3Y6.94%
Revenue Next 5Y6.03%
EBIT growth 1Y9.39%
EBIT growth 3Y12.14%
EBIT growth 5Y15.58%
EBIT Next Year23.99%
EBIT Next 3Y12.57%
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.
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 10.18% 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%.