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.
  • 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.
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

  • Looking at the Return On Assets, with a value of 7.02%, MMC belongs to the top of the industry, outperforming 90.60% of the companies in the same industry.
  • 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for MMC is in line with the industry average of 15.41%.
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 has a Profit Margin of 15.60%. This is in the better half of the industry: MMC outperforms 79.87% of its industry peers.
  • MMC's Profit Margin has improved in the last couple of years.
  • MMC's Operating Margin of 25.20% is amongst the best of the industry. MMC outperforms 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

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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.
  • Compared to 5 years ago, MMC has less shares outstanding
  • Compared to 1 year ago, MMC has a worse debt to assets ratio.
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

  • 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.
  • With an excellent Altman-Z score value of 2.75, MMC belongs to the best of the industry, outperforming 93.96% of the companies in the same industry.
  • 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.
  • 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.
  • 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 88.59% of its industry peers.
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

  • 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 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.
  • The Quick ratio of MMC (1.12) is better 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

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4

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.
  • 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

  • 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.
  • 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.
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

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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.
  • 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 26.11.
  • Based on the Price/Forward Earnings ratio of 17.57, 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 the industry average as 64.43% of the companies are valued more cheaply.
  • When comparing the Price/Forward Earnings ratio of MMC to the average of the S&P500 Index (24.12), we can say MMC is valued slightly cheaper.
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 the industry average as 60.40% of the companies are valued more cheaply.
  • 61.07% of the companies in the same industry are cheaper than MMC, based on the Price/Free Cash Flow ratio.
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.
  • The decent profitability rating of MMC may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)1.42
EPS Next 2Y8.69%
EPS Next 3Y8.81%

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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 2.94, MMC has a dividend in line with its industry peers.
  • MMC's Dividend Yield is comparable with the S&P500 average which is at 1.91.
Industry RankSector 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 paid a dividend for at least 10 years, which is 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.
  • 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 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

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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%.