MARSH & MCLENNAN COS (MMC)
US5717481023 - Common Stock
Overall MMC gets a fundamental rating of 6 out of 10. We evaluated MMC against 141 industry peers in the Insurance industry. MMC has an excellent profitability rating, 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
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.
MMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.25%, MMC belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
MMC has a Return On Equity of 30.01%. This is amongst the best in the industry. MMC outperforms 96.43% of its industry peers.
MMC has a better Return On Invested Capital (14.79%) than 99.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MMC is significantly above the industry average of 3.96%.
The 3 year average ROIC (13.51%) for MMC is below the current ROIC(14.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | 30.01% | ||
| ROIC | 14.79% |
ROA(3y)7.96%
ROA(5y)7.11%
ROE(3y)29.45%
ROE(5y)26.57%
ROIC(3y)13.51%
ROIC(5y)11.84%
1.3 Margins
With an excellent Profit Margin value of 16.97%, MMC belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
MMC's Profit Margin has improved in the last couple of years.
MMC has a Operating Margin of 25.22%. This is amongst the best in the industry. MMC outperforms 85.71% of its industry peers.
MMC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.22% | ||
| PM (TTM) | 16.97% | ||
| GM | N/A |
OM growth 3Y8.44%
OM growth 5Y5.86%
PM growth 3Y12.17%
PM growth 5Y8.4%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
MMC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MMC has been reduced compared to 1 year ago.
The number of shares outstanding for MMC has been reduced compared to 5 years ago.
Compared to 1 year ago, MMC has a worse debt to assets ratio.
2.2 Solvency
MMC has an Altman-Z score of 3.60. This indicates that MMC is financially healthy and has little risk of bankruptcy at the moment.
MMC has a better Altman-Z score (3.60) than 96.43% of its industry peers.
MMC has a debt to FCF ratio of 3.73. This is a good value and a sign of high solvency as MMC would need 3.73 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.73, MMC is doing worse than 61.43% of the companies in the same industry.
A Debt/Equity ratio of 0.97 indicates that MMC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.97, MMC is doing worse than 86.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.9
WACC7.79%
2.3 Liquidity
A Current Ratio of 1.17 indicates that MMC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, MMC belongs to the top of the industry, outperforming 83.57% of the companies in the same industry.
MMC has a Quick Ratio of 1.17. 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 Quick ratio, with a value of 1.17, MMC belongs to the top of the industry, outperforming 83.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
MMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.50%, 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 12.62% on average per year.
Looking at the last year, MMC shows a quite strong growth in Revenue. The Revenue has grown by 9.44% in the last year.
The Revenue has been growing by 8.75% on average over the past years. This is quite good.
EPS 1Y (TTM)14.5%
EPS 3Y16.61%
EPS 5Y12.62%
EPS Q2Q%9.55%
Revenue 1Y (TTM)9.44%
Revenue growth 3Y9.7%
Revenue growth 5Y8.75%
Sales Q2Q%5.87%
3.2 Future
Based on estimates for the next years, MMC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.82% on average per year.
The Revenue is expected to grow by 5.02% on average over the next years.
EPS Next Y12.4%
EPS Next 2Y10.53%
EPS Next 3Y10.19%
EPS Next 5Y9.82%
Revenue Next Year7.01%
Revenue Next 2Y6.42%
Revenue Next 3Y6.07%
Revenue Next 5Y5.02%
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.18, MMC can be considered very expensive at the moment.
70.71% of the companies in the same industry are cheaper than MMC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 30.52, MMC is valued at the same level.
MMC is valuated rather expensively with a Price/Forward Earnings ratio of 23.86.
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 72.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.99. MMC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.18 | ||
| Fwd PE | 23.86 |
4.2 Price Multiples
MMC's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, MMC is valued a bit more expensive than the industry average as 72.86% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.12 | ||
| EV/EBITDA | 18.55 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)2.15
EPS Next 2Y10.53%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
MMC has a Yearly Dividend Yield of 1.42%. Purely for dividend investing, there may be better candidates out there.
MMC's Dividend Yield is comparable with the industry average which is at 5.25.
MMC's Dividend Yield is slightly below the S&P500 average, which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
The dividend of MMC is nicely growing with an annual growth rate of 10.54%!
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)10.54%
Div Incr Years14
Div Non Decr Years18
5.3 Sustainability
35.23% of the earnings are spent on dividend by MMC. This is a low number and sustainable payout ratio.
MMC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.23%
EPS Next 2Y10.53%
EPS Next 3Y10.19%
MARSH & MCLENNAN COS
NYSE:MMC (9/13/2024, 8:04:00 PM)
After market: 229.68 0 (0%)229.68
-0.35 (-0.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap112.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.18 | ||
| Fwd PE | 23.86 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.19
PEG (5Y)2.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | 30.01% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.22% | ||
| PM (TTM) | 16.97% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.5%
EPS 3Y16.61%
EPS 5Y
EPS Q2Q%
EPS Next Y12.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.44%
Revenue growth 3Y9.7%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y