MARSH & MCLENNAN COS (MMC) 173.18 +4.5 (+2.67%)
173.18 +4.5 (+2.67%)
US5717481023 - Common Stock - After market: 172.84 -0.34 (-0.2%)
Fundamental Rating
Overall MMC gets a fundamental rating of 5 out of 10. We evaluated MMC against 141 industry peers in the Insurance industry. While MMC has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, MMC is valued expensive at the moment.
Profitability
Profitability Rating
MMC has a Return On Assets of 10.58%. This is amongst the best returns in the industry. The industry average is 0.87%. MMC outperforms 96% of its industry peers.
MMC has a Return On Equity of 35.41%. This is amongst the best returns in the industry. The industry average is 13.23%. MMC outperforms 93% of its industry peers.
MMC has a Profit Margin of 16.26%. This is better than the industry average of 6.95%.
The Piotroski-F score of MMC is 6.00. This is a neutral score and indicates average health and profitability for MMC.
VS Industry
ROA (10.58%) VS Industry: 96% outperformed.
-93.12
28.75
ROE (35.41%) VS Industry: 93% outperformed.
0.42
97.81
Profit Margin (16.26%) VS Industry: 80% outperformed.
-285.34
357.97
Valuation
Valuation Rating
The Forward Price/Earnings Ratio of 23.03 indicates a rather expensive current valuation of MMC.
When comparing the current price to the book value of MMC, we can conclude it is valued correctly. It is trading at 8.98 times its book value.
With a Price/Earnings Ratio of 25.73, MMC can be considered very expensive at the moment.
With a Price/Earning Ratio of 25.73, MMC is valued a higher than the industry average, which is at 10.57. 88% of the companies listed in the same industry are cheaper than MMC!
The high PEG Ratio, which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
When comparing the price book ratio of MMC to the average industry price book ratio of 1.19, MMC is valued more expensive than its industry peers. 97% of the companies listed in the same industry are valued cheaper.
Compared to an average industry Enterprise Value to EBITDA ratio of 8.41, MMC is valued more expensive than its industry peers.
VS Industry
Price/Earnings (25.73) VS Industry: 12% outperformed.
81.22
1.44
Price/Book (8.98) VS Industry: 3% outperformed.
135.69
0.10
Enterprise Value/ EBITDA (17.31) VS Industry: 26% outperformed.
670.25
0.03
Growth
Growth Rating
The Earnings Per Share has grown by an nice 11.98% over the past year.
MMC shows quite a strong growth in Earnings Per Share. Measured over the last 5 years, the EPS has been growing by 12.63% yearly.
Based on estimates for the next 5 years, MMC will show a small growth in Earnings Per Share. The EPS will grow by 9.84% on average per year.
The EPS growth is stable: in the next 5 years the growth will be about the same than in the last 5 years.
The Revenue has been growing slightly by 9.09% in the past year.
MMC shows a small growth in Revenue. Measured over the last 5 years, the Revenue has been growing by 8.45% yearly.
MMC is expected to show a small growth in Revenue. In the coming 5 years, the Revenue will grow by 4.06% yearly.
The Revenue growth is decreasing: in the next 5 years the growth will be less than in the last years.
| Past | Future | ||||||
|---|---|---|---|---|---|---|---|
| 5Y | 3Y | 1Y | 1Y | 2Y | 3Y | 5Y | |
| EPS | 12.63% | 12.42% | 11.98% | 10.55% | 10.31% | 10.14% | 9.84% |
| Revenue | 8.45% | 9.86% | 9.09% | 6.25% | 5.85% | 5.83% | 4.06% |
Health
Health Rating
An Altman-Z score of 4.25 indicates that MMC is not in any danger for bankruptcy at the moment.
The Altman-Z score of MMC is much better than the industry average of 1.29. MMC has a better rating than 90% of its industry peers.
MMC has a Current Ratio of 1.04. This is a normal value and indicates that MMC is financially healthy and should not expect problems in meeting its short term obligations.
A Quick Ratio of 1.04 indicates that MMC should not have too much problems paying its short term obligations.
MMC has a Piotroski-F score of 6.00. This indicates an average health and profitability for MMC.
When comparing the Current Ratio of MMC to the average industry Current Ratio of 1.27, MMC is less able to pay its short term obligations than its industry peers. 91% of its industry peers have a better Current Ratio.
When comparing the Quick Ratio of MMC to the average industry Current Ratio of 1.27, MMC is less able to pay its short term obligations than its industry peers. 91% of its industry peers have a better Quick Ratio.
MMC has one of the worst Debt to Equity ratios in its industry. 82% of its industry peers require less debt for financing their operations.
VS Industry
Debt/Equity (1.09) VS Industry: 18% outperformed.
17.94
0.00
Quick Ratio (1.04) VS Industry: 9% outperformed.
0.56
10.37
Current Ratio (1.04) VS Industry: 9% outperformed.
0.56
10.37
Altman-Z (4.25) VS Industry: 90% outperformed.
-3.35
12.68
Dividend
Dividend Rating
The dividend of MMC is nicely growing with an annual growth rate of 8.17%!
MMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
32.95% of the earnings are spent on dividend by MMC. This is a low number and sustainable payout ratio.
MMC has been paying a dividend for at least 10 years, so it has a reliable track record.
MMC has a Yearly Dividend Yield of 1.41%.
Compared to an average industry Dividend Yield of 2.38, MMC is paying slightly less dividend.
With a Dividend Yield of 1.41, MMC pays less dividend than the S&P500 average, which is at 2.47.
VS Industry
Dividend Yield (1.41%) VS Industry: 21% outperformed.
0.07
70.26
MARSH & MCLENNAN COS173.18
NYSE:MMC (11/30/2022, 7:04:00 PM)+4.5 (+2.67%)
| GICS Sector | Financials | ||
| GICS IndustryGroup | Insurance | ||
| GICS Industry | Insurance | ||
| Earnings (Last) | 10-20 2022-10-20/bmo | Earnings (Next) | 01-25 2023-01-25 |
| Ins Owners | 0.19% | Inst Owners | 88.47% |
| Market Cap | 85.90B | Analysts | 70.91 |
| PE | 25.73 | Fwd PE | 23.03 |
| PEG (NY) | 2.44 | PEG (5Y) | 2.04 |
| P/S | 4.12 | P/B | 8.98 |
| EV/EBITDA | 17.31 | ||
| Dividend Yield | 1.41% | Dividend Growth | 8.17% |
| DP | 32.95% | Ex-Date | 10-06 2022-10-06 (0.59) |
| EPS 1Y | 11.98% | EPS 3Y | 12.42% |
| EPS 5Y | 12.63% | EPS growth Q2Q | 9.26% |
| EPS Next Y | 10.55% | EPS Next 2Y | 10.31% |
| EPS Next 3Y | 10.14% | EPS Next 5Y | 9.84% |
| Revenue growth 1Y | 9.09% | Revenue growth 3Y | 9.86% |
| Revenue growth 5Y | 8.45% | Revenue growth Q2Q | 4.08% |
| Revenue Next Year | 6.25% | Revenue Next 2Y | 5.85% |
| Revenue Next 3Y | 5.83% | Revenue Next 5Y | 4.06% |
| Current Ratio | 1.04 | Quick Ratio | 1.04 |
| Altman-Z | 4.25 | F-Score | 6 |
| Debt/Equity | 1.09 | WACC | 7.77% |
| ROIC/WACC | 6.89 | ||
| ROA | 10.58% | ROE | 35.41% |
| ROICexgc | 53.5% | ROIC | 13.83% |
| PM | 16.26% | OM | 22.63% |
| Asset Turnover | 0.65 | ||
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