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MARSH & MCLENNAN COS (MMC) Stock Fundamental Analysis

NYSE:MMC - New York Stock Exchange, Inc. - US5717481023 - Common Stock - Currency: USD

210.4  +2.08 (+1%)

After market: 210.4 0 (0%)

Fundamental Rating

5

MMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 143 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. While showing a medium growth rate, MMC is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

MMC had positive earnings in the past year.
In the past year MMC had a positive cash flow from operations.
Each year in the past 5 years MMC has been profitable.
In the past 5 years MMC always reported a positive cash flow from operatings.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

1.2 Ratios

With an excellent Return On Assets value of 7.05%, MMC belongs to the best of the industry, outperforming 93.71% of the companies in the same industry.
The Return On Equity of MMC (26.17%) is better than 93.71% of its industry peers.
MMC has a better Return On Invested Capital (12.56%) than 98.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MMC is significantly above the industry average of 4.08%.
Industry RankSector Rank
ROA 7.05%
ROE 26.17%
ROIC 12.56%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

Looking at the Profit Margin, with a value of 16.00%, MMC belongs to the top of the industry, outperforming 86.71% of the companies in the same industry.
In the last couple of years the Profit Margin of MMC has grown nicely.
MMC has a better Operating Margin (25.39%) than 92.31% of its industry peers.
In the last couple of years the Operating Margin of MMC has grown nicely.
Industry RankSector Rank
OM 25.39%
PM (TTM) 16%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MMC is 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.
Compared to 1 year ago, MMC has a worse debt to assets ratio.
MMC Yearly Shares OutstandingMMC Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

MMC has an Altman-Z score of 2.97. This is not the best score and indicates that MMC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of MMC (2.97) is better than 93.01% of its industry peers.
The Debt to FCF ratio of MMC is 4.24, which is a neutral value as it means it would take MMC, 4.24 years of fcf income to pay off all of its debts.
MMC's Debt to FCF ratio of 4.24 is on the low side compared to the rest of the industry. MMC is outperformed by 61.54% of its industry peers.
A Debt/Equity ratio of 1.21 is on the high side and indicates that MMC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.21, MMC is doing worse than 87.41% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.21
Debt/FCF 4.24
Altman-Z 2.97
ROIC/WACC1.54
WACC8.18%
MMC Yearly LT Debt VS Equity VS FCFMMC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.3 Liquidity

A Current Ratio of 1.20 indicates that MMC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.20, MMC belongs to the top of the industry, outperforming 83.92% of the companies in the same industry.
A Quick Ratio of 1.20 indicates that MMC should not have too much problems paying its short term obligations.
The Quick ratio of MMC (1.20) is better than 83.92% of its industry peers.
Industry RankSector Rank
Current Ratio 1.2
Quick Ratio 1.2
MMC Yearly Current Assets VS Current LiabilitesMMC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

4

3. Growth

3.1 Past

MMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.82%, 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.
MMC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.18%.
Measured over the past years, MMC shows a small growth in Revenue. The Revenue has been growing by 7.99% on average per year.
EPS 1Y (TTM)9.82%
EPS 3Y12.5%
EPS 5Y13.56%
EPS Q2Q%12.86%
Revenue 1Y (TTM)9.18%
Revenue growth 3Y7.26%
Revenue growth 5Y7.99%
Sales Q2Q%12.1%

3.2 Future

The Earnings Per Share is expected to grow by 9.82% on average over the next years. This is quite good.
MMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.03% yearly.
EPS Next Y9.88%
EPS Next 2Y9.29%
EPS Next 3Y9.31%
EPS Next 5Y9.82%
Revenue Next Year10.84%
Revenue Next 2Y8.27%
Revenue Next 3Y7.33%
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.
MMC Yearly Revenue VS EstimatesMMC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 22.67, MMC is valued on the expensive side.
Based on the Price/Earnings ratio, MMC is valued a bit more expensive than the industry average as 67.83% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.04, MMC is valued at the same level.
The Price/Forward Earnings ratio is 20.02, which indicates a rather expensive current 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 70.63% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.64. MMC is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 22.67
Fwd PE 20.02
MMC Price Earnings VS Forward Price EarningsMMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

60.14% of the companies in the same industry are cheaper than MMC, based on the Enterprise Value to EBITDA ratio.
63.64% of the companies in the same industry are cheaper than MMC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 22.23
EV/EBITDA 16.28
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.
MMC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.29
PEG (5Y)1.67
EPS Next 2Y9.29%
EPS Next 3Y9.31%

5

5. Dividend

5.1 Amount

MMC has a Yearly Dividend Yield of 1.72%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.39, MMC has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.35, MMC is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.72%

5.2 History

On average, the dividend of MMC grows each year by 11.74%, which is quite nice.
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
MMC Yearly Dividends per shareMMC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

39.18% 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.
DP39.18%
EPS Next 2Y9.29%
EPS Next 3Y9.31%
MMC Yearly Income VS Free CF VS DividendMMC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 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

MARSH & MCLENNAN COS

NYSE:MMC (7/25/2025, 8:07:21 PM)

After market: 210.4 0 (0%)

210.4

+2.08 (+1%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)07-17 2025-07-17/bmo
Earnings (Next)10-15 2025-10-15/amc
Inst Owners91.71%
Inst Owner Change0.19%
Ins Owners0.06%
Ins Owner Change3.3%
Market Cap103.44B
Analysts65.6
Price Target237.67 (12.96%)
Short Float %1.4%
Short Ratio3.28
Dividend
Industry RankSector Rank
Dividend Yield 1.72%
Yearly Dividend3.08
Dividend Growth(5Y)11.74%
DP39.18%
Div Incr Years15
Div Non Decr Years19
Ex-Date07-24 2025-07-24 (0.9)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.83%
Min EPS beat(2)0.36%
Max EPS beat(2)1.3%
EPS beat(4)3
Avg EPS beat(4)1.77%
Min EPS beat(4)-0.03%
Max EPS beat(4)5.46%
EPS beat(8)6
Avg EPS beat(8)1.93%
EPS beat(12)10
Avg EPS beat(12)2.09%
EPS beat(16)14
Avg EPS beat(16)2.55%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.3%
Max Revenue beat(2)-0.29%
Revenue beat(4)1
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)1.03%
Revenue beat(8)3
Avg Revenue beat(8)-0.28%
Revenue beat(12)4
Avg Revenue beat(12)-0.69%
Revenue beat(16)6
Avg Revenue beat(16)-0.25%
PT rev (1m)-0.97%
PT rev (3m)-2.12%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-1.17%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.26%
Valuation
Industry RankSector Rank
PE 22.67
Fwd PE 20.02
P/S 4.01
P/FCF 22.23
P/OCF 21.04
P/B 6.56
P/tB N/A
EV/EBITDA 16.28
EPS(TTM)9.28
EY4.41%
EPS(NY)10.51
Fwd EY5%
FCF(TTM)9.47
FCFY4.5%
OCF(TTM)10
OCFY4.75%
SpS52.48
BVpS32.07
TBVpS-26.28
PEG (NY)2.29
PEG (5Y)1.67
Profitability
Industry RankSector Rank
ROA 7.05%
ROE 26.17%
ROCE 16.73%
ROIC 12.56%
ROICexc 13.12%
ROICexgc 55.24%
OM 25.39%
PM (TTM) 16%
GM N/A
FCFM 18.04%
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%
ROICexcg growth 3Y14.51%
ROICexcg 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-Score5
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 1.21
Debt/FCF 4.24
Debt/EBITDA 2.59
Cap/Depr 31.35%
Cap/Sales 1.02%
Interest Coverage 8.88
Cash Conversion 66.54%
Profit Quality 112.77%
Current Ratio 1.2
Quick Ratio 1.2
Altman-Z 2.97
F-Score5
WACC8.18%
ROIC/WACC1.54
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)9.82%
EPS 3Y12.5%
EPS 5Y13.56%
EPS Q2Q%12.86%
EPS Next Y9.88%
EPS Next 2Y9.29%
EPS Next 3Y9.31%
EPS Next 5Y9.82%
Revenue 1Y (TTM)9.18%
Revenue growth 3Y7.26%
Revenue growth 5Y7.99%
Sales Q2Q%12.1%
Revenue Next Year10.84%
Revenue Next 2Y8.27%
Revenue Next 3Y7.33%
Revenue Next 5Y6.03%
EBIT growth 1Y9.92%
EBIT growth 3Y12.14%
EBIT growth 5Y15.58%
EBIT Next Year23.6%
EBIT Next 3Y12.81%
EBIT Next 5Y8.85%
FCF growth 1Y49.31%
FCF growth 3Y8.62%
FCF growth 5Y15.49%
OCF growth 1Y38.51%
OCF growth 3Y6.96%
OCF growth 5Y12.75%