MARSH & MCLENNAN COS (MRSH) Fundamental Analysis & Valuation

NYSE:MRSH • US5717481023

Current stock price

171.95 USD
+3.8 (+2.26%)
Last:

This MRSH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. MRSH Profitability Analysis

1.1 Basic Checks

  • MRSH had positive earnings in the past year.
  • MRSH had a positive operating cash flow in the past year.
  • In the past 5 years MRSH has always been profitable.
  • MRSH had a positive operating cash flow in each of the past 5 years.
MRSH Yearly Net Income VS EBIT VS OCF VS FCFMRSH 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 2025 2B 4B 6B

1.2 Ratios

  • With an excellent Return On Assets value of 7.09%, MRSH belongs to the best of the industry, outperforming 87.84% of the companies in the same industry.
  • With an excellent Return On Equity value of 27.55%, MRSH belongs to the best of the industry, outperforming 89.86% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 13.54%, MRSH belongs to the best of the industry, outperforming 95.27% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for MRSH is above the industry average of 9.50%.
Industry RankSector Rank
ROA 7.09%
ROE 27.55%
ROIC 13.54%
ROA(3y)7.36%
ROA(5y)7.63%
ROE(3y)29.6%
ROE(5y)29.27%
ROIC(3y)13.75%
ROIC(5y)13.37%
MRSH Yearly ROA, ROE, ROICMRSH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 15.42%, MRSH is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
  • MRSH's Profit Margin has improved in the last couple of years.
  • MRSH has a Operating Margin of 24.93%. This is amongst the best in the industry. MRSH outperforms 85.14% of its industry peers.
  • In the last couple of years the Operating Margin of MRSH has grown nicely.
Industry RankSector Rank
OM 24.93%
PM (TTM) 15.42%
GM N/A
OM growth 3Y3.15%
OM growth 5Y5.3%
PM growth 3Y1.56%
PM growth 5Y5.67%
GM growth 3YN/A
GM growth 5YN/A
MRSH Yearly Profit, Operating, Gross MarginsMRSH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. MRSH Health Analysis

2.1 Basic Checks

  • MRSH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, MRSH has less shares outstanding
  • MRSH has less shares outstanding than it did 5 years ago.
  • MRSH has a better debt/assets ratio than last year.
MRSH Yearly Shares OutstandingMRSH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
MRSH Yearly Total Debt VS Total AssetsMRSH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • MRSH has an Altman-Z score of 2.66. This is not the best score and indicates that MRSH is in the grey zone with still only limited risk for bankruptcy at the moment.
  • MRSH's Altman-Z score of 2.66 is amongst the best of the industry. MRSH outperforms 93.92% of its industry peers.
  • MRSH has a debt to FCF ratio of 3.92. This is a good value and a sign of high solvency as MRSH would need 3.92 years to pay back of all of its debts.
  • MRSH has a Debt to FCF ratio of 3.92. This is in the lower half of the industry: MRSH underperforms 62.16% of its industry peers.
  • MRSH has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of MRSH (1.21) is worse than 88.51% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.21
Debt/FCF 3.92
Altman-Z 2.66
ROIC/WACC1.72
WACC7.86%
MRSH Yearly LT Debt VS Equity VS FCFMRSH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 1.10 indicates that MRSH should not have too much problems paying its short term obligations.
  • MRSH has a better Current ratio (1.10) than 81.76% of its industry peers.
  • MRSH has a Quick Ratio of 1.10. This is a normal value and indicates that MRSH is financially healthy and should not expect problems in meeting its short term obligations.
  • MRSH has a Quick ratio of 1.10. This is amongst the best in the industry. MRSH outperforms 81.76% of its industry peers.
Industry RankSector Rank
Current Ratio 1.1
Quick Ratio 1.1
MRSH Yearly Current Assets VS Current LiabilitesMRSH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. MRSH Growth Analysis

3.1 Past

  • MRSH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.80%, which is quite good.
  • Measured over the past years, MRSH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.43% on average per year.
  • Looking at the last year, MRSH shows a quite strong growth in Revenue. The Revenue has grown by 10.32% in the last year.
  • MRSH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.39% yearly.
EPS 1Y (TTM)10.8%
EPS 3Y12.54%
EPS 5Y14.43%
EPS Q2Q%13.37%
Revenue 1Y (TTM)10.32%
Revenue growth 3Y9.2%
Revenue growth 5Y9.39%
Sales Q2Q%8.7%

3.2 Future

  • MRSH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.75% yearly.
  • The Revenue is expected to grow by 3.66% on average over the next years.
EPS Next Y8.56%
EPS Next 2Y8.9%
EPS Next 3Y8.61%
EPS Next 5Y8.75%
Revenue Next Year4.99%
Revenue Next 2Y5.05%
Revenue Next 3Y5.09%
Revenue Next 5Y3.66%

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.
MRSH Yearly Revenue VS EstimatesMRSH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
MRSH Yearly EPS VS EstimatesMRSH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10

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2

4. MRSH Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 17.64, the valuation of MRSH can be described as rather expensive.
  • Based on the Price/Earnings ratio, MRSH is valued a bit more expensive than 72.97% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.86. MRSH is valued slightly cheaper when compared to this.
  • The Price/Forward Earnings ratio is 16.25, which indicates a correct valuation of MRSH.
  • Based on the Price/Forward Earnings ratio, MRSH is valued a bit more expensive than the industry average as 66.89% of the companies are valued more cheaply.
  • The average S&P500 Price/Forward Earnings ratio is at 37.39. MRSH is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 17.64
Fwd PE 16.25
MRSH Price Earnings VS Forward Price EarningsMRSH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as MRSH.
  • 64.86% of the companies in the same industry are cheaper than MRSH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 16.61
EV/EBITDA 12.85
MRSH Per share dataMRSH 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.
  • MRSH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)1.22
EPS Next 2Y8.9%
EPS Next 3Y8.61%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. MRSH Dividend Analysis

5.1 Amount

  • MRSH has a Yearly Dividend Yield of 2.08%. Purely for dividend investing, there may be better candidates out there.
  • MRSH's Dividend Yield is comparable with the industry average which is at 2.44.
  • Compared to an average S&P500 Dividend Yield of 1.82, MRSH has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.08%

5.2 History

  • On average, the dividend of MRSH grows each year by 13.29%, which is quite nice.
  • MRSH has been paying a dividend for over 5 years, so it has already some track record.
  • MRSH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)13.29%
Div Incr Years4
Div Non Decr Years4
MRSH Yearly Dividends per shareMRSH Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 40.84% of the earnings are spent on dividend by MRSH. This is a bit on the high side, but may be sustainable.
  • The dividend of MRSH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.84%
EPS Next 2Y8.9%
EPS Next 3Y8.61%
MRSH Yearly Income VS Free CF VS DividendMRSH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B
MRSH Dividend Payout.MRSH Dividend Payout, showing the Payout Ratio.MRSH Dividend Payout.PayoutRetained Earnings

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MRSH Fundamentals: All Metrics, Ratios and Statistics

MARSH & MCLENNAN COS

NYSE:MRSH (4/13/2026, 1:06:07 PM)

171.95

+3.8 (+2.26%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)01-29
Earnings (Next)04-16
Inst Owners91.95%
Inst Owner Change0.02%
Ins Owners0.09%
Ins Owner Change20.21%
Market Cap83.07B
Revenue(TTM)26.98B
Net Income(TTM)4.16B
Analysts69.33
Price Target210.34 (22.33%)
Short Float %1.13%
Short Ratio1.65
Dividend
Industry RankSector Rank
Dividend Yield 2.08%
Yearly Dividend3.48
Dividend Growth(5Y)13.29%
DP40.84%
Div Incr Years4
Div Non Decr Years4
Ex-Date04-09
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.53%
Min EPS beat(2)1.65%
Max EPS beat(2)5.41%
EPS beat(4)3
Avg EPS beat(4)1.69%
Min EPS beat(4)-0.63%
Max EPS beat(4)5.41%
EPS beat(8)5
Avg EPS beat(8)1.23%
EPS beat(12)9
Avg EPS beat(12)1.4%
EPS beat(16)12
Avg EPS beat(16)1.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)-1.26%
Revenue beat(4)0
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-2.27%
Max Revenue beat(4)-1.26%
Revenue beat(8)1
Avg Revenue beat(8)-1.54%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)2
Avg Revenue beat(16)-1.56%
PT rev (1m)-0.87%
PT rev (3m)N/A
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.11%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 17.64
Fwd PE 16.25
P/S 3.08
P/FCF 16.61
P/OCF 15.7
P/B 5.5
P/tB N/A
EV/EBITDA 12.85
EPS(TTM)9.75
EY5.67%
EPS(NY)10.58
Fwd EY6.16%
FCF(TTM)10.35
FCFY6.02%
OCF(TTM)10.95
OCFY6.37%
SpS55.85
BVpS31.26
TBVpS-28.94
PEG (NY)2.06
PEG (5Y)1.22
Graham Number82.81
Profitability
Industry RankSector Rank
ROA 7.09%
ROE 27.55%
ROCE 17.86%
ROIC 13.54%
ROICexc 14.58%
ROICexgc 86.69%
OM 24.93%
PM (TTM) 15.42%
GM N/A
FCFM 18.54%
ROA(3y)7.36%
ROA(5y)7.63%
ROE(3y)29.6%
ROE(5y)29.27%
ROIC(3y)13.75%
ROIC(5y)13.37%
ROICexc(3y)15.07%
ROICexc(5y)14.48%
ROICexgc(3y)81.39%
ROICexgc(5y)70.36%
ROCE(3y)18.15%
ROCE(5y)17.65%
ROICexgc growth 3Y13.73%
ROICexgc growth 5Y16.37%
ROICexc growth 3Y0.51%
ROICexc growth 5Y7.2%
OM growth 3Y3.15%
OM growth 5Y5.3%
PM growth 3Y1.56%
PM growth 5Y5.67%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 1.21
Debt/FCF 3.92
Debt/EBITDA 2.4
Cap/Depr 31.98%
Cap/Sales 1.08%
Interest Coverage 7.6
Cash Conversion 69.3%
Profit Quality 120.22%
Current Ratio 1.1
Quick Ratio 1.1
Altman-Z 2.66
F-Score6
WACC7.86%
ROIC/WACC1.72
Cap/Depr(3y)45.02%
Cap/Depr(5y)50.96%
Cap/Sales(3y)1.43%
Cap/Sales(5y)1.72%
Profit Quality(3y)106.74%
Profit Quality(5y)103.48%
High Growth Momentum
Growth
EPS 1Y (TTM)10.8%
EPS 3Y12.54%
EPS 5Y14.43%
EPS Q2Q%13.37%
EPS Next Y8.56%
EPS Next 2Y8.9%
EPS Next 3Y8.61%
EPS Next 5Y8.75%
Revenue 1Y (TTM)10.32%
Revenue growth 3Y9.2%
Revenue growth 5Y9.39%
Sales Q2Q%8.7%
Revenue Next Year4.99%
Revenue Next 2Y5.05%
Revenue Next 3Y5.09%
Revenue Next 5Y3.66%
EBIT growth 1Y8.36%
EBIT growth 3Y12.64%
EBIT growth 5Y15.19%
EBIT Next Year20.4%
EBIT Next 3Y10.45%
EBIT Next 5Y6.79%
FCF growth 1Y25.46%
FCF growth 3Y18.64%
FCF growth 5Y10.51%
OCF growth 1Y23.01%
OCF growth 3Y15.16%
OCF growth 5Y9.37%

MARSH & MCLENNAN COS / MRSH Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for MARSH & MCLENNAN COS?

ChartMill assigns a fundamental rating of 5 / 10 to MRSH.


Can you provide the valuation status for MARSH & MCLENNAN COS?

ChartMill assigns a valuation rating of 2 / 10 to MARSH & MCLENNAN COS (MRSH). This can be considered as Overvalued.


How profitable is MARSH & MCLENNAN COS (MRSH) stock?

MARSH & MCLENNAN COS (MRSH) has a profitability rating of 7 / 10.


What is the valuation of MARSH & MCLENNAN COS based on its PE and PB ratios?

The Price/Earnings (PE) ratio for MARSH & MCLENNAN COS (MRSH) is 17.64 and the Price/Book (PB) ratio is 5.5.


How sustainable is the dividend of MARSH & MCLENNAN COS (MRSH) stock?

The dividend rating of MARSH & MCLENNAN COS (MRSH) is 4 / 10 and the dividend payout ratio is 40.84%.