(MMC) Marsh & McLennan Companies - Ratings and Ratios
Insurance, Consulting, Risk Management, Advisory Services
MMC EPS (Earnings per Share)
MMC Revenue
Description: MMC Marsh & McLennan Companies
Marsh & McLennan Companies, Inc. is a global professional services firm that provides risk management, insurance, and consulting services to individuals, businesses, and institutions. With a presence in over 130 countries, the company operates through two main segments: Risk and Insurance Services, and Consulting.
The Risk and Insurance Services segment offers a range of services, including risk assessment, insurance broking, and program management, while the Consulting segment provides expertise in health, wealth, and career management, as well as specialized consulting services. The companys diverse client base includes businesses, public entities, insurance companies, and individuals.
From a financial perspective, Marsh & McLennan Companies, Inc. has demonstrated strong performance, with a Return on Equity (RoE) of 29.68%, indicating efficient use of shareholder capital. The companys dividend yield is around 1.6%, which, while not exceptionally high, is stable and supported by a payout ratio that suggests a sustainable dividend policy. Additional key performance indicators (KPIs) to monitor include revenue growth, operating margins, and the ratio of debt to equity.
To further evaluate the companys prospects, its essential to analyze its competitive positioning within the insurance brokerage and consulting industries. Marsh & McLennan Companies, Inc. is one of the largest players in the global insurance brokerage market, with a significant market share. The companys scale, diversified service offerings, and global reach are key competitive advantages. However, the industry is highly competitive, and the company must continue to innovate and adapt to changing client needs and regulatory requirements.
From a valuation perspective, the companys Price-to-Earnings (P/E) ratio of 25.98 and forward P/E of 22.08 suggest that the stock is reasonably valued relative to its earnings growth prospects. Investors should continue to monitor the companys earnings growth trajectory and adjust their expectations accordingly.
MMC Stock Overview
| Market Cap in USD | 101,456m |
| Sub-Industry | Insurance Brokers |
| IPO / Inception | 1987-12-30 |
MMC Stock Ratings
| Growth Rating | 39.9% |
| Fundamental | 79.7% |
| Dividend Rating | 64.4% |
| Return 12m vs S&P 500 | -21.2% |
| Analyst Rating | 3.30 of 5 |
MMC Dividends
| Dividend Yield 12m | 1.57% |
| Yield on Cost 5y | 3.13% |
| Annual Growth 5y | 10.64% |
| Payout Consistency | 91.0% |
| Payout Ratio | 36.1% |
MMC Growth Ratios
| Growth Correlation 3m | -84.8% |
| Growth Correlation 12m | -25.6% |
| Growth Correlation 5y | 95.9% |
| CAGR 5y | 14.17% |
| CAGR/Max DD 5y | 0.74 |
| Sharpe Ratio 12m | 0.45 |
| Alpha | -16.14 |
| Beta | 0.355 |
| Volatility | 17.46% |
| Current Volume | 2190.3k |
| Average Volume 20d | 2069.5k |
| Stop Loss | 200.2 (-3%) |
| Signal | 0.52 |
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income (4.13b TTM) > 0 and > 6% of Revenue (6% = 1.55b TTM) |
| FCFTA 0.08 (>2.0%) and ΔFCFTA 0.48pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 15.25% (prev 13.36%; Δ 1.88pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.08 (>3.0%) and CFO 4.92b > Net Income 4.13b (YES >=105%, WARN >=100%) |
| Net Debt (19.93b) to EBITDA (7.23b) ratio: 2.76 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.20 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (495.0m) change vs 12m ago -0.20% (target <= -2.0% for YES) |
| Gross Margin 42.57% (prev 42.96%; Δ -0.39pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 48.16% (prev 48.63%; Δ -0.47pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 7.32 (EBITDA TTM 7.23b / Interest Expense TTM 873.0m) >= 6 (WARN >= 3) |
Altman Z'' 3.30
| (A) 0.07 = (Total Current Assets 23.33b - Total Current Liabilities 19.40b) / Total Assets 58.55b |
| (B) 0.46 = Retained Earnings (Balance) 27.09b / Total Assets 58.55b |
| (C) 0.12 = EBIT TTM 6.39b / Avg Total Assets 53.57b |
| (D) 0.53 = Book Value of Equity 22.41b / Total Liabilities 42.58b |
| Total Rating: 3.30 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 79.71
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield 3.88% = 1.94 |
| 3. FCF Margin 18.04% = 4.51 |
| 4. Debt/Equity 1.27 = 1.74 |
| 5. Debt/Ebitda 2.78 = -1.43 |
| 6. ROIC - WACC 8.52% = 10.65 |
| 7. RoE 29.03% = 2.42 |
| 8. Rev. Trend 82.84% = 4.14 |
| 9. Rev. CAGR 14.81% = 1.85 |
| 10. EPS Trend 55.39% = 1.38 |
| 11. EPS CAGR 34.38% = 2.50 |
What is the price of MMC shares?
Over the past week, the price has changed by -2.21%, over one month by +0.08%, over three months by -9.67% and over the past year by -7.24%.
Is Marsh & McLennan Companies a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of MMC is around 199.70 USD . This means that MMC is currently overvalued and has a potential downside of -3.26%.
Is MMC a buy, sell or hold?
- Strong Buy: 4
- Buy: 1
- Hold: 12
- Sell: 3
- Strong Sell: 0
What are the forecasts/targets for the MMC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 232.4 | 12.6% |
| Analysts Target Price | 232.4 | 12.6% |
| ValueRay Target Price | 218.2 | 5.7% |
Last update: 2025-08-29 04:43
MMC Fundamental Data Overview
CCE Cash And Equivalents = 1.68b USD (last quarter)
P/E Trailing = 24.7446
P/E Forward = 21.7391
P/S = 3.9326
P/B = 6.4347
P/EG = 2.2395
Beta = 0.775
Revenue TTM = 25.80b USD
EBIT TTM = 6.39b USD
EBITDA TTM = 7.23b USD
Long Term Debt = 18.96b USD (from longTermDebt, last quarter)
Short Term Debt = 1.10b USD (from shortTermDebt, last quarter)
Debt = 20.06b USD (Calculated: Short Term 1.10b + Long Term 18.96b)
Net Debt = 19.93b USD (from netDebt column, last quarter)
Enterprise Value = 119.84b USD (101.46b + Debt 20.06b - CCE 1.68b)
Interest Coverage Ratio = 7.32 (Ebit TTM 6.39b / Interest Expense TTM 873.0m)
FCF Yield = 3.88% (FCF TTM 4.65b / Enterprise Value 119.84b)
FCF Margin = 18.04% (FCF TTM 4.65b / Revenue TTM 25.80b)
Net Margin = 16.00% (Net Income TTM 4.13b / Revenue TTM 25.80b)
Gross Margin = 42.57% ((Revenue TTM 25.80b - Cost of Revenue TTM 14.82b) / Revenue TTM)
Tobins Q-Ratio = 5.35 (Enterprise Value 119.84b / Book Value Of Equity 22.41b)
Interest Expense / Debt = 1.21% (Interest Expense 243.0m / Debt 20.06b)
Taxrate = 24.87% (from yearly Income Tax Expense: 1.36b / 5.48b)
NOPAT = 4.80b (EBIT 6.39b * (1 - 24.87%))
Current Ratio = 1.20 (Total Current Assets 23.33b / Total Current Liabilities 19.40b)
Debt / Equity = 1.27 (Debt 20.06b / last Quarter total Stockholder Equity 15.77b)
Debt / EBITDA = 2.78 (Net Debt 19.93b / EBITDA 7.23b)
Debt / FCF = 4.31 (Debt 20.06b / FCF TTM 4.65b)
Total Stockholder Equity = 14.22b (last 4 quarters mean)
RoA = 7.05% (Net Income 4.13b, Total Assets 58.55b )
RoE = 29.03% (Net Income TTM 4.13b / Total Stockholder Equity 14.22b)
RoCE = 19.26% (Ebit 6.39b / (Equity 14.22b + L.T.Debt 18.96b))
RoIC = 14.78% (NOPAT 4.80b / Invested Capital 32.48b)
WACC = 6.26% (E(101.46b)/V(121.52b) * Re(7.32%)) + (D(20.06b)/V(121.52b) * Rd(1.21%) * (1-Tc(0.25)))
Shares Correlation 5-Years: -100.0 | Cagr: -0.79%
Discount Rate = 7.32% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 79.35% ; FCFE base≈4.24b ; Y1≈4.58b ; Y5≈5.64b
Fair Price DCF = 200.4 (DCF Value 98.50b / Shares Outstanding 491.6m; 5y FCF grow 8.81% → 3.0% )
Revenue Correlation: 82.84 | Revenue CAGR: 14.81%
Rev Growth-of-Growth: -0.55
EPS Correlation: 55.39 | EPS CAGR: 34.38%
EPS Growth-of-Growth: -20.53
Additional Sources for MMC Stock
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