Marsh & McLennan Companies, Inc., a professional services company, provides advice and solutions to clients in the areas of risk, strategy, and people worldwide.
Established dividend payer with acceptable track record.
Share Price & News
How has Marsh & McLennan Companies's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MSN has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: MSN exceeded the German Insurance industry which returned -8.8% over the past year.
Return vs Market: MSN exceeded the German Market which returned 0.3% over the past year.
Price Volatility Vs. Market
How volatile is Marsh & McLennan Companies's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Marsh & McLennan Companies undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MSN (€95.5) is trading above our estimate of fair value (€85.09)
Significantly Below Fair Value: MSN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MSN is poor value based on its PE Ratio (30.7x) compared to the Insurance industry average (10.4x).
PE vs Market: MSN is poor value based on its PE Ratio (30.7x) compared to the German market (20.9x).
Price to Earnings Growth Ratio
PEG Ratio: MSN is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: MSN is overvalued based on its PB Ratio (7.5x) compared to the DE Insurance industry average (1x).
How is Marsh & McLennan Companies forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MSN's forecast earnings growth (14.7% per year) is above the savings rate (0.2%).
Earnings vs Market: MSN's earnings (14.7% per year) are forecast to grow slower than the German market (22.3% per year).
High Growth Earnings: MSN's earnings are forecast to grow, but not significantly.
Revenue vs Market: MSN's revenue (4.5% per year) is forecast to grow slower than the German market (5.9% per year).
High Growth Revenue: MSN's revenue (4.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MSN's Return on Equity is forecast to be high in 3 years time (29%)
How has Marsh & McLennan Companies performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MSN has high quality earnings.
Growing Profit Margin: MSN's current net profit margins (10.3%) are lower than last year (11.1%).
Past Earnings Growth Analysis
Earnings Trend: MSN's earnings have grown by 1% per year over the past 5 years.
Accelerating Growth: MSN's earnings growth over the past year (6.3%) exceeds its 5-year average (1% per year).
Earnings vs Industry: MSN earnings growth over the past year (6.3%) underperformed the Insurance industry 10%.
Return on Equity
High ROE: Whilst MSN's Return on Equity (24.33%) is high, this metric is skewed due to their high level of debt.
How is Marsh & McLennan Companies's financial position?
Financial Position Analysis
Short Term Liabilities: MSN's short term assets ($7.7B) exceed its short term liabilities ($6.9B).
Long Term Liabilities: MSN's short term assets ($7.7B) do not cover its long term liabilities ($17.1B).
Debt to Equity History and Analysis
Debt Level: MSN's debt to equity ratio (183.1%) is considered high.
Reducing Debt: MSN's debt to equity ratio has increased from 56.7% to 183.1% over the past 5 years.
Debt Coverage: MSN's debt is not well covered by operating cash flow (14.7%).
Interest Coverage: MSN's interest payments on its debt are well covered by EBIT (7.2x coverage).
What is Marsh & McLennan Companies's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MSN's dividend (1.69%) is higher than the bottom 25% of dividend payers in the German market (1.26%).
High Dividend: MSN's dividend (1.69%) is low compared to the top 25% of dividend payers in the German market (3.83%).
Stability and Growth of Payments
Stable Dividend: MSN's dividends per share have been stable in the past 10 years.
Growing Dividend: MSN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (51.7%), MSN's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MSN's dividends in 3 years are forecast to be well covered by earnings (38.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dan Glaser (60yo)
Mr. Daniel S. Glaser, also known as Dan, has been the Chief Executive Officer and President of Marsh & McLennan Companies, Inc. since January 1, 2013. Mr. Glaser served as Interim Chairman and Chief Execut ...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($USD20.33M) is above average for companies of similar size in the German market ($USD5.36M).
Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.
|Chief Financial Officer||4.5yrs||US$5.65m||0.0066% $3.2m|
|Vice Chair||no data||US$7.89m||0.0043% $2.1m|
|Vice Chair||no data||US$6.62m||0.0011% $548.9k|
|Vice Chairman||1.25yrs||US$7.19m||0.00065% $315.7k|
|VP, Controller & Chief Accounting Officer||2.5yrs||no data||0.00058% $281.7k|
|Senior VP & Chief Information Officer||4.83yrs||no data||0.0085% $4.1m|
|Vice President of Investor Relations||no data||no data||no data|
|Executive VP & General Counsel||15.67yrs||US$5.21m||0.070% $33.9m|
|Deputy General Counsel||2.75yrs||no data||no data|
Experienced Management: MSN's management team is considered experienced (4.5 years average tenure).
|Independent Director||8.5yrs||US$302.50k||0.0037% $1.8m|
|Independent Chairman of the Board||4.17yrs||US$495.00k||0.0059% $2.9m|
|Independent Director||14.5yrs||US$295.00k||0.011% $5.5m|
|Independent Director||12.5yrs||US$325.00k||0.0079% $3.8m|
|Independent Director||9.17yrs||US$320.00k||0.0080% $3.9m|
|Independent Director||19.5yrs||US$310.00k||0.017% $8.1m|
|Independent Director||18.5yrs||US$315.00k||0.0018% $854.9k|
|Independent Director||9.17yrs||US$302.50k||0.0061% $2.9m|
|Chairman of Marsh & McLennan Companies International||8.33yrs||US$4.51m||no data|
Experienced Board: MSN's board of directors are considered experienced (9.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Marsh & McLennan Companies, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Marsh & McLennan Companies, Inc.
- Ticker: MSN
- Exchange: DB
- Founded: 1871
- Industry: Insurance Brokers
- Sector: Insurance
- Market Cap: US$54.605b
- Listing Market Cap: US$48.571b
- Shares outstanding: 506.12m
- Website: https://www.mmc.com
Number of Employees
- Marsh & McLennan Companies, Inc.
- 1166 Avenue of the Americas
- New York
- New York
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|MMC||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Feb 1968|
|MHM||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Feb 1968|
|MSN||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Feb 1968|
|MMCO||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Feb 1968|
Marsh & McLennan Companies, Inc., a professional services company, provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. It operates in two segments, Risk and Insurance Services, and Consulting. The Risk and Insurance Services segment offers risk management services, such as risk advice, risk transfer, and risk control and mitigation solutions, as well as insurance and reinsurance broking, catastrophe and financial modeling, and related advisory services; and insurance program management services. This segment serves businesses, public entities, insurance companies, associations, professional services organizations, and private clients. The Consulting segment provides health, wealth, and career services and products; and specialized management, as well as economic and brand consulting services. The company was founded in 1871 and is headquartered in New York, New York.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/05 21:15|
|End of Day Share Price||2020/07/03 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.