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MMC

Marsh & McLennan Companies NYSE:MMC Stock Report

Last Price

US$152.49

Market Cap

US$76.7b

7D

0.03%

1Y

11.7%

Updated

25 May, 2022

Data

Company Financials +
MMC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health3/6
Dividends4/6

MMC Stock Overview

Marsh & McLennan Companies, Inc., a professional services company, provides advice and solutions to clients in the areas of risk, strategy, and people worldwide.

Marsh & McLennan Companies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Marsh & McLennan Companies
Historical stock prices
Current Share PriceUS$152.49
52 Week HighUS$183.14
52 Week LowUS$133.86
Beta0.94
1 Month Change-11.19%
3 Month Change0.47%
1 Year Change11.71%
3 Year Change59.66%
5 Year Change96.61%
Change since IPO1,073.00%

Recent News & Updates

May 13

Marsh & McLennan: Trees Don't Grow To The Sky, But Brokers Might

Marsh & McLennan is the top insurance broker and a rare example of a successful serial acquirer. Margins have expanded impressively in the last decade, overcoming a soft insurance market most of the time. The insurance market has improved lately, and premium pools are expected to grow strongly in the long term. MMC's valuation is not expensive relative to peers.

Apr 20

Marsh & McLennan And Its Closest Peer

Marsh & McLennan, the leading insurance broker, posted impressive 2021 numbers with earnings increasing over 20%. Last year was the first "normal" year post its transformative acquisition of rival JLT. Also, last year, the other major pending M&A (AON and Willis Tower Watson) was scrapped due to regulatory concerns. The following is a side-by-side comparison of MMC and AON as both leaders look to shift focus from consolidation to funding growth internally rewarding shareholders.

Shareholder Returns

MMCUS InsuranceUS Market
7D0.03%0.4%1.0%
1Y11.7%2.4%-15.1%

Return vs Industry: MMC exceeded the US Insurance industry which returned 2.5% over the past year.

Return vs Market: MMC exceeded the US Market which returned -13.2% over the past year.

Price Volatility

Is MMC's price volatile compared to industry and market?
MMC volatility
MMC Average Weekly Movement4.0%
Insurance Industry Average Movement5.1%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: MMC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MMC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187183,000Dan Glaserhttps://www.mmc.com

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.

Marsh & McLennan Companies Fundamentals Summary

How do Marsh & McLennan Companies's earnings and revenue compare to its market cap?
MMC fundamental statistics
Market CapUS$76.66b
Earnings (TTM)US$3.23b
Revenue (TTM)US$20.29b

23.7x

P/E Ratio

3.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MMC income statement (TTM)
RevenueUS$20.29b
Cost of RevenueUS$11.41b
Gross ProfitUS$8.88b
Other ExpensesUS$5.65b
EarningsUS$3.23b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.43
Gross Margin43.76%
Net Profit Margin15.93%
Debt/Equity Ratio105.3%

How did MMC perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

33%

Payout Ratio

Valuation

Is Marsh & McLennan Companies undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


22.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MMC ($152.49) is trading below our estimate of fair value ($195.39)

Significantly Below Fair Value: MMC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MMC is poor value based on its Price-To-Earnings Ratio (23.7x) compared to the US Insurance industry average (11.1x).

PE vs Market: MMC is poor value based on its Price-To-Earnings Ratio (23.7x) compared to the US market (14.9x).


Price to Earnings Growth Ratio

PEG Ratio: MMC is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: MMC is overvalued based on its Price-To-Book Ratio (7x) compared to the US Insurance industry average (1x).


Future Growth

How is Marsh & McLennan Companies forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMC's forecast earnings growth (6.6% per year) is above the savings rate (1.9%).

Earnings vs Market: MMC's earnings (6.6% per year) are forecast to grow slower than the US market (12.1% per year).

High Growth Earnings: MMC's earnings are forecast to grow, but not significantly.

Revenue vs Market: MMC's revenue (4.9% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: MMC's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MMC's Return on Equity is forecast to be high in 3 years time (30%)


Past Performance

How has Marsh & McLennan Companies performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MMC has high quality earnings.

Growing Profit Margin: MMC's current net profit margins (15.9%) are higher than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: MMC's earnings have grown by 12.6% per year over the past 5 years.

Accelerating Growth: MMC's earnings growth over the past year (43.9%) exceeds its 5-year average (12.6% per year).

Earnings vs Industry: MMC earnings growth over the past year (43.9%) exceeded the Insurance industry -2.6%.


Return on Equity

High ROE: Whilst MMC's Return on Equity (29.24%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Marsh & McLennan Companies's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MMC's short term assets ($7.8B) exceed its short term liabilities ($6.6B).

Long Term Liabilities: MMC's short term assets ($7.8B) do not cover its long term liabilities ($15.9B).


Debt to Equity History and Analysis

Debt Level: MMC's net debt to equity ratio (98.3%) is considered high.

Reducing Debt: MMC's debt to equity ratio has increased from 88.9% to 105.3% over the past 5 years.

Debt Coverage: MMC's debt is well covered by operating cash flow (27.4%).

Interest Coverage: MMC's interest payments on its debt are well covered by EBIT (13.5x coverage).


Balance Sheet


Dividend

What is Marsh & McLennan Companies's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.40%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MMC's dividend (1.4%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: MMC's dividend (1.4%) is low compared to the top 25% of dividend payers in the US market (4.06%).


Stability and Growth of Payments

Stable Dividend: MMC's dividends per share have been stable in the past 10 years.

Growing Dividend: MMC's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.5%), MMC's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (38.9%), MMC's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Dan Glaser (61 yo)

9.33yrs

Tenure

US$21,519,703

Compensation

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 ($USD21.52M) is above average for companies of similar size in the US market ($USD13.26M).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MMC's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: MMC's board of directors are seasoned and experienced ( 10.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MMC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Marsh & McLennan Companies, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Marsh & McLennan Companies, Inc.
  • Ticker: MMC
  • Exchange: NYSE
  • Founded: 1871
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Implied Market Cap: US$76.658b
  • Shares outstanding: 502.71m
  • Website: https://www.mmc.com

Number of Employees


Location

  • Marsh & McLennan Companies, Inc.
  • 1166 Avenue of the Americas
  • New York
  • New York
  • 10036-2774
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/25 00:00
End of Day Share Price2022/05/25 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.