Marsh & McLennan Companies, Inc., a professional services company, provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. More Details
Established dividend payer with proven 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: MMC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: MMC's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: MMC underperformed the US Insurance industry which returned 60.2% over the past year.
Return vs Market: MMC underperformed the US Market which returned 51.8% over the past year.
Long-Term 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
10 months ago | Simply Wall StWhat Did Marsh & McLennan Companies' (NYSE:MMC) CEO Take Home Last Year?
10 months ago | Simply Wall StShould You Be Worried About Insider Transactions At Marsh & McLennan Companies, Inc. (NYSE:MMC)?
11 months ago | Simply Wall StWhy Marsh & McLennan Companies, Inc. (NYSE:MMC) Could Be Worth Watching
Is Marsh & McLennan Companies undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MMC ($137.77) is trading below our estimate of fair value ($138.43)
Significantly Below Fair Value: MMC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MMC is poor value based on its PE Ratio (31.1x) compared to the US Insurance industry average (13.3x).
PE vs Market: MMC is poor value based on its PE Ratio (31.1x) compared to the US market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: MMC is poor value based on its PEG Ratio (4.3x)
Price to Book Ratio
PB vs Industry: MMC is overvalued based on its PB Ratio (7.4x) compared to the US Insurance industry average (1.2x).
How is Marsh & McLennan Companies forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MMC's forecast earnings growth (7.2% per year) is above the savings rate (2%).
Earnings vs Market: MMC's earnings (7.2% per year) are forecast to grow slower than the US market (15.4% per year).
High Growth Earnings: MMC's earnings are forecast to grow, but not significantly.
Revenue vs Market: MMC's revenue (4.3% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: MMC's revenue (4.3% 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 (27.6%)
How has Marsh & McLennan Companies performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MMC has high quality earnings.
Growing Profit Margin: MMC's current net profit margins (12.7%) are higher than last year (10.3%).
Past Earnings Growth Analysis
Earnings Trend: MMC's earnings have grown by 3.4% per year over the past 5 years.
Accelerating Growth: MMC's earnings growth over the past year (26.1%) exceeds its 5-year average (3.4% per year).
Earnings vs Industry: MMC earnings growth over the past year (26.1%) underperformed the Insurance industry 28.3%.
Return on Equity
High ROE: Whilst MMC's Return on Equity (23.73%) 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: MMC's short term assets ($7.5B) exceed its short term liabilities ($6.1B).
Long Term Liabilities: MMC's short term assets ($7.5B) do not cover its long term liabilities ($16.6B).
Debt to Equity History and Analysis
Debt Level: MMC's debt to equity ratio (117.3%) is considered high.
Reducing Debt: MMC's debt to equity ratio has increased from 74% to 117.3% over the past 5 years.
Debt Coverage: MMC's debt is well covered by operating cash flow (32.1%).
Interest Coverage: MMC's interest payments on its debt are well covered by EBIT (8.1x coverage).
What is Marsh & McLennan Companies's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MMC's dividend (1.35%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: MMC's dividend (1.35%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: MMC's dividends per share have been stable in the past 10 years.
Growing Dividend: MMC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (42%), MMC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MMC's dividends in 3 years are forecast to be well covered by earnings (33.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dan Glaser (60 yo)
Mr. Daniel S. Glaser, also known as Dan, has been the Chief Executive Officer and President of Marsh & McLennan Companies, Inc. since January 1, 2013. Mr. Glaser served as Interim Chairman and Chief Execut...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($USD19.70M) is above average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.
Experienced Management: MMC's management team is considered experienced (3.3 years average tenure).
Experienced Board: MMC's board of directors are considered experienced (9.7 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: MMC
- Exchange: NYSE
- Founded: 1871
- Industry: Insurance Brokers
- Sector: Insurance
- Market Cap: US$70.005b
- Shares outstanding: 508.53m
- Website: https://www.mmc.com
Number of Employees
- Marsh & McLennan Companies, Inc.
- 1166 Avenue of the Americas
- New York
- New York
- United States
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 Insur...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/07 03:44|
|End of Day Share Price||2021/05/06 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.