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
|Historical stock prices|
|Current Share Price||US$152.49|
|52 Week High||US$183.14|
|52 Week Low||US$133.86|
|1 Month Change||-11.19%|
|3 Month Change||0.47%|
|1 Year Change||11.71%|
|3 Year Change||59.66%|
|5 Year Change||96.61%|
|Change since IPO||1,073.00%|
Recent News & Updates
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.
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.
|MMC||US Insurance||US Market|
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.
|MMC Average Weekly Movement||4.0%|
|Insurance Industry Average Movement||5.1%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||2.9%|
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
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
|MMC fundamental statistics|
Is MMC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MMC income statement (TTM)|
|Cost of Revenue||US$11.41b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||6.43|
|Net Profit Margin||15.93%|
How did MMC perform over the long term?See historical performance and comparison
1.4%Current Dividend Yield
Is Marsh & McLennan Companies undervalued compared to its fair value and its price relative to the market?
Valuation Score 2/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
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).
How is Marsh & McLennan Companies forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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%)
How has Marsh & McLennan Companies performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
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.
How is Marsh & McLennan Companies's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
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 ($15.9B).
Debt to Equity History and Analysis
Debt Level: MMC's net debt to equity ratio (98.3%) is considered high.
Reducing Debt: MMC's debt to equity ratio has increased from 88.9% to 105.3% over the past 5 years.
Debt Coverage: MMC's debt is well covered by operating cash flow (27.4%).
Interest Coverage: MMC's interest payments on its debt are well covered by EBIT (13.5x coverage).
What is Marsh & McLennan Companies's current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MMC's dividend (1.4%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: MMC's dividend (1.4%) is low compared to the top 25% of dividend payers in the US market (4.06%).
Stability and Growth of Payments
Stable Dividend: MMC's dividends per share have been stable in the past 10 years.
Growing Dividend: MMC's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (33.5%), MMC's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (38.9%), MMC's dividend payments are well covered by cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dan Glaser (61 yo)
Mr. Daniel S. Glaser, also known as Dan, has been the Chief Executive Officer and President of Marsh & McLennan Companies, Inc. since January 1, 2013. Mr. Glaser served as Interim Chairman and Chief Execut...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($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.
Experienced Management: MMC's management team is considered experienced (4.2 years average tenure).
Experienced Board: MMC's board of directors are seasoned and experienced ( 10.7 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Marsh & McLennan Companies, Inc.'s employee growth, exchange listings and data sources
- 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
- Marsh & McLennan Companies, Inc.
- 1166 Avenue of the Americas
- New York
- New York
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/25 00:00|
|End of Day Share Price||2022/05/25 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.