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Marsh & McLennan Companies

NYSE:MMC
Snowflake Description

Established dividend payer with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MMC
NYSE
$50B
Market Cap
  1. Home
  2. US
  3. Insurance
Company description

Marsh & McLennan Companies, Inc., a professional services company, provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. The last earnings update was 27 days ago. More info.


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MMC Share Price and Events
7 Day Returns
1.7%
NYSE:MMC
1.6%
US Insurance
0.2%
US Market
1 Year Returns
19.5%
NYSE:MMC
8.4%
US Insurance
2.9%
US Market
MMC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Marsh & McLennan Companies (MMC) 1.7% 2.6% 5.1% 19.5% 48.4% 94.5%
US Insurance 1.6% 4.7% 6.8% 8.4% 31.9% 47.3%
US Market 0.2% -1.6% 2.4% 2.9% 36.1% 41%
1 Year Return vs Industry and Market
  • MMC outperformed the Insurance industry which returned 8.4% over the past year.
  • MMC outperformed the Market in United States of America which returned 2.9% over the past year.
Price Volatility
MMC
Industry
5yr Volatility vs Market

Value

 Is Marsh & McLennan Companies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Marsh & McLennan Companies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Marsh & McLennan Companies.

NYSE:MMC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 7 analysts.
= Stable Book Value * Return on Equity
= $18.64 * 27.8%
$5.19
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. $18.64
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MMC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.737 (1 + (1- 21%) (29.98%))
0.941
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.941 * 5.96%)
8.34%

Discounted Cash Flow Calculation for NYSE:MMC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Marsh & McLennan Companies is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:MMC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (27.8% – 8.34%) * $18.64)
$3.63
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $3.63 / (8.34% - 2.73%)
$64.83
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $18.64 + $64.83
$83.47
NYSE:MMC Discount to Share Price
Calculation Result
Value per share (USD) From above. $83.47
Current discount Discount to share price of $97.29
= -1 x ($97.29 - $83.47) / $83.47
-16.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Marsh & McLennan Companies is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Marsh & McLennan Companies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Marsh & McLennan Companies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MMC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.32
NYSE:MMC Share Price ** NYSE (2019-05-22) in USD $97.29
United States of America Insurance Industry PE Ratio Median Figure of 90 Publicly-Listed Insurance Companies 17x
United States of America Market PE Ratio Median Figure of 3,085 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Marsh & McLennan Companies.

NYSE:MMC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MMC Share Price ÷ EPS (both in USD)

= 97.29 ÷ 3.32

29.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Marsh & McLennan Companies is overvalued based on earnings compared to the US Insurance industry average.
  • Marsh & McLennan Companies is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Marsh & McLennan Companies's expected growth come at a high price?
Raw Data
NYSE:MMC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.33x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
14.8%per year
United States of America Insurance Industry PEG Ratio Median Figure of 67 Publicly-Listed Insurance Companies 1.57x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:MMC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.33x ÷ 14.8%

1.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Marsh & McLennan Companies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Marsh & McLennan Companies's assets?
Raw Data
NYSE:MMC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $15.60
NYSE:MMC Share Price * NYSE (2019-05-22) in USD $97.29
United States of America Insurance Industry PB Ratio Median Figure of 120 Publicly-Listed Insurance Companies 1.21x
United States of America Market PB Ratio Median Figure of 5,201 Publicly-Listed Companies 1.84x
NYSE:MMC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MMC Share Price ÷ Book Value per Share (both in USD)

= 97.29 ÷ 15.60

6.24x

* Primary Listing of Marsh & McLennan Companies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Marsh & McLennan Companies is overvalued based on assets compared to the US Insurance industry average.
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Value checks
We assess Marsh & McLennan Companies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Marsh & McLennan Companies has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Marsh & McLennan Companies expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Marsh & McLennan Companies expected to grow at an attractive rate?
  • Marsh & McLennan Companies's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Marsh & McLennan Companies's earnings growth is expected to exceed the United States of America market average.
  • Marsh & McLennan Companies's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MMC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MMC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 14.8%
NYSE:MMC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 8.2%
United States of America Insurance Industry Earnings Growth Rate Market Cap Weighted Average 9.7%
United States of America Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MMC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MMC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 19,222 2,894 4
2020-12-31 17,612 2,684 2,489 14
2019-12-31 16,367 2,643 2,224 13
NYSE:MMC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 15,021 2,516 1,676
2018-12-31 14,950 2,428 1,650
2018-09-30 14,923 2,075 1,524
2018-06-30 14,760 1,963 1,641
2018-03-31 14,521 1,928 1,611
2017-12-31 14,024 1,893 1,490
2017-09-30 13,703 2,032 1,899
2017-06-30 13,497 2,121 1,885
2017-03-31 13,378 2,189 1,856
2016-12-31 13,211 2,007 1,768
2016-09-30 13,185 2,011 1,706
2016-06-30 13,165 2,005 1,648

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Marsh & McLennan Companies's earnings are expected to grow by 14.8% yearly, however this is not considered high growth (20% yearly).
  • Marsh & McLennan Companies's revenue is expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MMC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Marsh & McLennan Companies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MMC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 5.71 5.86 5.62 3.00
2020-12-31 4.91 5.18 4.48 10.00
2019-12-31 4.29 4.63 3.86 9.00
NYSE:MMC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.32
2018-12-31 3.26
2018-09-30 3.01
2018-06-30 3.22
2018-03-31 3.15
2017-12-31 2.90
2017-09-30 3.69
2017-06-30 3.66
2017-03-31 3.59
2016-12-31 3.41
2016-09-30 3.28
2016-06-30 3.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Marsh & McLennan Companies is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Marsh & McLennan Companies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Marsh & McLennan Companies has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Marsh & McLennan Companies's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Marsh & McLennan Companies's year on year earnings growth rate has been positive over the past 5 years.
  • Marsh & McLennan Companies's 1-year earnings growth exceeds its 5-year average (4% vs 3.4%)
  • Marsh & McLennan Companies's earnings growth has not exceeded the US Insurance industry average in the past year (4% vs 6.6%).
Earnings and Revenue History
Marsh & McLennan Companies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Marsh & McLennan Companies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MMC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 15,021.00 1,676.00
2018-12-31 14,950.00 1,650.00
2018-09-30 14,923.00 1,524.00
2018-06-30 14,760.00 1,641.00
2018-03-31 14,521.00 1,611.00
2017-12-31 14,024.00 1,490.00
2017-09-30 13,703.00 1,899.00
2017-06-30 13,497.00 1,885.00
2017-03-31 13,378.00 1,856.00
2016-12-31 13,211.00 1,768.00
2016-09-30 13,185.00 1,706.00
2016-06-30 13,165.00 1,648.00
2016-03-31 13,014.00 1,595.00
2015-12-31 12,893.00 1,599.00
2015-09-30 12,801.00 1,489.00
2015-06-30 12,827.00 1,466.00
2015-03-31 12,902.00 1,480.00
2014-12-31 12,951.00 1,439.00
2014-09-30 12,820.00 1,478.00
2014-06-30 12,611.00 1,434.00
2014-03-31 12,399.00 1,394.00
2013-12-31 12,261.00 1,351.00
2013-09-30 12,148.00 1,309.00
2013-06-30 12,061.00 1,295.00
2013-03-31 11,999.00 1,233.00
2012-12-31 11,924.00 1,179.00
2012-09-30 11,830.00 1,157.00
2012-06-30 11,791.00 1,044.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Marsh & McLennan Companies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Marsh & McLennan Companies used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.
  • Marsh & McLennan Companies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
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Past performance checks
We assess Marsh & McLennan Companies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Marsh & McLennan Companies has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Marsh & McLennan Companies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Marsh & McLennan Companies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Marsh & McLennan Companies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Marsh & McLennan Companies's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Marsh & McLennan Companies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Marsh & McLennan Companies Company Filings, last reported 1 month ago.

NYSE:MMC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 7,986.00 14,915.00 1,117.00
2018-12-31 7,584.00 5,824.00 1,066.00
2018-09-30 7,538.00 6,150.00 951.00
2018-06-30 7,797.00 6,252.00 1,036.00
2018-03-31 8,021.00 6,327.00 1,168.00
2017-12-31 7,442.00 5,487.00 1,205.00
2017-09-30 7,131.00 5,488.00 1,078.00
2017-06-30 7,074.00 5,641.00 966.00
2017-03-31 6,619.00 5,891.00 930.00
2016-12-31 6,272.00 4,807.00 1,026.00
2016-09-30 6,754.00 4,756.00 1,388.00
2016-06-30 6,705.00 4,757.00 974.00
2016-03-31 6,771.00 5,013.00 918.00
2015-12-31 6,602.00 4,414.00 1,374.00
2015-09-30 6,343.00 4,484.00 1,330.00
2015-06-30 6,872.00 3,936.00 930.00
2015-03-31 6,863.00 3,889.00 1,104.00
2014-12-31 7,133.00 3,379.00 1,958.00
2014-09-30 7,915.00 4,019.00 2,649.00
2014-06-30 8,228.00 3,545.00 2,007.00
2014-03-31 8,043.00 3,051.00 1,382.00
2013-12-31 7,975.00 2,955.00 2,306.00
2013-09-30 7,120.00 3,206.00 2,177.00
2013-06-30 6,846.00 2,713.00 1,235.00
2013-03-31 6,713.00 2,715.00 1,268.00
2012-12-31 6,606.00 2,918.00 2,307.00
2012-09-30 6,580.00 2,919.00 2,050.00
2012-06-30 6,344.00 2,922.00 1,511.00
  • Marsh & McLennan Companies's level of debt (186.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (38% vs 186.8% today).
  • Debt is not well covered by operating cash flow (16.9%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.8x coverage).
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Financial health checks
We assess Marsh & McLennan Companies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Marsh & McLennan Companies has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.87%
Current annual income from Marsh & McLennan Companies dividends. Estimated to be 1.91% next year.
If you bought $2,000 of Marsh & McLennan Companies shares you are expected to receive $37 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Marsh & McLennan Companies's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Marsh & McLennan Companies's dividend is below the markets top 25% of dividend payers in United States of America (3.7%).
Upcoming dividend payment

Purchase Marsh & McLennan Companies before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MMC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Insurance Industry Average Dividend Yield Market Cap Weighted Average of 80 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2005 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MMC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.08 4.00
2020-12-31 1.89 11.00
2019-12-31 1.74 11.00
NYSE:MMC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-16 1.820 1.889
2019-03-20 1.660 1.769
2019-01-16 1.660 1.856
2018-10-26 1.660 1.990
2018-10-25 1.660 2.028
2018-05-17 1.660 1.996
2018-03-21 1.500 1.832
2018-01-17 1.500 1.802
2017-09-19 1.500 1.809
2017-05-18 1.500 1.916
2017-03-15 1.360 1.843
2017-01-11 1.360 1.916
2016-09-21 1.360 2.027
2016-05-19 1.360 2.042
2016-03-16 1.240 2.000
2016-01-13 1.240 2.240
2015-09-16 1.240 2.270
2015-05-21 1.240 2.173
2015-03-18 1.120 1.962
2015-01-14 1.120 1.990
2014-09-17 1.120 2.050
2014-05-15 1.120 2.173
2014-03-19 1.000 2.052
2014-01-15 1.000 2.101
2013-09-18 1.000 2.163
2013-05-16 1.000 2.429
2013-03-20 0.920 2.414
2013-01-16 0.920 2.541
2012-09-19 0.920 2.657
2012-05-17 0.920 2.805
2012-03-14 0.880 2.680
2012-01-18 0.880 2.759
2011-09-21 0.880 2.972
2011-05-19 0.880 2.991
2011-05-06 0.840 2.799
2011-01-20 0.840 2.853
2010-09-15 0.840 3.287
2010-05-20 0.800 3.483
2010-03-17 0.800 3.326
2010-01-20 0.800 3.515
2009-09-17 0.800 3.455

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Marsh & McLennan Companies's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Marsh & McLennan Companies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Marsh & McLennan Companies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Marsh & McLennan Companies has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Marsh & McLennan Companies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dan Glaser
COMPENSATION $17,281,919
AGE 58
TENURE AS CEO 6.3 years
CEO Bio

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 Executive Officer of Mercer (Ireland) Limited. He served as the Chief Operating Officer and Group President of Marsh & McLennan Companies, Inc. from April 20, 2011 to December 2012, with strategic and operational oversight of both the Risk and Insurance Services and the Consulting segments of the Company. He served as the Chief Executive Officer of Mercer LLC until February 1, 2012. He re-joined Marsh as a leader in December 2007, after serving in senior positions in commercial insurance and insurance brokerage in the U.S., Europe and the Middle East. Mr. Glaser served as Chief Executive Officer of Flagship unit of Marsh & McLennan Companies Inc., since December 2007. He served as the Chief Executive Officer of Marsh LLC (also known as Marsh Inc.), a subsidiary of Marsh & McLennan Companies from December 10, 2007 to April 20, 2011. His Key Skills and Experience includes Leadership, Financial, Industry, International, and Risk Management. He served as President of British American Business Inc. He served as Chief Executive Officer of Marsh & Mclennan Companies Inc., until January 30, 2008. He served as a Senior Vice President of AIG, Inc., and the Chairman of AIU's strategic advisory group. He served as Managing Director of AIG Europe (UK) Limited and AIU Regional President for UK/Ireland Division of American International Group, Inc. and served as Senior Vice President of its Foreign General Insurance since January 17, 2007 being responsible for AIG's general insurance operations in the UK and Ireland. He served as an Executive Vice President of AIG's Domestic Brokerage Group and was responsible for its North American Field Operations and Market Segments. He served as AIG's Vice President since 2002. Mr. Glaser joined AIG in 2000 as President of AIG Global Energy based in New York. He became an Executive Vice President of AIG's general insurance operations in North America in 2002. Later that year, he relocated to London upon his appointment as Managing Director. He began his career in the insurance industry as a Marsh broker in 1982. He spent at Marsh for more than 30 years, serving in roles in New York, London and Saudi Arabia. He spent eight years at Willis, where he served as President and Chief Operating Officer of Willis Risk Solutions, the large accounts practice. He served as the Chairman of Marsh LLC from December 10, 2007 to April 20, 2011. He served as Chairman of British American Business. He served as Interim Chairman and Director at Mercer LLC. He serves as Deputy Chairman of British American Business Inc. He has been a Director of Marsh & McLennan Companies, Inc. since January 1, 2013. Mr. Glaser serves on the International Advisory Board of British American Business, the leading transatlantic trade organization with over 700 member companies. He served as a Director of Marsh LLC from December 10, 2007 to April 20, 2011. He served as a Director of Mercer (Ireland) Limited. He was named Chairman of the Federal Advisory Committee on Insurance (FACI) in August 2014. He is a member of the Board of Trustees for the American Institute for Chartered Property Casualty Underwriters, the Insurance Information Institute, Ohio Wesleyan University, Insurance Institute of America, a former member of the General Insurance Council of the Association of British Insurers, Ascot Underwriting Limited (Lloyd's Syndicate 1414) and he served on the board of the International Underwriting Association. Mr. Glaser is a graduate of Ohio Wesleyan University and also completed the Advanced Management Program at the Harvard Business School.

CEO Compensation
  • Dan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dan's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Marsh & McLennan Companies management team in years:

1.8
Average Tenure
57
Average Age
  • The average tenure for the Marsh & McLennan Companies management team is less than 2 years, this suggests a new team.
Management Team

Dan Glaser

TITLE
President
COMPENSATION
$17M
AGE
58
TENURE
6.3 yrs

Mark McGivney

TITLE
Chief Financial Officer
COMPENSATION
$5M
AGE
50
TENURE
3.3 yrs

Julio Portalatin

TITLE
Vice Chairman
COMPENSATION
$6M
AGE
59
TENURE
0.2 yrs

John Doyle

TITLE
President & CEO of Marsh LLC
COMPENSATION
$7M
AGE
54
TENURE
1.8 yrs

Peter Hearn

TITLE
President & CEO of Guy Carpenter
COMPENSATION
$5M
AGE
62
TENURE
1.8 yrs

Stacy Mills

TITLE
VP, Controller & Chief Accounting Officer
AGE
53
TENURE
1.3 yrs

E. Gilbert

TITLE
Senior VP & Chief Information Officer
AGE
62
TENURE
3.7 yrs

Sarah Dewitt

TITLE
Vice President of Investor Relations

Peter Beshar

TITLE
Executive VP & General Counsel
COMPENSATION
$5M
AGE
56
TENURE
14.5 yrs

Kate Brennan

TITLE
Deputy General Counsel
TENURE
1.6 yrs
Board of Directors Tenure

Average tenure and age of the Marsh & McLennan Companies board of directors in years:

8
Average Tenure
66
Average Age
  • The tenure for the Marsh & McLennan Companies board of directors is about average.
Board of Directors

Ed Hanway

TITLE
Chairman of the Board
COMPENSATION
$490K
AGE
66
TENURE
3 yrs

Dan Glaser

TITLE
President
COMPENSATION
$17M
AGE
58
TENURE
6.3 yrs

Alex Moczarski

TITLE
Chairman of Marsh & McLennan Companies International
COMPENSATION
$5M
AGE
62
TENURE
7.2 yrs

Óscar Martín

TITLE
Director
COMPENSATION
$305K
AGE
69
TENURE
18.3 yrs

Morton Schapiro

TITLE
Director
COMPENSATION
$305K
AGE
64
TENURE
17.3 yrs

Bruce Nolop

TITLE
Director
COMPENSATION
$320K
AGE
67
TENURE
11.3 yrs

Steven Mills

TITLE
Director
COMPENSATION
$315K
AGE
66
TENURE
8 yrs

R. Yost

TITLE
Director
COMPENSATION
$310K
AGE
70
TENURE
7.3 yrs

Marc Oken

TITLE
Director
COMPENSATION
$290K
AGE
72
TENURE
13.3 yrs

Lloyd Yates

TITLE
Director
COMPENSATION
$290K
AGE
57
TENURE
8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Marsh & McLennan Companies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Marsh & McLennan Companies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Marsh & McLennan Companies, Inc.'s (NYSE:MMC) 21% ROE Better Than Average?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Marsh & McLennan Companies: 21% = US$1.7b ÷ US$8.0b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Marsh & McLennan Companies Have A Good Return On Equity? … Combining Marsh & McLennan Companies's Debt And Its 21% Return On Equity Marsh & McLennan Companies clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.87.

Simply Wall St -

Marsh & McLennan Companies (NYSE:MMC) Shareholders Have Enjoyed A 92% Share Price Gain

To wit, the Marsh & McLennan Companies share price has climbed 92% in five years, easily topping the market return of 48% (ignoring dividends). … Over half a decade, Marsh & McLennan Companies managed to grow its earnings per share at 5.5% a year. … This EPS growth is slower than the share price growth of 14% per year, over the same period.

Simply Wall St -

Is Marsh & McLennan Companies, Inc.'s (NYSE:MMC) CEO Paid Enough Relative To Peers?

This analysis aims first to contrast CEO compensation with other large companies. … has a market capitalization of US$48b, and pays its CEO total annual compensation worth US$17m. … When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m

Simply Wall St -

Marsh & McLennan Companies, Inc. (NYSE:MMC): Ex-Dividend Is In 4 Days

If you are interested in cashing in on Marsh & McLennan Companies, Inc.'s (NYSE:MMC) upcoming dividend of US$0.41 per share, you only have 4 days left to buy the shares before its ex-dividend date, 09 April 2019, in time for dividends payable on the 15 May 2019. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Marsh & McLennan Companies's latest financial data to analyse its dividend attributes. … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

Simply Wall St -

Was Marsh & McLennan Companies, Inc.'s (NYSE:MMC) Earnings Growth Better Than The Industry's?

Assessing Marsh & McLennan Companies, Inc.'s (NYSE:MMC) past track record of performance is a useful exercise for investors. … Below, I assess MMC's latest performance announced on 31 December 2018 and evaluate these figures to its historical trend and industry movements. … MMC's trailing twelve-month earnings (from 31 December 2018) of US$1.7b has.

Simply Wall St -

Is Marsh & McLennan Companies, Inc.'s (NYSE:MMC) High P/E Ratio A Problem For Investors?

We'll look at Marsh & McLennan Companies, Inc.'s (NYSE:MMC) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, Marsh & McLennan Companies's P/E ratio is 28.46. … How Do You Calculate Marsh & McLennan Companies's P/E Ratio

Simply Wall St -

Is Now An Opportune Moment To Examine Marsh & McLennan Companies, Inc. (NYSE:MMC)?

Let's talk about the popular Marsh & McLennan Companies, Inc. … received a lot of attention from a substantial price increase on the NYSE over the last few months … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock.

Simply Wall St -

Can Marsh & McLennan Companies, Inc. (NYSE:MMC) Save Your Portfolio?

This is the best time to buy stocks like Marsh & McLennan Companies, Inc. … Check out our latest analysis for Marsh & McLennan Companies. … Marsh & McLennan Companies, Inc., a professional services firm, provides advice and solutions in the areas of risk, strategy, and people worldwide

Simply Wall St -

A Closer Look At Marsh & McLennan Companies, Inc.'s (NYSE:MMC) Impressive ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.20 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why Marsh & McLennan Companies, Inc. (NYSE:MMC) Is An Attractive Investment To Consider

(NYSE:MMC) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of MMC, it

Simply Wall St -

Company Info

Description

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, 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.

Details
Name: Marsh & McLennan Companies, Inc.
MMC
Exchange: NYSE
Founded: 1871
$49,748,676,926
511,344,197
Website: http://www.mmc.com
Address: Marsh & McLennan Companies, Inc.
1166 Avenue of the Americas,
New York,
New York, 10036,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MMC Common Stock New York Stock Exchange US USD 16. Feb 1968
DB MSN Common Stock Deutsche Boerse AG DE EUR 16. Feb 1968
LSE MHM Common Stock London Stock Exchange GB USD 16. Feb 1968
Number of employees
Current staff
Staff numbers
65,000
Marsh & McLennan Companies employees.
Industry
Insurance Brokers
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 04:11
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/05/21
Last earnings filing: 2019/04/26
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.