NYSE:MMC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Marsh & McLennan Companies

Executive Summary

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


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

MMC

0.5%

US Insurance

-1.4%

US Market


1 Year Return

13.4%

MMC

-11.5%

US Insurance

17.8%

US Market

Return vs Industry: MMC exceeded the US Insurance industry which returned -12.8% over the past year.

Return vs Market: MMC underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

MMCIndustryMarket
7 Day-1.9%0.5%-1.4%
30 Day-3.4%4.5%4.7%
90 Day-2.6%0.2%8.2%
1 Year15.4%13.4%-9.1%-11.5%20.5%17.8%
3 Year40.5%32.9%0.7%-6.5%42.2%32.7%
5 Year119.8%99.8%36.4%19.2%83.4%62.7%

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

Valuation

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

28.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MMC ($112.3) is trading above our estimate of fair value ($94.34)

Significantly Below Fair Value: MMC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MMC is poor value based on its PE Ratio (28.1x) compared to the US Insurance industry average (14.1x).

PE vs Market: MMC is poor value based on its PE Ratio (28.1x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: MMC is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: MMC is overvalued based on its PB Ratio (6.9x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

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

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMC's forecast earnings growth (13.9% per year) is above the savings rate (2.2%).

Earnings vs Market: MMC's earnings (13.9% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: MMC's revenue (4.4% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: MMC's revenue (4.4% 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 (28.3%)


Next Steps

Past Performance

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

1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MMC has high quality earnings.

Growing Profit Margin: MMC's current net profit margins (11.8%) are higher than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: MMC's earnings have grown by 1.6% per year over the past 5 years.

Accelerating Growth: MMC's earnings growth over the past year (36.7%) exceeds its 5-year average (1.6% per year).

Earnings vs Industry: MMC earnings growth over the past year (36.7%) exceeded the Insurance industry -3.3%.


Return on Equity

High ROE: Whilst MMC's Return on Equity (24.42%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Marsh & McLennan Companies's financial position?


Financial Position Analysis

Short Term Liabilities: MMC's short term assets ($8.1B) exceed its short term liabilities ($5.9B).

Long Term Liabilities: MMC's short term assets ($8.1B) do not cover its long term liabilities ($17.8B).


Debt to Equity History and Analysis

Debt Level: MMC's debt to equity ratio (157.3%) is considered high.

Reducing Debt: MMC's debt to equity ratio has increased from 57.5% to 157.3% over the past 5 years.

Debt Coverage: MMC's debt is well covered by operating cash flow (20.4%).

Interest Coverage: MMC's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet


Next Steps

Dividend

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

1.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MMC's dividend (1.66%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: MMC's dividend (1.66%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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 (45.8%), 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 (37.9% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Dan Glaser (60 yo)

7.75yrs

Tenure

US$20,331,697

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 ($USD20.33M) is above average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Glaser
President7.75yrsUS$20.33m0.033%
$ 18.9m
Mark McGivney
Chief Financial Officer4.75yrsUS$5.65m0.0066%
$ 3.8m
John Doyle
Vice Chairno dataUS$7.89m0.0055%
$ 3.1m
Martine Ferland
Vice Chairno dataUS$6.62m0.00055%
$ 312.9k
Dominic Burke
Vice Chairman1.5yrsUS$7.19m0.00065%
$ 369.7k
Stacy Mills
VP, Controller & Chief Accounting Officer2.75yrsno data0.00058%
$ 329.9k
E. Gilbert
Senior VP & Chief Information Officer5.08yrsno data0.0085%
$ 4.9m
Sarah Dewitt
Vice President of Investor Relationsno datano datano data
Peter Beshar
Executive VP & General Counsel15.92yrsUS$5.21m0.094%
$ 53.6m
Katherine Brennan
Deputy General Counsel3yrsno datano data
Erick Gustafson
Chief Public Affairs Officer2.42yrsno datano data
Laurie Ledford
Senior VP & Chief Human Resources Officer8.75yrsno data0.0019%
$ 1.1m

4.8yrs

Average Tenure

58yo

Average Age

Experienced Management: MMC's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Glaser
President7.75yrsUS$20.33m0.033%
$ 18.9m
R. Yost
Independent Director8.75yrsUS$302.50k0.0037%
$ 2.1m
H. Hanway
Independent Chairman of the Board4.42yrsUS$495.00k0.0059%
$ 3.4m
Deborah Hopkins
Independent Director3.75yrsUS$295.00kno data
Marc Oken
Independent Director14.75yrsUS$295.00k0.011%
$ 6.4m
Bruce Nolop
Independent Director12.75yrsUS$325.00k0.0079%
$ 4.5m
Steven Mills
Independent Director9.42yrsUS$320.00k0.0081%
$ 4.6m
Óscar Fanjul Martín
Independent Director19.75yrsUS$310.00k0.017%
$ 9.5m
Morton Schapiro
Independent Director18.75yrsUS$315.00k0.0018%
$ 1.0m
Lloyd Yates
Independent Director9.42yrsUS$302.50k0.0060%
$ 3.4m
Alexander Moczarski
Chairman of Marsh & McLennan Companies International8.58yrsUS$4.51mno data
Anthony Anderson
Independent Director4.08yrsUS$295.00k0.00020%
$ 113.8k

9.1yrs

Average Tenure

67yo

Average Age

Experienced Board: MMC's board of directors are considered experienced (9.1 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 company bio, 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
  • Market Cap: US$56.883b
  • Shares outstanding: 506.53m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MMCNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1968
MHMLSE (London Stock Exchange)YesCommon StockGBUSDFeb 1968
MSNDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1968
MMCOWBAG (Wiener Boerse AG)YesCommon StockATEURFeb 1968
MMCBASE (Buenos Aires Stock Exchange)CEDEAR EACH 4 REPR 1 ORD USD1ARARSSep 2000
M1MC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 23:32
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.