Marsh & Mclennan Companies (MMC) AI Stock Analysis

• Market Cap: $104.81B
• Dividend Yield: 1.53%
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.38
• Revenue Growth: 7.56%
• EPS Growth: 3.39%
• Country: US
• Employees: 90,000
• Sector: Financial
• Sector Strength: 82
• Industry: Insurance - Brokers
• EPS (TTM): 3.06
• Shares Outstanding: 492,727,750
• 10 Day Avg. Volume: 2,575,707
• 30 Day Avg. Volume: 2,108,545
• PEG Ratio: -18.65
• Price to Book (P/B): 7.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.57
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 8.87
• Enterprise Value/Ebitda: 3.36
• 1Y Price Target: $234.64
• Price Target Upside: 9.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 70 Outperform
• Price Target: $252.00 ▲(17.17%Upside)

Marsh & McLennan's overall stock score is driven by strong financial performance, reflecting consistent revenue growth and effective cash flow management. Technical indicators are stable but cautious, while the valuation suggests the stock is priced at a premium. The mixed sentiment from the earnings call highlights strategic growth tempered by macroeconomic challenges.

Positive Factors

Cash Flow

Free cash flow margin forecast moves higher primarily on lower CapEx, with 1Q free cash flows beating estimates and working capital improving significantly.

Earnings Performance

Marsh McLennan reports 1Q25 operational earnings per share that exceeded both the analyst estimate and street consensus.

Technological Advancements

MMC could benefit from industry-wide technological changes, allowing it to perform underwriting functions at incremental cost of insurance carriers and less sophisticated peer brokers.

Negative Factors

Future Growth Concerns

The price objective reduces to $238 from a prior $264 due to multiple contraction, reflecting concerns over future growth.

Growth Outlook

There is a slowdown in organic growth from previous quarters, attributed to heightened economic uncertainty.

Margin Pressure

Headwinds from lower year-over-year fiduciary interest income in RIS are set to increase, making underlying margins more difficult to expand in a potentially weakening macro environment.

Marsh & Mclennan Companies Business Overview & Revenue Model

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. 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. This segment serves businesses, public entities, insurance companies, associations, professional services organizations, and private clients. The Consulting segment provides health, wealth, and career consulting services and products; and specialized management, as well as economic and brand consulting services. Marsh & McLennan Companies, Inc. was founded in 1871 and is headquartered in New York, New York.

How the Company Makes Money

Marsh & McLennan Companies generates revenue primarily through its subsidiaries, each of which operates in distinct but interconnected areas. Marsh earns money through insurance brokerage services, earning commissions and fees from insurers for placing and managing insurance contracts. Guy Carpenter generates revenue by providing reinsurance and capital strategy services, which involve advising insurers on risk management and capital solutions. Mercer earns its income by offering consulting services in health, wealth, and career, charging fees for its advisory and outsourced services. Oliver Wyman contributes by providing management consulting services, earning fees from clients for strategic advisory and consulting projects. MMC also benefits from cross-selling opportunities and strategic partnerships across its subsidiaries, leveraging its comprehensive expertise to offer integrated solutions to complex client needs, thereby enhancing its revenue potential.

Marsh & Mclennan Companies Financial Statement Overview

Summary

Marsh & McLennan Companies demonstrates strong financial health with consistent revenue growth, robust profitability margins, and effective cash flow management. Despite a higher debt-to-equity ratio typical for the industry, the company effectively utilizes equity to generate returns. The overall financial performance is commendable, with potential leverage risks being a key area to monitor.

Income Statement

The company has shown a consistent revenue growth trajectory with a TTM revenue increase of 2.41% compared to the previous year. The gross profit margin stands strong at 58.0% for TTM, reflecting efficient cost management. Net profit margin is also healthy at 16.1%, indicating solid profitability. The EBIT and EBITDA margins of 24.1% and 28.3% respectively demonstrate robust operational efficiency.

Balance Sheet

The debt-to-equity ratio is relatively high at 1.59, which could imply potential leverage risks, though common in the industry. However, the company maintains a decent return on equity of 28.7%, signifying effective use of equity to generate profits. The equity ratio of 24.7% indicates a moderate level of equity financing.

Cash Flow

There is a notable free cash flow growth of 4.79% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong at 1.10, suggesting efficient cash flow management relative to net income. Furthermore, the free cash flow to net income ratio of 1.03 is satisfactory, highlighting sound cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.05B	24.46B	22.74B	20.72B	19.82B	17.22B
Gross Profit	10.67B	10.46B	9.64B	8.65B	8.39B	7.09B
EBITDA	7.08B	6.87B	6.32B	5.69B	5.50B	4.06B
Net Income	4.04B	4.06B	3.76B	3.05B	3.14B	2.02B
Balance Sheet
Total Assets	57.02B	56.48B	48.03B	33.45B	34.39B	33.03B
Cash, Cash Equivalents and Short-Term Investments	1.60B	2.40B	3.36B	1.44B	1.75B	2.09B
Total Debt	22.42B	21.86B	15.44B	13.47B	13.16B	13.58B
Total Liabilities	42.75B	42.95B	35.66B	22.70B	23.17B	23.77B
Stockholders Equity	14.06B	13.34B	12.19B	10.75B	11.22B	9.26B
Cash Flow
Free Cash Flow	4.18B	3.99B	3.84B	3.00B	3.11B	3.03B
Operating Cash Flow	4.46B	4.30B	4.26B	3.46B	3.52B	3.38B
Investing Cash Flow	-8.43B	-8.82B	-1.42B	-850.00M	-1.16B	-814.00M
Financing Cash Flow	4.18B	4.46B	-1.12B	-1.05B	-1.30B	-925.00M

Marsh & Mclennan Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 215.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMC, the sentiment is Negative. The current price of 215.08 is below the 20-day moving average (MA) of 219.32, below the 50-day MA of 223.92, and below the 200-day MA of 223.76, indicating a bearish trend. The MACD of -2.93 indicates Positive momentum. The RSI at 35.12 is Neutral, neither overbought nor oversold. The STOCH value of 52.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MMC.

Marsh & Mclennan Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MUFG	76 Outperform	$155.48B	13.30	9.18%	1.95%	5.39%	20.82%
MCO	75 Outperform	$89.43B	42.95	57.90%	0.76%	15.95%	26.38%
AON	71 Outperform	$75.91B	29.96	74.17%	0.85%	19.57%	-8.09%
AJG	71 Outperform	$80.86B	48.57	9.27%	0.82%	14.07%	31.44%
MMC	70 Outperform	$104.81B	26.09	30.51%	1.53%	7.56%	3.39%
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%
WTW	65 Neutral	$30.19B	―	-0.60%	1.21%	2.42%	-103.64%

Marsh & Mclennan Companies Corporate Events

Marsh & McLennan’s Annual Meeting Decisions Announced

On May 15, 2025, Marsh & McLennan Companies held its Annual Meeting of Stockholders, where key decisions were made. The stockholders elected eleven directors for a one-year term, approved executive compensation, ratified Deloitte & Touche LLP as the independent auditor, and approved amendments to the 2020 Incentive and Stock Award Plan. These decisions reflect the company’s ongoing governance practices and commitment to aligning executive incentives with shareholder interests.

The most recent analyst rating on (MMC) stock is a Hold with a $220.00 price target. To see the full list of analyst forecasts on Marsh & Mclennan Companies stock, see the MMC Stock Forecast page.