Marsh & Mclennan Companies (MMC) AI Stock Analysis

• Market Cap: $91.68B
• Dividend Yield: 1.84%
• Average Volume (3M): 2.37M
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.38
• Revenue Growth: 10.51%
• EPS Growth: 2.57%
• Country: US
• Employees: 90,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 1.85
• Shares Outstanding: 491,624,050
• 10 Day Avg. Volume: 2,408,768
• 30 Day Avg. Volume: 2,374,352
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 4.98
• Enterprise Value/Gross Profit: 11.69
• Enterprise Value/Ebitda: 17.76
• 1Y Price Target: $223.41
• Price Target Upside: 19.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 70 Outperform
• Price Target: $205.00 ▲(9.93% Upside)

Marsh & McLennan Companies' overall stock score is driven by its strong financial performance and positive earnings call insights, which highlight strategic initiatives for growth. However, technical analysis indicates bearish momentum, and valuation metrics suggest the stock is fairly valued. Economic uncertainties and declining property casualty rates pose potential risks.

Positive Factors

Revenue Growth

The 11% revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and expansion.

Strategic Rebranding

Rebranding to Marsh aims to streamline operations and enhance brand recognition, potentially increasing market competitiveness and client engagement.

AI and Technology Investments

Investing in AI and technology enhances operational efficiency and innovation, positioning the company for future growth in a tech-driven market.

Negative Factors

Decline in Property Casualty Rates

Declining property casualty rates can pressure revenue growth in insurance sectors, potentially impacting long-term profitability.

Economic Uncertainty

Economic uncertainty, particularly in the U.S., may hinder growth prospects, affecting client spending and overall market stability.

Fiduciary Interest Income Decline

A decline in fiduciary interest income due to lower rates can reduce earnings, impacting cash flow and financial flexibility over time.

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 fees and commissions for its consulting and brokerage services. The core revenue streams include commission income from insurance placements and advisory fees from consulting services across its segments. Marsh, for instance, earns significant revenue by acting as an intermediary between clients and insurance carriers, receiving commissions on policies placed. Guy Carpenter earns revenue through reinsurance brokering services, while Mercer derives income from its health, retirement, and talent consulting services. Oliver Wyman contributes to revenue through management consulting engagements. Additionally, strategic partnerships with insurance companies and other service providers enhance MMC's service offerings and can lead to increased business opportunities, further solidifying its revenue base.

Marsh & Mclennan Companies Financial Statement Overview

Summary

Marsh & McLennan Companies showcases strong financial health with solid profitability and growth. The income statement is robust, supported by high margins and consistent revenue growth. The balance sheet shows manageable leverage and strong returns on equity. However, cash flow efficiency could improve, given the decline in free cash flow due to increased capital expenditures.

Income Statement

Marsh & Mclennan Companies demonstrates a strong income statement with commendable margins. The TTM (Trailing-Twelve-Months) gross profit margin stands at 42.56%, and net profit margin at 15.99%, indicating solid profitability. Additionally, the revenue growth rate from 2024 to TTM is 5.48%, showcasing a positive growth trajectory. The EBIT margin is robust at 23.58%, and the EBITDA margin at 27.12% further highlights operational efficiency. Overall, the company has shown consistent revenue and profit growth, maintaining high operational margins.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.37, which is manageable within the industry context. The return on equity (ROE) for TTM is strong at 26.17%, indicating effective utilization of shareholder funds. The equity ratio is 26.93%, showing a balanced approach to financing with a mix of debt and equity. While the leverage is significant, the company appears to handle it well given its profitability and equity returns.

Cash Flow

The cash flow statement presents a healthy scenario with a free cash flow to net income ratio of 0.52 in the TTM, indicating good cash generation relative to net income. However, the operating cash flow to net income ratio is slightly lower at 0.58, suggesting room for improvement in cash conversion efficiency. The free cash flow growth rate of -46.37% from 2024 to TTM indicates a decline, partly due to increased capital expenditures, which could be a potential risk factor.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.80B	24.46B	22.74B	20.72B	19.82B	17.22B
Gross Profit	10.98B	10.46B	9.64B	8.65B	8.39B	7.09B
EBITDA	7.23B	6.93B	6.32B	5.27B	5.40B	4.05B
Net Income	4.13B	4.06B	3.76B	3.05B	3.14B	2.02B
Balance Sheet
Total Assets	58.55B	56.48B	48.03B	33.45B	34.39B	33.03B
Cash, Cash Equivalents and Short-Term Investments	1.68B	2.40B	3.36B	1.44B	1.75B	2.09B
Total Debt	21.61B	21.86B	15.44B	13.47B	13.16B	13.58B
Total Liabilities	42.58B	42.95B	35.66B	22.70B	23.17B	23.77B
Stockholders Equity	15.77B	13.34B	12.19B	10.52B	11.01B	9.10B
Cash Flow
Free Cash Flow	4.65B	3.99B	3.84B	3.00B	3.11B	3.03B
Operating Cash Flow	4.92B	4.30B	4.26B	3.46B	3.52B	3.38B
Investing Cash Flow	-8.13B	-8.82B	-1.42B	-850.00M	-1.16B	-793.00M
Financing Cash Flow	3.01B	4.46B	-1.12B	-1.05B	-1.30B	-925.00M

Marsh & Mclennan Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 186.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 186.48 is below the 20-day moving average (MA) of 200.49, below the 50-day MA of 202.48, and below the 200-day MA of 216.21, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 27.80 is Positive, neither overbought nor oversold. The STOCH value of 50.55 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
BRO	76 Outperform	$31.00B	27.10	11.27%	0.69%	11.68%	-0.17%
AON	75 Outperform	$73.99B	28.73	37.99%	0.83%	18.42%	-4.44%
AJG	72 Outperform	$75.94B	44.64	9.49%	0.91%	15.03%	28.86%
MMC	70 Outperform	$91.68B	22.37	28.42%	1.84%	10.51%	2.57%
ERIE	70 Outperform	$14.53B	26.30	31.14%	1.75%	12.19%	17.82%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WTW	65 Neutral	$33.11B	237.21	1.57%	1.11%	1.27%	-84.75%

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.