Marsh & Mclennan Companies (MMC) AI Stock Analysis

• Market Cap: $89.79B
• Dividend Yield: 1.85%
• Average Volume (3M): 2.34M
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.33
• Revenue Growth: 10.57%
• EPS Growth: 2.57%
• Country: US
• Employees: 90,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 1.85
• Shares Outstanding: 489,909,670
• 10 Day Avg. Volume: 1,966,247
• 30 Day Avg. Volume: 2,341,633
• PEG Ratio: 3.01
• Price to Book (P/B): 7.83
• Price to Sales (P/S): 4.27
• P/FCF Ratio: 26.22
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 4.49
• Enterprise Value/Gross Profit: 10.61
• Enterprise Value/Ebitda: 16.36
• 1Y Price Target: $205.76
• Price Target Upside: 12.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $205.00 ▲(11.86% Upside)

The score is primarily driven by strong underlying financial performance and positive earnings-call fundamentals (profit growth and efficiency/AI initiatives). This is partially offset by weaker longer-term technical positioning (below 100/200-day averages) and only moderate valuation support (P/E ~21.9 with a ~1.9% yield).

Positive Factors

Revenue Growth

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

Strategic Rebranding

Rebranding to 'Marsh' and consolidating services under a unified brand can enhance market presence and streamline operations, fostering long-term growth.

AI and Technology Investments

Investments in AI and technology enhance operational efficiency and service offerings, positioning the company for sustained competitive advantage.

Negative Factors

High Debt Levels

High leverage can increase financial risk and limit flexibility, potentially impacting long-term financial stability and investment capacity.

Decline in Property Casualty Rates

Declining property casualty rates can pressure revenue growth in key segments, challenging the company's ability to maintain past growth levels.

Economic Uncertainty

Economic uncertainty, particularly in the U.S., can affect client spending and demand for services, posing risks to sustained revenue growth.

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 professional services. The Marsh segment earns money by providing insurance brokerage and risk management solutions, charging clients a commission on premiums placed with insurers. Guy Carpenter generates revenue through advisory services and commissions related to reinsurance placements. Mercer derives its income from consulting fees for its health, wealth, and talent management services, often involving long-term contracts with organizations. Oliver Wyman earns revenue through consulting fees for strategic advisory services. Additionally, MMC benefits from significant partnerships with leading insurers and corporations, enhancing its service offerings and expanding its client base, which contributes to its overall earnings.

Marsh & Mclennan Companies Financial Statement Overview

Summary

Marsh & McLennan Companies exhibits strong financial performance with high profitability and consistent revenue growth. The income statement is particularly robust, with healthy margins and a positive growth trajectory. The balance sheet shows manageable leverage and solid returns on equity, while the cash flow statement, despite some areas for improvement, indicates good cash generation.

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	26.45B	24.46B	22.74B	20.72B	19.82B	17.22B
Gross Profit	11.18B	10.46B	9.64B	8.65B	8.39B	7.09B
EBITDA	7.25B	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	58.78B	56.48B	48.03B	33.45B	34.39B	33.03B
Cash, Cash Equivalents and Short-Term Investments	2.51B	2.40B	3.36B	1.44B	1.75B	2.09B
Total Debt	21.43B	21.86B	15.44B	13.47B	13.16B	13.58B
Total Liabilities	43.42B	42.95B	35.66B	22.70B	23.17B	23.77B
Stockholders Equity	15.15B	13.34B	12.19B	10.52B	11.01B	9.10B
Cash Flow
Free Cash Flow	5.11B	3.99B	3.84B	3.00B	3.11B	3.03B
Operating Cash Flow	5.34B	4.30B	4.26B	3.46B	3.52B	3.38B
Investing Cash Flow	-7.97B	-8.82B	-1.42B	-850.00M	-1.16B	-793.00M
Financing Cash Flow	3.44B	4.46B	-1.12B	-1.05B	-1.30B	-925.00M

Marsh & Mclennan Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 183.27
• 50DMA: Positive
• 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 183.27 is below the 20-day moving average (MA) of 185.66, above the 50-day MA of 183.17, and below the 200-day MA of 204.14, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 46.08 is Neutral, neither overbought nor oversold. The STOCH value of 45.29 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	$27.12B	23.84	10.47%	0.77%	17.87%	-9.35%
MMC	74 Outperform	$89.79B	21.98	28.62%	1.85%	10.57%	2.57%
WTW	74 Outperform	$31.42B	15.66	27.79%	1.14%	―	―
ERIE	73 Outperform	$13.22B	23.08	30.44%	1.90%	9.64%	15.87%
AJG	69 Neutral	$65.99B	40.89	9.05%	1.01%	17.17%	19.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AON	66 Neutral	$74.37B	27.71	38.33%	0.82%	14.06%	5.52%

Marsh & Mclennan Companies Corporate Events

Marsh & McLennan updates bylaws, strengthens governance framework

On January 14, 2026, Marsh & McLennan Companies, Inc. implemented amended and restated bylaws that update and align its governance framework with recent changes to the Delaware General Corporation Law, including provisions related to stockholder lists and quorum requirements for committee meetings. The revisions also tighten and clarify advance notice procedures for director nominations and other stockholder proposals—such as disclosure obligations, limits on the number of nominees, and incorporation of universal proxy rules—while specifying voting standards for matters submitted to shareholders and formalizing the authority of the chair at stockholder meetings, collectively reinforcing the company’s corporate governance structure and potentially shaping how investors engage with management and the board.

The most recent analyst rating on (MMC) stock is a Buy with a $208.00 price target. To see the full list of analyst forecasts on Marsh & Mclennan Companies stock, see the MMC Stock Forecast page.