Marsh & Mclennan Companies, Inc. (MRSH)
NYSE:MRSH
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Marsh & McLennan Companies
(NYSE:MRSH)
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Rating:73Outperform
Price Target:
$180.00
▲(2.39% Upside)
Action:Reiterated
Date:04/16/26
MRSH scores well on financial performance, supported by strong margins and high-quality free cash flow, though leverage and slight TTM softening temper the outlook. Earnings-call guidance is encouraging on margins, EPS growth, and capital deployment, but litigation charges and pricing/fiduciary income headwinds remain notable risks. Technicals are mixed with a weaker longer-term trend, and valuation is moderate with a modest dividend yield.
Positive Factors
High-quality free cash flow
Sustained FCF roughly equal to net income indicates high cash quality and conversion. That durable cash generation supports consistent dividends, sizable buybacks and M&A funding, improving resilience through cycles and enabling strategic capital allocation over the next several quarters.
Negative Factors
Meaningful leverage on the balance sheet
Elevated leverage constrains financial flexibility and raises sensitivity to higher interest costs or earnings softness. With sizable debt outstanding and modest operating cash flow coverage, the company may have less room for opportunistic M&A or large incremental buybacks if margins or cash flow weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
High-quality free cash flow
Sustained FCF roughly equal to net income indicates high cash quality and conversion. That durable cash generation supports consistent dividends, sizable buybacks and M&A funding, improving resilience through cycles and enabling strategic capital allocation over the next several quarters.
Read all positive factors
Marsh & McLennan Companies Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down total revenue by business unit, showing which areas contribute most to the top line and potential growth drivers.
Breaks down total revenue by business unit, showing which areas contribute most to the top line and potential growth drivers.
Data provided by:
The Fly
The FlyMarsh & McLennan Companies (MRSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$78.72B
Dividend Yield1.85%
Average Volume (3M)2.89M
Price to Earnings (P/E)18.3
Beta (1Y)0.39
Revenue Growth10.08%
EPS Growth-2.19%
CountryUS
Employees90,000
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)8.04
Shares Outstanding481,794,500
10 Day Avg. Volume2,970,142
30 Day Avg. Volume2,892,252
Financial Highlights & Ratios
PEG Ratio7.79
Price to Book (P/B)5.98
Price to Sales (P/S)3.35
P/FCF Ratio18.07
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue3.62
Enterprise Value/Gross Profit8.54
Enterprise Value/Ebitda14.91
Forecast
1Y Price Target
$201.07Price Target Upside14.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)10.4
Revenue Forecast (FY)$28.41B
Marsh & McLennan Companies Business Overview & Revenue Model
Company Description
Marsh & McLennan Cos., Inc. is a professional services firm, which offers clients advice and solutions in risk, strategy and people. The company is headquartered in New York, New York and currently employs 65,000 full-time employees. The firm is t...
How the Company Makes Money
Marsh & McLennan makes money mainly by delivering brokerage, advisory, and consulting services across its operating segments:
1) Insurance brokerage and risk advisory (Marsh)
- Primary revenue stream: brokerage and advisory fees earned for placin...
Marsh & McLennan Companies Earnings Call Summary
Earnings Call Date:Apr 16, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and strategic outlook: solid top-line growth (8% consolidated, 4% underlying), healthy adjusted earnings and margins, strong consulting and AUM growth, an ambitious and early-productive AI program, and active capital deployment including $750 million of share repurchases. Key near-term challenges include significant litigation-related charges ($425M), continued insurance and reinsurance pricing pressure (primary rates down 5%, property down 9% YoY, reinsurance rate declines of ~15%–20% on some renewals), and reduced fiduciary interest income. Management emphasized margin expansion guidance for 2026, Thrive cost savings, and confidence in AI-driven productivity and growth. Overall, positive operational momentum and strategic initiatives outweigh the notable one-time and market headwinds discussed.Positive Updates
Consolidated Revenue and Underlying Growth
Total consolidated revenue rose 8% year-over-year to $7.6 billion, with underlying revenue up 4% despite headwinds from lower fiduciary interest income and P&C pricing pressure.
Negative Updates
Significant Litigation Charge
A $425 million charge was recorded in Q1 related to litigation stemming from the 2021 collapse of Greenfield Capital; the charge is the company's best estimate of liability and the litigation is ongoing.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue and Underlying Growth
Total consolidated revenue rose 8% year-over-year to $7.6 billion, with underlying revenue up 4% despite headwinds from lower fiduciary interest income and P&C pricing pressure.
Read all positive updates
Company Guidance
Marsh guided that 2026 underlying revenue growth should be similar to 2025, with continued margin expansion (more expansion expected in H2 than H1) and “solid” adjusted EPS growth; it forecast an adjusted effective tax rate of 24.5–25.5% for 2026, Q2 fiduciary interest income of ~ $80M, Q2 corporate expense of ~ $90M and Q2 interest expense of ~ $245M, and said FX should be immaterial for the rest of the year; management plans to deploy roughly $5B of capital in 2026 across dividends, acquisitions and buybacks (it repurchased $750M in Q1 and used $1.3B of cash in Q1 including $440M dividends and $89M for acquisitions), expects to generate $400M of Thrive savings while incurring about $500M of related charges, and noted balance‑sheet items of $20.6B total debt, $1.6B cash and a next debt maturity of €550M in Q3.Marsh & McLennan Companies Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.52B | 26.98B | 24.46B | 22.74B | 20.72B | 19.82B |
| Gross Profit | 11.66B | 11.40B | 10.46B | 9.64B | 8.65B | 8.39B |
| EBITDA | 6.68B | 7.39B | 6.93B | 6.32B | 5.27B | 5.40B |
| Net Income | 3.92B | 4.16B | 4.06B | 3.76B | 3.05B | 3.14B |
Balance Sheet | ||||||
| Total Assets | 58.55B | 58.71B | 56.48B | 48.03B | 44.11B | 34.39B |
| Cash, Cash Equivalents and Short-Term Investments | 1.61B | 2.69B | 2.40B | 3.36B | 1.44B | 1.75B |
| Total Debt | 22.45B | 21.45B | 21.86B | 15.44B | 13.47B | 13.16B |
| Total Liabilities | 43.75B | 43.40B | 42.95B | 35.66B | 33.37B | 23.17B |
| Stockholders Equity | 14.57B | 15.10B | 13.34B | 12.19B | 10.52B | 11.01B |
Cash Flow | ||||||
| Free Cash Flow | 4.93B | 5.00B | 3.99B | 3.84B | 3.00B | 3.11B |
| Operating Cash Flow | 5.23B | 5.29B | 4.30B | 4.26B | 3.46B | 3.52B |
| Investing Cash Flow | -975.00M | -845.00M | -8.82B | -1.42B | -850.00M | -1.16B |
| Financing Cash Flow | -4.38B | -4.63B | 4.46B | -1.12B | -1.05B | -1.30B |
Marsh & McLennan Companies Technical Analysis
Negative
175.80
Price Trends
170.29
Negative
175.68
Negative
183.43
Negative
Market Momentum
-2.57
Negative
43.75
Neutral
63.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRSH, the sentiment is Negative. The current price of 175.8 is above the 20-day moving average (MA) of 165.94, above the 50-day MA of 170.29, and below the 200-day MA of 183.43, indicating a bearish trend. The MACD of -2.57 indicates Negative momentum. The RSI at 43.75 is Neutral, neither overbought nor oversold. The STOCH value of 63.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRSH.
Marsh & McLennan Companies Risk Analysis
Marsh & McLennan Companies disclosed 35 risk factors in its most recent earnings report. Marsh & McLennan Companies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Marsh & McLennan Companies Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $69.75B | 14.27 | 45.09% | 0.82% | 7.51% | 55.21% | |
73 Outperform | $78.72B | 18.31 | 25.91% | 1.85% | 10.08% | -2.19% | |
72 Outperform | $52.31B | 16.94 | 6.91% | 1.01% | 25.34% | -5.29% | |
71 Outperform | $10.34B | 19.44 | 25.03% | 1.90% | 4.80% | -6.97% | |
70 Outperform | $19.89B | 12.74 | 9.35% | 0.77% | 29.22% | -2.51% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $24.26B | 23.29 | 20.98% | 1.14% | 0.92% | ― |
* Financial Sector Average
MRSH
Marsh & McLennan Companies
163.38
-61.33
-27.29%
AON
Aon
321.15
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AJG
Arthur J Gallagher & Co
203.61
-130.61
-39.08%
BRO
Brown & Brown
57.43
-52.58
-47.79%
ERIE
Erie Indemnity Company
222.07
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-36.05%
WTW
Willis Towers Watson
254.05
-53.13
-17.30%
Marsh & McLennan Companies Corporate Events
Business Operations and StrategyExecutive/Board Changes
Marsh & McLennan Elevates CFO to COO Role
Positive
Apr 14, 2026
On April 14, 2026, Marsh announced that long-serving Chief Financial Officer Mark McGivney will take on additional responsibilities as Executive Vice President and Chief Operating Officer, effective April 15. The move consolidates financial and op...
Private Placements and Financing
Marsh & McLennan Issues $600 Million Senior Notes
Positive
Feb 19, 2026
On February 11, 2026, Marsh McLennan Companies, Inc. entered into an underwriting agreement with a syndicate led by Citigroup Global Markets, J.P. Morgan Securities and Wells Fargo Securities for a $600 million issuance of 4.950% senior notes due...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.