Marsh & McLennan Companies (MRSH)
NYSE:MRSH
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Marsh & McLennan Companies
(NYSE:MRSH)
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Rating:62Neutral
Price Target:
$190.00
▲(9.54% Upside)
Action:ReiteratedDate:02/21/26
The score is driven primarily by strong operating results and cash generation, but is held back by materially higher leverage and a very thin equity cushion. Technical momentum is currently weak versus key moving averages, while valuation is moderate with a modest dividend. Earnings-call guidance is positive on margins and EPS, though near-term headwinds (pricing softness, lower fiduciary income, and transformation charges) and ongoing debt considerations temper the outlook.
Positive Factors
Strong free cash flow generation
Consistent, sizable FCF (~$5B in 2025) underpins durable capital flexibility: funds dividends, record share repurchases, and M&A while supporting reinvestment in tech and margin programs. Reliable cash conversion (0.86–0.95x earnings) strengthens earnings quality and strategic optionality.
Negative Factors
Elevated leverage and thin equity cushion
Extremely high debt-to-equity reduces financial flexibility and amplifies risk to capital returns or M&A if cash flow weakens. A thin equity buffer makes the firm more sensitive to shocks, constrains balance-sheet optionality and raises priority on deleveraging over riskier growth investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, sizable FCF (~$5B in 2025) underpins durable capital flexibility: funds dividends, record share repurchases, and M&A while supporting reinvestment in tech and margin programs. Reliable cash conversion (0.86–0.95x earnings) strengthens earnings quality and strategic optionality.
Read all positive factors
Marsh & McLennan Companies (MRSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$83.97B
Dividend Yield1.85%
Average Volume (3M)3.14M
Price to Earnings (P/E)21.7
Beta (1Y)0.38
Revenue Growth10.57%
EPS Growth2.57%
CountryUS
Employees90,000
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)2.12
Shares Outstanding484,124,270
10 Day Avg. Volume3,826,158
30 Day Avg. Volume3,142,144
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 Cap1.23
Enterprise Value/Revenue3.82
Enterprise Value/Gross Profit9.03
Enterprise Value/Ebitda13.92
Forecast
1Y Price Target
$207.69Price Target Upside19.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)10.38
Revenue Forecast (FY)$28.30B
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 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 premi...
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 Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive financial and strategic story: strong full-year and quarterly results, margin expansion, substantial free cash flow, active capital return and M&A activity, and launch of the Thrive program and technology initiatives which position the firm for future efficiency and growth. These positives are tempered by clear near-term headwinds—most notably declining insurance and reinsurance pricing, lower fiduciary income from falling interest rates, one-time transformation charges, and pockets of regional softness. Management expects 2026 underlying revenue growth similar to 2025 with continued margin expansion, signaling confidence despite market pressures.Positive Updates
Strong Full-Year Revenue and Underlying Growth
Total revenue grew 10% year-over-year to $27,000,000,000 with underlying revenue growth of 4% for fiscal 2025, demonstrating broad-based top-line strength.
Negative Updates
Softening Insurance and Reinsurance Pricing
Market pricing headwinds: Marsh Global Insurance Market Index renewal rates decreased 4% in Q4; global property rates decreased 9% year-over-year (Q4), other regions saw mid- to double-digit rate declines—this creates a headwind to organic revenue growth in P&C and reinsurance-exposed lines.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Revenue and Underlying Growth
Total revenue grew 10% year-over-year to $27,000,000,000 with underlying revenue growth of 4% for fiscal 2025, demonstrating broad-based top-line strength.
Read all positive updates
Company Guidance
Management guided that 2026 underlying revenue growth should be similar to 2025 (about 4%), with continued margin expansion and “solid” adjusted EPS growth (building on 2025 adjusted EPS of $9.75, +9%); they reiterated Thrive targets of $400 million of total savings (offset by roughly $500 million of one‑time charges, with a portion reinvested), and gave near‑term financial pointers including Q1 fiduciary interest income of ~ $83 million, Q1 interest expense of ~ $240 million, and an expected adjusted effective tax rate of 24.5%–25.5% for 2026 (no meaningful Q1 discrete tax benefit anticipated). Management also said it expects to deploy approximately $5.0 billion of capital in 2026 across dividends, acquisitions and share repurchases and noted a $600 million senior‑note maturity in H1 2026; all outlooks remain subject to change with economic conditions.Marsh & McLennan Companies Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
38
Negative
Cash Flow
76
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 26.98B | 24.46B | 22.74B | 20.72B | 19.82B |
| Gross Profit | 11.40B | 10.46B | 9.64B | 8.65B | 8.39B |
| EBITDA | 7.39B | 6.93B | 6.32B | 5.27B | 5.40B |
| Net Income | 4.16B | 4.06B | 3.76B | 3.05B | 3.14B |
Balance Sheet | |||||
| Total Assets | 58.71B | 56.48B | 48.03B | 44.11B | 34.39B |
| Cash, Cash Equivalents and Short-Term Investments | 2.69B | 2.40B | 3.36B | 1.44B | 1.75B |
| Total Debt | 21.45B | 21.86B | 15.44B | 13.47B | 13.16B |
| Total Liabilities | 43.40B | 42.95B | 35.66B | 33.37B | 23.17B |
| Stockholders Equity | 15.10B | 13.34B | 12.19B | 10.52B | 11.01B |
Cash Flow | |||||
| Free Cash Flow | 5.00B | 3.99B | 3.84B | 3.00B | 3.11B |
| Operating Cash Flow | 5.29B | 4.30B | 4.26B | 3.46B | 3.52B |
| Investing Cash Flow | -845.00M | -8.82B | -1.42B | -850.00M | -1.16B |
| Financing Cash Flow | -4.63B | 4.46B | -1.12B | -1.05B | -1.30B |
Marsh & McLennan Companies Technical Analysis
Negative
173.45
Price Trends
178.66
Negative
180.52
Negative
191.15
Negative
Market Momentum
-1.87
Negative
46.07
Neutral
51.37
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 173.45 is below the 20-day moving average (MA) of 175.03, below the 50-day MA of 178.66, and below the 200-day MA of 191.15, indicating a bearish trend. The MACD of -1.87 indicates Negative momentum. The RSI at 46.07 is Neutral, neither overbought nor oversold. The STOCH value of 51.37 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 34 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $11.70B | 23.87 | 25.30% | 1.90% | 9.64% | 15.87% | |
70 Outperform | $22.20B | 23.44 | 9.72% | 0.77% | 17.87% | -9.35% | |
69 Neutral | $55.68B | 45.10 | 6.50% | 1.01% | 17.17% | 19.12% | |
68 Neutral | $27.48B | 20.06 | 20.10% | 1.14% | ― | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $69.16B | 20.54 | 45.99% | 0.82% | 14.06% | 5.52% | |
62 Neutral | $83.97B | 21.72 | 27.69% | 1.85% | 10.57% | 2.57% |
* Financial Sector Average
MRSH
Marsh & McLennan Companies
173.45
-66.04
-27.57%
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Marsh & McLennan Companies Corporate Events
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.