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Marsh & McLennan Companies
(NYSE:MRSH)
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Rating:76Outperform
Price Target:
$206.00
â–²(13.98% Upside)
Action:Reiterated
Date:07/21/26
The score is driven primarily by strong financial performance (consistent growth, solid margins, and high cash conversion) and supportive technical momentum (price above key moving averages with positive MACD). The main offsets are a more leveraged balance sheet and a valuation that looks closer to fully priced (P/E 22.65), while the earnings call was net positive but flagged real near-term headwinds in reinsurance/property pricing, fiduciary interest income, and transformation charges.
Positive Factors
Free cash flow conversion
Consistently high free cash flow conversion (FCF/net income ~0.86–0.95) and multi-year rising operating cash flows provide durable internal funding. That supports sustained dividends, buybacks, M&A and tech investment without relying on equity, improving resilience across cycles.
Negative Factors
Meaningful leverage
Material leverage (debt/equity ~1.4–1.6 and ~$20.6B of debt) constrains financial flexibility and raises sensitivity to rising interest rates or refinancing risk. Elevated interest costs reduce margin upside and limit free cash flow available for opportunistic investments during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow conversion
Consistently high free cash flow conversion (FCF/net income ~0.86–0.95) and multi-year rising operating cash flows provide durable internal funding. That supports sustained dividends, buybacks, M&A and tech investment without relying on equity, improving resilience across cycles.
Read all positive factors
Marsh & McLennan Companies Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals the profitability of each business unit, highlighting which segments drive earnings and which may need strategic adjustments.
Reveals the profitability of each business unit, highlighting which segments drive earnings and which may need strategic adjustments.
Data provided by:
The Fly
The FlyMarsh & McLennan Companies (MRSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$90.52B
Dividend Yield1.95%
Average Volume (3M)2.45M
Price to Earnings (P/E)23.1
Beta (1Y)0.34
Revenue Growth8.47%
EPS Growth-2.13%
CountryUS
Employees95,000
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)8.21
Shares Outstanding477,211,270
10 Day Avg. Volume2,604,593
30 Day Avg. Volume2,450,791
Financial Highlights & Ratios
PEG Ratio7.85
Price to Book (P/B)5.98
Price to Sales (P/S)3.35
P/FCF Ratio18.07
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$200.50Price Target Upside10.93% Upside
Rating ConsensusHold
Number of Analyst Covering17
EPS Forecast (FY)10.45
Revenue Forecast (FY)$28.56B
Marsh & McLennan Companies Business Overview & Revenue Model
Company Description
Marsh & McLennan Companies, Inc. (MRSH) functions as a leading professional services organization, delivering expert guidance and innovative solutions to clients across the vital domains of risk management, strategic planning, and human capital. B...
How the Company Makes Money
MMC primarily makes money by charging fees and commissions for brokerage, advisory, and consulting services across its operating companies. In Risk & Insurance Services, Marsh generates revenue mainly from insurance brokerage and risk advisory ser...
Marsh & McLennan Companies Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 15, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a constructive tone: the company delivered solid top-line growth (+6%), margin and EPS expansion (adjusted EPS +9%), strong consulting and Mercer momentum, meaningful AI and brand initiatives (Thrive), and increased shareholder returns (dividend +10%, increased buyback guidance). However, significant headwinds persist in property and reinsurance pricing that pressured Guy Carpenter and parts of the insurance market, along with lower fiduciary interest income and planned one-time charges related to Thrive. On balance, the positive operational and financial progress and strategic investments outweigh the near-term market-driven challenges.Positive Updates
Consolidated Revenue and Growth
Consolidated revenue increased 6% year-over-year to $7.4 billion in Q2 2026, with underlying revenue growth accelerating to 5% (from 4% in prior quarter).
Negative Updates
Guy Carpenter Revenue Pressure
Guy Carpenter revenue declined 2% in Q2 to $664 million (reported and underlying). Reinsurance/property rate declines were a major headwind (roughly a 6 percentage point drag on underlying growth in the quarter); first half revenue was flat on an underlying basis.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Revenue and Growth
Consolidated revenue increased 6% year-over-year to $7.4 billion in Q2 2026, with underlying revenue growth accelerating to 5% (from 4% in prior quarter).
Read all positive updates
Company Guidance
Guidance: Marsh expects 2026 underlying revenue growth to be similar to 2025, another year of margin expansion (with more expansion in Q4 than Q3) and solid adjusted EPS growth; for modelling note Q2 consolidated revenue was $7.4B (+6%, underlying +5%), adjusted operating income $2.2B (+5%) with a 29.3% adjusted operating margin (H1 margin 30.5%), GAAP EPS $2.63 and adjusted EPS $2.96 (+9%; H1 adjusted EPS $6.25, +8%). Near-term specifics: Marsh Management Consulting Q3 underlying growth likely mid‑ to high‑single digits; fiduciary interest income ~ $95M in Q3; adjusted corporate expense ~ $75M in Q3; interest expense Q2 was ~$250M and is expected to be similar in Q3; adjusted effective tax rate guidance 24.5%–25.5% for 2026; FX impact immaterial. Capital and programs: end‑Q2 debt $20.6B, cash $1.7B; Q2 cash uses $1.4B (dividends $438M, acquisitions $230M, buybacks $750M), H1 uses $2.7B (dividends $878M, acquisitions $319M, buybacks $1.5B); now expect to deploy ~ $5.5B in 2026 (up from $5.0B), announced a 10% dividend increase (17th consecutive year); Thrive targets $400M of savings with ~ $500M of associated charges (Q2 noteworthy items $130M, including $52M of Thrive costs).Marsh & McLennan Companies Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
68
Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.95B | 26.98B | 24.46B | 22.74B | 20.72B | 19.82B |
| Gross Profit | 11.84B | 11.40B | 10.46B | 9.64B | 8.65B | 8.39B |
| EBITDA | 5.76B | 7.39B | 6.93B | 6.32B | 5.27B | 5.40B |
| Net Income | 3.98B | 4.16B | 4.06B | 3.76B | 3.05B | 3.14B |
Balance Sheet | ||||||
| Total Assets | 59.68B | 58.71B | 56.48B | 48.03B | 44.11B | 34.39B |
| Cash, Cash Equivalents and Short-Term Investments | 1.70B | 2.69B | 2.40B | 3.36B | 1.44B | 1.75B |
| Total Debt | 22.38B | 21.45B | 21.86B | 15.44B | 13.47B | 13.16B |
| Total Liabilities | 44.25B | 43.40B | 42.95B | 35.66B | 33.37B | 23.17B |
| Stockholders Equity | 15.18B | 15.10B | 13.34B | 12.19B | 10.52B | 11.01B |
Cash Flow | ||||||
| Free Cash Flow | 4.77B | 5.00B | 3.99B | 3.84B | 3.00B | 3.11B |
| Operating Cash Flow | 5.08B | 5.29B | 4.30B | 4.26B | 3.46B | 3.52B |
| Investing Cash Flow | -1.01B | -845.00M | -8.82B | -1.42B | -850.00M | -1.16B |
| Financing Cash Flow | -3.49B | -4.63B | 4.46B | -1.12B | -1.05B | -1.30B |
Marsh & McLennan Companies Technical Analysis
Positive
180.74
Price Trends
173.78
Positive
171.21
Positive
175.41
Positive
Market Momentum
5.51
Negative
61.60
Neutral
60.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRSH, the sentiment is Positive. The current price of 180.74 is below the 20-day moving average (MA) of 185.19, above the 50-day MA of 173.78, and above the 200-day MA of 175.41, indicating a bullish trend. The MACD of 5.51 indicates Negative momentum. The RSI at 61.60 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $76.48B | 19.77 | 42.56% | 0.83% | 4.36% | 51.69% | |
79 Outperform | $23.56B | 19.45 | 9.62% | 0.95% | 34.22% | 3.21% | |
77 Outperform | $31.20B | 20.60 | 19.95% | 1.27% | 3.00% | 914.66% | |
76 Outperform | $90.52B | 23.10 | 26.53% | 2.04% | 8.47% | -2.13% | |
75 Outperform | $64.08B | 40.89 | 6.67% | 1.07% | 26.74% | -9.59% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $515.85M | 30.31 | 13.01% | 2.73% | -3.23% | -41.71% |
* Financial Sector Average
MRSH
Marsh & McLennan Companies
191.65
-7.61
-3.82%
AON
Aon
358.30
-6.41
-1.76%
AJG
Arthur J Gallagher & Co
248.12
-37.58
-13.15%
BRO
Brown & Brown
71.43
-22.33
-23.82%
CRD.A
Crawford & Company A
13.77
4.77
52.97%
WTW
Willis Towers Watson
344.82
19.71
6.06%
Marsh & McLennan Companies Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Marsh & McLennan Expands Revolving Credit Facility for Growth
Positive
Jun 4, 2026
On June 2, 2026, Marsh McLennan Companies entered into a new amended and restated five-year credit agreement, securing a multi-currency unsecured $4.25 billion revolving credit facility that expires in June 2031. The facility, led by Citibank, N....
Executive/Board ChangesShareholder Meetings
Marsh & McLennan Shareholders Back Board, Pay and Auditor
Positive
May 22, 2026
At its annual meeting of stockholders held on May 21, 2026, Marsh McLennan Companies, Inc. reported that 90.34% of its outstanding common shares were represented, and shareholders elected all 13 director nominees to one-year terms expiring at the...
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.