Marsh & Mclennan Companies, Inc. (MRSH)
NYSE:MRSH
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Marsh & McLennan Companies
(NYSE:MRSH)
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Rating:70Outperform
Price Target:
$173.00
▼(-1.59% Downside)
Action:Reiterated
Date:06/05/26
MRSH scores well on fundamentals, driven by strong margins, dependable cash conversion, and constructive 2026 guidance/capital return plans. The main offset is weak price momentum (below key moving averages with negative MACD), with leverage and litigation/pricing headwinds adding secondary risk.
Positive Factors
High Profitability
Sustained high margins reflect durable pricing power and the efficiency of a fee-based, advisory-heavy business model. Strong operating margins support reinvestment, dividend capacity and buybacks over time, making earnings less sensitive to short-term revenue swings.
Negative Factors
Elevated Leverage
Meaningful leverage limits balance-sheet flexibility and raises refinancing and interest-rate sensitivity risk. With sizable total debt and modest operating-cashflow coverage relative to debt, shocks to earnings or higher financing costs could constrain capital deployment and increase covenant pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained high margins reflect durable pricing power and the efficiency of a fee-based, advisory-heavy business model. Strong operating margins support reinvestment, dividend capacity and buybacks over time, making earnings less sensitive to short-term revenue swings.
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
$80.07B
Dividend Yield1.85%
Average Volume (3M)2.81M
Price to Earnings (P/E)20.6
Beta (1Y)0.36
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. Volume2,631,078
30 Day Avg. Volume2,811,157
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/Revenue3.68
Enterprise Value/Gross Profit8.68
Enterprise Value/Ebitda15.16
Forecast
1Y Price Target
$199.88Price Target Upside13.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)10.4
Revenue Forecast (FY)$28.42B
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
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
Neutral
175.80
Price Trends
167.19
Negative
172.30
Negative
179.82
Negative
Market Momentum
0.26
Negative
53.19
Neutral
75.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRSH, the sentiment is Neutral. The current price of 175.8 is above the 20-day moving average (MA) of 163.68, above the 50-day MA of 167.19, and below the 200-day MA of 179.82, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 53.19 is Neutral, neither overbought nor oversold. The STOCH value of 75.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $70.38B | 18.02 | 45.09% | 0.82% | 7.51% | 55.21% | |
72 Outperform | $55.42B | 34.45 | 6.91% | 1.01% | 25.34% | -5.29% | |
71 Outperform | $20.09B | 17.32 | 9.35% | 0.77% | 29.22% | -2.51% | |
71 Outperform | $10.43B | 18.39 | 25.03% | 1.90% | 4.80% | -6.97% | |
70 Outperform | $80.07B | 20.57 | 25.91% | 1.85% | 10.08% | -2.19% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $24.35B | 14.83 | 20.98% | 1.14% | 0.92% | ― |
* Financial Sector Average
MRSH
Marsh & McLennan Companies
166.78
-45.19
-21.32%
AON
Aon
331.45
-16.20
-4.66%
AJG
Arthur J Gallagher & Co
215.90
-96.71
-30.94%
BRO
Brown & Brown
59.70
-47.46
-44.29%
ERIE
Erie Indemnity Company
225.64
-119.11
-34.55%
WTW
Willis Towers Watson
259.65
-34.65
-11.77%
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...
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...
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.