MMC
NEUTRAL
$182.81
Live
Marsh & McLennan Companies, Inc. · NYSE
Target $214.26
(+17.2%)
$174.18
52W Range
$248.0
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Nov 16, 2025
Market cap
$90.07B
P/E
21.92
ROE
28.7%
Profit margin
15.6%
Debt/Equity
1.4
Dividend yield
1.97%
AI Analysis
AI-powered fundamental assessment
Confidence
75%
Marsh & McLennan Companies (MMC) trades at a premium valuation with solid long-term profitability and a disciplined capital allocation track record, but faces near-term headwinds reflected in flat year-over-year earnings growth and weakening quarterly EPS momentum. The stock has significantly underperformed over the past year (-16.1%) and six months (-20.3%), lagging both its historical performance and several peers in the Financial Services sector, despite consistent earnings beats over the last 25 quarters. While its ROE of 28.73% and operating margin of 19.24% are strong relative to sector averages, elevated leverage (Debt/Equity: 1.40) and insider selling activity raise caution. Analysts broadly concur with a 'hold' rating and imply 17% upside to a $214.26 target, suggesting limited near-term catalysts despite attractive relative fundamentals.
Key Strengths
Exceptional profitability with ROE of 28.73%, significantly above sector average of 25.01% and peer group (e.g., KKR: 7.67%, APO: 16.55%)
High operating margin of 19.24% and gross margin of 43.95%, reflecting pricing power and operational efficiency in the insurance brokerage segment
Consistent earnings outperformance: 22 out of 25 quarters beat estimates, with an average surprise of +4.8% over the last 12 quarters
Attractive dividend profile with 1.97% yield and sustainable 41.13% payout ratio, supported by durable free cash flow generation
Revenue growth of 11.5% YoY outpaces traditional banking peers like USB (7.2%) and PNC (10.8%)
Key Risks
Earnings growth stagnation: 0.0% YoY and -24.5% QoQ EPS growth indicate near-term profitability compression despite top-line momentum
Premium valuation: Forward P/E of 19.39 exceeds sector average of 20.54 but is less compelling given slower growth than high-growth peers like APO (26.4% revenue growth)
High leverage with Debt/Equity of 1.40, well above sector average of 0.68, increasing vulnerability to interest rate shocks or economic downturn
Weak liquidity profile: Quick ratio of 0.52 suggests constrained short-term flexibility, especially concerning for a capital-intensive financial services firm
Bearish insider activity: CEO sold over $9.2M in shares with no offsetting buys in the last six months, signaling potential lack of confidence at the top
AI Fair Value Estimate
Based on comprehensive analysis
$214.26
+17.2% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
64
Strong
60
55
80
50
75
AI Verdict
MMC presents a mixed profile—premium valuation and strong historical execution are offset by near-term earnings stagnation, elevated leverage, and insider selling; while the $214.26 analyst target implies upside, the stock's underperformance and lack of growth inflection limit near-term appeal relative to more dynamic peers like APO or USB.
Key drivers: Persistent earnings beat streak and high-quality margins, Elevated Debt/Equity and weak short-term liquidity, Divergence between solid revenue growth and flat earnings growth
Confidence
75%
Value
60/100
MMC trades at a slight premium to the sector’s average P/E of 20.54 despite lower growth than high-flyers like APO (26.4%), making its valuation appear stretched on a growth-adjusted basis.
Positives
- Forward P/E of 19.39 is reasonable for a company with 11.5% revenue growth and 28.7% ROE
- Price/Sales of 3.40 is in line with industry leaders in financial services advisory
Watchpoints
- Price/Book of 5.91 is high relative to sector average and suggests intangible risk concentration
- Lack of EV/EBITDA and cash flow data limits full valuation triangulation
Future
55/100
Despite solid revenue momentum, the disconnect between top-line growth and flat earnings, combined with negative price momentum, raises concerns about future margin trajectory and investor appetite.
Positives
- 11.5% YoY revenue growth indicates continued client demand and market share gains in risk advisory and insurance broking
- Analyst target of $214.26 implies 17% upside, suggesting embedded confidence in recovery
Watchpoints
- 0.0% YoY earnings growth and -24.5% QoQ EPS decline signal margin pressure or one-time costs
- 6-month return of -20.3% and 1-year decline of -16.1% reflect deteriorating market sentiment
Past
80/100
MMC has delivered exceptional earnings consistency and long-term shareholder returns, but recent underperformance and margin compression relative to the sector highlight growing competitive or macro pressures.
Positives
- 22 of the last 25 quarters beat EPS estimates, with multiple surprises above +10%, demonstrating forecasting discipline and execution reliability
- ROE has remained above 25% for multiple years, indicating efficient use of equity capital
Watchpoints
- 5-year return of +70.2% is strong, but 3-year (+16.8%) and 1-year (-16.1%) performance shows deceleration and recent underperformance
- Profit margin of 15.6% lags sector average of 24.19%, indicating cost structure or mix challenges
Health
50/100
MMC’s financial health is a key differentiator—its leverage and liquidity metrics are weaker than peers like USB and PNC, which operate with lower debt and stronger balance sheets, increasing vulnerability in a higher-rate environment.
Positives
- Operating margin of 19.24% supports strong cash generation capacity despite leverage
- Current ratio of 1.12 indicates nominal ability to cover short-term obligations
Watchpoints
- Debt/Equity of 1.40 is significantly above sector average of 0.68, increasing financial risk
- Quick ratio of 0.52 indicates limited liquid assets to meet immediate liabilities, raising refinancing concerns
Dividend
75/100
The dividend appears sustainable given the low payout ratio and strong cash flows, but lack of growth visibility and absence of long-term yield data reduce its attractiveness as a compounding engine.
Positives
- 1.97% dividend yield is above the sector average and provides income appeal
- 41.13% payout ratio is conservative and well-covered by earnings, indicating sustainability
Watchpoints
- No data on 5-year average yield or dividend growth history limits visibility into policy consistency
- Dividend growth not confirmed by historical progression, leaving room for stagnation
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$182.81
Analyst Target
$214.26
Upside/Downside
+17.2%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for MMC and closest competitors.
Updated 2025-11-14
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
MMC
Marsh & McLennan Companies, Inc.
Primary
|
+70.2% | +16.8% | -16.1% | -20.3% | -10.3% | +1.5% |
|
BCS
Barclays PLC
Peer
|
+313.1% | +229.8% | +82.1% | +34.6% | +2.2% | +0.1% |
|
BK
The Bank of New York Mellon Corporation
Peer
|
+229.8% | +224.2% | +73.2% | +22.3% | +14.4% | +3.1% |
|
USB
U.S. Bancorp
Peer
|
+21.0% | +82.1% | +52.1% | +23.8% | +11.3% | +1.8% |
|
MCO
Moody's Corporation
Peer
|
+81.5% | +64.7% | +0.2% | -1.8% | +0.2% | -1.7% |
MMC
Marsh & McLennan Companies, Inc.
Primary
5Y
+70.2%
3Y
+16.8%
1Y
-16.1%
6M
-20.3%
1M
-10.3%
1W
+1.5%
BCS
Barclays PLC
Peer
5Y
+313.1%
3Y
+229.8%
1Y
+82.1%
6M
+34.6%
1M
+2.2%
1W
+0.1%
BK
The Bank of New York Mellon Corporation
Peer
5Y
+229.8%
3Y
+224.2%
1Y
+73.2%
6M
+22.3%
1M
+14.4%
1W
+3.1%
USB
U.S. Bancorp
Peer
5Y
+21.0%
3Y
+82.1%
1Y
+52.1%
6M
+23.8%
1M
+11.3%
1W
+1.8%
MCO
Moody's Corporation
Peer
5Y
+81.5%
3Y
+64.7%
1Y
+0.2%
6M
-1.8%
1M
+0.2%
1W
-1.7%
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
21.92
Forward P/E
19.39
PEG Ratio
N/A
P/B Ratio
5.91
P/S Ratio
3.4
EV/Revenue
4.11
EV/EBITDA
14.06
Market Cap
$90.07B
Profitability
Profit margins and return metrics
Profit Margin
15.6%
Operating Margin
19.24%
Gross Margin
43.95%
ROE
28.73%
ROA
7.88%
Growth
Revenue and earnings growth rates
Revenue Growth
+11.5%
Earnings Growth
N/A
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
N/A
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.4
Moderate
Current Ratio
1.12
Good
Quick Ratio
0.52
Poor
Cash/Share
$5.12
Quarterly Earnings History
EPS performance vs analyst estimates
2026-01-29
$N/A
2025-10-16
$1.85
+4.1% surprise
2025-07-17
$2.45
+1.6% surprise
2025-04-17
$3.06
+2.1% surprise
Financial Services Sector Comparison
Comparing MMC against 820 companies in the Financial Services sector
(141 bullish, 351 neutral, 328 bearish)
P/E Ratio
21.92
This Stock
vs
36.01
Sector Avg
-39.1%
(Discount)
Return on Equity (ROE)
28.73%
This Stock
vs
-0.73%
Sector Avg
-4021.4%
(Below Avg)
Profit Margin
15.6%
This Stock
vs
91.62%
Sector Avg
-83.0%
(Weaker)
Debt to Equity
1.4
This Stock
vs
1.36
Sector Avg
+2.7%
(Higher)
Revenue Growth
11.5%
This Stock
vs
35.27%
Sector Avg
-67.4%
(Slower)
Current Ratio
1.12
This Stock
vs
3.18
Sector Avg
-64.7%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
MMC
Marsh & McLennan Companies, Inc.
|
NEUTRAL | $90.07B | 21.92 | 28.7% | 15.6% | $182.81 | |
|
BCS
Barclays PLC
|
BEARISH | $90.49B | 12.02 | 9.4% | 26.6% | $26.2 | Compare |
|
BK
The Bank of New York...
|
BULLISH | $92.02B | 17.83 | 12.9% | 27.7% | $131.96 | Compare |
|
USB
U.S. Bancorp
|
BULLISH | $87.58B | 12.2 | 12.2% | 28.7% | $56.37 | Compare |
|
MCO
Moody's Corporation
|
BULLISH | $87.55B | 38.61 | 54.9% | 29.9% | $479.48 | Compare |
MMC
Marsh & McLennan...
NEUTRAL
Mkt Cap
$90.1B
P/E
21.9
ROE
28.7%
Price
$182.81
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-09-02 | DOYLE JOHN Q | Chief Executive Officer | Option Exercise | 21,079 | $1,329,874 |
| 2025-09-02 | DOYLE JOHN Q | Chief Executive Officer | Sale | 21,079 | $4,334,896 |
| 2025-08-15 | MILLS STEVEN A | Director | Stock Award | 204 | $42,443 |
| 2025-07-30 | ANDERSON ANTHONY K | Director | Purchase | 1,000 | $201,612 |
| 2025-06-02 | DOYLE JOHN Q | Chief Executive Officer | Option Exercise | 21,080 | $1,329,937 |
| 2025-06-02 | DOYLE JOHN Q | Chief Executive Officer | Sale | 21,080 | $4,891,614 |
| 2025-05-30 | MILLS STEVEN A | Director | Stock Award | 929 | $214,850 |
| 2025-05-30 | HARTMANN JUDITH | Director | Stock Award | 929 | $214,850 |
| 2025-05-30 | HANWAY H EDWARD | Director | Stock Award | 929 | $214,850 |
DOYLE JOHN Q
Chief Executive Officer
2025-09-02
21,079 shares
·
$1,329,874
DOYLE JOHN Q
Chief Executive Officer
2025-09-02
21,079 shares
·
$4,334,896
MILLS STEVEN A
Director
2025-08-15
204 shares
·
$42,443
ANDERSON ANTHONY K
Director
2025-07-30
1,000 shares
·
$201,612
DOYLE JOHN Q
Chief Executive Officer
2025-06-02
21,080 shares
·
$1,329,937
DOYLE JOHN Q
Chief Executive Officer
2025-06-02
21,080 shares
·
$4,891,614
MILLS STEVEN A
Director
2025-05-30
929 shares
·
$214,850
HARTMANN JUDITH
Director
2025-05-30
929 shares
·
$214,850
HANWAY H EDWARD
Director
2025-05-30
929 shares
·
$214,850
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
HOLD
19 analysts
TD Cowen
2025-11-03
Hold
Hold
B of A Securities
2025-11-03
Neutral
Underperform
Goldman Sachs
2025-10-20
Sell
Neutral
Evercore ISI Group
2025-10-17
Outperform
Outperform
Wells Fargo
2025-10-17
Equal-Weight
Equal-Weight
Keefe, Bruyette & Woods
2025-10-17
Underperform
Market Perform
JP Morgan
2025-10-09
Neutral
Overweight
UBS
2025-10-08
Buy
Buy
Barclays
2025-10-08
Equal-Weight
Equal-Weight
Wells Fargo
2025-10-08
Equal-Weight
Equal-Weight
Past News Coverage
Recent headlines mentioning MMC from our newsroom.
Newest → oldest
No matching news yet.