Marsh & McLennan Companies, Inc. (MRSH) stock analysis
Close on Nov 12, 2026Market cap $97.81BP/E 24.6Yield 1.67%
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed12 of 30 checks passed
Marsh & McLennan Companies passes 12 of the 30 checks behind our score; 11 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 2/6
- Growth
- 1/6
- Past performance
- 3/6
- Financial health
- 3/6
- Dividend
- 3/6
What stands out
Earnings grew over 5 years
Net income grew 15.6% a year on average over the last five fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 11.8% a year over the last three fiscal years.
Interest well covered
Operating income covers interest expense 6.3 times.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 21.8% of total debt.
What to watch
Revenue growing under 10% a year
Revenue grew 9.2% a year over the last three fiscal years, short of the 10% we look for.
Earnings growth not accelerating
Net income grew -2.1% over the last twelve months, against a 5-year average of 15.6% a year.
P/S above the industry
Marsh & McLennan Companies's price-to-sales of 3.47 is above the Insurance Agents, Brokers, and Service median of 3.43.
Growing slower than the industry
Revenue grew 7.6% over the last twelve months; the Insurance Agents, Brokers, and Service median is 13.8%.
Valuation2/6
P/E below its 5-year median
Marsh & McLennan Companies's P/E of 24.9 is below its own 5-year median of 26.5.
P/E below the industry
Marsh & McLennan Companies's P/E of 24.9 is below the Insurance Agents, Brokers, and Service median of 30.1.
P/S above the industry
Marsh & McLennan Companies's price-to-sales of 3.47 is above the Insurance Agents, Brokers, and Service median of 3.43.
P/B against the industry
Needs positive book value.
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.
Growth1/6
Revenue growing under 10% a year
Revenue grew 9.2% a year over the last three fiscal years, short of the 10% we look for.
EPS growing 10%+ a year
Diluted EPS grew 11.8% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew -2.1% over the last twelve months, against a 5-year average of 15.6% a year.
Growing slower than the industry
Revenue grew 7.6% over the last twelve months; the Insurance Agents, Brokers, and Service median is 13.8%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
Banks and insurers do not report gross profit.
Past performance3/6
Return on equity
Needs positive equity and five years of results.
Return on assets over 1%
Return on assets was 6.8%; for a bank or insurer, 1% or more is considered good.
Return on equity against the industry
Needs positive equity.
Earnings grew over 5 years
Net income grew 15.6% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 14.2% over the last twelve months, against a 5-year average of 15.8%.
Net margin above the industry
Marsh & McLennan Companies's net margin of 14.2% is above the Insurance Agents, Brokers, and Service median of 4.9%.
Financial health3/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 21.8% of total debt.
Interest well covered
Operating income covers interest expense 6.3 times.
Short-term assets cover short-term debts
Current assets are 1.09 times current liabilities.
Bankruptcy risk (Altman Z)
The Altman model does not apply to insurers.
Dividend3/6
Pays a dividend
Marsh & McLennan Companies paid dividends worth 1.8% of the share price over the last twelve months.
Yield below Treasuries
The 1.8% yield is below the 4.4% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 3.8% or more; Marsh & McLennan Companies yields 1.8%.
Dividend stability
Fewer than five years of dividend history.
Covered by earnings
Dividends take 44.5% of net income.
Covered by free cash flow
Dividends take 43.3% of free cash flow.
Fair value
How we estimate itWe don't publish a fair value for Marsh & McLennan Companies. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 26.5
- Insurance Agents, Brokers, and Service median 30.1
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $472.18M
- Value traded per 1% price move
- $388.05M
Downside
Low risk
- Typical loss in a bad month
- 10.9%
- Volatility (annualized)
- 26%
- Sharpe ratio, 1 year
- 0.47
- Beta to the S&P 500 (5Y)
- 0.60
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +10.3% | +9.2% | +9.4% | +7.7% | |
| Operating income | +7.0% | +13.3% | +15.2% | +9.9% | |
| Net income | +2.5% | +10.9% | +15.6% | +10.0% | |
| EPS, diluted | +3.1% | +11.8% | +16.4% | +11.0% | |
| Free cash flow | +25.5% | +18.6% | +10.5% | +12.3% | |
| Dividend per share | +12.5% | +15.1% | – | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on assets | 9.7% | 6.3% | 7.2% | |
| Current ratio | 1.20 | 1.24 | 1.10 | |
| Net debt to EBITDA | 1.32× | 0.17× | 2.57× | |
| Interest coverage | 12.9× | 6.0× | 6.5× | |
| Capex to revenue | 1.9% | 2.0% | 1.1% | |
| Diluted shares | 524M | 512M | 494M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Marsh & McLennan Companies generated $20.83B from operations and spent $15.74B on capital expenditure, dividends and share buybacks. 12% of that went back into the business.
DuPont needs revenue, assets and equity
This company does not report all three for consecutive years.
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$4.16B
- Cash generatingOperating cash flow above zero$5.29B
- Return on assets improvedROA up on the prior year8.5% → 7.4%
- Earnings backed by cashOperating cash flow above net income$5.29B vs $4.16B
- Less leverageLong-term debt to assets fell34.4% → 31.2%
- Better liquidityCurrent ratio rose1.13 → 1.10
- No dilutionShare count did not rise496M → 494M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.51 → 0.48
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