Is Marsh McLennan Stock a Good Investment?
Marsh McLennan Investment Advice | MMC |
- Examine Marsh McLennan's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Marsh McLennan's leadership team and their track record. Good management can help Marsh McLennan navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Insurance Brokers space and any emerging trends that could impact Marsh McLennan's business and its evolving consumer preferences.
- Compare Marsh McLennan's performance and market position to its competitors. Analyze how Marsh McLennan is positioned in terms of product offerings, innovation, and market share.
- Check if Marsh McLennan pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Marsh McLennan's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Marsh McLennan Companies stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Marsh McLennan Companies is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Marsh McLennan Stock
Researching Marsh McLennan's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 91.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.48. Marsh McLennan Companies recorded earning per share (EPS) of 8.12. The entity last dividend was issued on the 4th of October 2024. The firm had 2:1 split on the 1st of July 2002.
To determine if Marsh McLennan is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Marsh McLennan's research are outlined below:
| Marsh McLennan has a poor financial position based on the latest SEC disclosures | |
| Over 91.0% of the company shares are owned by institutional investors | |
| On 15th of November 2024 Marsh McLennan paid $ 0.815 per share dividend to its current shareholders | |
| Latest headline from kalkinemedia.com: NYSEMMC Gains Analyst Confidence with Strong Performance |
Marsh McLennan Quarterly Accounts Payable |
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Marsh McLennan uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Marsh McLennan Companies. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Marsh McLennan's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 18th of April 2024 Upcoming Quarterly Report | View | |
| 18th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 23rd of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Marsh McLennan's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Marsh McLennan's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2009-02-11 | 2008-12-31 | 0.32 | 0.37 | 0.05 | 15 | ||
2008-02-12 | 2007-12-31 | 0.31 | 0.26 | -0.05 | 16 | ||
1999-04-29 | 1999-03-31 | 0.49 | 0.54 | 0.05 | 10 | ||
2008-08-06 | 2008-06-30 | 0.35 | 0.41 | 0.06 | 17 | ||
2019-10-29 | 2019-09-30 | 0.7 | 0.77 | 0.07 | 10 | ||
2006-08-03 | 2006-06-30 | 0.44 | 0.36 | -0.08 | 18 | ||
2020-10-29 | 2020-09-30 | 0.73 | 0.82 | 0.09 | 12 | ||
2006-05-03 | 2006-03-31 | 0.52 | 0.43 | -0.09 | 17 |
Know Marsh McLennan's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Marsh McLennan is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Marsh McLennan Companies backward and forwards among themselves. Marsh McLennan's institutional investor refers to the entity that pools money to purchase Marsh McLennan's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Ameriprise Financial Inc | 2024-06-30 | 7.9 M | Bank Of America Corp | 2024-06-30 | 7.6 M | Mawer Investment Management Ltd | 2024-06-30 | 7 M | Norges Bank | 2024-06-30 | 6.1 M | Northern Trust Corp | 2024-09-30 | 5.2 M | Nuveen Asset Management, Llc | 2024-06-30 | 4.6 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 4.6 M | Legal & General Group Plc | 2024-06-30 | 4.5 M | Parnassus Investments Llc | 2024-09-30 | 4.3 M | Vanguard Group Inc | 2024-09-30 | 44.4 M | Blackrock Inc | 2024-06-30 | 42.3 M |
Marsh McLennan's market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 114.55 B.Market Cap |
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Marsh McLennan's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.13 | 0.15 | |
| Return On Capital Employed | 0.19 | 0.23 | |
| Return On Assets | 0.08 | 0.10 | |
| Return On Equity | 0.31 | 0.25 |
Determining Marsh McLennan's profitability involves analyzing its financial statements and using various financial metrics to determine if Marsh McLennan is a good buy. For example, gross profit margin measures Marsh McLennan's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Marsh McLennan's profitability and make more informed investment decisions.
Please note, the presentation of Marsh McLennan's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Marsh McLennan's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Marsh McLennan's management manipulating its earnings.
Evaluate Marsh McLennan's management efficiency
Marsh McLennan Companies has Return on Asset of 0.0832 % which means that on every $100 spent on assets, it made $0.0832 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.3205 %, implying that it generated $0.3205 on every 100 dollars invested. Marsh McLennan's management efficiency ratios could be used to measure how well Marsh McLennan manages its routine affairs as well as how well it operates its assets and liabilities. At present, Marsh McLennan's Return On Capital Employed is projected to slightly decrease based on the last few years of reporting. The current year's Return On Assets is expected to grow to 0.1, whereas Return On Equity is forecasted to decline to 0.25. At present, Marsh McLennan's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 1.8 B, whereas Other Assets are forecasted to decline to about 2.9 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 25.04 | 26.29 | |
| Tangible Book Value Per Share | (15.16) | (14.41) | |
| Enterprise Value Over EBITDA | 16.73 | 9.45 | |
| Price Book Value Ratio | 7.68 | 8.06 | |
| Enterprise Value Multiple | 16.73 | 9.45 | |
| Price Fair Value | 7.68 | 8.06 | |
| Enterprise Value | 7.3 B | 4.9 B |
Marsh McLennan Companies has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Dividend Yield 0.014 | Forward Dividend Yield 0.014 | Forward Dividend Rate 3.26 | Beta 0.937 |
Basic technical analysis of Marsh Stock
As of the 28th of November, Marsh McLennan secures the Mean Deviation of 0.6706, downside deviation of 0.8548, and Risk Adjusted Performance of 0.0516. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Marsh McLennan Companies, as well as the relationship between them.Marsh McLennan's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Marsh McLennan insiders, such as employees or executives, is commonly permitted as long as it does not rely on Marsh McLennan's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Marsh McLennan insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Marsh McLennan's Outstanding Corporate Bonds
Marsh McLennan issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Marsh McLennan Companies uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Marsh bonds can be classified according to their maturity, which is the date when Marsh McLennan Companies has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MMC 545 15 MAR 53 Corp BondUS571748BT86 | View | |
| MMC 625 01 NOV 52 Corp BondUS571748BS04 | View | |
| MMC 575 01 NOV 32 Corp BondUS571748BR21 | View | |
| MMC 29 15 DEC 51 Corp BondUS571748BQ48 | View | |
| MMC 2375 15 DEC 31 Corp BondUS571748BP64 | View | |
| MARSH MCLENNAN PANIES Corp BondUS571748BN17 | View | |
| MARSH MCLENNAN INC Corp BondUS571748BD35 | View | |
| MARSH MCLENNAN INC Corp BondUS571748BC51 | View |
Understand Marsh McLennan's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Marsh McLennan's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0516 | |||
| Market Risk Adjusted Performance | 0.117 | |||
| Mean Deviation | 0.6706 | |||
| Semi Deviation | 0.8062 | |||
| Downside Deviation | 0.8548 | |||
| Coefficient Of Variation | 1504.44 | |||
| Standard Deviation | 0.8204 | |||
| Variance | 0.673 | |||
| Information Ratio | (0.09) | |||
| Jensen Alpha | (0) | |||
| Total Risk Alpha | (0.08) | |||
| Sortino Ratio | (0.08) | |||
| Treynor Ratio | 0.107 | |||
| Maximum Drawdown | 3.78 | |||
| Value At Risk | (1.31) | |||
| Potential Upside | 1.25 | |||
| Downside Variance | 0.7307 | |||
| Semi Variance | 0.65 | |||
| Expected Short fall | (0.69) | |||
| Skewness | (0.20) | |||
| Kurtosis | (0.51) |
| Risk Adjusted Performance | 0.0516 | |||
| Market Risk Adjusted Performance | 0.117 | |||
| Mean Deviation | 0.6706 | |||
| Semi Deviation | 0.8062 | |||
| Downside Deviation | 0.8548 | |||
| Coefficient Of Variation | 1504.44 | |||
| Standard Deviation | 0.8204 | |||
| Variance | 0.673 | |||
| Information Ratio | (0.09) | |||
| Jensen Alpha | (0) | |||
| Total Risk Alpha | (0.08) | |||
| Sortino Ratio | (0.08) | |||
| Treynor Ratio | 0.107 | |||
| Maximum Drawdown | 3.78 | |||
| Value At Risk | (1.31) | |||
| Potential Upside | 1.25 | |||
| Downside Variance | 0.7307 | |||
| Semi Variance | 0.65 | |||
| Expected Short fall | (0.69) | |||
| Skewness | (0.20) | |||
| Kurtosis | (0.51) |
Consider Marsh McLennan's intraday indicators
Marsh McLennan intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Marsh McLennan stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Marsh McLennan Corporate Filings
F4 | 19th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 15th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 1st of November 2024 Prospectus used primarily for registering securities for public sale. | ViewVerify | |
FWP | 31st of October 2024 A written communication used by offering participants to offer securities to the public or to solicit securities transactions. | ViewVerify |
Marsh Stock media impact
Far too much social signal, news, headlines, and media speculation about Marsh McLennan that are available to investors today. That information is available publicly through Marsh media outlets and privately through word of mouth or via Marsh internal channels. However, regardless of the origin, that massive amount of Marsh data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Marsh McLennan news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Marsh McLennan relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Marsh McLennan's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Marsh McLennan alpha.
Marsh McLennan Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Marsh McLennan can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Marsh McLennan Companies Historical Investor Sentiment
Investor biases related to Marsh McLennan's public news can be used to forecast risks associated with an investment in Marsh. The trend in average sentiment can be used to explain how an investor holding Marsh can time the market purely based on public headlines and social activities around Marsh McLennan Companies. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Marsh McLennan's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Marsh McLennan and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Marsh McLennan news discussions. The higher the estimate score, the more favorable the investor's outlook on Marsh McLennan.
Marsh McLennan Corporate Directors
| Marc Oken | Independent Director | Profile | |
| Oscar Martin | Independent Director | Profile | |
| Tamara Ingram | Independent Director | Profile | |
| Deborah Hopkins | Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Marsh McLennan Companies. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Is Insurance Brokers space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Marsh McLennan. If investors know Marsh will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Marsh McLennan listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.027 | Dividend Share 3.05 | Earnings Share 8.12 | Revenue Per Share 48.619 | Quarterly Revenue Growth 0.059 |
The market value of Marsh McLennan Companies is measured differently than its book value, which is the value of Marsh that is recorded on the company's balance sheet. Investors also form their own opinion of Marsh McLennan's value that differs from its market value or its book value, called intrinsic value, which is Marsh McLennan's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Marsh McLennan's market value can be influenced by many factors that don't directly affect Marsh McLennan's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Marsh McLennan's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Marsh McLennan is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Marsh McLennan's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.