Marsh & McLennan Companies Inc

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MMC : NYSE : Financial
$67.73 up 0.15 | 0.22%
Today's Range: 67.68 - 68.1
Avg. Daily Volume: 2281100.0
01/13/17 - 4:02 PM ET

Financial Analysis

MARSH & MCLENNAN COS's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. MARSH & MCLENNAN COS has average liquidity. Currently, the Quick Ratio is 1.30 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 6.77% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)3141.03115.0
EBITDA ($mil)675.0594.0
EBIT ($mil)566.0486.0
Net Income ($mil)379.0323.0

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1388.01330.0
Total Assets ($mil)18358.017724.0
Total Debt ($mil)4756.04484.0
Equity ($mil)6671.06248.0

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin21.4919.07
EBITDA Margin21.4819.06
Operating Margin18.0215.6
Sales Turnover0.720.72
Return on Assets9.298.56
Return on Equity25.5723.83
Debt Q3 FY16 Q3 FY15
Current Ratio1.361.62
Interest Expense47.041.0
Interest Coverage12.0411.85

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)516.52522.3
Div / share0.340.31
Book value / share12.9211.96
Institutional Own % n/a n/a
Avg Daily Volume2274239.01808452.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 28.29 for the Insurance industry and a discount compared to the S&P 500 average of 25.49. For additional comparison, its price-to-book ratio of 5.23 indicates a significant premium versus the S&P 500 average of 2.84 and a significant premium versus the industry average of 1.59. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MMC 20.79 Peers 28.29   MMC 17.35 Peers 13.81

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

MMC is trading at a significant discount to its peers.


Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

MMC is trading at a significant premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
MMC 18.07 Peers 17.49   MMC 1.59 Peers 1.96

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

MMC is trading at a premium to its peers.


Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

MMC trades at a discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MMC 5.23 Peers 1.59   MMC 18.61 Peers 3.95

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MMC is trading at a significant premium to its peers.


Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

MMC is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MMC 2.66 Peers 1.41   MMC 2.61 Peers 10.38

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

MMC is trading at a significant premium to its industry.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

MMC significantly trails its peers on the basis of sales growth



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